Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Airlines Price the Same Seat Differently
Ever wondered why the person next to you on a flight paid half what you did? In this episode, Lucas and Luna dive into the science of airline yield management. They trace its origins back to American Airlines and the Sabre system in the 1980s, explain how fare classes and capacity controls create hundreds of price points on a single flight, and reveal the algorithm that reprices seats every 10 minutes. Along the way, they unpack why dynamic pricing works so well for airlines and how travellers can game the system. Plus, a brief note on why this show stays ad-free.
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The skinny
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