How COVID-19 Broke the Airline Pricing Model

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Wendover Productions

7 сарын өмнө

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Animation by Josh Sherrington
Sound by Graham Haerther
Thumbnail by Simon Buckmaster
Select footage courtesy the AP Archive
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Arnab SurbhamSur
Arnab SurbhamSur 11 цагийн өмнө
This will probably make us return to the generation when airline tickets were expensive and only for rich ppl.
David 2.0
David 2.0 4 өдрийн өмнө
I flew last week and both of my flights each way, transcontinental in the US were filled. Apart from the masks, it felt like the attitude was "covid be darned."
Cortex 10 өдрийн өмнө
Good, let these companies burn.
Ryan D Hazer
Ryan D Hazer 20 өдрийн өмнө
The accurate panther structurally alert because authorization demographically bounce into a murky recorder. medical, mushy transport
Jbig1430 25 өдрийн өмнө
The simple solution is to sell only 85 to 90% of all the seats and the remaining percent charge the highest there so you get the last min people who are rich.
CryptoMasta Сарын өмнө
The sneaky may iteratively disarm because bathroom multivariately change since a rich linda. aberrant, puzzled stem
Nick Stone
Nick Stone Сарын өмнө
So they cant Guinea Pig me on price as readily as they used to? Where's my smallest violin? Ah hell, they're not worth it.
Dad Bod vs The World
Dad Bod vs The World Сарын өмнө
As a pilot for a regional Airline, as much as I disparage Airline management, I have to thank American Airlines for two major reasons. They increased my flying to Florida destinations that I enjoy, and I have not been to New York in almost a year.
Tom Clark
Tom Clark 2 сарын өмнө
9:26 Bournemouth Airport
Karsten Cen
Karsten Cen 2 сарын өмнө
December 15 2020, when my flight got cancelled
metalfoot 2 сарын өмнө
10:05 "Phuket" 🤔
KielEire 2 сарын өмнө
Don’t worry about the airlines, they will get bailed out and the executives will get large bonuses
Carls Carl
Carls Carl 2 сарын өмнө
I appreciate airplanes. I mean fuck walking
GoinManta 2 сарын өмнө
I have a trip to Berlin, that could have been Frankfurt.. But Frankfurt was $1800, Berlin $850.. I AM TAKING THE SAME FLIGHT From THE US.. TO Frankfurt.
Rasmussen Invincible
Rasmussen Invincible 2 сарын өмнө
Eventually affordable prices
Musical1inNM 2 сарын өмнө
But they got gubmint bailouts& small biz and restaurants got loans . airlines have paid lobbyists for handouts.. Small biz and restaurant owners have no lobbyists for them in DC . its a big klub and we aint in it
徐鹏飞 2 сарын өмнө
Bram Meijer
Bram Meijer 2 сарын өмнө
Does this guy sound similar to HAI or is it just me?
Sheev Palpatine
Sheev Palpatine Сарын өмнө
I think the dude from HAI is locked up in Wendower's basement.
Scott Nope
Scott Nope 2 сарын өмнө
Sooo airlines are responsible for people dying in Florida?
Krajcik Pritchard
Krajcik Pritchard 2 сарын өмнө
Brad Sadler
Brad Sadler 3 сарын өмнө
I would like to add to the Denver and Eagle County argument that Denver is also a United hub. I would assume they would fly there cheaper because these hubs are where they dish out their planes to various locations and would also have more United gates. Another hub of United is San Francisco about 50% farther than Denver but the price is about 35% more expensive. SFO may be just another "big airport" These hubs have their hangers there where as Salt Lake City another "big airport" less than double the distance, but is about 90% more expensive. as of jan 21, 2021. SLC is a Delta hub to anyone wondering. (i am a standby flyer of United) so you pick and choose your flights very carefully. $148 Denver, $191 San Fran, $269 SLC. End of pointless semantics.
UKinQ8 Gaming
UKinQ8 Gaming 3 сарын өмнө
I love how half interesting these videos are ❤
Jesse Berg
Jesse Berg 3 сарын өмнө
So, they turned off the computers and us d The Force?
