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Published at Tuesday, April 02nd, 2019 - 08:05:53 AM. Type of airline. By Ailse Hahn.

The advent of advanced computerized reservations systems in the late 1970s most notably Sabre allowed airlines to easily perform cost-benefit analyses on different pricing structures leading to almost perfect price discrimination in some cases (that is filling each seat on an aircraft at the highest price that can be charged without driving the consumer elsewhere).

The extent of these pricing phenomena is strongest in legacy carriers. In contrast low fare carriers usually offer pre-announced and simplified price structure and sometimes quote prices for each leg of a trip separately.



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