Looks like jetBlue found a new way to make some more money...
SAME DAY FLIGHT CHANGE for $25
The old option was to either go standby for a same day flight at no charge or pay the difference in fare plus a $30 fee... looks like the new policy is that you can confirmed a seat on another flight on the same day for just $25... I guess it work if you dont want to go standby and instead want a confirmed seat on a different flight. You can still go standby for free if you want to chance it or pay the $30 and change your flight to another day... I guess the $25 confirmed seat policy would be perfect on peak season. I think this is a way to generate money from those that go standby the same day and want a confirmed seat and know exactly where they are sitting and stuff.
$25 isn't bad considering what some other airlines charge. I believe Mr. Neeleman announed this concept during the Q1-06 conf. call. While it sucks that you can't travel for free standby on any other flight that day, at least they are still letting customers take the flight right before theirs with no extra charge. Should be a nice revenue generator.
sbm12
May 1, 06, 2:55 pm
CO announced a similar plan a couple weeks ago. Is B6 copying CO now??
jetBlueNYFL
May 1, 06, 4:05 pm
CO announced a similar plan a couple weeks ago. Is B6 copying CO now??
haha, I strongly doubt that jetBlue would "copy" any airline. In fact, jetBlue is usually the one who sets the standards that other airlines copy on competing routes with jetBlue.
It's more likely just a coincidence.
When jetBlue started flying to/from EWR, CO copied jetBlue and matched their low fares...something that EWR customers were not able to enjoy before jetBlue's service began.
sbm12
May 2, 06, 10:25 am
haha, I strongly doubt that jetBlue would "copy" any airline. In fact, jetBlue is usually the one who sets the standards that other airlines copy on competing routes with jetBlue.
It's more likely just a coincidence.
When jetBlue started flying to/from EWR, CO copied jetBlue and matched their low fares...something that EWR customers were not able to enjoy before jetBlue's service began.
I know that B6 rarely copies. It is entertaining to know that CO did something before them in this case, however.
Maybe it was just a coincidence that CO lowered its fares on some of its routings ;)
TTT
May 2, 06, 2:39 pm
haha, I strongly doubt that jetBlue would "copy" any airline. In fact, jetBlue is usually the one who sets the standards that other airlines copy on competing routes with jetBlue.
It's more likely just a coincidence.
When jetBlue started flying to/from EWR, CO copied jetBlue and matched their low fares...something that EWR customers were not able to enjoy before jetBlue's service began.
Um, Delta, Northwest, American and CO all have had this policy in place for some time now (I believe DL was actualy the first to offer a same day confirmed program, and they are all $25 so no difference in price). No coincidence, jetBlue saw something they liked as a revenue enhancer and implemented it. The difference appears to be that jetBlue allows same day travel changes on flights departing more than 3 hours from when you make the change, unlike some of the legacy programs. And it is slightly more customer friendly, IMO. But it's kind of funny how jetBlue calls it "Same Day Confirmed." I wonder where they got that name? (http://www.delta.com/traveling_checkin/ticket_changes_refunds/sameday_travel_changes/index.jsp#1)
jetBlueNYFL
May 2, 06, 2:42 pm
Um, Delta, Northwest, American and CO all have had this policy in place for some time now (I believe DL was actualy the first to offer a same day confirmed program, and they are all $25 so no difference in price). No coincidence, jetBlue saw something they liked as a revenue enhancer and implemented it. The difference appears to be that jetBlue allows same day travel changes on flights departing more than 3 hours from when you make the change, unlike some of the legacy programs. But it's kind of funny how jetBlue calls it "Same Day Confirmed." I wonder where they got that name? (http://www.delta.com/traveling_checkin/ticket_changes_refunds/sameday_travel_changes/index.jsp#1)
It's also funny how jetBlue is simply a much better airline that Delta. Sure, it's my opinion - but it is also the opinion of millions others because they always rank #1 (sometimes #2) in all the airline customer polls. With the fewest complaints to the DOT, it's no wonder that jetBlue has such strong customer loyalty!
TTT
May 2, 06, 2:47 pm
......
chrisw
May 2, 06, 3:47 pm
If I am reading the announcement correctly, JetBlue has restricted free standby to the flight immediately prior to the pax's ticketed flight:
For travel to the same destination, customers may change their reservation to standby travel only on the flight immediately prior to their original departure without an additional charge. Standby travel is not available in markets that only have one flight a day or if there are no flights prior to the original departure.
Previously free standly included any flight on the same day, and also the last flight the previous day for pax ticketed on the first flight of the day.
nsx
May 2, 06, 7:23 pm
Previously free standly included any flight on the same day, and also the last flight the previous day for pax ticketed on the first flight of the day.
I thought it was the first flight of the next day if you had the last flight of the day. Oh well.
