Pricer’s Points: Does Browsing cause Algorithms to Raise Prices? | Prabhakar Mundkur

But in hind sight I found it suspicious that my favourite flight kept moving its price up.   Even though it wasn’t a very special week,  a special time of the year, or a very special airline.

So while I do understand that airline tickets like everything else in the travel industry follow a dynamic pricing model, I wasn’t really convinced that all was fair.

The question I was asking myself was, if you do a dozen searches on each site for the exact same date & city, does that cause their computers to suddenly raise prices, because it thinks demand is up? So in effect a site which has a certain ticket for sale during the search process, is only available at a higher rate during the buying process.

To be fair, the algorithm formulas I am sure are complicated and change a lot, and unless you’re doing hundreds of searches, the price fluctuations are probably not specifically related to your searches. You can sometimes see a huge surge of ticket prices, even on a small local airline that does it own booking and is not on makemytrip or Travelocity or Cheaptickets etc..  This is true for say local short flights with in the US for example.  If there was a  45 minute flight to Las Vegas. you can get the one way seats as cheap as $19 or as expensive as $150. If you ask 10 people why they think the prices swing so much you get 10 different answers!

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Does Browsing cause Algorithms to Raise Prices? | Prabhakar Mundkur | LinkedIn.

Prabhakar Mundkur

Lateral Thinker,Culturist & Change Agent