Travel News: Why Airline Ticket Prices Aren’t Reflecting Fuel Prices
A few weeks ago, I delivered an overview of the airline revenue management function to a group of coworkers. To kick off the presentation, I decided to correct some common misconceptions by including this quiz: Which of the following goods/services has had their prices increase relative over the last fifteen years, relative to the consumer price index? a) Gasoline b) NFL tickets c) Single-family homes d) Cars e) Air travel The surprising answer is: all of the above, except air travel! Here’s some data to back up that seemingly unbelievable claim: This data comes from 2014 – after which point fuel prices fell while …
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