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!!)

 

[siri]

Why not offer upgrades with reasonable fare or points when you check in? I have seen some Apacj careers doing it but not sure who offer these.. May be airline app can send offers...

 

[Portsoft]

I went to Egypt in October booked Y class from Perth, 3 weeks out I got an email offering an upgrade to business for $2162.00 for the PER-DXB and DXB -SYD on the return, as it was a 70th birthday trip I took it .
The DXB- CAI leg was $630. was a smaller plane and was ok

 

[Mattg]

Is the donut story a true story?

Sure is.

 

[Youfah Mizzum]

I wonder if there is a cost to occupy a seat, or hotel room that means the airline or hotel would almost prefer the distressed inventory to remain that way.
I am thinking cleaning costs, FA attention, meal/drink costs etc.

A short staffed flight (if that ever happens) might prefer several seats to remain empty.

 

[flyingfan]

I don't know the answer to the headline question but I'm in the camp that holdouts for DSCs are a small percentage of customers (even if various ahem tricks are used to maximise them).

I'm guessing that, even with a nice spike to QF's revenues during DSC and the reported surge in public sector bookings, it doesn't make a big impact in the scheme of things. imho.

Whereas end of day discounts would be a somewhat bigger proportional hit to the bottom line to doughnut-type stores. I see food courts box up and discount things at the end of the day but by then the lunchtime crowds are long gone and only the true bargain-hunters are left.

Trying to finish on topic... I don't go to the extent of booking flexible fares or rooms in hopes of a last-minute discount, I like to have things booked long in advance and I've never won that game of chicken.

 

[pen48]

Upgrades at check in or onboard at a very good discount / generous points offer or a generous points offer in the week prior to departure would possibly see the uptake of empty seats without cannibalising existing bookings. I know my partner would be first inline as she travels to the UK to see family 2-3 times a year.

 

[Flyfrequently]

Why not offer upgrades with reasonable fare or points when you check in? I have seen some Apacj careers doing it but not sure who offer these.. May be airline app can send offers...

Have been offered NAN-MEL Y to J on Fiji Airways FJD 400~AUD 260 at checkin @siri and in the KLM App @T-24 Y to J OPO-AMS €70 ~AUD120 but only one seat.
Mr Flyfrequently got €70 upgrade at check-in - the last seat

 

[elanshin]

@Mattg as far as I know, hotels do regularly massively discount their prices when they have big vacancies. However it often won't be directly via their own services. It'll either go to aggregates like Agoda (why sometimes you get super deals from them) or the other more common one is things like Priceline's Mystery hotel deals.

That way they can obfuscate that they are massively discounting and it's not public knowledge that they're doing it as you're not told which hotel is on "super sale" until after you finalise the booking. This way they can sell their excess rooms and still keep their own site/program looking reasonably normal.

 

[ramboflyer]

I remember the good ole days of standby prices for flights and hotels. A few years ago on a driving holiday in NSW we just rocked up to a nice looking apartment accommodation we saw in each town and asked for a rate for 2-3 nights. Mostly we were given rates at around half of the normal rate. Works well until you have to walk or drive around for some time trying to get a good rate. Then you get thirsty!