All About Dynamically Priced Fares
Author: Frank Johnson
When it comes to airfare, the airlines have all the control.
They set the rates and airline passengers have to pay them.
However, because of events such as 9-11 and poor economic
times, not as many people are flying these days. And the less
people flying, the less money an airline makes (and incase you
didn't know, it takes a ton of money to run an airline). That's
why so many go belly up year after year. So, to try and stay
afloat, many airlines are starting to offer dynamically priced
fares to help increase profits and keep planes as full as
possible.
How Dynamically Priced Fares (DPF) Work
Dynamically priced fares are basically airfare rates that
fluctuate in regards to seat availability and departure times.
In other words, the airlines alter the price of an air ticket
depending on how full a flight is or isn't. If a flight to
Italy, for example, is only half full and it's only a week
until departure, the airline will lower the price to try and
get more passengers on the flight. Even though some passengers
aren't paying the original full price for the ticket, at least
the airline is making a few bucks.
Dynamically Priced Fares and the Discount Airlines
As the larger airlines are starting to crumble, smaller, more
economical discount air carriers are starting to pop up. And
with less overhead and very specific travel destinations these
discount airlines can stay afloat during tough times and
continuously offer travelers cheap flights to select
destinations. That's why more and more airlines are starting to
dynamically price fares. They want to be able to compete against
the discount airlines and the solution to staying competitive is
by dynamically pricing fares.
Dynamically Priced Fares and Discount Travel
Because of the Internet and the introduction of dynamic fare
pricing, travelers now have more ways to save on their flights
and even have the option to create their own discount travel
packages online. Prior to the Internet, travelers primarily
worked with travel agents and agencies to book all the
necessary travel components such as airfare, hotel
reservations, and car rentals. In many cases, the travel agency
was able to package together many of these components, based on
the agency's relationships with the airlines and chain hotel
and car rental services, and offer discount travel packages.
However, prior to the emergence of discount airlines and the
dynamic fare pricing model, cheap airfare was limited, making
discount travel packages not so discounted. And since you had
to use a travel agent to book your flight, hotel and tour
reservations, and other travel-related items, you also had to
pay some sort of service fee, lessening the true "discount" of
your discount travel package.
Thanks to the Internet and dynamic fare pricing, you don't need
a travel agent or agency to find discount travel packages.
Today, there are thousands of travel web sites on the web that
currently partner with the major and discount airlines, as well
as hotel and car rental chains, to offer discount travel
packages and airfare to many popular travel destinations around
the world. Dynamic fare pricing has, in many cases,
significantly lowered the cost to travel by offering great last
minute travel deals and discounts, and giving online travel
consolidators and services more opportunities to offer amazing
discount travel packages to those looking to travel for less.
About The Author: For more information, visit
http://www.cfares.com.
They set the rates and airline passengers have to pay them.
However, because of events such as 9-11 and poor economic
times, not as many people are flying these days. And the less
people flying, the less money an airline makes (and incase you
didn't know, it takes a ton of money to run an airline). That's
why so many go belly up year after year. So, to try and stay
afloat, many airlines are starting to offer dynamically priced
fares to help increase profits and keep planes as full as
possible.
How Dynamically Priced Fares (DPF) Work
Dynamically priced fares are basically airfare rates that
fluctuate in regards to seat availability and departure times.
In other words, the airlines alter the price of an air ticket
depending on how full a flight is or isn't. If a flight to
Italy, for example, is only half full and it's only a week
until departure, the airline will lower the price to try and
get more passengers on the flight. Even though some passengers
aren't paying the original full price for the ticket, at least
the airline is making a few bucks.
Dynamically Priced Fares and the Discount Airlines
As the larger airlines are starting to crumble, smaller, more
economical discount air carriers are starting to pop up. And
with less overhead and very specific travel destinations these
discount airlines can stay afloat during tough times and
continuously offer travelers cheap flights to select
destinations. That's why more and more airlines are starting to
dynamically price fares. They want to be able to compete against
the discount airlines and the solution to staying competitive is
by dynamically pricing fares.
Dynamically Priced Fares and Discount Travel
Because of the Internet and the introduction of dynamic fare
pricing, travelers now have more ways to save on their flights
and even have the option to create their own discount travel
packages online. Prior to the Internet, travelers primarily
worked with travel agents and agencies to book all the
necessary travel components such as airfare, hotel
reservations, and car rentals. In many cases, the travel agency
was able to package together many of these components, based on
the agency's relationships with the airlines and chain hotel
and car rental services, and offer discount travel packages.
However, prior to the emergence of discount airlines and the
dynamic fare pricing model, cheap airfare was limited, making
discount travel packages not so discounted. And since you had
to use a travel agent to book your flight, hotel and tour
reservations, and other travel-related items, you also had to
pay some sort of service fee, lessening the true "discount" of
your discount travel package.
Thanks to the Internet and dynamic fare pricing, you don't need
a travel agent or agency to find discount travel packages.
Today, there are thousands of travel web sites on the web that
currently partner with the major and discount airlines, as well
as hotel and car rental chains, to offer discount travel
packages and airfare to many popular travel destinations around
the world. Dynamic fare pricing has, in many cases,
significantly lowered the cost to travel by offering great last
minute travel deals and discounts, and giving online travel
consolidators and services more opportunities to offer amazing
discount travel packages to those looking to travel for less.
About The Author: For more information, visit
http://www.cfares.com.
