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Published at Thursday, March 28th, 2019 - 04:10:02 AM. Type of airline. By Amet Franke.

Most airlines use differentiated pricing a form of price discrimination to sell air services at varying prices simultaneously to different segments. Factors influencing the price include the days remaining until departure the booked load factor the forecast of total demand by price point competitive pricing in force and variations by day of week of departure and by time of day. Carriers often accomplish this by dividing each cabin of the aircraft (first business and economy) into a number of travel classes for pricing purposes.

If a particular city has two or more airports market forces will tend to attract the less profitable routes or those on which competition is weakest to the less congested airport where slots are likely to be more available and therefore cheaper. For example Reagan National Airport attracts profitable routes due partly to its congestion leaving less-profitable routes to Baltimore-Washington International Airport and Dulles International Airport.



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