Have you ever wondered how the prices for plane tickets are composed? The pricing of airline tickets is often complex and somewhat incomprehensible. Things like taxes, fees, fuel surcharge, security fees, service X, Y, and Z. Well, if that is the case then this post is exactly for you. We have compiled some information explaining how tickets are priced and why there is price fluctuation. Knowing this may potentially help you book some great deals in the future.
Airline ticket: Taxes, fees, flat rates, and surcharges
Apart from the actual fare, the final ticket price actually consists of a large number of components. For example in Germany, all airlines must set up an amount fixed by the Aviation Tax Act, depending on the flight route and the number of passengers carried from the country. This tax varies between €7.50 and €42.18. In addition, German VAT is added to the value of 19 percent. This is also valid for other European countries as well.
In addition, items such as security or airport fees are included in the ticket price. These vary depending on the airline and the airport. The airport charges include the proportionate costs for the aviation security fees and the handling fee for the departure airport and destination airport. Even the taxes and fees make it clear why the tariff jungle of the airlines is so infinitely complicated and no one really knows what a ticket actually costs.
Although there is currently no set tax rate for kerosene, many airlines add fuel costs to ticket prices. This can be up to 20 percent of the fare.
Additional fees are dependent on the airline you fly with
Airline companies themselves may also charge additional fees, such as baggage, service or handling fees. There is no global law or regulation, which makes it more difficult to find great deals. Maybe you have noticed, but the cheap flight tickets that often appear in search engine from airlines such as EasyJet or Ryanair often do not turn out to be the best deal because of all the additional fees that accumulate during the booking process.
For these low-cost airlines, the allowances for luggage are different and the cost of additional luggage is not uniformly regulated. In addition, the same applies to flights: only the comparison of “apples with apples”, ie equivalent offers of similar or identical composition, brings reliable prices. However, getting this comparison done is not easy, because every airline calls fees and co-payments differently.
Prior to actually booking your ticket class, make sure you are aware of what you really want on your flight and what you can do without. Do you really want to pay extra for a seat? Do you really need to drink alcohol on the plane? If you plan ahead and know what your priorities for travel are, then not only will you not be fully influenced by the price of the ticket but also in regards to which airline you choose and flight.
Insurance, security and service costs are also part of the ticket prices. All services that passengers can do themselves, such as check-in or baggage or eliminating in-flight services such as serving drinks or snacks, reduce airlines’ costs for service personnel and therefore they are able to pass this on to ticket prices. And by pass on, we do not necessarily mean a price reduction. Many airlines still leave fees in prices to cover other expenses or to up their margin.
Supply and demand determine the price of a plane ticket
As you know, you can save by avoiding less popular flight times and days or choosing alternative airports. This way you often are able to save up to 52 percent on a tickets price. Airlines also follow the market-based principle of supply and demand. This is particularly evident in annually recurring, popular travel periods such as the summer holidays or at events of international interest, such as the World Cup. Anticyclical booking behavior can help you find the cheapest price for a plane ticket.
It is logically clear that ticket prices skyrocket around holiday periods. Hence, carefully consider international holidays and holidays in your city or country of final destination. For example, the Chinese New Year festival in many Asian countries often provides for full hotels and thus higher fares, just like New Year’s Eve holidays in the Western world.
If you do not have children or are not bound by their school calendar, also means you’ll have a clear advantage when it comes to travel. Should that be the case, find a bargain, book, and travel while the masses stay at home. If you are a parent and are bound to a school schedule, well, our tip is plan well in advance and find great deals for the whole family!