The world is governed by supply and demand. The higher the demand can mean 2 things. 1, a price hike, or 2, a price reduction. Let’s start with the first one, the price hike. We’ll use transportation and travel as the example. Boats, trains, planes etc only have so many seats on offer. During the off peak times they can hardly give them away and may lose money on certain trips. But come the high season, be that winter destinations or summer, depending when the holiday is, there are more passengers than there are seats, and because of everyone’s desperation to travel, the prices can go through the roof thus making the travel companies a nice tidy profit. You can’t really expect to get a boat, train, air fare deals at holiday times.
The best advice for getting the lowest price during holiday times is to book early. Okay for some, nigh on impossible for others, with the latter group paying through the nose should they want to or need to travel during this time. The Airline, ferries, and train companies rely on the holidays to make their profits.
PRICE REDUCTIONS
When demand for products and services reaches record highs so the markets opens up to fierce completion. Manufactures start to mass product and this mass production sees prices fall drastically. We see it with household products, electrical and electronic devices all the time.
So supply and demand can work either way depending largely on what it is that is and how much of it is available in the market price. Transportation runs out of seats, costs escalate. Products are endless and available everywhere and prices drop. That’s it!
