You have a right to be confused. You check the Internet, and a low-fare ticket from Toronto to Vancouver could cost as much as $849, or $630, or as little as $215. They may all be available at the same time. What’s going on? Welcome to the world of “yield management”.
Although it may look like chicken gizzard wizardry at times, yield control is the airline version of managing supply and demand. A virtual army of analysts are entrusted with weighing and measuring the yield on each seat. The result of all this divination dictates the fare you see displayed on your screen.
Broadly speaking, the ticket price is based on a balance between cost and what you’re willing to pay. The assumption is you will trade off between your time and your money. The more time you have – if you can book early and don’t care when the flight leaves – the less you pay. Convenience will cost you. A non-stop flight, no connections and an imminent departure are more expensive. Other factors such as the capacity come into play. More competition means more pressure to fill seats and reduce the fare.
The reason airlines use yield management is that when it works, it’s a win-win. They fill their planes, make money, and you get a seat at a price and a level of service that suits your needs. The flip side is selling too many cheap seats. Deep discounting might seem great in the short term, but think of Canada 3000, Jetsgo and Canjet. Fuel, labour, safety and landing fees are costlier than ever. Over the last month alone, four U.S. carriers declared bankruptcy.
So, how can you be sure you’re getting the most service for the best price possible? The reality is, finding the cheapest fare is not a competition anyone can win. Buy something that seems reasonable and then stop fretting about it. If you do want to hedge your bets, after you’ve scoured the web, one of your best options is to use a travel agent. Because airlines use a number of different sales channels, travel agents have tools we don’t have access to and can usually find you a better fare, faster, than you can yourself. Ultimately, you need to get comfortable with the fact that there are no guarantees. Fares can sometimes jump one way or the other based on factors none of us has any control over.
It’s like the stock market --you win some, you lose some.
– Debra Ward, on assignment for TakeOffEh.com
– Photo Credits: Lya Cattel, James Steidl
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