Why do airline ticket prices change so much?

Airlines employ a very high-tech strategy called yield management. This intentionally aims to charge different prices to different passengers in order to maximize the total revenue collected for each departing flight. Didn’t understand? Let me make it simple for you. Say you are an airline selling tickets. From the people who buy tickets, there will be 2 groups. One group consisting of those people who will be willing to pay any price for the ticket. The other group will be of those who are price conscious. These people will buy the ticket only if it is affordable. If the airline sets a higher fare, only the people from the first group will buy the ticket. And if the airline sets a low fare, then it might have the chance of running into losses. Thus, to satisfy customers and gain maximum profit, airlines keep fluctuating their ticket fares.

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