Have you ever wondered why airline ticket prices vary and how they are determined by flight operators? In fact, it is not random, but rather subject to complex algorithms used by companies to maximize their profits by balancing ticket prices and flight costs, which is something you should know, especially during the summer holiday season.
The elements of these algorithms include many factors, and adjust ticket prices based on determinants such as demand, historical booking patterns, and even the user’s browsing history, according to the Bristol Flying School website in England.
This strategy allows airlines to improve revenues based on constantly changing market conditions. In the following lines, we will learn about the most important determinants on which the pricing process depends:
Operating cost
The most important factor in determining airline ticket prices is the cost of operating the aircraft, including fuel, maintenance, employee salaries, airport fees, as well as purchasing or leasing the aircraft.
Fuel is the biggest factor in this cost equation, so it is sensitive to oil prices and environmental requirements. Buying new fuel-efficient aircraft and moving towards environmentally friendly solutions increases operating costs, which may raise ticket prices.
Demand and competition effect
The number of people who want to travel and the number of flights available affect the ticket price. When the demand for a particular flight increases, its price increases. Also, having multiple airlines on the same route usually reduces the price.
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Busy times, such as holidays and events, see prices rise due to increased demand, and global events such as major sporting games and conferences also affect prices.
Aircraft type
The type and age of the aircraft used on the flight affect the ticket price. Newer aircraft that save fuel may reduce operating costs, which lowers the ticket price. The way the seats are arranged inside the aircraft and the number of classes available also affect the price. Aircraft with more space and additional services may be more expensive.
Booking Categories
Airlines offer several ticket classes, each with its own price. Premium tickets with additional services are more expensive, and airlines charge additional fees for baggage, food, and seat selection.
Ticket prices vary depending on the time of booking, as companies use a variable pricing system, in which the price increases the closer the travel date gets.
The flexibility of bookings also affects prices. For example, refundable tickets or those that allow for changes without fees often come with higher prices, and travelers looking for more affordable options may choose non-refundable or less flexible tickets.
Economic and environmental conditions
The general economic situation, including inflation and exchange rates, affects ticket prices. In tough economic times, ticket prices may drop due to low demand. Sometimes governments impose taxes and fees on flights, which raise the ticket price. There are also landing and navigation fees for international flights.
Furthermore, unexpected events, such as natural disasters and crises, affect the demand for travel and therefore ticket prices.
Offers and discounts
To encourage passengers, airlines offer temporary offers and discounts on tickets, and these offers can be taken advantage of by booking in advance and choosing flexible dates.
Companies also use loyalty programs to encourage customers to repeat the travel experience on their airlines, and members of these programs receive discounts. Companies also offer discounts to students, seniors, and military personnel.
How to get a cheap flight ticket?
Here are some tips and strategies for finding affordable airline tickets, as recommended by Turkish Airlines:
1- Discover the types of tickets
One of the most obvious factors in determining the price is the class of ticket you choose. For example, most airline tickets are divided into two classes: business class and economy class.
business class: It is more expensive and passengers get additional amenities such as fine dining, increased baggage allowance, advanced seating features, and business class offers a completely different travel experience.
EconomicIt offers a less expensive option for domestic and international flights, and passengers get basic amenities and services.
2- Pay attention to the timing
It is usually best to buy your flight ticket as early as possible if you know your travel dates. However, festival seasons, departure/arrival times, the distance of your destination, and the number of available seats all affect ticket prices.
3- Travel points
Some credit or debit cards give you points with every purchase, and you can collect these points and use them later to get discounts or lower-priced airline tickets.
Overall, there are factors that affect the price of a flight ticket; if you are looking for a cheap ticket, it is preferable to choose less crowded days of the week such as Tuesday and Wednesday, and looking for flights during the early morning hours may provide better options.
Take advantage of price comparison tools to find the best deals, book 2-3 months in advance and avoid peak periods such as holidays and events. Finally, take advantage of airline loyalty programs to get potential discounts, according to the University of Southern California.
What are the cases for refunding the flight ticket value?
Refund terms and conditions vary between airlines, so it is best to check the policy of the company you booked your ticket with. In general, a refund can be granted if your flight is delayed for more than 5 hours and you no longer wish to board the flight, if your flight is cancelled less than 14 days before departure and the alternative flight offered does not serve your original travel plans, or if you are denied boarding and you do not wish to board the alternative flight offered. In detail:
Saudi Arabia
Terminating the contract when the flight is cancelled entails a full refund of the ticket value, including any additional fees paid by the passenger to complete the reservation, such as seat selection fees, baggage fees, etc. The passenger is also entitled to compensation when the flight is cancelled by the airline, in accordance with the following provisions according to the Saudi General Authority of Civil Aviation:
Refund of the ticket or remaining part of the trip and compensation of the passenger equivalent to (50%) of the value of the unused itinerary, if the airline notifies the passenger of the flight cancellation within the period from 60 days to 14 days before the departure time. The ticket or remaining part of the trip can be refunded and the passenger compensated equivalent to (75%) of the value of the unused itinerary, if the airline notifies the passenger of the flight cancellation within the period from 14 days to 24 hours before the departure time. The ticket or remaining part of the trip can be refunded and the passenger compensated equivalent to (150%) of the value of the unused itinerary, if the airline notifies the passenger of the flight cancellation within the period from 24 hours until the departure time.
Oman
And in Sultanate of OmanIf the airline cancels a flight, it must either refund the ticket price to the passenger or rebook him on another flight with services such as accommodation and food, and it must pay financial compensation to the passenger unless he was notified of the cancellation two weeks in advance.
The compensation is estimated at 108 riyals ($280.80) for all flights of 1,500 kilometers or less, 173 riyals ($449.80) for all flights between 1,500 and 3,500 kilometers, and 260 riyals ($676) for all flights that do not fall under the above, according to the International Civil Aviation Organization (ICAO).
Egypt
The regulations state that: Egypt However, if the company cancels the flight, it allows the passenger to choose between refunding the ticket within 7 days or rebooking on another alternative flight that reaches the same final destination with similar travel conditions and a financial compensation of up to 1,500 Egyptian pounds ($30.85) determined based on the distance (the passenger does not receive compensation if he was notified of the cancellation at least two weeks in advance and was redirected to another flight that enables him to arrive within 4 hours of the scheduled arrival time).
If the passenger is refused boarding due to overbooking, the company will provide financial compensation equal to the flight cancellation compensation.
On the other hand, the airline is not obligated to pay compensation in the event of a flight cancellation or delay due to exceptional circumstances beyond its control, such as natural disasters or security risks, according to (ICAO).
United State
in United StateIf the airline cancels or makes major changes to the flight, the consumer has the right to a full refund of the amount paid for the ticket and additional fees. The law also gives the consumer the freedom to choose whether to travel or not to travel in the event of flight changes, while guaranteeing the right to a refund if he chooses not to travel, according to the US Department of Transportation.
Britain
Similarly, in UK regulations, when flights are cancelled, passengers should be given the option of a refund or re-routing (alternative flights) at the earliest opportunity or re-routing at a later date (subject to availability).
The law states United kingdom (European Union) No. 261/2004 provides for a fixed-rate compensation in some circumstances, but this does not apply to cancellations made more than 14 days in advance or where the cancellation or long delay is due to “exceptional circumstances,” according to the UK Civil Aviation Authority website.
