Nabil Luqman

0f9d2dd4f71434084e2b6094de1865e23abb37bb9f28ca51feeabee679ec9be2

Money

viral

AirAsia

aviation

travelling

explanation

pricing

Baggage

Add Ons

dynamic pricing

Ever been caught in the perplexing maze of flight ticket purchases, realizing that a mere change in the time of day or the device you're using could lead to varied prices and discrepancies in check-in baggage fees?
Enter the recent bewilderment experienced by numerous Malaysians, vividly encapsulated in the tale shared by Facebook user Kelvin Liew last week. As he embarked on securing flight tickets for his mother-in-law through AirAsia's website, the plot thickened. Despite the ticket being quoted at RM209, the baggage fees presented a spectrum of inconsistencies across Kelvin's iPhone, Honor X9B, and his trusty Windows computer. The journey into the realm of online flight bookings had just taken an unexpected turn.
<iframe style="border: none; overflow: hidden;" src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fklvliew%2Fposts%2Fpfbid025S3a7BPDgLubejf9ja4bdsnc6wnRgvqujd39QYGYC6ja6DyBhpN7StAKG7fZp395l&amp;show_text=true&amp;width=500" width="500" height="709" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe>
This ignited a thought-provoking online discourse, with numerous speculations swirling around. The conjecture was that AirAsia might tailor lower prices for customers depending on the perceived "premium" status of their devices. The debate delved into the intriguing possibility that AirAsia's flight costs could potentially favour those utilizing "less premium" devices.
AirAsia Responds To The Usage Of Dynamic Pricing
<img src="https://r2.myc.my/ec31a641e000729ff948021b0be826d880e1ea6c8bc71c5db85b7ecd2ebbb92a" />
Following the incident's eruption on social media, where perplexed users voiced their complaints and bewilderment over the airline's decision to adopt such a practice, AirAsia swiftly responded to address the concerns. In an effort to provide clarity to customers grappling with pricing confusion, the airline has released an official FAQ detailing its stance on the utilization of dynamic pricing for add-ons.
Interestingly, dynamic pricing isn't limited to baggage fees alone. It extends its influence to various other add-ons, encompassing preferred seat selections and tantalizing meal choices such as AirAsia's renowned Pak Nasser Nasi Lemak and Uncle Chin Chicken Rice. This revelation sheds light on the broader scope of the airline's pricing strategy beyond just checked luggage.
Dynamic Pricing Is Actually Common In The Aviation Industry
<img src="https://r2.myc.my/9b37eba552a37ec75fe0f1c2680b1b44d95288b8ba3ea758589b8beac345bce3" />
For those not in the know, Dynamic Pricing, also referred to as demand-based pricing or surge pricing, is a methodology that entails the adjustment of airline ticket prices, taking into account several influencing factors;
<ol>
<li>Demand</li>
<li>Time until departure</li>
<li>Day of the week</li>
<li>User&rsquo;s browsing history</li>
</ol>
The complex algorithms and data analytics are used by airlines to consistently monitor and analyse factors that may influence the demand for flights. As the demand fluctuates, the ticket prices or add-on prices can be adjusted by the airlines in real-time to maximize their revenue. This means that the cost of a ticket for a particular flight can vary depending on when it is booked, how full the flight is, and other market conditions.
Additionally, when an airline uses dynamic pricing, they are able to optimize their revenue by charging higher prices during peak demand periods and offering lower prices during off-peak times, hence why we sometimes see the prices of a flight ticket to East Malaysia during a festive season being priced the same or if not more than the price of travelling overseas.
Read: <a href="https://myc.my/articles/725/malaysians-outraged-over-christmas-holiday-flight-ticket-prices-to-sarawak">Malaysians Outraged Over Christmas Holiday Flight Ticket Prices To Sarawak</a>
AirAsia has established varied pricing levels for additional products, emphasizing that the pricing is not specific to any particular platform or device. The airline noted that the pricing is subjective, influenced by factors including current market conditions and the level of demand for ancillary services on a given flight.
Dynamic Pricing Won&rsquo;t Exceed Published Rates
<img src="https://r2.myc.my/bd0f7cd816b462b1be01c4b9b9ca19abd4f0f9fbebf017e44fcfb5e75b3a3dd9" />
Given AirAsia's status as a low-cost airline, their operational model revolves entirely around incentivizing early bookings, thereby providing customers with the opportunity to secure the lowest possible prices and enjoy significant savings.
For those not privy to this, it's economically advantageous to include your checked baggage during the initial booking phase rather than opting to add it later after finalizing your flight reservation.
Nevertheless, there are situations where prices might become more budget-friendly if you decide to add them at a later stage. AirAsia asserts that sporadic discounts are extended as part of its initiatives to stimulate demand for particular flights, products, or services.
Now, what if you decide to modify your add-ons, such as pre-booked meals, and encounter a price difference? As per the FAQs, if the new meal has a higher price, you'll need to cover the price disparity before making the changes. Conversely, if the new meal is priced lower, the price difference won't be refunded.
Here&rsquo;s the pricing for those using AirAsia to travel domestically:
<img src="https://r2.myc.my/703797921b10b66b62d49d8e3871f79f1f91c2e063db1086d09ababdad63324b" />
In case you wanna know more, you can click <a href="https://www.airasia.com/aa/about-us/en/gb/fees-and-charges.html">here</a> to check out all their Fees &amp; Charges rates according to each section of their services.
As per the officially stated prices, acquiring a 15kg checked baggage allowance for AK flights is priced at RM61.60 if obtained during the initial booking process, but the cost increases to RM86.80 post-booking. Furthermore, if purchased directly at the counter, the fee escalates even further to RM90 for the initial 15kg.
In the quest for the best flight deals, it seems elusive for us Malaysians to confidently say we're snagging the optimal bargains. Adding a layer of uncertainty, AirAsia has been known for those last-minute festive season flight cancellations, potentially pushing you into pricier alternatives (trust us, we've been there).
However, if you're gearing up to book that next flight, conventional wisdom suggests Tuesday afternoons are your sweet spot. Why? Airlines tend to drop their sales on Monday evenings, setting the stage for competitively undercut prices the following day. While the aviation landscape may be unpredictable, this Tuesday timing might just be your ticket to a more wallet-friendly journey. Safe travels!
So, what are your thoughts on the use of dynamic pricing? Should it remain or should it go? Let us know in the comments. 
&nbsp;
*Sources: Visual and Reference Credits to Social Media, AirAsia &amp; various cross-references for context.
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At this point it’s based on luck if you were to pay low fares for your trip. 

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AirAsia Releases FAQ On Why Add-Ons & Baggage Uses Dynamic Pricing 

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Scentify

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Oatside

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Rohto

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AirAsia Releases FAQ On Why Add-Ons & Baggage Uses Dynamic Pricing

At this point it’s based on luck if you were to pay low fares for your trip.

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