Airline Pricing: Secrets and Strategies

Watch the full video here: https://youtu.be/NYlpUde98EA Airlines use something called dynamic pricing to sell seats. It’s a strategy where businesses adjust the prices of their offerings to account for changing demand. Basically, dynamic pricing means that the cost of the ticket doesn't stay the same. Every seat costs something different, according to travel industry analyst Jamie Larounis. Airlines aim to fill 100% of the seats on their aircrafts to turn a profit, or at least 70% to break even, as reported by Forbes during the pandemic. But some seats are more important to fill than others. Columbia Business School professor Geoffrey Heal told The Hustle that one business traveler pays for five to six economy travelers.