Should airfares be restricted like concert tickets?

Personally, I can think of many places I’d rather be on July 11 this year than Heaton Park in Manchester. But tens of thousands of Oasis fans are shelling out millions of dollars in total to buy tickets for the first night of their reunion tour.

Viagogo currently has a ticket for sale, which the site says has a face value of £2,000. All for £5,000 – a 150 per cent increase – plus a £755 ‘holding and booking fee’ and VAT applied, bringing the total to £5,906. Let’s call it three times the number you originally thought of.

Anger? The government seems to think so. Ministers are deliberating on “imposing a cap on ticket resale prices”. The consultation “seeks views on a range from the original price to a 30% increase”.

Derek Edwards took to social media to call out Culture Minister Lisa Nandy, saying: “If you’re looking at this, then you should be looking at the airline industry?”

Concept: Airlines take advantage of strong demand to charge exotic fares.

Mr. Edwards then called me and asked, “Would you add your voice to this?”

I’m sorry to be blunt, but dynamic pricing – where the price is set based on aggregate demand – works wonders in aviation. I have no opinion on concert tickets, other than to observe that if there are willing buyers for nearly £6,000 for Oasis tickets, the market will find a way to deliver. Similarly, if you’ll excuse the phrase, heroin is illegal, but there seems to be a ready supply and an alarming demand.

Dynamic pricing is perfect for a commodity in limited supply, whether it’s a space at Heaton Park or a seat on a Ryanair flight from Manchester to Shannon in Ireland on Saturday 18 January. I didn’t choose that particular exit at random. I bought flight ticket RK4776 a day ago.

Price: £19.99. Ryanair will not be in a favorable position financially when Rachel Reeves helps herself to £13 in Air Passenger Duty and Manchester Airport imposes its passenger charges. But Europe’s biggest low-cost airline is betting that most passengers will pay around £20 to bring a wheeled bag on board and/or have it delivered. Many passengers also book car rentals and/or buy food and drinks on board through the site. All in all, Ryanair expects me to pay more than the final cost of securing that seat.

£20 for 300 miles of air travel is very cheap. But on the afternoon of departure, the price had quintupled to £99.99. This is because anyone looking for tickets that day probably has a reason to buy a flight. Distress in this context does not have to involve, say, a family emergency—a passenger may have missed their previous flight due to traffic or simple incapacity. For whatever reason there is a market for that price.

The same seat on the same plane on Monday is currently £250. Yes, one way, including only one small piece of cabin baggage.

Exploitation? Price increase? Cruel profiteering? People apply these labels and many others to describe the way airlines raise their prices to match demand. But all Ryanair does is provide service. If you don’t want to pay £250 for an hour’s flight, that’s fine (and understandable).

Those needing to get from the north west of England to the west of Ireland on Monday have many other options to choose from: a cheaper flight to Dublin, then a bus, for example. Better still, the recently reopened Holyhead-Dublin ferry link has great rail and sailing deals. But if you need to be by the River Shannon in a hurry, the plane might just be for you – and people will be relieved that Ryanair sleeps on the flight.

Dynamic pricing is a great way to allocate scarce resources. Yes, airlines maximize use when demand is high. Suppose the government tried to limit fares: No one is happy except a few who get in early at a certain price.

Travelers desperate to leave within hours deserve an option that allows them to pay hundreds of pounds for the privilege. And the airlines have the right to make hay while the sun shines. Which is often not the case.

Whether you’re ready for a flight or a concert, don’t look back in anger.

Simon Calder, also known as The Man Who Pays His Way, has been writing about travel for The Independent since 1994. In his weekly opinion column, he explores a key travel topic – and what it means for you.