Why do airline ticket prices change so much?

It’s not unusual to find one fare on  Monday, a different fare on Tuesday, and a higher, or maybe lower fare, on Wednesday. I thought prices changed on a daily basis — I never realized they changed on an hourly basis!

The American Airlines’ Revenue Management team is constantly reviewing and updating fares. This video from AA explains their daunting task and how they make it all work.

Disclaimer: I own stock in AMR Corporation, the parent company of American Airlines. The total value of my holdings is less than $70.00.