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Last-minute flights aren't cheaper because airlines use dynamic pricing strategies that take advantage of urgency. Airlines aim to maximize revenue by charging higher prices to travelers who book last-minute, assuming they have less flexibility and are more likely to pay a premium. Additionally, as the departure date nears, airlines have fewer seats available, increasing the demand for the remaining seats. This scarcity drives up prices. Moreover, airlines prefer to fill flights in advance, offering lower prices earlier to attract early bookers and secure a full flight. Business travelers, who often book late, are less price-sensitive and willing to pay higher fares. Lastly, operational costs are relatively fixed, and airlines need to ensure they cover these costs while maximizing profits. Hence, the pricing model is structured to take advantage of both advance and last-minute booking behaviors, often resulting in higher prices for last-minute travelers.
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Last-minute flights aren't cheaper because airlines use dynamic pricing strategies that take advantage of urgency. Airlines aim to maximize revenue by charging higher prices to travelers who book last-minute, assuming they have less flexibility and are more likely to pay a premium. Additionally, as the departure date nears, airlines have fewer seats available, increasing the demand for the remaining seats. This scarcity drives up prices. Moreover, airlines prefer to fill flights in advance, offering lower prices earlier to attract early bookers and secure a full flight. Business travelers, who often book late, are less price-sensitive and willing to pay higher fares. Lastly, operational costs are relatively fixed, and airlines need to ensure they cover these costs while maximizing profits. Hence, the pricing model is structured to take advantage of both advance and last-minute booking behaviors, often resulting in higher prices for last-minute travelers.