Understanding Airline Pricing

Last night I was looking at some tickets on Delta for a client of mine.  At 3:00pm when I started looking at the tickets the price was $428.80 per person.  I was waiting for an answer on upgrading the tickets to Comfort Economy so I took my time putting in the information.  At 5:45pm I got the go ahead needed and went to buy the tickets.  I got an error message telling me the price of the ticket had changed.  Now the price for the exact same tickets was $619.90 per person.  What the heck!!!!  So I left it for this morning hoping that the tickets would have changed back, but no… still $619.90.  I was baffled.  And then I read through my emails and saw this.  I can’t explain how perfect it is.  This is how I feel every time someone asks me to tell them if I THINK the price of the ticket will come down.


United US Airways

From an airline Captain with close to three decades in the airline industry.  He says “I never really understood how airline ticket pricing worked until I read this analogy.  Perhaps some of the airline pilots and passengers on your mailing list might also appreciate this.”
Customer: Hi. How much is your paint? 
Clerk: Well, sir, that all depends on quite a lot of things. 
Customer: Can you give me a guess? Is there an average price? 
Clerk: Our lowest price is $12 a gallon, and we have 60 different prices up to  $200 a gallon. 
Customer: What’s the difference in the paint? 
Clerk: Oh, there isn’t any difference; it’s all the same paint. 
Customer: Well, then I’d like some of that $12 paint.
Clerk: When do you intend to use the paint? 
Customer: I want to paint tomorrow. It’s my day off. 
Clerk: Sir, the paint for tomorrow is the $200 paint. 
Customer: When would I have to paint to get the $12 paint? 
Clerk: You would have to start very late at night in 21 days, or about 3 weeks.

But you will have to agree to start painting before Friday of that week and  continue painting until at least Sunday. 
Customer: You’ve got to be *&%^#@* kidding! 
Clerk: I’ll check and see if we have any paint available. 
Customer: You have shelves FULL of paint! I can see it! 
Clerk: But it doesn’t mean that we have paint available. We sell only a certain

number of gallons on any given weekend. Oh, and by the way, the price per   gallon just went to $16. We don’t have any more $12 paint. 
Customer: The price went up as we were talking? 
Clerk: Yes, sir. We change the prices and rules hundreds of times a day, and since you haven’t actually walked out of the store with your paint yet, we just decided to change. I suggest you purchase your paint as soon as possible.  How many gallons do you want? 
Customer: Well, maybe five gallons. Make that six, so I’ll have enough. 
Clerk: Oh no, sir, you can’t do that. If you buy paint and don’t use it, there are penalties and possible confiscation of the paint you already have. If you change any colors there is a $50.00 change fee, even if it is the same brand.  Also, no refunds. 
Customer: WHAT? 
Clerk: We can sell enough paint to do your kitchen, bathroom, hall and north bedroom, but if you stop painting before you do the bedroom, you will lose your remaining gallons of paint. 
Customer: What does it matter whether I use all the paint? I already paid you for it! 
Clerk: We make plans based upon the idea that all our paint is used, every drop.  If you don’t, it causes us all sorts of problems. 
Customer: This is crazy!! I suppose something terrible happens if I don’t keep painting until after Saturday night! 
Clerk: Oh yes! Every gallon you bought automatically becomes the $200 paint. 
Customer: But what are all these, “Paint on sale from $12 a gallon”, signs? 
Clerk: Well that’s for our budget paint. It only comes in half-gallons.  One $6 half-gallon will do half a room. The second half-gallon to complete the room is $20. None of the cans have labels, some are empty and there are no refunds, even on the empty cans. 
Customer: To hell with this! I’ll buy what I need somewhere else! 
Clerk: I don’t think so, sir. You may be able to buy paint for your bathroom and bedrooms, and your kitchen and dining room from someone else, but you won’t be able to paint your connecting hall and stairway from anyone but us.  And I should point out, sir, that if you paint in only one direction, it will be $300 a gallon. 
Customer: I thought your most expensive paint was $200! 
Clerk: That’s if you paint around the room to the point at which you started. A hallway is different.  
Customer: And if I buy $200 paint for the hall, but only paint in one direction, you’ll confiscate the remaining paint. 
Clerk: Yes, and we’ll charge you an extra use fee plus the difference on your next gallon of paint. But I believe you’re getting it now, sir. 
Customer: You’re insane! 
Clerk: Thanks for painting with United!

~ Author Unknown ~

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