To wind up my contribution here is a quick example that ANY carrier will use. All examples are theoretical and in round numbers for example only. Bear in mind that all of these rules are set into the computer program before the first ticket goes on sale. (in no order) Flight is a daily, LH, single sector:
- 300 seats every day.
- By six months before departure, expect to see 150 sold. Raise price slightly.
- This year, by six months, 250 are sold and most have been in blocks. A sports event? Concert? Or just a VERY big wedding? Since we know that this flight usually departs 99% capacity, raise prices steeply due to great demand.
- By three months before, 100 have cancelled so now more capacity that must be filled, drop prices and suggest a promotion.
OK, rudimentary but that's the basics and the program may have 20 rules that it uses to raise and lower prices. Whilst, as a rule, the price goes steadily upwards, it is not always the case these days.