How do the airlines get away with their pricing policies?

Question

Why does it cost almost twice as much for a return ticket with the return two days after the outward journey, than it does for return three days after? Why do single tickets often cost more than returns?

Answer 1

Prices are based on a pretty complicated chart of supply and demand. The difference in fares as in your example simply means the airline has more low-cost seats to fill on the earlier return trip than on the later return trip. You'll see differences in fares even travelling on the same day; this is normal. When a flight is first planned, the airline sets price "buckets" or categories and starts working from the lowest price on up. For example, if there's 200 seats in coach on the airplane, the airline says, the first 50 are set at price level 1, the next 75 are price level 2, the next 50 are price level 3 and the last 25 are price level 4. Each price level has a different fare; the first 50 people who book the flight can get in at the lowest price (level 1), and so on.

In the long run, this prevents the airline from having to change actual costs for seats as the seats sell--- they just move the seats into new price categories. And as you can see, the folks who act fast and purchase well in advance get the lowest prices. Although if a flight is not selling well, the airline can take some of the seats from the higher priced categories and move them into the lower categories, which effectively puts the seats on sale and encourages people to take that particular flight.

As for the difference between one-way and return trips, one-way travel is not usually as restricted as round trip. If you have ever had a change in plans, you will know that it is very difficult to change your itinerary once the ticket is purchased. That's because the lowest cost tickets come with a ton of restrictions, and the airlines publish these prices for round-trip travel because they're the cheapest. You really can buy a completely unrestricted round-trip fare; it's just really expensive. Anyway, most airlines only sell unrestricted one-way tickets because one-way travellers have a pattern of last minute changes and cancellations; the airline wants to give them the flexibility of changing plans at the last minute but still make money because last-minute cancellations means the airline isn't getting paid on that seat. It's pretty complicated and they actually have teams of actuarial workers looking at the travel and cancellation patterns to determine the prices. But what it comes down to is the difference in the fare classes. When you go one-way, you're paying a higher price and getting a lot of flexibility in return. If you don't need the flexibility and just want a cheap one-way ticket, you should contact the airline directly and ask about a restricted (as opposed to an unrestricted) ticket.

I don't think airlines are "getting away" with anything. Sure, they have a complicated pricing structure, but even your local grocery store has a complicated pricing structure. We just don't notice it as much when working with a low-dollar item. An airline ticket should be just like any other moderately expensive purchase: know your budget, do some research before buying, and make an educated purchase.

Answer 2

They get away with it because people buy anyway. If everyone said no and just didnt buy the tickets eventually they would come down in price.

Answer 3

It's called supply/demand. Just because the policies don't favor you personally doesn't mean it's underhanded. You just need to deal with it.