What determines air fares?
A multitude of things affect how an airline will price a city pair. Airlines compete for passengers with air fares, frequent flyer program perks, in-flight service, and other differentiating characteristics. The most intense price competition occurs when a low cost carrier enters a market. Absent that, competitive intensity will depend on how many airlines are fighting for passengers and whether or not one dominant airline can set market prices. More competition means lower fares. The level of competition between airlines largely determines Mobiles fares. Competition increases when the number of passengers is more evenly distributed are among carriers at the airport. So why did the passenger next to you pay less than you? Airlines spend millions of dollars on computer models to set ticket prices. But the goal is simple charge enough to cover costs and as much as competitors and customers allow. If airlines charge too much, passengers dont fly; if airlines charge too little, they cant c
