Airline Industry
Airline Industry
Kristy Clark Doskocil
Axia College University of Phoenix
Why do airlines offer a lower airfare with the purchase of a ticket 14 days in advance? The answer is quite simple; airlines know that a person going on a leisure flight will be purchasing a ticket 14 days in advance and flexible. For a person traveling on business their schedule is not flexible and they will not be able to stay overnight in most cases. Airlines can setup the supply and demand for the flights with this information and increase prices in order to make the difference for the seats that did not sell for leisure flights. Airlines determine the demand and supply of tickets that are purchased by passengers that are flexible and not flexible. Airlines also look into which days most people travel and if they stay the night at their final destinations.
The price of tickets brings about the supply and demand equilibrium for the supply of airline tickets. If there is an increase of profits......
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Approximate Word Count: 2057
Approximate Pages: 9 (250 words per double-spaced page)
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