Not long ago, you could always grab a holiday or flight bargain waiting for the last day or two before departure. Now the game has changed. Here is a sketch on the causes of change
In the 1980s / 1990s, the driving force behind holiday costs was the cost of airline meetings. Tour operators can choose to have special IT expense or group fees with regular carriers, but they can choose from rented flights. In both scenarios, they had to commit themselves to a commitment to a seasonal program, and their prices were built on seasonal yields. In particular, for charter flight queues, the vacancy on the day of travel was impairment
A well-managed program allowed a certain number of vacant seats (especially in the low season) acceptable losses, which can be sold at the seller's price at any price do. So cheap flights and package holidays are available on days prior to departure for those who are prone to destination and dates.
As the major players took control of all aspects of the holiday package, "in-house" airlines aligned this cost level to a different level. Their price policies – or "yield management" equations – can be handled in conjunction with the general effects of the holiday company. these in-house airlines operate, which makes a significant difference in these policies The rise of so-called "no frills" airlines has overwhelmed the old pricing models, they do not let down the day before the flight Many of Ryanair's and easyJet's are using a premium a model that was launched by the American Southwest Airlines and was followed by the "in-house" airline company.
What Southwest realized that once you prove that the price comes later, many people are delayed Shopping The "non-frills" carriers with absurd low-cost charges have the advantage that all their own sales are controlled through telephone sales and the Internet. So they can change the price every minute based on the "yield management" algorithms. This control is used to handle customer expectations. They have decided that prices will continue to rise until they get off – so if we oppose the purchase early, we will never see the price again at such a low price.
This policy – encourages commitment to concrete flight (and freedom) as soon as possible. Low-cost, last-minute offers are largely offset by "early bird" offers and "points" cards for slow trade periods or low season sales – without too much downsizing airlines and holiday companies by the last minute traveler.