This change is being driven by a combination of strong seasonal demand, limited seat availability, and dynamic pricing systems that enable airlines to adjust fares multiple times a day.
As the UAE summer travel rush intensifies, the traditional price advantage once offered by budget airlines is rapidly shrinking. Last-minute travellers are now finding that low-cost carriers are often charging fares similar to, and in some cases even higher than, full-service airlines.
Travel experts say this shift is being driven by a combination of strong seasonal demand, limited seat availability, and dynamic pricing systems that allow airlines to adjust fares multiple times a day.
According to Bharat Aidasani, managing partner at Pluto Travels, the price gap betwee…
According to Bharat Aidasani, managing partner at Pluto Travels, the price gap between full-service carriers (FSCs) and low-cost carriers (LCCs) typically narrows during peak travel periods due to strong passenger demand and high aircraft occupancy.
“During the peak summer season, the price difference between full-service and low-cost airlines often reduces significantly due to surging demand and limited seat availability,” Aidasani said. “Both airline models increasingly rely on advanced dynamic pricing systems that continuously adjust fares based on booking patterns, remaining inventory, competitor activity, and forecast demand.”
Industry experts note that airlines no longer operate on fixed pricing structures, with fares fluctuating constantly in response to market conditions and consumer behaviour.
Last-minute bookings, in particular, have emerged as one of the biggest factors contributing to the erosion of the traditional budget airline advantage.
“By the final weeks or days before departure, the lowest fare categories have usually sold out, especially during the high season, leaving only higher-priced inventory available,” Aidasani explained. “Airlines understand that many last-minute travellers have limited flexibility and are willing to pay a premium.”
He added that low-cost airlines can sometimes end up more expensive than full-service carriers on high-demand routes, during school holidays, and throughout the summer season, when only a limited number of seats remain available.
Fazil Firoos, founder of Go Now Tourism in Dubai, said the trend has become increasingly common during peak travel periods. “The main reason is the high demand during the summer season. Once the cheaper seats are sold out, the remaining tickets become more expensive, so the price difference between full-service and low-cost airlines becomes very small.”
He noted that travellers who delay their bookings often face significantly higher fares, regardless of the airline.
“In fact, I’ve seen situations where a low-cost airline is actually more expensive than a full-service airline because of high demand and limited availability,” he said.
Travel consultant Ipshita Sharma at SCN Travel & More described the summer travel season as the airline industry’s equivalent of a major retail holiday.
“Summer is airline Christmas,” Sharma said. “Everyone wants to travel, flights fill up fast, and dynamic pricing kicks into overdrive. Once demand is high, the difference between a low-cost carrier and a full-service airline starts to disappear because, at the end of the day, every airline knows someone will happily take that last seat.”
Sharma added that travellers who wait until the last minute often discover that their expected budget fare no longer exists.
“Leave your booking until the last minute and your ‘budget airline bargain’ can suddenly cost more than a full-service ticket,” she said. “Add a checked bag and a window seat, and you might find yourself wondering where the budget part went.”
Experts say airline ticket prices can change multiple times within a single day due to a range of operational and commercial factors, including booking pace, demand forecasts, seat availability, competitor pricing, seasonal travel peaks, and broader operating costs such as fuel and airport charges.
Aidasani noted that airlines are increasingly relying on artificial intelligence and predictive analytics to manage pricing volatility and maximise revenue.
“Airlines manage this volatility through advanced revenue-management systems powered by artificial intelligence and predictive analytics,” he said.
Sharma compared airline pricing systems to financial markets, where prices react instantly to changing conditions.
“Airline pricing is a bit like the stock market, but with better views,” she said. “Every booking, cancellation, competitor fare, and remaining seat can influence the price. If you check a flight in the morning and again after lunch, don’t be surprised if it’s had a little glow-up in price.”
With demand expected to remain strong throughout the summer holiday period, travel experts advise passengers to book early, warning that waiting for last-minute deals may no longer deliver the savings travellers once expected.