I used the standby policy earlier this year to save $130, booking the redeye and catching the morning flight. Maybe somebody at B6 read my FT post on how silly that was of them. :)
Traveller
May 2, 06, 8:19 pm
haha, I strongly doubt that jetBlue would "copy" any airline. In fact, jetBlue is usually the one who sets the standards that other airlines copy on competing routes with jetBlue.DL has had Same Day Confirmed for a couple of years now. It's $25 for non-status flyers and Silvers and free for Golds and Plats. :)
ciaobel
May 2, 06, 10:28 pm
If customer loyalty translates into consecutive quarterly losses, I wonder how much that worths ...
It's also funny how jetBlue is simply a much better airline that Delta. Sure, it's my opinion - but it is also the opinion of millions others because they always rank #1 (sometimes #2) in all the airline customer polls. With the fewest complaints to the DOT, it's no wonder that jetBlue has such strong customer loyalty!
ciaobel
May 2, 06, 10:46 pm
JetBlue will NOT generate as much revenue as the legacies on the standby fee, period. The idea behind confirmed standby is that the empty seats do not get sold within the same day anyhow, they might be as well be used to generate any additional revenue.
But, legacies do much better in this department, in that:
1. Legacies' networks are much more flexible, between non-stop, connections and codeshares
2. Legacies oversell their flights, which equals to more seats and more flexibility, thus the attraction of the confirmed standby program
3. Most important of all, JetBlue does not have full coach fare, which has the built in flexibility. Business people who values the flexibility would not buy a restricted one and then wait till the day to standby, and price sensitive people will not pay $25 to standby as well. Most probably, the money will be from those who want a certain flight, but not willing to pay more than $25 for that flight, would buy the cheapest fare and try to standby. It will be some hassle, but since it is confirmed, so even if they do not get into the desired flight, they will not have to stay at the airport and get rolled.
In that light, JBlue actually would do better COPYING Southwest's policy: no change fee but charge fare difference. That policy is extremely business traveler friendly, and serves as one of the most important separators of customer segments.
I would think overselling the flights, and offering full coach fare as better revenue enhancements.
SkaterJasp
May 2, 06, 11:07 pm
How I read the policy is that you can still go standby same day for to the same destination at no charge... but if you MUST have a confirmed seat on a specific flight that same day... you can for only $25 vs the old way where you pay $30 or $25 (depending on when u booked ur ticket) plus any increase in fare... basically I think the new policy is targeted to those that MUST be confirmed on a earlier flight... I'm sure you can still go standby for free if you wanted to... just it wont be confirmed till you actually get on and sit in a seat and the plane leaves the gate.
The good news is that either way, the policy is still way better than that at Southwest... I remember when I have to go to MCO from LGB but it was cheaper to book a LGB to FLL flight on jetBlue and fly from FLL to MCO on Southwest (Savings of about $300... and still get the same amount of TrueBlue points, would of been more if I split up the reservation, either way wasnt worth it). Anyhow.. jetBlue flight got into FLL early enough that I had time to catch a earlier Southwest flight from FLL to MCO... it was just myself traveling.. got to the counter... ask if I can get on a earlier flight.. they said no.. so I was just like ok what ever... I had breakfast and got back... the earlier flight started boarding and about 20 people got on and the gate agent was like thats everyone... and I went up and was like are you sure I cant just hop on this super short FLL to MCO flight.. and they were like no, unless you want to pay the difference in fare plus the change fee... I was like ehh.. no. waited a couple hours and my flight was ready to bored... guess what... it was overbooked by 1 passenger... of course, I was right there and gladly voluenteer to be bump and told them that you know, you would of saved all these extra money if you just let me board the earlier flight. The gate agent reply at that point was that there wouldnt been enough time, yet between the first time and 2nd time that I asked, I had a full sit down breakfast at a airport cafe than waited before they annouce the first boarding for that flight. Technically I would of made the earlier flight but I factored in delays and time waiting for my bags and security thus why I opt to reserve a later flight because I rather have a confirmed seat on a later flight and try and get on a earlier flight than have a confirmed seat on a earlier flight and miss it and pay for a later flight. Nothing to do with jetBlue aside from the fact that I got to the WN flight from a B6 flights but to prove that I really have no idea what some airlines are thinking about sometimes. I'm sure theres some logical cost saving reasoning behind it such as cutting cost on a bag of peanuts and a cup of soda... either way... just want to toss that out there... :)
Aside from that, I think Southwest is a decent airline, for sure not one of those airline(s) that offer "overpriced" and "substandard service"
jetBlueNYFL
May 3, 06, 7:24 pm
I sent jetBlue an email about the new same day travel policy...I guess when you weigh out the pros and cons, it's a pretty decent idea. Here is their response (which arrived in less than 24 hours, compared to waiting nearly 30 business days for a form letter from AA!):
Thank you for your email regarding our new same day confirmed travel guidelines. We appreciate the
opportunity to address to your concerns.
We recognize your concern about paying $25 to change to another flight on the same day. Our
previous guidelines for confirmed seats on a same day flight would result in a $30 change fee, as
well as being charged the difference in airfare, which could be a large amount, depending on how
much was paid for the original flight. So in that respect, $25 is quite a savings.
We have implemented emergency procedures as well. In the event of a missed flight due to unforeseen
events, such as heavy traffic, if a customer arrives at the airport within a reasonable amount of
time (one to two hours maximum) of their original flight, they will have the option to fly standby
without a charge. Severe weather issues will still be dealt with on a case by case basis.
