It's a model that works on the basis that we're all suckers. It won't be long before some script kiddie constructs an algorithm to make it look as if you are booking your flight from LHR to SYD from the cheapest home countries (Nigeria, India) and charging 1% of the airfare, thus making the script kiddie millions and costing the airlines billions. Come to think of it, I'll suggest it to my kids, they've grown up with computers and so know C++ and Python. It might be an interesting summer holiday project for them.
Anyone *can* buck the system at present if they know how to spoof their IP: I'm no computer wiz but at least I know how to do that. But it's a pain, and takes time, to get the reward of a £ 2300 saving.
Already everyone knows when you get your car insurance renewal that you will be penalised if you stay with the same company, you have to shop around every year. Booking airline tickets is more complicated, but the airlines price-fixing and discriminatory practices surely will go the same way - people will get wise. Or like Paul from Dublin, just not bother flying.