Want to snag the best deals on airline tickets? Our comprehensive guide has everything you need to know about airline pricing and how to save money on your next trip.
There are incredible deals to be found for travellers who can be flexible or are open to exploring less well-known destinations. Comparing and contrasting dates, providers, departure airports, and destinations will always enable you to find the best deal available for your needs. Our price alerts, ‘everywhere’ search and ‘month view’ are all easy ways to do that.
Even if you don’t know much about airline pricing, Skyscanner can save you money on flights. Try it out now:
Read on to find out what determines the price of an air ticket and how to get the best flight deals.
How do they calculate flight prices?
In short, distance and demand are pivotal factors that determine flight ticket prices. Travel is just like any other valuable commodity, and it’s priced so that when demand is low, prices are low to stimulate it (bargain return flights to Rome, anyone?). Likewise, when demand is high, prices are high to capitalise on the interest.“
So, to do this, airlines set up a pricing schedule for their flights, putting the seats into price ‘buckets,’ and as one ‘bucket’ fills up, they open the next, more expensive one up for purchase.
“Airline pricing models are complex, with tickets kept priced low enough so passengers afford them while keeping airlines profitable. Airlines use complicated algorithms to set their pricing, which weigh up determining factors including the nature of the airline (e.g., is it a low-cost carrier or premium airline), the itinerary, and the cabin class. These all have a bearing on how much the traveller pays for the ticket, however, there is one factor which outweighs all of these and is the ultimate determinator for the price paid: demand.“
Hugh Aitken, VP Flights at Skyscanner
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Does seasonality still significantly affect flight prices?
Before the coronavirus pandemic, airlines could rely on a degree of seasonality in travel and priced their fares to balance the affordability of their flights as well as their own profitability. Ticket prices would fluctuate, and booking at certain times was always more expensive as there was less supply to meet demand, e.g., booking last minute.
The pandemic changed how airlines worked their pricing because seasonality fell by the wayside as restrictions lifting became the biggest determinant for demand rather than seasonality. They could no longer accurately forecast purchasing trends.
“Even though we are not back to ‘normal’ travel seasonality just yet, things are beginning to look a lot more like they did in pre-pandemic times. Demand for travel is high, masks are off on many airlines and destinations are marketing themselves heavily to those returning to travel. It makes sense, then, that prices are nearly back to 2019 levels also. It will take time for true seasonality to return. Therefore, knowing how to find the best prices right now could unearth some unexpected gems.”
Hugh Aitken, VP Flights at Skyscanner
Four top travel hacks on how to bag a bargain from Naomi Hahn, Skyscanner’s VP of Strategy:
- Be price smart: “Setting up price alerts will ensure you’re the first to know as prices drop with any additional discounts or added supply. You can mark a flight you’re interested in, and Skyscanner will email you whenever the price goes up or down.”
- Fly on Friday since this is the cheapest day to travel: “Flight prices are all based on supply and demand. Because some dates are more popular than others, prices will vary, i.e., on average, save up to 25% by flying on a Friday and up to 51% by booking 4 weeks ahead of departure. The ‘whole month’ search tool allows you to see cheap flights immediately and pick the right deal for you. Consider travelling a day before or a day after your original departure dates, flying on less popular days of the week is always cheaper.”
- Consider all options: “Previous years saw new destinations rise in popularity as corridors shone a light on some surprising gems. Swapping your usual break in Cancun for Portugal could be an unexpected delight. So let the algorithm decide with a search to ‘Everywhere’, which will present a plethora of options based on your travel dates, all ranked by price.”
- Mix & Match to save $$$: “Not just a summer fashion trend, mix-and-matching the airlines and airports you choose to fly with and from can seriously cut costs. Considering beyond airline loyalty points could save more than the value of points. Fares do not have to be booked as returns, look at flying out with one airline and back with another, or out of one airport and back into another, can save money.”
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