How Do They Know?

Discussion in 'Chit Chat' started by cashmoney69, Jul 12, 2008.

  1. I would like to know how the air lines can price a ticket 330 days (thats the limit according to travelocity) into the future!...

    For an economy class ticket for 1 person: Low as 389 to a high of 576 round trip(as quoted from different airlines) going from birmingham al, to New York..but heres the catch...the plan ticket is for MARCH of 2009!!

    A ticket from birmingham to NY LEAVING tomorrow would be from 612 to 1220! round trip

    I have a business idea and need to know how these tickets are priced...unlike the options market, time decay has a positive effect on ticket prices.
  2. Perhaps they have insider knowledge as to what the price of fuel will be in the future.

    I think they believe that someone in need of a ticket tomorrow is simply more desperate and would be willing to pay more for it.

    I assume your idea would be to buy up future tickets and sell them to people who need them on short notice for a lower price than they could get from the airline.