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Wednesday, September 1, 2010

When is the best time to buy plane tickets to minimize the price?

The Dilemma of all of us who want to go on holiday abroad, flying with a low cost company, is when to buy tickets so that they are at the lowest price.

Well, guess what? Two economists in Japan are able to answer these questions, managing to develop a formula to rid us of the travel headaches.

Thus, according to Makoto Watanabe and Marc Moller formula  the answer is ÐA = gUG + min(k - g, (1 - g)(1 - r)), where D represents profit. As the two were calculated, the ideal time to buy your tickets for a low cost flight for vacation is exactly eight weeks before loading, reports thisismoney.co.uk, citing The Economic Journal.

If bought earlier, there is a danger that this journey can not be done for various reasons, and buying last minute tickets could be too expensive. In addition, there is the risk of no longer finding tickets for the desired flight.

The two economists have calculated the ideal time of day and where to make the transaction. According to them, the tickets that are posted in the morning are the most expensive tickets, mainly because those who buy them are not very interested in price, they are usually those who travel on business and the ticket price is paid by their company. Therefore, they are booking from their office, early in the morning.

In the afternoon, instead, the people online are mostly connected to the Internet from home, which are looking for low cost tickets for vacation, so that companies make and beat tickets at minimum prices.

So yeah, trust me, I didn't understand that formula either, but the stuff about the time of day I found most interesting. Hope this helps.

4 comments:

  1. This is actually extremely helpful :D

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  2. Real life solutions through algebraic equations always get me rallied up to enjoy anything :D

    ReplyDelete