I understand that skiplagging is finding a flight that is cheaper to go from point A, to B, with a planned trip to C, but just leaving the airport at B.
I don’t understand the basic concept of how this happens though. How is a flight from A-B-C, ever cheaper than a flight just A-B? The extra cost of the C leg would have to be entirely absorbed by the savings from A-B, how is that possible?
In: 23
The prices are based on a complex computer algorithm, but primarily due to supply/ demand and historical prices.
Meaning that if it cost $100 of her fuel to go A to B, but the demand is low, the algorithm will price it below $100 thereby making the airline to take a loss.
So it just works out that the cost works in your favor for skiplagging. The algorithm doesn’t fully account for it. But airlines do have policies against it, it’s their “bandaid” fix instead of paying millions to update the cost algorithm.
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