Might a Cheap Ticket Actually Be Pricing in Flexibility Risk?
Price and risk often travel together.
Sometimes. Lower prices may come with restrictions that transfer future uncertainty to the traveler.
A flexible airline ticket costs more than a non-refundable alternative. At first glance, the cheaper option appears superior.
The hidden mechanism is risk transfer. Some pricing models reduce cost by assigning more future uncertainty to the buyer.
Travel products often differ not only in what they provide but also in which risks they absorb.
People often compare prices directly. The more important comparison may be who carries the uncertainty afterward.
