This is how airlines price tickets
Many of us this summer will fly off on holiday for a well-deserved break. It's more than likely that you spent hours on the internet researching cheap flights, trying to figure out an airfare pricing system that seems completely random.
Fees appear to fluctuate without reason and longer flights aren't always more expensive than shorter ones. But what seems random is actually airlines' dynamic pricing, using a strategy called airline revenue management.
It works in real time with one aim — to boost revenues. The decisions are being made by an algorithm that adjusts fares by using information including past bookings, remaining capacity, average demand for certain routes and the probability of selling more seats later.
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