I have become keenly interested in all things behavioural over the past few years, having been introduced to Freakonomics back around 2006. The simple explanations for human behaviour which are not easily understandable at face value.
A couple of days ago whilst on twitter I saw the tweet
Thread: Economic Naturalist Question #8. Why do airlines charge much more for tickets purchased at the last minute, while Broadway theaters follow the opposite practice?
— Robert H Frank (@econnaturalist) April 29, 2019
A simple question, which I myself had pondered many many times, and yet here was a simple explanation given in just 11 short tweets.
Simple put – those who require last minute flights tend to be business persons, who are less sensitive to airfares as its a business cost. Whereas last minute ticket buyers, tend to be those with lower income brackets. Those with higher incomes, tend to buy tickets when they are released – those who queue in line for last minute are more time affluent than income, therefore are willing to give up an hour other time to save on money.