Innovation Example

Farecast is a cool internet application, and one that might actual save you money to buy, say a digital camera.

Farecast provides data and analysis to those looking to purchase airplane tickets. The graph above shows ticket prices for tickets between Boston and Washington DC over the last 60 days. I have thought for quite some time I need better data to make the best purchase decisions. Farecast seems like a great fit.

The airlines attempt to maximize their profit by changing ticket prices. This pricing model is different than most pricing options I face, normally the price is pretty much set: with the possibility of sale prices. I imagine that often it is best to buy airplane tickets as early as possible; but I am not even sure about that. I figure there might be systemic conditions that certain flights would be cheaper if you wait. Or at least certain flights might have a much lower benefit to buying early (so I could wait to avoid locking in for a small increase in price).

But I didn’t have the data to know how to shop effectively for airline tickets (I have even looked around on the web to find it in the past unsuccessfully).

Farecast provides data and forecasts of the direction of the price (letting you know if you should lock in now or if you may benefit from waiting). I think this is a very cool innovation. If I were an airline owner I might not think so. My guess is that some airlines will gripe and try and find ways to frustrate farecast. My guess is other airlines will realise the world changes and adapt and they may even be able to benefit from farecast. I also predict a positive correlation between historically successful airlines (or should that just be airline? – Southwest) and those that accepting the new innovation and adapt.

Hopefully the first post on our new blog platform is both interesting and saves you some money. If you would rather not buy a new toy, but instead chose to invest your savings you might want to check out some investment articles.