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nemomarx • yesterday at 10:11 PM • 1 reply • view on HN

They might need to have seats on that flight offered to meet a contract with the airport, or they might be using personalized pricing to only offer the 50 dollar price to certain customers (if you keep searching often the price goes up for instance) or any number of other stuff. Airline pricing is like car pricing.


Replies

theYipster • yesterday at 10:26 PM

No it is not. Cars have static MSRPs and then you haggle over the price person-to-person at a dealer. Airlines prices are based on markets (literal demand and supply between city pairs,) expected load factor, and what can best be described as a min-maxing algorithm to minimize spoilage (% of unsold seats when the flight takes off.) It's all predictive analytics, constraints modeling, and optimization at scale while finding opportunities here and there to maximize within local factors.

Contractual discounts--which corporations do have--are usually balanced by a guaranteed spend figure. For small and midsized companies, the spend is often paid in advance, to the benefit of the airline, which can carry the float and lock up a portion of market certainty.

My two cents: I have a deep amount of respect for United's tech stack. It is the best amongst US airlines and among the best in the world. However, this is the wrong move for them, and unless other airlines follow (doubtful, since United taking the lead here gives others competitive advantage,) United will have to backtrack in a year or two.