How often do airline and hotel prices change?

I'm planning to go on vacation in late July (4 months) but I don't have enough money to book it early so I'm planning to save up first. I found a really good deal on a hotel and flight but I'm scared that the prices will go up by the time I have enough money to book it ..





So how likely is it that the prices will change? When's the latest I should book the dates?How often do airline and hotel prices change?
Hotel and airlines operate using the principles of revenue management. In other words if they know they will be busy in July they will raise their prices. If they know they will be slow they will keep their prices low, sometimes even lowering them as the time nears. Every location is different. For example, at Daytona Beach in Florida, revenue managers are hiking prices during the Spring Break season, while hotels in St. Louis Missouri probably are not doing the same thing.





My advice would be to keep shopping. If you're not doing a package deal you will probably want to pick your airline flight first.





Hope this helps