Ever wondered how airlines price their flights? Make your trip that little bit sweeter by knowing how flight pricing works.
Here, we break down how airlines determine ticket prices from demand and supply to route popularity, seasonality and operating costs.
How do airlines calculate flight prices?
Ticket prices are shaped by a mix of factors. Popular routes command higher fares simply because demand is greater, and travel during peak seasons (think summer holidays and Diwali) pushes prices up further.
Competition matters too: when multiple airlines fly the same route, fares tend to be more competitive.
Fuel costs are a significant driver of operating expenses and feed directly into what you pay. Add to that the type of aircraft, ancillary fees like baggage and seat selection, and the cabin class you choose — economy, business or first — and you have a fairly complex pricing picture.
How do airlines price their flights?
Travel is just like any other valuable commodity, and it’s priced so that when demand is low, prices are low, to stimulate sales. Likewise, when demand is high, prices are high to capitalise on the interest. To do this, airlines set up a pricing schedule for their flights, putting the seats into price ‘buckets,’ and as one ‘bucket’ fills up, they open the next, more expensive one up for purchase.
Does seasonality significantly affect flight prices?
Airlines rely on a degree of seasonality in travel and price their fares to balance the affordability of their flights, as well as their own profitability. Ticket prices fluctuate, and booking at certain times, like the last minute, can be more expensive as there is less supply to meet demand. The best way to tackle these prices is to consider travelling during off-seasons, or booking well in advance.
You can always set up a Skyscanner Price Alert to get notified whenever the price of a flight changes.
Why do flight prices go up and down?
When you’re booking your next flight, it’s important to know that prices fluctuate. These price changes reflect how airlines react to sales and external factors, with the aim of filling up their planes.
Contrary to popular belief, and very much similar to stock prices, flight prices are affected by sales numbers rather than search volumes. So no matter how many times you hit the refresh button on a particular route, know that you’re not driving up the price by doing so.
If you're still deciding where and when you want to go on a holiday, our Savings Generator tool can help you decide the best places to visit to make your money go further.
More travel hacks to help you bag a bargain
Set up price alerts
Don't watch fares manually, let Skyscanner Price Alerts do the work. Mark a flight you're interested in and Skyscanner will notify you whenever the price changes, so you're always first in line for a drop.
Be flexible with dates
Prices shift constantly based on supply and demand. Skyscanner's Whole Month search tool lets you compare fares across an entire month at a glance. Flying a day earlier or later than planned can make a surprising difference, midweek departures are almost always cheaper.
Keep an open mind on destination
Not fixed on where you're going? Search Everywhere on Skyscanner and find the best-value destinations for your dates. You might discover somewhere better than you'd planned.
Mix and match airlines
There's no rule that says your outbound and return flights have to be with the same carrier. Booking each leg separately across different airlines can sometimes land you a significantly better deal.