Acel Shock
Acel Shock 3 сарын өмнө
This video was made possible by COVID-19
Cihan Kivanc
Cihan Kivanc 3 сарын өмнө
5:17 YTZ Billy Bishop Toronto City Airport featured in a Wendover video Woohoo!!! :)
Andrew Truett
Andrew Truett 3 сарын өмнө
Newark is NJ
Thomas Brown
Thomas Brown 3 сарын өмнө
i flew allegiant back in may memphis to tampa. Round trip $70.
oceans taiga
oceans taiga 3 сарын өмнө
Gonna fly internationally again soon after last taking a flight February of 2020 and I'm so curious of how empty the flight will be ngl
Richard Conte
Richard Conte 3 сарын өмнө
then why is it so expensive to fly non stop between New York City to Miniapolis St Paul, MN
Aazam Chattha
Aazam Chattha 3 сарын өмнө
lol ryan air
Justin Masayda
Justin Masayda 3 сарын өмнө
One thing that irks me a bit is each time you say airlines "regulate demand." What you mean is that they regulate quantity demanded. These are not the same thing. Demand is basically a quantification of how much value people place on a given thing, on average, in a given amount of time. Quantity demanded is how much of that thing is actually traded at some price in some amount of time. Airlines can't directly decide to change whether people want to fly or not. They CAN directly change how many people who are ALREADY willing and able to fly actually do so by regulating prices.
Eric Stevens
Eric Stevens 3 сарын өмнө
i moved from north carolina to tulsa ok last december, and i fly back to north carolina every eight weeks and i was getting american airlines first class every trip for under $400 with a hotel and rental car with first i know why. and i was wondering how is this possible
Brad Sadler
Brad Sadler 3 сарын өмнө
I've made a recent comment about my theory, but Charlotte Douglas is an American Airlines hub, and Tulsa is Maintenance hub for American Airlines
Ted Chou
Ted Chou 3 сарын өмнө
I always liked how Sam can link the topic to his sponsors in the end.
James C.
James C. 3 сарын өмнө
Shivam Gupta
Shivam Gupta 3 сарын өмнө
steveghanbari 3 сарын өмнө
No governments or organisation should force people to take the vaccine that not been researched on adequately. Suppose government or organisation forces employees to undertake risky exercise. In that case, they must also provide a written guarantee if any adverse effects arise regarding that the individual health that the government or that organisation is liable financially to the tune of billions of dollars for every life may be affected. Anything short of that it is useless people should stand up. Otherwise, they can get lost.
Darth Makroth
Darth Makroth 3 сарын өмнө
At this point you should become an airline accountant
CatSauceForThePeople 3 сарын өмнө
I commuted with Ryanair, most of the time It was maybe 10% full, one time I was the only passanger. So idk about that thing about them being usually full.
John Rupesh
John Rupesh 3 сарын өмнө
I have been working as a travel agent for the last 10 years. Its not that flying to eagle county is expensive, rather its flying to Denver is cheaper for united because denver is one of its hubs from which it can connect flights to go further ahead to different airports but eagle county is a small airport so Airline pays slightly higher airport tax and rent for that airport also flying to small airport means such as eagle county, that the flight can't go further ahead so Airline is losing the profit which it could have made from connecting a different city. Airline pricing is not as simple as you think. Its very complex even I can't comprehend it 100% even after working in it for 10 years.
Domagoj Pribanic
Domagoj Pribanic 3 сарын өмнө
The airlines can adjust to the drop in demand by using the methods you describe, but offloading assets? By assets, the most important of those I assume you mean planes? To whom are they supposed to offload those if the same thing is happening to the whole industry at once?
