Unveiling the Reality: The Truth about Plane Ticket Hacks, Revealed by Researchers

Contrary to popular belief, the common hacks people use to get cheaper plane tickets, such as buying on a Tuesday or searching in incognito mode, do not actually drive down prices. A study conducted by the Haas School of Business and published in The Quarterly Journal of Economics reveals that US airlines have a rigid pricing structure that remains consistent regardless of the day of the week or a user’s browser history. The study examined the pricing system used by a major US airline, which is also widely used by airlines worldwide. This system has little room for real-time changes based on demand and competition.

According to the study, the pricing structure of airlines can be likened to buying jam. If the price of strawberry jam increases, consumers might opt for a cheaper raspberry flavor, even if it’s not their first choice. The same principle applies to airlines, where customers might choose a less convenient flight in order to save money. However, airlines do not consider this type of substitution. Instead, they focus on pricing flights individually, without taking competition into account. This means that changing the price of one flight will not affect the pricing of other options.

The study also found that airlines do not factor in competitor prices when setting their ticket prices. The cost of tickets sold in different classes follows a sliding scale, and airline tickets are sold through global distribution systems that ensure consistent pricing across platforms. This lack of flexibility puts everyone on a level playing field but restricts airlines from making real-time adjustments based on competition. The study’s author, Olivia Natan, advises travelers to purchase their tickets before 21, 14, or 7 days prior to their flight, as prices tend to increase significantly during this time frame. (Read more airline stories.)