Dynamic Pricing for Airline Tickets: Is Constantly Changing Ticket Prices Legally Permissible?

A passenger might see a ticket for a flight from Istanbul to London priced at 8,000 TL in the morning, then 10,500 TL a few hours later, and 13,000 TL the following day. It's also possible for passengers to pay significantly different prices for two adjacent seats on the same flight.

In air transportation, this situation often stems not from a system error, but from a revenue management method called dynamic pricing

Airlines constantly adjust ticket prices by analyzing factors such as the number of remaining seats, booking speed, time remaining until the flight date, past demand, season, connecting flights, competitors' prices, and numerous other data points. Today, these processes are increasingly carried out by algorithms and artificial intelligence-powered pricing systems.

This situation raises important legal questions:

Is dynamic pricing for airline tickets legally compliant?

Is it possible to apply different prices to different passengers for the same flight?

Could a passenger repeatedly searching for the same flight cause the price to increase?

Can the ticket price be changed on the payment screen?

Could it constitute a competition violation if airlines use the same pricing algorithm?

As a rule, it is not against the law for airline ticket prices to vary according to demand, capacity, and booking time. Dynamic pricing is a revenue management method that has long been used in the airline industry. In the studies conducted by the Competition Authority, air transportation is also cited as one of the leading sectors where dynamic pricing is widely used.

However, airlines do not have unlimited freedom to set prices.

In particular, price transparency for consumers, initial disclosure of mandatory fees, use of personal data in pricing, price coordination among competing airlines, and abuse of dominant position may give rise to different legal regulations.

What is Dynamic Pricing for Airline Tickets?

Dynamic pricing means that instead of keeping the price of an airline ticket fixed, it is constantly adjusted according to market and demand conditions.

For example, in the airline's system for the same flight;

• 2,000 TL
• 2,500 TL
• 3,000 TL
• 4,000 TL
• 5,500 TL

Different seating groups are available at various price levels.

As seats in the lower price category are sold, the system can move to higher price categories.

Therefore, the passenger;

"A minute ago the ticket was 4,000 TL, why is it 4,750 TL now?"

They may encounter this question.

This is often because another passenger has purchased the last seat in a lower price category at the same time.

How do airlines determine ticket prices?

Modern airline pricing systems don't just look at the number of seats remaining on the plane.

Algorithm;

• the time remaining until the flight date,
• the past request at that time,
• booking speed,
• the occupancy rate of the plane,
• departure and arrival cities,
• connecting flight options,
• whether it's a weekday or a weekend
• holiday and festival periods,
• competing airline prices,
• economic indicators

They can evaluate them together.

Advanced systems analyze data from past flights to predict on which date and at what price a particular seat should be sold to generate the highest revenue.

Therefore, the constant fluctuation of airline ticket prices is not in itself an unusual occurrence.

Is it illegal for airline ticket prices to change constantly?

As a rule, no.

The airline company;

"The flight date is approaching, there are few seats left on the plane, and demand has increased."

It is possible to increase prices for this reason.

Similarly, if the expected demand does not materialize, the price may be lowered again.

Therefore;

Price increase = illegality

An equation like this cannot be formed.

From a legal standpoint, what truly matters is the price displayed to the passenger at the time of purchase and the conditions under which that price was changed.

Is it legal for passengers on the same flight to pay different prices?

As a rule, yes.

Of two passengers traveling side-by-side on the same flight, one may have bought their ticket three months ago for 4,000 TL, while the other may have bought theirs two days before the flight for 9,000 TL.

This price difference alone is not illegal.

Airlines may create different fare tiers even within the same economy class.

In these salary categories;

• right to change,
• right of return
• baggage allowance
• seat selection,
• mileage gain

Benefits such as these may also vary.

Therefore, physically traveling in the same cabin does not mean that passengers should pay the same price under the same contract terms.

Is it legal for the last seats to be more expensive?

As a rule, yes.

If a plane has 180 seats but only three seats remain empty, the airline may offer the remaining capacity for sale at a higher price.

This method is one of the fundamental elements of revenue management in the aviation industry.

The legal issue arises not so much from the high price itself, but from how the company presents this price to the consumer or whether it uses methods that violate competition law in setting the price.

Could the claim that ticket prices increase the longer you search for them be true?

A fairly common claim among consumers is this:

"I looked at the same ticket several times, the system understood that I wanted to buy it and increased the price."

The price increase is not proof of this.

During the same period;

• Other passengers have made reservations,
• The low-price quota has been exhausted
• The algorithm has changed its demand forecast
• The campaign is over

it could be.

