State of upgrades 2015
Apr 25, 2015, 12:38 am
#16
Join Date: Sep 2001
Programs: Alaska Tanzanite 100K
Posts: 3,858
From today's 1st Quarter investor's conference call:
The upgrade of our revenue management system went smoothly in the first quarter and has allowed us to expand our P-fare [ph] offerings which are a discounted first-class booking across our entire system. Results have been very encouraging with our system-wide first class PRASM up 2.2% in the first quarter. That’s well above our system results.
The upgrade of our revenue management system went smoothly in the first quarter and has allowed us to expand our P-fare [ph] offerings which are a discounted first-class booking across our entire system. Results have been very encouraging with our system-wide first class PRASM up 2.2% in the first quarter. That’s well above our system results.
Apr 25, 2015, 12:45 am
#17
Join Date: Sep 2001
Programs: Alaska Tanzanite 100K
Posts: 3,858
more from the call:
Helane Becker - Cowen and Company
What’s your paid first class? You know, what of your first class is paid for versus upgrades?
Brad Tilden - Chief Executive Officer
I think it’s nudging up – it was roughly a third, Helane. If you go back a few years ago, before we put in our new strategy, it was basically one customer per flight. So first class is typically 16 seats, some airplanes it’s 12, and we’re up to five or six customers a flight. Andrew, I think it might have even popped up a little bit more in the last quarter or two?
Andrew Harrison - Executive Vice President, Chief Revenue Officer
Right. And I – that’s right. And, Helane, one thing that competition teaches one is we’ve probably not been as focused on either the unit revenues, the service or the benefits that first class cabin, which is like 10% of our seats, has been performing at. So we are actually more focused on that cabin and it’s paying off.
Brad Tilden - Chief Executive Officer
Yes. And just to be really – there’s three ways to get into first class. A, you buy a first class fare, and that’s what we’re talking about. Second, you buy a qualifying upgrade fare, and third, you buy a non-qualifying upgrade fare. And we’ve been – we have been focused on offering great value with the F fare, and that’s why we’ve done well with getting a lot of folks up into the front part of the airplane.
Helane Becker - Cowen and Company
What’s your paid first class? You know, what of your first class is paid for versus upgrades?
Brad Tilden - Chief Executive Officer
I think it’s nudging up – it was roughly a third, Helane. If you go back a few years ago, before we put in our new strategy, it was basically one customer per flight. So first class is typically 16 seats, some airplanes it’s 12, and we’re up to five or six customers a flight. Andrew, I think it might have even popped up a little bit more in the last quarter or two?
Andrew Harrison - Executive Vice President, Chief Revenue Officer
Right. And I – that’s right. And, Helane, one thing that competition teaches one is we’ve probably not been as focused on either the unit revenues, the service or the benefits that first class cabin, which is like 10% of our seats, has been performing at. So we are actually more focused on that cabin and it’s paying off.
Brad Tilden - Chief Executive Officer
Yes. And just to be really – there’s three ways to get into first class. A, you buy a first class fare, and that’s what we’re talking about. Second, you buy a qualifying upgrade fare, and third, you buy a non-qualifying upgrade fare. And we’ve been – we have been focused on offering great value with the F fare, and that’s why we’ve done well with getting a lot of folks up into the front part of the airplane.
Apr 28, 2015, 11:32 am
#24
Join Date: Jan 2013
Location: SEA
Programs: AS 75k
Posts: 922
I'm not sure I agree that it's all good for AS given the lack of a Y+ product. If upgrades for 75ks become rare, and golds/mvps non-existant, then what? If you're a gold who buys expensive last minute tickets and always has to sit in a middle seat in row 22, while people who plan their trips 8-16 weeks out are sitting up front on discounted F fares (that are cheaper than your ticket), you're not going to really think that highly of the AS experience, are you? It certainly starts to make DL, UA, and AA look a little better, given that you'll usually at least be in a Y+ seat.
Apr 28, 2015, 1:54 pm
#25
FlyerTalk Evangelist
Join Date: Jun 2005
Location: QLA
Programs: SBUX Gold
Posts: 14,507
I wouldn't mind it if they took out a row, added the space to the first 3 rows, then put that row in the back, taking away 1" from each row aft of the exits. Net number of seats remain the same, FFs are given their Y+, there's a chance to monetize those seats, and Y won't complain because price is king.
Apr 28, 2015, 2:12 pm
#26
Join Date: Jan 2013
Location: SEA
Programs: AS 75k
Posts: 922
I wouldn't mind it if they took out a row, added the space to the first 3 rows, then put that row in the back, taking away 1" from each row aft of the exits. Net number of seats remain the same, FFs are given their Y+, there's a chance to monetize those seats, and Y won't complain because price is king.