Why Flight Prices Fluctuate So Wildly
Flight pricing is one of the most dynamic systems of pricing that exists in the world of travel. When compared to any retail good, a plane ticket’s price can fluctuate by significant amounts within the same 24 hour period. This is thanks to airlines’ revenue management software that is capable of assessing booking patterns, seat availability, prices from competitor carriers, the proximity of holidays or events, and fuel costs in real time.
As a flight fills, prices naturally begin to increase. If a particular flight is underperforming in bookings, a carrier will often slash prices to encourage travelers to fill vacant seats. This is precisely why two travelers sitting next to each other could be in the air and yet have each paid different sums of money for the exact same seat.
Seasonality is also a factor that affects how prices are set for flights. If you are trying to book your trip during the summer holidays, at Christmas, Thanksgiving, spring break, or when a major festival is happening, you are generally going to face some serious sticker shock in terms of airfare prices. Booking during off-season periods can offer you some seriously attractive discounts.
Understanding the flight pricing model can help prevent you from falling victim to any emotional impulse purchases and instead help you focus on planning and being adaptable.
Supply and Demand
Every plane has only so many seats divided among various price tiers, and once those are sold out, then the more expensive ones take their place.
Dynamic Airline Pricing
Airlines monitor customer activity and what their competitors are charging. Modern pricing systems can even adjust ticket prices multiple hundreds of times a day.
When is the Best Time to Book a Cheap Flight?
While the price of tickets is volatile, timing your bookings is still one of the surest ways to save money on flights. For domestic travel, expect the sweet spot for booking between one and three months in advance of the travel date. International flights are best booked between three and six months out for optimum savings with still plenty of seats available. It’s rarely a money saver to book last minute unless there’s just a few remaining seats left that a carrier wants to fill.
Domestic Booking Window:
Booking too far out doesn’t guarantee a great price. Airlines often release fare sales a few months in advance of travel dates, but these prices will change as the date approaches and demand builds.
International Booking Window:
With multiple carriers operating on many international routes, booking several months out can significantly increase the likelihood of landing the best fares.
Best Days and Times to Fly
While there isn’t one magic day of the week that always yields the cheapest airfare, you will often see lower prices for trips departing on certain days. Tuesdays, Wednesdays, and Saturdays tend to have lower prices than the more in-demand travel days of Fridays and Sundays. Many travelers look for deals departing late at night or in the early morning hours since those flights aren’t as popular with a typical passenger.
Mid-Week Travel
Booking travel for Monday, Tuesday or Wednesday typically opens up a greater number of less expensive flight options.
Compare Prices across multiple booking platforms
You never want to book a flight directly after searching just one travel website or search engine. Different travel agencies negotiate different rates with various airlines and book from a diverse set of providers, which leads to varying prices. The flight comparison sites provide you with a chance to see how the prices differ among hundreds of carriers.
Flight Search Engines
Comparing your fares on the internet is a great starting point. These sites scour a number of providers at once.
Airline Websites
Once you’ve identified the cheapest flight itinerary, consider taking a look at the official website of the airline in question, as there may be some further deals that aren’t offered elsewhere.
Utilize Flexible Date and Nearby Airports
Perhaps the easiest method to save several hundred dollars is simply to remain flexible with your travel plans. Simply shifting your dates of departure a day or two could result in substantial price differences. Many of the sites mentioned previously now have monthly fare calendars to see what days of the month have the cheapest prices.
Additionally, check out nearby airports as they can save you hundreds of dollars.
When there’s several airports within close proximity to your origin or destination, it’s sometimes worth it to go a bit further to save a lot.
Flexible Date Calendars
These provide an easy visual representation of the best dates to book flights.
Alternative Airports
Even though it may be an extra step and cost to get to an alternative airport, it could save you a significant amount on the price of your flight.
Set Price Alerts
Instead of checking your prices repeatedly, you can sign up for price alerts. They will let you know when fares have dropped or jumped up. This is a good way to ensure you’re not paying over the odds on a price increase, while also jumping at an unexpected sale.
Frequent travelers might sign up for price alerts for a number of routes so they can react to any major dips.
Take Advantage of Airline Rewards Programs and Credit Cards
These loyalty programs are often a cornerstone of savings on flights, with rewards building up on hotel stays, frequent flyer programs, shopping portals and co-branded travel credit cards. You’ll find that free flights, upgraded seating and airport lounge access come your way quickly with responsible use of these programs. You’ll also find many travel cards offer a significant welcome bonus after meeting a spending requirement, which is often enough for a few domestic flights.
Understand Budget Airlines
Budget carriers are a great option if you want to find cheap flights. Their base fares can often be far cheaper than on mainstream carriers, but it is imperative to be mindful of the extra costs. Fees for checked baggage, choosing seats, food, boarding passes and the like will add up quickly. Budget airlines are best suited for those traveling with minimal carry-on baggage only, no additional services required, and who don’t mind the slightly less comfortable flight.
Look beyond the advertised price when shopping around.
Hidden Fees to Watch For
The incredibly low price of airfare may not be so attractive when added charges are factored in.
Fee Typical Cost Can you Avoid?
Checked baggage $25- $80+ yes
Seat selection $10 – $70 Yes
Carry-on luggage vares yes
Airport check in vares yes
Flight changes high dependent on fare
Be sure to examine the entire price breakdown before making a commitment.
Money-Saving Tips for International Travel
When traveling abroad, there are even more ways to save on airfare. An open-jaw flight or a multi-city journey could potentially be less costly than a round-trip, especially when the duration of layovers are also considered. Be sure to check currency exchange rates since sometimes purchasing tickets through a country’s local airline can be cheaper than purchasing in your own country. Of course, try to avoid travel during major holiday periods to save even more on flights.
Common Mistakes That Increase Flight Prices
There are many common mistakes that travelers make when booking flights that cost them additional money. First and foremost is not taking the time to shop around and compare prices across multiple flight search engines. The next mistake is not being flexible with flight dates or the destination’s location by checking out a few nearby airports.
Lastly, if you are not comparing the airline’s luggage policies you could end up paying a hefty fee when you get to the airport.
Always ensure that you sign up for a rewards program.
Conclusion
Saving money on flights isn’t luck; it’s knowledge. Knowing airline pricing and how to game the system, while keeping flexible with your travel dates and booking times, can ensure that you’re always flying at your lowest possible cost. Just like shopping, the ticket that’s advertised for less might not actually be the best deal once you factor in baggage costs, the type of airport and schedule.
It can take a little time and effort, but you’ll eventually learn to build flight-booking savings into your regular habits and travel plans.
You’ll be amazed at what you can achieve on your travel goals and dreams once you take charge and do it like you know what you’re doing, and eventually, you will.