What does determine the prices of flight tickets?
There are many factors of importance while determining flight prices.
Some of these factors are:
- Routes and prices applied to those routes,
- Flight dates,
- The airport of flight
It is possible to say that the most important determinants of the price are a number of empty seats, competition and demand. Of course, prior pricing data is another important factor to determine the pricing. Airline companies usually do their pricing by analyzing prior data for upcoming flight and then interpreting this data in regards to how many seats will be vacant and the level of demand. Of course an alternative option to upcoming flight from a competitor airline would be another indicator for pricing. If there is no other alternative to said flight on another airline, the prices would be higher. The notion of competition has such effects on pricing. To clarify with examples, it is well known that ticket prices are higher during holiday seasons and this is the result of higher demand. Airline companies are aware that even if the tickets are more costly, there still is a target group that purchase tickets. For this reason, when the demand is high, prices are high as well. Apart from that, during campaigns flight tickets are more affordable. Pricing between travel classes may also vary, for example Business Class tickets are more expensive that Economy Class in the same flight.