Assume each airline different, but they clearly track each others’ prices, and certain market dynamics/forces/availability levels seem to cause the algorithms to get derailed into nonsense land. Ex: I am looking at flight from between two cities 1000km apart. a month from now i see $159 dollar flights. looks like average in the 200s. this week, two airlines both show options tuesday and thursday. Airline A, tues nonstop economy: $1500 (lol), B $1300. thursday A: $670, B: $590.There is just no way anyone is buying for 1500 right? are there people out there (that can’t afford private) but hate money so much they are spending 1500 on a one hour flight? or do runaway algorithms actually cost airlines sometimes?
In: 25
those algorithms are super complicated. the goal is to fill up the airplane with people willing to pay the highest price.
Yes someone might pay that $1,500. I used to travel a lot for work. I would be told “we need you at this site Thursday.” So I booked whatever made that happen. It wasn’t my money so who cares. So yeah you might be sitting next to someone who paid 10x what you did to be on the same flight.
Latest Answers