We feel that by offering the $25 confirmed seats, our customers will be better served by planning
their schedules accordingly, instead of spending numerous hours in the airport waiting for a standby
flight.
We are pleased that JetBlue is still your favorite airline! We love having you as a customer! We
enjoy receiving emails from you, what you love about us and what we can improve upon.
May all your skies be JetBlue!
justageek
May 3, 06, 8:13 pm
UA has had this for a while too (in addition to the ones that TTT mentioned).
I'm concerned about free standby only applying to the flight immediately preceding yours, though. (Though still more generous than Southwest's, which requires you to buy up to full fare if you want to standby.)
nsx
May 3, 06, 9:03 pm
How I read the policy is that you can still go standby same day for to the same destination at no charge
Only on the immediately preceding flight apparently. FWIW, this is backwards from Southwest, which gives you a "flat tire rule" free standby up to 2 hours after your scheduled departure but no free standby to go earlier. I'm glad the policies don't match, because this way we can each pick the policy we like better.
The new JetBlue policy is far more customer-friendly than Southwest's, but I continue to believe that Southwest's policy is a better revenue producer. Why? In a nutshell, it allows Southwest to maintain a large price differential by time of day. Otherwise people buy off-peak seats and fly at the peak times. That leaves empty off-peak seats, meaning even more lost revenue. No other airline prices different times of day as disparately as Southwest. That's annoying to peak hour flyers like me, but it reduces off-peak prices by increasing both total loads and peak hour yield.
jetBlueNYFL
May 4, 06, 12:08 am
Only on the immediately preceding flight apparently. FWIW, this is backwards from Southwest, which gives you a "flat tire rule" free standby up to 2 hours after your scheduled departure but no free standby to go earlier. I'm glad the policies don't match, because this way we can each pick the policy we like better.
The new JetBlue policy is far more customer-friendly than Southwest's, but I continue to believe that Southwest's policy is a better revenue producer. Why? In a nutshell, it allows Southwest to maintain a large price differential by time of day. Otherwise people buy off-peak seats and fly at the peak times. That leaves empty off-peak seats, meaning even more lost revenue. No other airline prices different times of day as disparately as Southwest. That's annoying to peak hour flyers like me, but it reduces off-peak prices by increasing both total loads and peak hour yield.
Agreed for the most parts...but one question: what routes do jetBlue and Southwest directly compete head to head on? I don't see how we can really pick which policy we like better if they don't compete on exact, identical routes. While they serve many of the same cities, no exact lines connecting the dots (none that I can think of atleast).
The $25 policy definitely beats having to pay a change fee + difference in airfare (which can be a great deal of $$$) but I think jetBlue should still give the OPTION for same day changes as flying free standby on any flight OR paying the $25 for a confirmed seat.
SkaterJasp
May 4, 06, 12:17 am
I just perfer jetBlue's policy over Southwest's anytime just because I think jetBlue's is more flexible and more customer friendly. Eitherway, from the experience, I cant really say much about Southwest's policy cause as the example I stated earlier, they didnt want to have me go standby between FLL and MCO... and ended up having me stay with a flight that was overbooked by 1 passenger... which, I gladly gave up my seat in exchange for a credit of like $200 plus the cost of my ticket. HAHA. Thats the part that didn't make sense for me was they rather give someone over $200 towards future travel when they could of solved the problem a few hours by letting 1 person go on a earlier flight. I just thought that was pretty funny, but whatever it take to cut cost and reduce expenses!
nsx
May 4, 06, 12:42 am
I just perfer jetBlue's policy over Southwest's anytime just because I think jetBlue's is more flexible and more customer friendly. Eitherway, from the experience, I cant really say much about Southwest's policy cause as the example I stated earlier, they didnt want to have me go standby between FLL and MCO... and ended up having me stay with a flight that was overbooked by 1 passenger... which, I gladly gave up my seat in exchange for a credit of like $200 plus the cost of my ticket. HAHA. Thats the part that didn't make sense for me was they rather give someone over $200 towards future travel when they could of solved the problem a few hours by letting 1 person go on a earlier flight. I just thought that was pretty funny, but whatever it take to cut cost and reduce expenses!
I prefer JetBlue's policy too, but I believe that Southwest's does a better job of allowing the airline to offer lower off-peak fares. Just like I prefer dessert to broccoli, even though I know the latter is better for me in the long run. Southwest's standby policy definitely tastes like broccoli. ;)
Congrats on the $200+ bump: Normally WN's gate agents are savvy enough to anticipate those situations and waive the extra charge for the earlier flight. Also you can standby free for the earlier flight if your flight is going to be >30 minutes late. All this is in the Southwest FAQ, of course.
I feel envious every time I read about someone's successful bump on Southwest. On the west coast, I haven't had a single bump opportunity, let alone success, in over 700 flights. Many flights go out full, but the last several passengers are inevitably standbys. The computer programs do an amazing job of selling the correct number of seats.