WHy airline prices fluctuate?

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WHy airline prices fluctuate?

Postby smurf » Tue Dec 29, 2009 8:47 am

er, maybe this is a stupid question to some...

I booked an air ticket to a tokyo, say, price is $705 (amount fully paid), and when I just the check the price again (for fun), the price reduces to $605! (same date)

any idea if they would refund the $100 difference? :?

smurf
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Postby starlight1968sg » Tue Dec 29, 2009 8:50 am

I guess many reasons for the price fluctuations; some include oil prices, demand and supply, etc.

We all know there are plenty of funny things in this world; eg why a movie ticket costs more during weekends?

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Postby peterch » Tue Dec 29, 2009 8:56 am

To my experience, usually we bought the ticket at the wrong time (I assumed that you bought your ticket a few months ahead) as some airlines are doing promotion from time to time. Last month I bought a fully paid ticket for my trip next March and they were promoting a cheaper ticket for the same date and route last week. Just happened, nothing we could do :D

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Postby smurf » Tue Dec 29, 2009 8:59 am

er, ya, movie ticket costs more on weekends...but you know that for sure ticket will increase price on weekend. but how do u know when will the air tic will increase?

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Postby starlight1968sg » Tue Dec 29, 2009 9:02 am

There are pros and cons for getting a cheap-cheap ticket. Usually such ticket has plenty of restrictions. Also, if you buy very, very early, what happens if something crops up during the last minute?

Yes, it is all on luck.

When my family was about to leave for Japan for holidays, the exchange rate went up to 100 JPY = SGD 1.62. Now it is only 100 JPY = SGD 1.53 :x

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Re: WHy airline prices fluctuate?

Postby qms » Tue Dec 29, 2009 9:02 am

smurf wrote:I booked an air ticket to a tokyo, say, price is $705 (amount fully paid), and when I just the check the price again (for fun), the price reduces to $605! (same date)

any idea if they would refund the $100 difference? :?


For economy class, they have different categories, such as Restricted Economy, Flexible Economy, etc. Restricted Economy tickets are, of course, cheaper than Flexible Economy tickets, even though passengers of both categories sit in the same cabin.

You have the choice of booking restricted or flexible economy tickets. Once tickets for a particular category sells out, no ticket will be available.

My guess is that when you first tried to book the ticket, the lower priced tickets were sold out. Hence, you were left with the next higher available category. When you checked the ticket price again, the lower category tickets became available (e.g. other passengers holding the lower category tickets could have cancelled or postponed their trips, etc.).

You will have to look into the T&Cs in details to know the differences between the various categories of economy tickets.

qms
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Postby smurf » Tue Dec 29, 2009 9:19 am

but the cheaper ticket is non refundable leh...soo how can it be available??

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Postby MMM » Tue Dec 29, 2009 9:54 am

Could the lower fare be due to promotion they are running currently?

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Postby Honey » Tue Dec 29, 2009 10:51 am

It could it be a matter of demand & supply and when the demand drops along the way, they have to drop the price to make it attractive so hopefully to drive up demand again.

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Postby qms » Tue Dec 29, 2009 11:56 am

smurf wrote:but the cheaper ticket is non refundable leh...soo how can it be available??


It need not be refundable. People can just cancel or postpone their trip, for one reason or another, and forfeit payment made previously.

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