why are airlines allowed to change their prices by the second?

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Sure things fluctuate in price but how are they allowed such targeted predatory algorithms that change every second ?

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Anonymous 0 Comments

They don’t literally change every second, but they calculate demand relative to time of departure and can adjust to optimize for filling the most seats at the highest price. That’s the goal of business. Dynamic pricing is more easy to do online with networked sales software like airlines use, but the airlines also have the dilemma of expiring product — once that flight takes off, that seat can never be sold. For a store, it doesn’t really matter if that shirt sells in a week or 3 weeks they can just keep it on the rack, or send it to an outlet store, or a liquidator to end up in Marshall’s and still get something for the product. An airline gets $0 once the plane leaves, so they have more incentive to try and fill seats.

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