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Catch flights at the right price.
The price of a flight is constantly fluctuating — but it’s not because airlines are keeping up with your searches, contrary to popular belief.
According to the experts at Dollar Flight Club, the real reason flight prices are always switching up is because of dynamic pricing algorithms, fluctuations in demand, market factors and competition.
Airlines use advanced revenue management systems to adjust prices in real time, depending on demand, seat availability and competition.
With dynamic pricing, airlines will divide seats into different price tiers called “fare buckets”, and as cheaper seats start to sell out, prices will automatically rise.
For example, Delta Air Lines uses up to 77 fare buckets, while American Airlines uses 24 and Southwest Airlines uses 28, Dollar Flight Club said. Once the cheaper buckets sell out, the next, more expensive one will automatically apply.
This allows airlines to reserve some economy seats for last-minute business flyers who tend to pay higher prices.
Another algorithm-based shift is driven by demand and booking patterns, such as how quickly seats are being sold compared to historical patterns. If a flight starts to sell faster than expected, prices can almost instantly increase.
There are also more predictable factors that impact demand, like holidays and weekends. But for less predictable factors, Dollar Flight Club shared that airlines tend to schedule automatic price hikes at key points — about 21, 14 and seven days before departure are likely to see price increases.
Like many businesses, airlines also keep an eye on their competitors, and if one airline lowers its prices, others will often follow suit to stay competitive, creating a “ripple effect.”
Of course, there are also larger market factors that can impact price, such as labor shortages, post-pandemic travel demand and fuel costs, which are a big factor in the present day due to the war in Iran.
Airlines can also adjust fares based on “point of sale,” meaning the same flight could have a different cost depending on your location.
Dollar Flight Club recommends using incognito mode when searching so airlines and booking sites can’t track you or your search history.
There’s a myth that airlines use cookies to monitor flight searches and increase prices when they think you’re interested. While this isn’t true because they don’t track individual behavior, they do track aggregate demand, so repeated searches for the same route may trigger the site to think there’s high demand.
By searching in incognito mode, this issue could be avoided, and if you’re booking for a group, check the prices for a single passenger first before adding additional travelers.
The experts also recommend comparing prices across multiple flight search engines to get the best deal.
