It\u2019s not just you: Shopping for airfare is harder than ever. Choosing between\u00a0basic economy and regular economy fares\u00a0and navigating add-on fees makes booking more complicated, and that\u2019s no accident. Airlines are harnessing lessons from a still-emerging academic field known as behavioral economics to nudge customers into spending more.<\/p>\n
\u201cBehavioral economics was developed by incorporating ideas from psychology into standard economic theories,\u201d says Cait Lamberton, a professor of marketing at the University of Pennsylvania\u2019s Wharton School. \u201cIf you see a deal that is available for only a short amount of time, and you pay more than you usually would, standard economics would say you\u2019ve made an irrational decision. Behavioral economics says that no, what your brain is doing is responding to scarcity.\u201d<\/p>\n
These seemingly irrational choices are called \u201cbiases,\u201d many of which can affect how we shop.<\/p>\n
For example, \u201closs aversion\u201d makes us hyper-sensitive to losing money and more likely to buy something like trip protection. The \u201cdecoy effect\u201d makes us more likely to choose between two suboptimal options when a third, even worse option is presented. For example, airlines may offer a decoy like an expensive premium ticket with fewer amenities, which may make the cheaper premium ticket with more benefits look more appealing.<\/p>\n
Airlines are well aware of these tendencies and how they drive our decisions. So to save money on flights, customers need to understand how the airfare shopping experience has been engineered to exploit our biases.<\/p>\n
Read<\/strong>: Plane tickets were cheaper again in July, but that won\u2019t last for long, economists say<\/p>\n Airlines will use a technique called \u201csocial proof\u201d to upsell certain products, such as trip protection, by suggesting that many other travelers are adding it to their itineraries. Yet these marketing tactics don\u2019t offer much real-world value for consumers, according to experts.<\/p>\n Lamberton explains that those messages during the checkout process, like the number of people who have insured their trip today, shouldn\u2019t sway your decision to purchase because they often lack context. \u201cIs that a lot of people or a few people?,\u201d she says.<\/p>\n Also see: <\/strong>\u2018All of a sudden the plane just dropped.\u2019 Terrifying turbulence is getting worse, including the kind pilots cannot easily see.<\/p>\n Another bias that should ring true for anyone trying to buy an airline ticket: \u201cdecision fatigue.\u201d That is, we tend to make worse decisions when we have to make several of them in a row.<\/p>\n This airline or that? Early flight or later? Pay for a window seat? Pay now for a checked bag? Upgrade to premium economy? With each decision, our ability to make ideal choices diminishes.<\/p>\n \u201cOnce I\u2019m four or five clicks into purchasing this, the price has changed completely,\u201d Lamberton says, suggesting that airlines will withhold information until later in the process, when consumers are less likely to start over.<\/p>\n Indeed, a 2020 study published in Marketing Science found that customers made suboptimal decisions when prices were \u201cdripped\u201d throughout the checkout process, largely because of their unwillingness to start over.<\/p>\n Overcoming decision fatigue isn\u2019t easy. Realizing a flight is more expensive than you imagined and then starting over takes time and energy, so consider booking flights at a time when you\u2019re not in a rush and you can spend more time doing comparison shopping.<\/p>\n \u201cIf you want to overcome these biases, you will have to slow down and give yourself the space to pay attention to these things,\u201d Lamberton suggests.<\/p>\n See<\/strong>: How to choose the best seat on a plane<\/p>\n Budget airlines like\u00a0Spirit The trick is to determine ahead of time what you really need. Otherwise, you could get swayed by the upsell.<\/p>\n \u201cMy doctoral adviser gave me a great piece of advice: Know your own utility function,\u201d Lamberton says, referencing an economic term for the satisfaction you gain from a certain product. \u201cYou have to know what actually matters to you.\u201d<\/p>\n For example, travelers with small children may be more willing to pay for seat selection to ensure the family sits together. For solo travelers, paying $15 to select a seat might not be worth it.<\/p>\nDon\u2019t buy because everyone else is<\/strong><\/h2>\n
Be prepared for add-on fees<\/strong><\/h2>\n
Know your preferences<\/strong><\/h2>\n
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\n \u00a0offer rock-bottom fares while charging more for basic add-ons like\u00a0carry-on bags\u00a0and\u00a0seat selection. Skipping the extra fees means forgoing amenities that many travelers consider vital.<\/p>\n