Why do default prices drop so much on January 1?

[esquireflyer]

The annual price drop on January 1, combined with the steep price "cliff" beyond which large numbers of pax boycott your flights, causes me to lose significant chunks of load factor at every new year, until I can get online to reset prices to the new, lower default.

What is the purpose of this annual price drop?

[Infinity]

The annual price drop on January 1, combined with the steep price "cliff" beyond which large numbers of pax boycott your flights, causes me to lose significant chunks of load factor at every new year, until I can get online to reset prices to the new, lower default.

What is the purpose of this annual price drop?

This is not an annual price drop, it's the winter season price drop after Christmas and New Year that also happens in real life.

[esquireflyer]

This is not an annual price drop, it's the winter season price drop after Christmas and New Year that also happens in real life.

And since it happens annually, it's an annual price drop..
In real life, the prices also go up a lot at Christmas (more so than they do in this).

Is the January drop a specific (or roughly the same) % each year? If so then at least I can plan for it and pre-drop my prices..