Why do you pay more for the same seat? And how do airlines price tickets?

Each seat on the plane is not sold at one price, but is divided into about 20 different price categories, each with its own conditions and restrictions. When reservations are opened about 330 days ago, seats are distributed among these categories based on historical data.

According to a study published by the “Smarter Travel” website, which specializes in the travel sector, these categories are the real key to understanding the continuous change in ticket prices, which may rise or fall within hours or days for exactly the same trip.

When reservations open, which may be up to several months before the flight date, revenue management systems allocate seats to these categories based on accurate historical data regarding traveler behavior and demand patterns. A specific number of seats are allocated to each category, with the cheapest categories representing a limited percentage offered initially to encourage early bookings, while the higher-priced categories are reserved for a later stage or for less price-sensitive customers.

Once the booking process begins, the systems operate fully automatically. When all seats in the cheapest category are sold, the system moves directly to the highest price category, which leads to an increase in the price shown to the user. On the other hand, if the systems notice that the pace of reservations is slower than expected, they may reopen lower price categories to attract demand, which explains the sometimes sudden drop in prices after they rise.

This process does not occur randomly, but rather relies on advanced revenue management systems that use artificial intelligence to analyze a wide range of data, including the speed of reservations, expected demand, competitor prices, and even seasonal and economic factors. As a result, prices can change several times during a day without any direct human intervention.

In this context, the common belief that airlines raise prices based on individual searches remains a myth that is not based on evidence. Companies do not track users personally to adjust prices. Rather, the changes that travelers notice are mostly due to the running out of seats within certain price categories, and the system moving to higher categories.

The nature of the ticket also plays a pivotal role in determining the price, as the cheapest categories are often restricted by conditions such as advance booking and the inability to change or refund, while the higher-priced tickets provide greater flexibility, which makes them the preferred choice for travelers who need unstable travel plans.

The importance of the timing of booking is highlighted as a decisive factor in obtaining a suitable price, as data indicates that the best period for booking is weeks before the travel date, which is the stage that achieves a balance between the availability of the cheapest price categories and not running out of them as a result of increased demand.