∏A = gUG + min(k-g, (1-g)(1-r))
This formula developed by Makoto Watanabe and Marc Möller from the University of Madrid is behind their research on the economics of airafes to be published shortly in the Economic Journal as “Advance Purchase Discounts versus Clearance Sales.”
We all know the situation.
- Book an airfare too early and you sometimes find the airfare goes down. Or your plans change.
- Book an airfare too late and you will usually find the airfare goes up.
Watanabe and Möller have found that the best time to buy an air ticket is eight weeks before. They also found it is best to buy the ticket in the afternoon.
Others have suggested midnight to dawn on a Tuesday and Wednesday is the best time. This has been debunked. If you travel on a Tuesday or Wednesday, however, fares will be lower.