Airline Ticket Prices - 899 Words

Airline Ticket Prices Jodie L. Hebner Grantham University An airline’s ticket price is determined by several factors to include time of day a consumer wishes to travel, day of the week such as Tuesday’s and Thursday’s are usually the most affordable days to travel, popular versus non-popular destinations, first class costs more than general class, cost of fuel, competition from other airlines, special factors such as discounts for military, government or corporate personnel, (How Stuff Works, n.d.) Airlines are constantly analyzing how much consumers are willing to pay and pushing consumers to pay more. Airlines have used numerous models and computer programs to manage revenue throughout time. These models and computer programs have†¦show more content†¦Airlines must be able to make a profit when setting ticket prices. â€Å"By comparing the demand curve with the average total cost curves for each airplane type, the airline can determine which size airplane will maximize profits for a given flight.† (Kons, n.d.) In summary, as with any product, from airline tickets to gasoline prices â€Å"consumers have continued to pay the increased fares, so the airlines have become bolder in driving the prices up even further.† (Smith, CNNMoney, 2011) Consumers, their desire, need and want for an item or service will always affect supply, demand, and cost curve. Most organizations have the same goal, which is to make a profit while keeping their costumers happy. References: Consumerism (2011, March 4). Supply and Demand Goes Both Ways - Beating Broke | Beating Broke. Retrieved May 14, 2013, from http://www.beatingbroke.com/supply-and-demand-goes-both-ways/ How Stuff Works (n.d.). HowStuffWorks How Airlines Work. Retrieved May 14, 2013, from http://science.howstuffworks.com/transport/flight/modern/airline4.htm Kons, A. (n.d.). Understanding the Chaos of Airline Pricing. The Park Place Economist, 8, 15-29. Retrieved from http://www.iwu.edu/economics/PPE08/alex.pdf McCartney, S. (2010). Decoding Airline Ticket Costs. The Wall Street Journal. Retrieved from http://www.etopaz.com/news/3/57/Decoding-Airline-Ticket-Costs-WJS-com NBC News (2008, May 8). Inside the mysteries of airline fares -Show MoreRelatedSupply And Demand Effect On Airline Ticket Prices1809 Words   |  8 PagesSupply and Demand effect on Airline Ticket Prices Intro: Overview of the effects upon Airline Ticket Prices as explained by Granados, Gupta and Kauffman, (2012) and Llach, Marimon, del Mar Alonso-Almeida and Bernardo, (2013). 1. What causes massive price changes? a. Seasonal Travel The season that people choose to travel affects the prices of the tickets. 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