How does airline pricing work? The Bucket system explained

Airlines use a complex pricing system to determine the cost of tickets, known as the bucket system. This system involves dividing the seats on a plane into different categories or "buckets," each with its own price range. This allows airlines to adjust ticket prices based on factors such as supply and demand, time of year, and the number of seats available in each bucket.

The bucket system works by assigning a certain number of seats to each bucket, with lower-priced buckets having fewer seats available than higher-priced ones. As seats in a particular bucket are sold, the price for that bucket increases, and the airline may open up seats in a higher-priced bucket to accommodate demand. This allows airlines to sell seats at a range of prices, with those who book early and are flexible with their travel plans often able to secure the best deals.

The bucket system also allows airlines to adjust prices in response to changes in demand. For example, if a particular flight is not selling well, the airline may reduce the price of seats in certain buckets to encourage more bookings. Conversely, if demand is high, the airline may increase prices in certain buckets to maximize revenue.

While the bucket system can be confusing for travelers trying to find the best deal, it allows airlines to manage their inventory effectively and optimize revenue. By constantly adjusting prices based on demand and availability, airlines are able to fill more seats and increase profits, while offering a range of options for travelers at different price points.

Overall, the bucket system is a key component of how airlines price their tickets, allowing them to adjust prices based on a range of factors and optimize revenue. While it can be frustrating for travelers, understanding how the system works can help them find the best deals and plan their travel accordingly.