However, it is technically possible for a company to determine personalized pricing by analyzing user behavior.

In this case , we may no longer be talking about classic dynamic pricing, but rather personalized pricing

The Difference Between Dynamic Pricing and Personalized Pricing

This distinction is particularly important from a legal standpoint.

In dynamic pricing;

Even under the same market conditions, the price varies for everyone.

For example, when a flight's occupancy reaches 90%, the system may show all users a higher price.

In terms of personalized pricing:

Information obtained about a specific user is used to determine the price.

For example, an algorithm;

"This user has checked the same flight ten times in the last three days, the travel date is approaching and they are highly likely to purchase it."

If a company reaches a conclusion and shows a different price only to that specific customer, then the debate about personalized pricing arises.

The Ministry of Trade's guidelines on pricing advertising also differentiate between dynamic pricing and personalized pricing. Offering prices based on the analysis of consumer purchasing behavior or other personal data is considered personalized pricing, while rapidly changing prices based on supply, demand, and time, without such personal analysis, is considered dynamic pricing.

Is personalized pricing possible for airline tickets?

This situation requires a more delicate legal assessment.

Airline or booking platform;

• user's past flights,
• device information,
• IP address,
• location information,
• previous purchases,
• your status in the loyalty program,
• search behaviors

They might be using this to create a personalized price.

If this data can be linked to a natural person, then personal data processing activity may be considered under the KVKK (Turkish Personal Data Protection Law).

Therefore, the company needs to assess which personal data it processes, on what legal grounds, and whether its use for pricing purposes is necessary and proportionate.

Is Charging More Expensive Plane Tickets to iPhone Users Legal?

Technically, algorithms can detect the type of device.

However;

"People who use iPhones have higher purchasing power."

If certain users are shown higher ticket prices based on assumptions, this could lead to additional legal issues regarding personal data processing, profiling, and consumer information.

Therefore, airlines should not evaluate personalized pricing systems solely from the perspective of optimizing commercial revenue.

Can personalized pricing be hidden from the consumer?

The Ministry of Trade's guidelines on pricing, advertising, and commercial practices stipulate that consumers must be informed if personalized pricing is offered based on an analysis of their purchasing behavior or other personal data. The same guidelines also include regulations regarding displaying both the current sales price and the personalized price.

Therefore, a company offering different prices to consumers based on their personal profiles without their knowledge can create significant consumer law and GDPR risks.

Is it mandatory to display "All-Inclusive Price" on airline tickets?

There is a specific regulation regarding price transparency in airline tickets.

According to the General Directorate of Civil Aviation's Circular No. HUD-2015/2 on Airline Ticket Pricing, Reservations, Purchases, and Promotion Activities, the ticket price advertised on websites and call centers must be clearly displayed as an "all-inclusive ticket price," covering all mandatory fees

Therefore, for example;

"Istanbul–Antalya 499 TL"

Advertising in this way and then forcing consumers to pay 1,200 TL in mandatory taxes and fees at the final payment stage can create problems in terms of price transparency.

Which mandatory fees should be included in the ticket price?

According to the relevant circular of the SHGM (General Directorate of Civil Aviation), the all-inclusive ticket price is defined as follows:

• basic wage,
• service fee
• tax,
• mortar,
• fuel,
• security,
• insurance

The principles regarding the presentation of mandatory items such as these have been regulated. The totals or details of these items must be displayed in a way that is easily accessible to the user.

Therefore, the algorithmic pricing system should be structured to take into account not only the base ticket price but also the actual total cost that the passenger will be required to pay.

Can baggage and seat selection be charged separately at a later date?

Optional additional services may be assessed differently from the mandatory ticket price.

For example;

• additional baggage
• Special seat selection,
• food,
• fast track,
• priority boarding

It may also be subject to a fee.

However, it must be clearly indicated that these are optional services.

The General Directorate of Civil Aviation's circular also states that the fees for additional or optional services offered specifically to passengers must be clearly displayed on the sales channel.

Therefore, adding a mandatory fee as an "extra service" to the cart later in order to make the price appear lower is not correct.

Can flight ticket prices be increased on the payment screen?

This is one of the most controversial issues with dynamic pricing systems.

The passenger may have selected a ticket price of 5,000 TL and proceeded to the payment stage.

Meanwhile, the system;

“The price you selected is no longer available. The new price is 5,800 TL.”

It may display a warning.

In such a situation, the new price must be clearly displayed to the passenger, allowing them to proceed with the purchase knowing the new price.