Tirex367 3 сарын өмнө
In other words, the airlines figuratively had to turn off a malfunctioning auto pilot and fly manually, to not crash.
nuthnmuchu 3 сарын өмнө
And now many flights are 3x the price that they used to be around this time of year. $7000 to fly economy to China is ridiculous
Juan Hernandez
Juan Hernandez 4 сарын өмнө
The vacuous printer phylogenitically possess because ferryboat definitely bruise underneath a tasteful statement. hot huge, detailed discussion
Kris Yeti
Kris Yeti 4 сарын өмнө
"That's because the humans were able to realize something that the computers could not." Pretty freaky if you think about it on a more general scale.
TheMarioMen1 4 сарын өмнө
6:54 Honestly wtf kinda example lmaoo 😂 who is wanting to fly from the Jerzz to Eagle hick county Colorado 😂
Fakhri Jauhar
Fakhri Jauhar 4 сарын өмнө
0:37 is this Ngurah Rai Bali Airport?
darknessblade 4 сарын өмнө
So before they shut down the software someone could buy in theory all flights for the next 5 years, and sell them at a inflated price later on
Axcellent Walukow
Axcellent Walukow 4 сарын өмнө
I see. This explains why my December ticket became much cheaper than last year's. Yes, it's pandemic, but from an IT perspective, it is impossible that the automated system can do that.
h h
h h 4 сарын өмнө
forgot to mention the way Airlines treat their Greatest Assets, Costumers They've treated us like cattle in cattle cars and some took this opportunity to move on.
Aidan Brady
Aidan Brady 4 сарын өмнө
The dude is annoying
J Jones
J Jones 4 сарын өмнө
Why is government suppressing information on effectively preventing , treating and stopping the spread of COVID?
navdas one
navdas one 4 сарын өмнө
What about the BLOODSUCKING culture that airlines have adopted, in order to " extract the maximum revenue' from passengers? What is the need for the expensive to run algorithm computers? The reality is that passengers have been reduced to 'SITTING TARGET' status in order to STEAL cash from their pocket.
Alexander Ulanov
Alexander Ulanov 4 сарын өмнө
2:02 haha what the hell is she doing
spinalcrackerbox 4 сарын өмнө
There is also a long-term effect in the international segment as millions of passengers got punished for booking months in advance. I alone had 3 bookings go up in smoke between March & early July (I did stop making bookings in February, even when a certain low coast carrier tempted with a price of just $30 for a flight from my home airport to KUL. I was certain those future flights wouldn't happen & they never did). It will certainly be many years if ever that I will be so optimistic and book months before. A sub-development is consumers being turned off by the bad customer service provided by online booking sites, such as MyTrip/GoToGate, etc. I predict more people will book directly with the airline from now on.
Steven Adams
Steven Adams 4 сарын өмнө
The strange windscreen technically call because shallot prospectively lick aside a fanatical example. ambiguous, steadfast curler
Rob 4 сарын өмнө
@ 9:25 , Is that Norwich Airport?
hummelman 4 сарын өмнө
I work in hotels and i can tell you that we have a lot of revenue managers looking for jobs right now!
Brandon King
Brandon King 4 сарын өмнө
Wendover 2018: How Airlines price flights Wendover 2020: How Covid broke pricing flights
qwertymonsta 4 сарын өмнө
Fuck airlines that keep their prices high and don't offer any real safety measures for COVID (read: American Airlines). My wife and I got COVID on a flight to head home after a non-optional trip.
Jason Crobar
Jason Crobar 5 сарын өмнө
My home airport YYZ at 4:15! Sadly, it's been a while since I've seen that view in person (Terminal 1, Pier F, looking across to Pier D). Next year... Maybe...
Jason Crobar
Jason Crobar 5 сарын өмнө
My other home airport YTZ at 5:18! Nice!
NextNate03 5 сарын өмнө
You forgot the part where some or many of the airlines overbooked the flights.
axlin 5 сарын өмнө
Is that plane at 12:44 wearing a MASK!?
mining craft
mining craft 5 сарын өмнө
2:02 that woman using her mind to type
Ryan T.A
Ryan T.A 5 сарын өмнө
Tom 5 сарын өмнө
I've actually been flying more than usual this year. Being from mainland europe and going to uni in the UK, I usually would travel by bus via France. However, with all the lockdown and quarantine rules going on, I had to fly two times this year in order to not pass through any countries with high enough cases that I would force me to isolate on arrival. There was also a lot of uncertainty going on with borders closing in March so that the goal was basically to get to my home country as quickly as possible and I had to fly.
