Article: Should Airlines & Hotels Offer Last-Minute Discounts?

[AFF Editor]

Canonical URL

https://www.australianfrequentflyer.com.au/last-minute-pricing/

Should Airlines & Hotels Offer Last-Minute Discounts? is an article written by the AFF editorial team:

Should Airlines & Hotels Offer Last-Minute Discounts?

Airline seats and hotel rooms are perishable goods, yet travel companies usually raise prices at the last minute - even if many seats or rooms remain unsold. Why?

www.australianfrequentflyer.com.au

You can leave a comment or discuss this topic below.

 

[MEL_Traveller]

Some airlines are using the opportunity to gain revenue for unsold seats even after departure… for example the on-board sale of extra legroom seats, or seats in business class.

There are also lots of airlines that sell on-departure upgrades at the airport, either at check-in or even as late as boarding.These can sometimes be cheap (for example some chinese carriers) or they can be quite expensive (for example Swiss). You can then fill empty seats without cannibalising revenue for those that want the certainty of an upgrade.

On a recent trip around asia I noticed Cathay employs dynamic pricing, and quite aggressively. My flight from MNL to Shanghai varied by several hundred dollars, up and down, sometimes within a matter of minutes or hours. The fare went from ~$180 (o/w) to the mid $200s, up to $340, then back down again. I snagged it on the third of fourth attempt for $180.

Same with some hotels… like my recent Hilton stay. Being a tour group/conference hotel the price rotated from as low as $112 a night up to $220, and back down again.

 

[aikman]

Is the donut story a true story?

 

[Ade]

for example the on-board sale of extra legroom seats, or seats in business class.

Very common in 6E and IX. 6E sells XL seats on-board post take-off and seat belt sign is turned off.

IX sells instant upgrade to J after the seat belt sign is turned off.

There are also lots of airlines that sell on-departure upgrades at the airport, either at check-in or even as late as boarding.

MH did this as early as Jan 2026. Check-in at MAA, the agents asked if I would like to upgrade to J (MAA-KUL) for INR10k (AU $180) approx for a 4 hour flight. They also seem to *target* FFs. They look at the OW status and say how would you like to upgrade to J for only INR 10K? Not bad for a 4 hour flight, I'd say. I did not take up the offer. I might do it next time, if offered.

 

[Ade]

Should Airlines & Hotels Offer Last-Minute Discounts? is an article written by the AFF editorial team:

Should Airlines & Hotels Offer Last-Minute Discounts?

Airline seats and hotel rooms are perishable goods, yet travel companies usually raise prices at the last minute - even if many seats or rooms remain unsold. Why?

www.australianfrequentflyer.com.au

You can leave a comment or discuss this topic below.

Good article. IMHO, airlines may choose to offer upgrades to frequent fliers based on tiers a few days before flight if the flight is not sold as expected. I'm thinking you know how, if you book a flex fare, you'd need lesser FF points to upgrade to the next cabin. Airlines could similarly offer lesser FF points to upgrade based on the FF tier - as in, a P1 would pay less to upgrade to J that a WP, so on and so forth. This way, the FFs appreciate the offer in return for their loyalty.

 

[MEL_Traveller]

Very common in 6E and IX. 6E sells XL seats on-board post take-off and seat belt sign is turned off.

IX sells instant upgrade to J after the seat belt sign is turned off.

Several mainland carriers do the same for business, with the main benefit being the seat. You’re still served an economy meal!! (Which would be perfectly fine for me!!)