The practice of silently charging a higher price for tickets can pose a serious problem in terms of misleading consumers about pricing.

What happens if the price changes after the passenger enters their credit card information?

The important thing here is which stage the process is in.

Dynamic pricing systems can detect that the price quota has been exhausted even before the purchase process is completed.

However, no charge should be made at the new higher price without the passenger's explicit consent.

If the price has changed, the customer must be clearly shown the new total price and given the option to choose whether to proceed with the transaction.

Does dynamic price increase after ticket purchase affect the passenger?

As a rule, the new dynamic pricing relates to future sales.

For example, after a passenger buys a ticket for 5,000 TL, the system might increase the price of the same ticket to 9,000 TL.

This situation does not automatically convert the price of the established transportation contract to 9,000 TL.

Similarly, the fact that the price was later reduced to 3,500 TL does not, by itself, automatically entitle a passenger who previously paid 5,000 TL to claim the price difference.

Any fare conditions, promotions, or price guarantees offered by the airline will be evaluated separately.

Can a passenger request a refund if the ticket price subsequently decreases?

It is generally not sufficient for the price to simply fall later.

For example, a passenger might purchase a ticket for 7,000 TL a month before the flight.

Due to lower-than-expected demand, the airline may put the same flight back on sale for 5,000 TL two weeks later.

This is a common consequence of dynamic pricing.

A passenger's rights to refunds or changes are assessed according to the terms and conditions of the fare class purchased.

Should cancellation and refund policies be shown before purchase?

Yes.

According to the General Directorate of Civil Aviation (SHGM) Circular No. HUD-2015/2, ticket reservation changes, cancellations, and refund rules must be announced on the relevant sales channel, and the passenger must be informed before the purchase is completed.

This is especially important in dynamic pricing.

Because the ticket is in the low-price category;

• non-refundable
• unchangeable,
• without luggage

While a higher-priced ticket might offer more flexible terms and conditions, a more affordable ticket could also have better terms and conditions.

Therefore, not only the price but also the contract terms offered along with the price are important in the consumer's decision.

Flight cancellation or delay is a different matter from dynamic pricing

Ticket pricing and passenger rights should be kept separate.

Specifically within the scope of SHY-PASSENGER;

• denied boarding
• Flight Cancellation,
• flight delay or postponement,
• placement in a lower or upper service class

Situations like these are being regulated.

Therefore, a passenger can only;

"The ticket was cheaper yesterday."

The complaint is not directly related to a delay or cancellation dispute under SHY-YOLCU.

Claims that the price has been misleadingly presented should also be evaluated under consumer legislation.

Which price is used if the flight class is downgraded?

SHY-YOLCU has special refund provisions if a passenger is assigned to a lower service class than the one they purchased.

The current regulation stipulates that refunds will be made at a rate of 30%, 50%, or 75% of the ticket price depending on specific distance categories, and that the price at the time of ticket purchase will be taken into account for refunds.

This regulation is an example demonstrating the legal significance of the price at the time of purchase in the aviation industry, where dynamic pricing exists.

Are there competition law risks in airline ticketing?

Yes.

An airline's own;

• occupancy rate,
• costs,
• past sales,
• demand forecasts

Using dynamic pricing in itself is not a violation of competition law.

The Competition Authority also acknowledges that dynamic pricing algorithms can create efficiencies that contribute to balancing supply and demand.

However, the assessment changes if the algorithm becomes a tool for price coordination with competing airlines.

Is it forbidden to track the prices of competing airlines?

Tracking publicly available ticket prices is not prohibited in itself.

For example, an airline;

It can automatically track publicly available prices from competing airlines on the Istanbul–Berlin route.

However, the system;

"When a competitor raises their price, our price automatically adjusts to the same level."

If it operates in this way and a significant portion of the competitors in the market use similar algorithms, the risk of price coordination should also be evaluated.

Airlines Using the Same Pricing Algorithm

One of the higher-risk scenarios is when competing airlines use the same third-party price optimization service.

For example, a co-supplier;

Airline A's occupancy forecast for next week,

Airline B has set its target price

Booking speed from airline C

can collect.

If these airlines jointly analyze this non-public data to generate price recommendations for rival airlines, it could create a risk of sharing competitively sensitive information and indirect coordination.

The Competition Authority's studies indicate that the use of the same dynamic pricing algorithm by competitors under certain conditions could raise concerns about coordination and aggregate cartels.

Airlines Sharing Future Ticket Prices

Future pricing plans of rival airlines can be considered competitively sensitive information.

For example, competing companies;

"We will be selling Istanbul-Antalya tickets for at least 6,000 TL before the holiday."

