What Is Air Travel Roulette?

The drastic changes in the way airlines charge customers for what were previously no-charge services, such as extra baggage and preferred seat selection, has created a class of fliers who are teaching themselves the ins and outs of shopping for deals. This can be a complicated and intense undertaking, considering that the information on ticket prices generally comes from the airlines. The latest idea that many people are looking into is a concept referred to as air travel roulette.

  1. Standard Practices for Airline Ticket Purchase

    • In days past, a person needed to figure out their travel plans, and then make a call to a travel agency or the airlines themselves and ask what the trip would cost. Issues such as length of stay, weekday or weekend travel and any special arrangements on the flight would be figured in and a price would be provided. This was the standard for many years.

    Changes in Airline Pricing Procedures

    • After the deregulation of the airline industry in the 1980s, the standards that applied to airline ticket pricing changed. The market was widened substantially and as a consequence, the larger airlines were faced with more competition from smaller companies that recognized the need for a lower-priced service, especially for frequent-fliers. This competition created a price war that resulted in lower fares across the board, although with a new set of problems for all airlines.

    Results

    • As a result of the competition in the airline industry, the profit margin began to shrink. Increases in the price of fuel as well as increases in use rights at airports added to the drop in the bottom line. Airlines soon began to either cut services that they previously provided at no charge or decreased the number of flights as well as destinations. These factors created a gap between what a flier was willing to pay and what they would actually get for the price of an airline ticket.

    Origins

    • The lack of standardized price structures within the airline industry gave rise to a new kind of flier. This new breed began to do their own research into how to get the best ticket price that also included the most amenities and services. While this practice did become more common, the variations in service options required a great deal of time and effort, which many people found unworkable. This problem was addressed by a new business: doing the legwork of shopping for the best prices and services and then offering tickets to the highest bidder. This is what the term air travel roulette refers to.

    Conclusions

    • The birth of this industry has given rise to a variety of new companies, such as Priceline, Travelocity and Expedia, which offer their customers the opportunity to find the best prices on airline tickets by setting a price and letting their customers bid against each other to win the ticket. While this has its obvious benefits, the negative aspects may be seen in the inability to customize an itinerary, as well as the lack of say in which airline will be used.

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