Airlinebusinessexplained

Have you ever searched for a flight, only to find out the price has surged within a few hours? Checked with another passenger sitting next to you, only to find out, the person paid lower or higher price for  similar seats that you have? Airline pricing is a mix of market demand, operational cost, psychology, competition and use of algorithmic spells. These parameters are used to make the most out of each seat being sold.  Let's slowly begin to accept that Airlines is a weird industry where no price tag is ever set in stone and understanding it goes beyond the ticket counter. Here's a list of what affects the prices behind the curtain: 1.  Demand Forecasting Process of anticipating future demands by analyzing historical booking data based on seasons, scheduled events and consumer trends. Simply put, if there is a Coldplay concert happening anywhere in the world, the data provided to the airline shows a surge in interest to travel to that location where the event  is h...

  How airlines make money: Business models explained   An industry that has been revolutionizing travel for close to a century now, from its first commercial flight in 1939 to the present day. An industry often seen as a glamorous business flying millions of people around the globe should be a business that runs seamlessly, right? I thought so too. Behind the extravagant luxury that we see day to day is an industry that runs on a thin line of margin and complex stream of revenue. Many might think the only form of revenue is ticket sales but that is just the tip of the iceberg! So, without further Ado, Let's briefly understand the different ways airlines make money. 1. Passenger Revenue The amount of money levied to transport the customer from point A to Point B using a specific aircraft carrier easily sums up as the definition. Some airlines provide three classes of seats - Economy, business and First class and some offer just economy seats(Low cost carriers). Airlines quote d...