David Beppler
David Beppler 5 сарын өмнө
TSA agents are so bored they are frisking each other. TSA the only job where zero tolerance does not exists. No such thing as sexual harassment as a TSA agent. The only thing more invasive than a TSA agent is a teenage obgyn!
One Time
One Time 5 сарын өмнө
So this video is how its sad that airlines cant rob us of money huh
herogoose 5 сарын өмнө
not to sound like a jerk but I thought it was dumb when he said NORMALLY business focus on matching supply to demand but airplanes do does that even mean? all business follow supply and demand, not a single fucking business doesn't follow it. how does an airplane increase demand? u force people into your airplane? and don't say discounts, you don't buy new airplanes or increase the number of flights when you make a discount, if its full, its full and they book the next day. airplanes like any product follow the same rules (Ex. milk) , if people drink more milk, then supply will increase.
Filip Poutintsev
Filip Poutintsev 5 сарын өмнө
Airlines are so rude to people that it's only karma that they lose money now.
Popper Shnoz
Popper Shnoz 5 сарын өмнө
Guys... Just put your masks on... And enjoy a nice flight...
limpqizbuit 5 сарын өмнө
The ironic thing is, the person spraying down the airplane like that without a sealed chemical mask is going to die of lung cancer or pneumonia, because masks (the ones everyone wear on the daily) don't work the way people are brainwashed to think they work.
Karol Stopinski
Karol Stopinski 5 сарын өмнө
Cry me a river. At least in 2020 i was able to fly like a human being and not a sardine. Hope it stays this way.
Chinese Memer
Chinese Memer 5 сарын өмнө
Better question, why not trains
Jeremi Miller
Jeremi Miller 5 сарын өмнө
All this over a cold!
FullSizedGaming 5 сарын өмнө
I see a lot of comments that companies can't influence "demand" in the market place. So as an economist answer this. Business 1 - supplies 100% of demand at a given time. Demand is now Zero, everyone who wanted whatever it was has it Business 2 - supplies 10% of the demand at a given time. Demand is still at 90% of what it was as everyone who wanted it doesn't have it. An example could be airplanes vs diamond jewelry. Inevitably there will be some who "demand" an airplane ticket but the cost is too high so they use alternative transportation. But arn't all the people who are buying tickets and flying reducing the demand? Meanwhile a diamond jeweler supports their ridiculous prices for "rocks" by keeping demand high, this is done two fold by advertising - making people want it, and pricing - making it cost more than most people will spend. Now imagine a 3rd company, maybe something like Neuralink. Millions of people want a Neuralink but it isn't a finished product. So while the company advertises what they think they can get the product to do, as well as talk about what they plan to be able to price the device at they are creating more and more demand while not actually able to supply any of the demand. In all 3 cases the companies are able to influence demand by Advertising, pricing, and making their product more or less available.
FullSizedGaming 5 сарын өмнө
who cares about airplanes when you see what those sailboats did at 5:17. Look bottom center, those are sail boats. Look how pro thats first boat linked up with his friend. I mean thats some precision boat driving for a sail boat.
Kevin 5 сарын өмнө
Computer: *Does exactly what it's designed to do* Wendover: "...which confused the computer even more"
Tzizenorec 5 сарын өмнө
Why are you showing us graphs of "percent deviation"? That's useless, because it doesn't tell us whether the deviation was an increase or a decrease!
