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Saturday, September 11, 2010

Saving Money by Putting Airline Tickets Hold; The Value of an Option

If you are a frequent traveler, and price sensitive, then you will want to put tickets on hold.

There is no obligation to purchase, but if you want to come back to it later, generally 24 hours, it is very helpful and can be helpful. In economics and finance, they call this the value of an option. You cannot do worse then the price that you have held it at. American Airlines (www.aa.com) will allow you to hold the ticket for up to 24 hours on the website if you establish an account. Your travel agency can also do this, but you might want to choose an impersonal travel agent such Expedia, Orbitz, or Travelocity, www.expedia.com, www.orbitz or www.travelocity.com, respectively. A small travel agency might not all that happy with you after a few times. For others airlines, such as United, www.united.com, that do not have this option, you can call them. Hold times nowadays could be long though, but some times that extra day saves you $50-200 and is well worth it.

The key thing to remember is that you can do no worse than the price that you have found. This is especially help if there is a 7 day advance, but you are not sure and need an extra day. This allows you to make the purchase with a 6 day advance.

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