One may assume that airlines may offer lower rates to fill up empty seats as a flight departure date draws near! However, that is not the case!
If you have ever booked a last-minute flight, you may have experienced that financial punch in the gut as well. You go online in hopes of scoring a deal, only to see exorbitantly higher prices that seemingly defy all logic. You may wonder why empty seats are not being sold at discounted prices. After all, an empty seat does not earn the airline a single cent.
However, there is more to it than meets the eye. If you have also been wondering why spontaneous travel is so expensive, this is your chance to find out!
Business Travelers Increase Demand at the Last Minute
Over the years, airlines have learned that people who book flights close to the departure dates are not really going on vacation. They are usually traveling for business- people attending meetings, conferences, or urgent appointments. These travelers do not usually pay out of their pocket, and their schedules are not flexible either.
This makes for a particular market that has a considerably higher tolerance for increased prices. Airlines know that these people need to fly quickly. Due to this urgency, they are willing to pay more, and the airlines take full advantage of that.
If you are thinking this is based on assumption only, this is not the case. Airlines have years of customer data that endorse this behavior, too. So, while as a leisure traveler, you may hesitate to spend extra for that trip; business travelers do not blink before booking.
The Algorithm Behind Your Ticket Price
Modern flight pricing does not rely on guesswork! Airlines tend to employ a strategy called yield management- where prices are consistently adjusted according to the algorithms. These algorithms pull data from previous booking trends. They also consider how popular the route is, the time of the flight, and the inventory of remaining seating.
Besides ticket pricing, airlines rely on engineering and equipment like an air data test set to ensure their aircraft’s speed and altitude systems are working properly before takeoff.
The overall framework is intended to maximize efficiency and revenue on every flight. Lower fares are usually offered far in advance to attract early planners. As the flight fills up and the departure draws near, cheaper fares sell out. The remaining seats are then sold at a premium price. This ensures that the airline can earn the most money from the people who need the seat and have no choice but to book late.
Operation Costs and Lower Flexibility
You might think that selling a ticket at the last minute is quite simple. However, it creates extra work for the airline!
Aspects like staffing, logistics, maintenance schedules, and catering are all affected when passengers are added late. Flights usually run on tight cycles! Hence, any unexpected variable you could think of only adds more pressure to the system.
Airlines may have to make last-minute changes to accommodate extra passengers. These include reallocation of seats or rearranging the luggage weight. All these adjustments come at a cost- which as you know is passed on to the travelers. Also, you are competing for limited seating here! All the affordable seats are long gone, and you are left with only the full-price or premium options.
Supply and Demand and Deals
Many travelers are lured in by the appeal of getting a last-minute deal! Unfortunately, this rarely matches reality! As the departure comes near, only a few seats are left, and there is more urgency to book. This high demand and low supply then enable the airlines to push prices up and not down.
While there are some rare last-minute deals, they usually come with inconvenient routes! You may get off-peak timing, or budget carriers too. Even then, those deals disappear very quickly. The overall trend shows increased pricing as the flight date approaches.
Final Thoughts
Unless you are really lucky or flexible, if you wait to book late, you will end up paying more. Spontaneity is exciting, but when it comes to air travel, it comes at a higher price.
Airlines do not just sell seats on a plane- they also sell timing and urgency. Last-minute travelers do not have much choice, and airlines know that. Their pricing system is hence built to benefit from it. So, if you want to save money, plan ahead! This way, you can have a good chance of landing a fair deal.