Such an agreement could create a clear competition law problem.

Automatically enforcing this agreement by uploading it to algorithms does not make the behavior lawful.

The algorithm only serves as a tool for enforcing a decision that restricts competition.

Can Artificial Intelligence Learn High-Coordination Skills on Its Own?

This is one of the most controversial areas of modern competition law.

Self-learning pricing algorithms can observe how competitors react to price changes.

Theoretically, the system;

aggressive price reductions lead to a price war,

When high prices are maintained, other companies also keep their prices high

can learn.

Consequently, it is possible for algorithms to approximate coordinated price behavior without explicit human agreement.

Self-learning algorithms and the risk of algorithmic collusion are also discussed in the context of competition policy within the Competition Authority's resources.

However, the fact that only two airlines charge similar prices is not proof of a cartel.

In this specific case, the connection between the companies, the data used, and the structure of the algorithm should be examined further.

Is the defense "The algorithm determined it, we didn't interfere" sufficient?

No.

The airline company decides which pricing system to use in its own commercial operations.

To the algorithm;

• which data will be provided,
• which target to optimize,
• which price limits will be applied

This may be determined directly or indirectly by the company.

Because;

"The prices were determined by the computer."

This statement does not automatically eliminate liability under competition or consumer law.

Is the risk higher for dominant airlines?

Some routes may be operated by only one or a limited number of airlines.

The fact that an enterprise holds a dominant position is not, in itself, unlawful.

However, the conduct of dominant undertakings may be evaluated separately under Article 6 of Law No. 4054.

Therefore, it is worth examining in a specific case whether the pricing algorithm, particularly on routes with limited competition, facilitates exclusionary or otherwise abusive behavior.

With this;

"The ticket is too expensive, which means there's a competition violation."

The result cannot be reached automatically.

The market definition, dominant position, and the nature of the behavior must also be clearly defined.

Price Transparency on Campaign Tickets

Airlines;

"International flights starting from 19 Euros"

They can run campaigns like these.

However, price advertisements should not be misleading.

According to the Regulation on Commercial Advertising and Unfair Commercial Practices, consumers cannot be misled by providing incomplete information in advertisements containing price information, and as a rule, the total sales price including all taxes shall be taken as the basis.

Airlines also have their own all-inclusive ticket price rules set by the SHGM (Turkish Civil Aviation Authority).

Therefore, highlighting a very low initial price in advertising while only revealing mandatory fees at the final stage can create legal risks.

"Can advertisements be made with prices starting from... TL?"

It is possible, but the advertised price must be realistic and achievable.

For example, using the price of a single seat—which only theoretically exists in the system but which consumers cannot actually purchase—in a large-scale advertising campaign could lead to claims of unfair trade practices.

Limitations in the campaign;

specific date, route or number of seats

If these conditions are the basis for a solution, it is important that they are explained in a way that does not mislead the consumer.

Is the rapid change in ticket prices, in itself, an unfair business practice?

No.

The key feature of dynamic pricing is that the price can change rapidly.

However, a different assessment might be necessary if the system manipulates the consumer's decision-making process.

For example;

"This price is valid for only 30 seconds."

If the warning does not reflect the truth or is artificially created to force the consumer to make a hasty decision, the nature of the commercial practice should also be examined.

"58 people are currently viewing this flight" warning

Booking websites offer consumers:

"Last 2 seats"

or

"There are currently 58 people looking into this flight."

It can display messages like these.

If this information is based on factual data, it can serve an informative purpose.

However, creating a false sense of scarcity or demand to entice users to readily accept a high dynamic price, when in reality there is no such demand, can create problems under consumer law.

Advantages of Dynamic Pricing in Airline Tickets

Dynamic pricing isn't just a system that allows airlines to charge higher prices.

When used correctly, it can also enable the introduction of much cheaper tickets during periods of low demand.

For example, if the flight isn't expected to be full, the algorithm could lower the price to generate new demand.

This system;

• more efficient use of aircraft capacity
• offering cheaper tickets during periods of low demand,
• redirecting demand to different flights,
• companies to improve revenue management

It can provide.

Therefore, the legal aim is not to prohibit dynamic pricing, but to ensure that it is implemented in a transparent and competitive manner.

Dynamic Pricing Risk Analysis for Airlines

An airline using a dynamic pricing system might benefit from considering at least the following:

What data does the pricing algorithm use?

Do personal data affect the price?

Is personalized pricing offered?

Are competitors' prices being used exclusively through publicly available data?

