| Imagine you are thinking of your next trip destination. | | | | Demand. This involves people who want to fly and |
| You know very well that an interesting part of your | | | | flight destinations. New York has more demand than |
| budget will be spent on the plane ticket. Let me tell | | | | New Jersey for instance. Consequently, flights to |
| you that this way of thinking should not be like this | | | | more infrequent destinations will give you the chance |
| because you can purchase discount airfare tickets | | | | of getting discount airfare tickets. Why? Because |
| from many airlines. We will give you some tips on | | | | airlines will not make profits if they have to fly with |
| how companies set a price for their plane tickets and | | | | empty seats. So, they reduce their costs so that |
| then you will be able to do some research in the light | | | | they can fly with a full plane. |
| of some variants we will provide here. | | | | Rivalry. Companies with different company structure |
| To begin with, airline companies set their airfares | | | | compete for having more passengers. How could a |
| based on three important factors: offer, demand and | | | | small company penetrate and capture part of this |
| rivalry. Regarding offer, we must say that this is | | | | competitive market? The answer is simple: through |
| clearly connected with the number of seats an airline | | | | prices. The implementation of aggressive marketing |
| has for a certain route. With respect to demand, we | | | | strategies makes companies reduce their prices. The |
| are referring to the number of people who want to | | | | service provided is the same but the price is different |
| purchase a plane ticket for that route. Finally, rivalry | | | | and maybe, there are some people who choose the |
| refers to plane tickets prices and strategies | | | | service because of its price. Small companies usually |
| implemented by companies which use those routes. | | | | offer discount airfare tickets because they want |
| So, the resulting equation obtained from these three | | | | more passengers to choose them, especially big |
| variants will lead to the attractive discount airfare | | | | airlines' traditional passengers. Because of this kind of |
| tickets these companies can deal with in the | | | | strategy, small companies are forced to reduce |
| marketplace. Here are some examples of how these | | | | costs. And this is why there are low-cost airlines. |
| factors interrelate and thus modify airfares. | | | | Although low-cost airlines' service quality is different |
| Offer. Offer depends on the company structure, that | | | | from the service big airlines provide, cheap flights are |
| is to say, the offer the company can manage. This is | | | | tempting. |
| connected with the number of planes, available seats | | | | On balance, if you are well informed about the main |
| and number of daily flights, among other things. If | | | | price formation variants for plane tickets, you will be |
| you are willing to travel by plane, then companies | | | | able to have access to the best discount airfare |
| which have more available seats will offer better | | | | promotions. |
| discount airfare tickets. | | | | |