Published on April 6th, 2013 | by iDidGo Blog Team

How airline pricing works

BBC – As early as this month, airlines worldwide may start testing a strategy that could customise airfare pricing and itinerary results based on who is searching. These personalised fares could be affected by where you live, how often you fly, the kind of travel you do and other personal information.

In October 2012, the International Air Transport Association, a trade association representing 240 airlines (including companies such as American Airlines, Virgin Atlantic and China Southern Airlines), voted to let all airlines, travel agents and third-party booking sites such as Kayak and Expedia request personal login information – such as your name, frequent flyer numbers and contact info – in order to show you tailored search results and pricing. The airlines happy wheels demo say this would allow them to offer personalised deals, like a special package for frequent flyers that could includes discounted airfare and seat upgrades, and increase competition on the distribution side of air travel – and they stress that logging in would not be mandatory for customers to see baseline fares. But critics worrythat the measure will result in privacy violations and even discrimination, allowing airlines to charge certain kinds of passengers, such as business travellers, more than other passengers, potentially without their knowledge.

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