Why are flights with layovers in the opposite direction cheaper than direct flights?
In: Economics
Direct flights are more convenient for people and business people will pay more for the convenience.
For the Airline on the other hand convecting flights through their hub is more convenient as it helps keep the planes full and leisure travelers who are price sensitive will take the deal.
The airline business is all about figuring out how to get different prices for the same service of moving you from A to B on the same plane.
Business people will book late and will pay more for convenience so prices go up as the date gets closer especially on direct flights.
Price sensitive vacationers will book long in advance and only care about the cost even if they have to take connections. So the airline will offer lower prices if you buy ahead of time and take inconveniently long rounds, which will go through their hub and help them fly full, in order to get their business.
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