The Real Cost of Luxury in Air Travel
Hello friends! An average flight ticket in economy class from Delhi to Mumbai costs around 5000 rupees today. But can you guess how expensive the world’s most expensive flight ticket is? You might think 5 lakhs, 10 lakhs or 20 lakhs—but then…
The Residence: The Most Expensive Flight Seat in the World
You get your own queen-sized double bed to sleep in, along with your own private bedroom and seating space. These seats are not available on every plane of Etihad Airways but only on a few flights. There are a total of 125 square feet of space reserved privately only for you.
It is almost as big as a hotel room. Hence, they have named it “The Residence,” and its cost is Rs 55 lakhs for one flight. With this amount, you can buy more than 50 iPhones, a very luxurious car, or even a house in many places. If you are surprised to hear this, then listen to its opposite example—it is equally surprising.
The Cheapest Airline Experience: Ryanair’s Strategy
On average, Ryanair’s ticket price is somewhere between 800–1500 rupees, which is unbelievably cheap, right? But we should also take into account that the per capita income of European countries is higher, so the buying power of the people there is more. If you want to compare it to India, then reduce it by five times.
Imagine a flight ticket costing just 100–200 rupees. Ryanair and Etihad Airways are extremes of each other. But now I want you to do one last thing—think and see which of these two airlines is earning more profit. The correct answer is that Ryanair’s profit in the same year was $1.5 billion. How is this possible? How do airlines make money? What is the secret behind their business model? And what tricks should you adopt to get the cheapest flight tickets? Let’s explore all these things in today’s article.
Two Airline Models: Full-Service vs. Low-Cost
Broadly speaking, there are two types of airlines. The first is full-service airlines and the second is low-cost airlines. Full-service airlines are those traditional airlines where you are given in-flight food. Etihad Airways, Emirates, and Singapore Airlines are some examples of full-service airlines. If we talk about India, Air India and Vistara come under this category.
On the other hand, there are low-cost airlines where you get very cheap fares. Often, due to cost-cutting measures adopted by these low-cost airlines, they have to face a lot of hate. You must remember that viral Indigo video from a few months ago where, due to flight delays, a passenger got entangled and started hitting the pilot. In another case, cockroaches were found inside the flight. While mismanagement is a separate issue, obviously these low-cost airlines do some strange things to stay profitable.
How Low-Cost Airlines Like Ryanair Stay Profitable
Take the example of Ryanair—the price of the original ticket would be very cheap. But once you have bought your ticket, if you require any extra service, you will be charged extra even for the smallest things. Want to carry baggage with you? Pay extra. Want to select your seat in the plane? Pay extra. Want food or drinks in the flight? Pay extra. Even if you’re paying with a credit card while booking online, you have to pay extra.
Although they never implemented this plan, at one time their idea was to charge passengers for using the toilet. When they gave this statement in 2010, they had to face a lot of backlash, but it gives you an idea of their mindset. At another time, their plan was to install standing seats to fit more passengers, essentially making people stand during flights.
Today, all these seemingly unreasonable fees have turned into a treasure for these low-cost airlines. The money earned in this way is called ancillary revenue, and for most airlines, this source of income has been steadily increasing over the years.
Marketing With Sarcasm: Ryanair’s Bold PR
This company doesn’t hide its strategy but actually flaunts it proudly on social media. Often, when people complain about their airline on Twitter, the airline’s official account replies sarcastically, embracing its reputation instead of denying it. This bold and unapologetic marketing strategy may seem odd, but it works for them because they cater to an audience that prioritizes price over comfort.
Dynamic Pricing: The Game Behind Ticket Prices
The next strategy airlines use is dynamic pricing, and this is implemented by both full-service and low-cost airlines. This basically means that the price of your ticket is not fixed—it’s dynamic. Tickets aren’t sold at one static price. Today, when you book a ticket for any flight online, the price keeps fluctuating. It depends on how many people want to travel on your flight, the demand and supply equation, and the prices set by competitor airlines on the same route.
For instance, suppose there are 100 economy class seats on a flight scheduled ten days later. The airline may sell the first 25 seats at a very low rate. As more seats are sold, the next batch of 25 seats is priced higher. But if the flight is still half-empty a day before take-off, the price of the remaining seats might drop again to attract last-minute travelers.
Many people don’t understand this system and still follow outdated advice. Some say booking in advance gets you a cheaper price, while others claim last-minute bookings are better. The truth is, both can be correct or incorrect depending on the demand algorithm because modern pricing works on dynamic patterns.
Myths About Cheap Tickets: Night Time, Incognito Mode
Another myth is that browsing for tickets at midnight gets you cheaper prices. This is not true. The dynamic pricing algorithm runs 24/7, and there’s no “discount hour” coded into the system. Yet another myth is using incognito mode in the browser to search for flights to avoid price hikes.
The idea is that airlines track your browsing history and raise prices if they detect repeat visits. While it sounds believable, there’s no solid proof that this method actually changes ticket pricing. The algorithms are driven by real-time data across millions of users, not individual behavior alone.
Data Science in the Airline Industry
The people who create and maintain these algorithms are called data scientists, and data science has become one of the most lucrative career options in the world today. It is used not only in the airline industry but also in deep-sea exploration, finance, healthcare, and many other sectors. This brings us to Scaler, an online tech learning platform that offers programs in software development, data science, and machine learning.
Industry experts from big tech companies guide and mentor learners, who also gain access to over 80 real-world case studies. Many Scaler learners have secured placements in top companies like Google, Facebook, Flipkart, Myntra, Amazon, and Zomato. They even offer an easy EMI option. You can sign up for a free live class through the link and see the value it offers for yourself.
