Airline Revenue Economics

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Airline Revenue Economics
Airfare Arbitrage
Pricing, Retailing & RM

Airfare Arbitrage

A choice between point-of-sale and point-of-origin logic leads to a product pricing dilemma

Oliver Ranson's avatar
Oliver Ranson
Jan 13, 2022
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To save money on air fare it is sometimes possible to call an agent in another country and pay for your ticket in a foreign currency. The savings can be substantial, perhaps £500 to £1,000 in premium economy or business class, and far outweigh any credit card’s foreign exchange fees. It is just like arbitrage in finance.

This is because some airlines, in…

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