Do competitors have access to future prices that are not publicly available?

Are you using the same pricing provider as competing airlines?

Does the data the supplier receives from other airlines affect our prices?

Are mandatory fees included in the initially shown price?

Are optional services clearly separated?

When the price changes, is the new total price shown to the passenger again?

These questions are important in determining the legal risk level of the pricing system.

What should be considered when using third-party pricing software?

The airline may not have developed its own revenue management algorithm.

In this case, in supplier contracts;

• Using competitors' data,
• separating customer data,
• The algorithm's data sources,
• personal data processing,
• Competition law compliance
• system control,
• responsibility

Issues such as these can be clearly regulated.

Data parsing becomes critical, especially when the same software company serves competing airlines.

Should the pricing algorithm be audited?

Especially in advanced systems that use artificial intelligence, yes.

The company shouldn't just measure how much revenue the algorithm generates.

At the same time;

• which price behaviors it has developed,
• how he reacted to his opponents,
• what criteria differentiate it among consumers,
• whether it creates unusual price changes

It should be examined.

This audit may require legal, competition compliance, data protection, revenue management, and technology teams to work together.

Why are Pricing Records Important?

Due to dynamic pricing, hundreds of different price levels can exist for the same flight.

Therefore, the airline company should appropriately;

• price changes,
• algorithm versions,
• basic pricing parameters,
• the use of personalization

Keeping records might be useful.

This allows for a more thorough examination of how prices are determined when a consumer or competition law dispute arises.

Where can a passenger turn if they experience a problem with pricing?

The procedure for filing a complaint varies depending on the nature of the dispute.

In disputes related to SHY-YOLCU (State Airlines Passenger Rights) such as flight cancellation, prolonged delay, denied boarding, and class changes, passengers should first contact the relevant airline and, if necessary, utilize the SHGM (General Directorate of Civil Aviation) passenger rights mechanism. The SHGM clearly specifies this application order.

The problem, however, is;

misleading price advertising, concealment of mandatory fees, or other consumer practices

Depending on the nature of the dispute, and the monetary value and subject matter, consumer arbitration boards, consumer courts, or relevant consumer law mechanisms concerning advertising practices may come into play.

Legal Limitations of Dynamic Pricing in Airline Tickets

In summary, the limits of airlines' freedom to set prices are evident in a few key areas:

Price transparency:
Passengers must be able to clearly see the actual ticket price, including mandatory fees.

Optional services:
Additional fees for services such as baggage handling and seat selection should be clearly stated.

Personalized pricing:
If user behavior or other personal data determines the price, consumer law and the GDPR (Turkish Personal Data Protection Law) must also be considered.

Competition law:
Price coordination or the sharing of sensitive data through shared algorithms should not occur between competitors.

Pre-purchase contract terms:
Cancellation, refund, and change conditions must be explained to the passenger before the purchase is completed.

Conclusion

Dynamic pricing for airline tickets is, as a rule, legally permissible.

Airlines;

time remaining until flight date, seat occupancy rate, booking speed, demand, season and market conditions

Accordingly, it is possible to increase or decrease the ticket price.

Therefore, two passengers paying different prices on the same flight, or a ticket becoming more expensive within a few hours, does not in itself constitute a legal violation.

However, the fact that dynamic pricing is legal does not mean that airlines can act without restraint.

Specifically, according to the regulations of the General Directorate of Civil Aviation regarding ticket sales, mandatory fees the all-inclusive ticket price ; optional services must be clearly and separately stated; and cancellation, refund, and change conditions must be explained before purchase.

Furthermore, if personalized ticket prices are determined using consumers' purchasing behavior or other personal data, a different legal framework emerges compared to classic dynamic pricing. The personalized pricing must be explained to the consumer, and the legal basis for processing personal data under the Personal Data Protection Law (KVKK) must be evaluated.

From a competition law perspective, the use of the same pricing algorithm by competing airlines, the collection of future price and capacity information in common systems, or the coordination of prices through algorithms carries a higher risk. The Competition Authority's sources also explicitly address the possibility that dynamic pricing algorithms could facilitate coordination.

Therefore, the fundamental question for airlines is simply:

"How much should we sell this chair for today?"

It is not.

The real legal question is this:

“What data does our algorithm use to determine this price, does it transparently show the passenger the true total price, and does the pricing system have any legal implications for consumers or competitors?”

With the increasing sophistication of AI-powered revenue management systems, regular monitoring of airline ticket pricing from the perspective of consumer law, GDPR, and competition lawwill become increasingly important for airlines and digital travel platforms.