Airline Pricing Psychology: Why Fares End in ₹99 and the Person Next to You Paid Less
Fares end in ₹99 because nine-ending prices measurably raise demand — the left-digit effect makes ₹4,999 feel far below ₹5,000 (Thomas & Morwitz, 2005). And your seatmate paid less because airlines sell one cabin as several price “buckets”: the cheapest ones sell out, the next-higher price opens. About 80% of IATA member airlines now use
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