Ever wonder why the same seat, on the same plane, can cost $250 or $1,225? Welcome to the weird world of yield management.
Airlines want to fill all their seats, at prices as high as possible. So they engage in a bit of prognostication, try to guess how many deep-pocketed business travelers they'll have on a flight, and offer the rest of their seats at fares just low enough to get leisure travelers to bite.
Things get more complicated from there. Panicked business travelers who need to fly at the last minute are willing to pay bucketloads--so that's another fare class. A price war with a competitor may necessitate the release of a few seats at rock-bottom fares--another fare class.
Eventually you've got a soup of fare levels comprehensible only to a computer, where the number of seats available in any given class shrinks and grows daily based on how demand is living up to predictions. One thing's clear, though--very few people do pay "full" fares.
Delta gives one example of a flight from New York to Orlando with 178 seats. At takeoff, 173 seats are filled--and passengers are paying 16 different fares. Of the 156 coach-class travelers, only five pay the full coach fare. In first class, the hypocrisy of "full fares" is even more glaring--only one of the 17 fliers is paying the full first-class fare, and 10 of the 17 are in first class on free upgrades.
(No, there's no way for you, the traveler, to find out how many seats are available at which fares. Airline reservation agents and travel agents can, but new fares appear and disappear continually.)
However, there are some reliable rules you can follow to get the lowest fares:
Rule #1: Timing is Everything
The most crucial factor in snaring a cheap fare is probably your timing. It's almost always cheaper to book 21 days, 14 days, or 7 days in advance. Booking 3 weeks in advance snares the greatest savings, up to 75% over walk-up prices.
If for some reason you can't commit to travel plans in advance, you may also be able to snag a bargain with "e-saver" tickets, sold on airline Web sites each Tuesday and Wednesday for trips the following weekend. And just before major holidays, airlines often declare fare sales that bring prices way down. But this trick is very risky, and you have a good chance of getting stuck with a fare up to five times the advance-purchase price.
Travel at off-peak times; fares are usually cheaper before 7am and after 7pm. You'll also save money if you can afford to travel on a Tuesday, Wednesday, or Thursday, because most leisure travelers like to get away on weekends and therefore demand is greatest at that time. You'll save even more if you can agree to stay over a Saturday night. Business travelers usually want to fly during the week and return by the weekend, so you'll save money in coach if you stay through a Saturday.
All of these rules are especially true if you are traveling on a route that's popular with business travelers. Airlines cater to business travelers, because they fly so frequently and book tickets at the last minute, paying much higher prices for their seats. When a flight is carrying many business travelers, the airline doesn't need the business of economy passengers, so coach fares are much less likely to be discounted. Business travelers tend to fly just before 9am and just after 5pm, so coach seats are liable to be more expensive at these hours.
According to the same principles of supply and demand, traveling to a destination like Brazil will be more expensive from the United States in January, when it's winter here and summer there. Nantucket will be priciest in summer. New Orleans will cost the most during Mardi Gras.
Rule #2: Shop Online
For pure bargain hunters, the Internet has eclipsed travel agents. Internet research takes time but almost always pays off.
Internet travel agencies are the easiest way to compare several airlines' fares, but airlines often have better deals on their own Web sites. The past few years have also seen the rise of "opaque fare" services like Priceline, which deliver ultra-cheap tickets to travelers who aren't picky about what time of day they fly.
If you have Internet access, investigate the best going rates to your destination before you book a ticket. Booking online can also bring extra frequent-flier miles, lowering the cost of future tickets.
Rule #3: Watch for Late-Breaking Sales
Keep your eyes peeled for promotional rates or special sales even after you purchase your ticket. Airlines periodically lower prices on their most popular routes, which may even make it worth your while to exchange your ticket--despite the $50 to $75 charge. Many tickets booked directly through the airlines have a "fare guarantee" which let you trade them in for a lower fare if you ask, for free. Check your newspaper for advertised discounts or call the airlines directly to stay on top of late-breaking discounts.
Rule #4: Competition Is Good
If even one low-fare carrier, such as Southwest or JetBlue, operates on your route, fares will be much lower than if the route is dominated by major airlines. Of the 10 greatest fare drops on routes between 2000 and 2001, according to the Department of Transportation, four were caused by Southwest entering Albany, New York; two by Southwest entering Buffalo, New York; two by JetBlue coming to New York City; and two by AirTran extending its Atlanta-based tentacles.
Low-fare carriers don't show up on many online or real-life travel agents' systems, so you have to reach out to their phone hot lines or Web sites to get these choice fares. Many are as comfortable and safe (or safer) than the major airlines.
Alternately, if your route is dominated by one airline, fares will generally be higher (unless that airline is Southwest). Flights into major airline hubs, such as Atlanta or Chicago's O'Hare airport, usually cost much more than other flights of comparable distances.
Rule #5: Use "Secret" Airports
In major cities with multiple airports, make sure you ask about all the local airports. Smaller airports such as Midway in Chicago, Oakland near San Francisco, Ontario outside Los Angeles, and Islip outside New York often host smaller airlines and lower fares.
But be aware that some of these airports are distant from the city. Midway and Oakland are both small, convenient, and actually closer to their cities than the better-known O'Hare and San Francisco airports. But Ontario and Islip are each 50 miles (81km) outside their cities--a very long drive or train ride for a short holiday.
And just say "no" to inter-airport transfers. O'Hare, for instance, is on the other end of Chicago from Midway--not a trip you want to make if you're on a deadline to catch a flight.
Rule #6: Avoid Business Routes
Airlines make their money on business travelers. Paying from deep corporate pockets, these travelers are willing to spend big bucks for frequent flights on changeable tickets to business destinations.
If a route is popular with business travelers and hasn't been opened up by low-fare airlines, fares will be higher, as airlines try to squeeze every profit-making penny they can out of their most well-heeled clientele.