Хрупа Хрупов
Хрупа Хрупов 5 сарын өмнө
So much better without the HI's cringey jokes crammed into every possible second of a video. God, those are so bad I actually unsubscribed from Half as Interesting.
xChaleur 5 сарын өмнө
Airlines will make more money if they let drug dealers go unchecked. Just saying! Dont go complaining about empty seats when you are kicking people out. Lol
D1V15OR 5 сарын өмнө
Ah yes its called covid 19 because it came along in 2018
luis tena
luis tena 5 сарын өмнө
Airlines bout to drop that Covid software update on their servers lol
Rosemarie Landers
Rosemarie Landers 5 сарын өмнө
Ripcord 5 сарын өмнө
I could only watch, about one minute of, your video. Your midsentence pauses were, excessive and, unnecessary. Much like I did in this, comment.
Ardakapalasan 5 сарын өмнө
I like these videos but the narrator seems to make pauses in all the wrong places...
RezaQin 5 сарын өмнө
How the lockdowns broke it, not Covid itself.
danpos 5 сарын өмнө
Covid-19 did NOT break anything. The power hungry politicians broke the world economy with their new laws and rules. It is easy to make new crippling laws and rules when they don't affect you! Did they get wage cuts? Did 50% of all politicians loose their jobs?
Smash 5 сарын өмнө
Voiceover guy says "boLth" and I can't get over it.
Jared Emberton
Jared Emberton 5 сарын өмнө
Anyone else notice the computer doing it’s own thing at 2:00?
Rotogas 5 сарын өмнө
Wait. I'm eight minutes in and I am just realising that this isn't an HAI video...
MrSupergibs 5 сарын өмнө
Don't worry, expect airfares will skyrocket in the years to come! Get ready for take off!
Zac van Castle
Zac van Castle 5 сарын өмнө
Seems to me when you explain why Denver tickets are cheaper that the are just adjusting to demand, and not creating it. If anything, they offer alternatives to over demanded destinations, so if you can’t flight to New York, you still fly and they don’t lose your money. But obviously, the new destination has to be something apoealing and for a good price. Not to mention that planes are not busses, so you can’t just put one more plane on a route and go, otherwise rest assure instead of other options, airlines will just increase the number of seats with more aircrafts for most desired routes
spik330 5 сарын өмнө
Airlines are basically price fixing. This equation is backwards, the seats in a plan are the the supply. They adjust the supply to ship the most people at the same time as charging the most they can.
Dieselpilot 5 сарын өмнө
This was a very informative look behind the curtain of how the airline industry makes its money. Thanks. I especially like the brief discussion about the airlines shifting their capacity to serve Florida, and I wonder if that indirectly resulted in the COVID spike in Florida. That would be an interesting discussion for ethicists in the future. I'm curious, are you able to describe any effects on the pricing model that the GSA has for its contracted fares with certain airlines for certain city-pairs? I know that's a bit of a niche topic, but government air travel is a significant enough customer base that there is a chance that it's been investigated. If it's not been checked out, it might make an interesting thesis paper for an Economics Masters Degree student! :-D
Godspeedhero 5 сарын өмнө
Guess they'll have to do it old school.
NewWorldSinner 5 сарын өмнө
Great vid
EИDERS 5 сарын өмнө
I bet the statistics used in this video, given by large corporation and combines, are all bullshit.
Aman Mahajan
Aman Mahajan 5 сарын өмнө
In Ryanair, the pilot sits in the passenger seat.
Starcraf SF
Starcraf SF 5 сарын өмнө
The shutdown of travel was not natural it was artificial and forced.
Casey Doe
Casey Doe 5 сарын өмнө
I just flew in October and the flight was completely full and when I landed in PHX there was a sea of people there. The next flight was full as well. There's a TON of people flying.
Herr Vorragend
Herr Vorragend 5 сарын өмнө
6:48 .. wtf .. i see the map and instantly see that red sandy area way north of mexico. I instantly think like "oh that looks like a bird, like an eagle or phoenix, looking for prey!" seconds later it writes "eagle country" ... thats sick.
FoolWise 5 сарын өмнө
Tip: If you show many plots of a fiew different types data, present them in different colors. E.g. covid cases in green, passenger numbers in red etc. This makes it obvious to me as a viewer that I need to read a new axis.
Klaas Vaak
Klaas Vaak 5 сарын өмнө
haha, rocket science aint that hard, it isn't predicting sociological patterns
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