PlusGrade - Auction Upgrades are Coming to NA
Apr 25, 2013, 12:20 pm
#1
Original Poster
Join Date: Aug 2006
Location: Minneapolis, MN (MSP)
Programs: DL DM, UA 1K MM, Subway Club Member
Posts: 1,988
PlusGrade - Auction Upgrades are Coming to NA
Sounds like an unnamed North American airline has signed up with the company pedaling this tech. With COPA and one of LH's subsidiaries participating I wonder if it's UA?
WSJ: Flier Auctions: Better Seats, Going Once, Going Twice...
Essentially it is a system to auction off upgrades allowing passengers to enter bids as they are buying a ticket or afterwards. The auction can be "won" at anytime up to departure.
Sounds like Air New Zealand is doing it as well. Here is a thread over on their forums. Successful/Unsuccessful Oneup bids
If it's transparent I might welcome it over the current behind-the-scenes system. I think the free upgrade days are coming to an end.
WSJ: Flier Auctions: Better Seats, Going Once, Going Twice...
Essentially it is a system to auction off upgrades allowing passengers to enter bids as they are buying a ticket or afterwards. The auction can be "won" at anytime up to departure.
Instead of offering last-minute upgrades at a set price, "we ask the customer, what are you willing to pay?" said Ken Harris, chief executive of Plusgrade, the New York City company that developed the system. "No one ever complained they got an upgrade, especially at a price they set."
Mr. Harris says Plusgrade is likely to launch with an airline based in North America this year. "It's in progress," he said, declining to identify the carrier.
Midweek flights typically have lower demand for business class, and so more opportunity for auctions. Carriers can select which customers to invite—some open the bidding to all passengers, others limit it to higher-fare levels. They can target passengers according to their profile, such as those who might be candidates to buy business-class seats in the future, or who fly in business class when their company pays.
Mr. Harris says Plusgrade is likely to launch with an airline based in North America this year. "It's in progress," he said, declining to identify the carrier.
Midweek flights typically have lower demand for business class, and so more opportunity for auctions. Carriers can select which customers to invite—some open the bidding to all passengers, others limit it to higher-fare levels. They can target passengers according to their profile, such as those who might be candidates to buy business-class seats in the future, or who fly in business class when their company pays.
If it's transparent I might welcome it over the current behind-the-scenes system. I think the free upgrade days are coming to an end.
Apr 25, 2013, 12:53 pm
#2
Suspended
Join Date: Mar 2012
Programs: US CP ; LH FTL ; *G
Posts: 1,630
Apr 25, 2013, 2:00 pm
#5
Join Date: Jan 2003
Posts: 217
PlusGrade - Auction Upgrades are Coming to NA
It's a great business model for the carrier- the question is how to drive dollars with an auction model, while maintaining any benefit they see from FFers. Maybe right of first refusal on high bid becomes a "benefit"
Apr 25, 2013, 2:54 pm
#6
Join Date: Sep 2011
Location: New Zealand
Programs: NZ*S plus various hotel programs
Posts: 945
Air New Zealand have been doing it for quite a while now, although for the top tier (gold elite) they can still get upgrades, subject to supply, at the old fixed price cost after a huge amount of unhappy people contacted the airline about this.
Generally the bids which are being accepted are going for quite a bit more than the old fixed price amounts, so this is obviously worthwhile for the airlines.
They are not accepting all bids, often rejecting those seen as too low resulting in the premium cabins not always flying anything like full. This is almost certainly to retain the value in the premium cabins. Air NZ doesn't routinely give free upgrades away to even their most frequent fliers other than the two single sector single class ones which are given annually as part of their status.
Generally the bids which are being accepted are going for quite a bit more than the old fixed price amounts, so this is obviously worthwhile for the airlines.
They are not accepting all bids, often rejecting those seen as too low resulting in the premium cabins not always flying anything like full. This is almost certainly to retain the value in the premium cabins. Air NZ doesn't routinely give free upgrades away to even their most frequent fliers other than the two single sector single class ones which are given annually as part of their status.
Apr 28, 2013, 6:29 am
#7
Join Date: Nov 2010
Location: MDE
Programs: AA-PLT, HH-GLD, PP
Posts: 1,511
I think COPA only offers it after FF upgrades are processed. I have been getting upgrades a lot lately, but have never received any offer from the airline to bid on them.
FWIW, I flew alone in business PTY-NAS the other day, so this indicates to me that they don't just take any bid. On the other hand I don't know if they do a good job of publicizing the program to non-FF.
FWIW, I flew alone in business PTY-NAS the other day, so this indicates to me that they don't just take any bid. On the other hand I don't know if they do a good job of publicizing the program to non-FF.
Apr 29, 2013, 6:09 pm
#8
Join Date: Mar 2009
Posts: 248
The end of the free upgrade?
The end of the free upgrade: the great airline business upgrade auction is ready for take-off
A free move into business class could become a thing of a past as the major airlines look to raise extra revenue online
http://www.independent.co.uk/travel/...f-8595560.html
A free move into business class could become a thing of a past as the major airlines look to raise extra revenue online
http://www.independent.co.uk/travel/...f-8595560.html
Apr 29, 2013, 7:17 pm
#9
FlyerTalk Evangelist
Join Date: Dec 2000
Location: south of WAS DC
Posts: 10,131
let's run a survey. what is the rate of upgrade from Y to J on a tatl. my guess is about 0.1%, or 1 in a thousand. i have flown a couple 3-4 hundred tatl's and never been UG. never seen one. in the past 5-10 years, airlines are much smarter about booking loads. i think UG's are mainly from a cancellation problem. this person talks like if you dress well, and present yourself at the front desk right and are a silver or gold or some such, you will get a UG, and you should worry about those opportunities are going to go away.
Apr 30, 2013, 12:56 pm
#10
A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 52,566
I've flown maybe 100 total TATL segments in my life and experienced 4 operational upgrades on those flights. One US, two AA, and one UA, all at the AA Plat / UA 1P / US Gold level. (e.g., the 50k level.) All of them in the 1997-2002 timeframe.
My rate of flying TATL has been fairly constant from 1993-2013, so I do believe they've somehow gotten better at allocating the seats. Obviously my sample size isn't massive, but going from a hit rate of 4 out of 20-30 to 0 out of my past 40-50 is a bit of a bummer. Not sure if it's better statistical models for the airlines or if my main airline throughout the 00's (UA) increased the total number of upgrade instruments available to 1K's, thus decreasing the odds that any given flight would actually need to Op UG a 1P. It seems like every TATL I'm on these days has a waitlist a mile long - US being the lone exception.
In terms of auctioning off upgrades, I think it'll get piloted on some shorter domestic U.S. routes first, not TATL.
My rate of flying TATL has been fairly constant from 1993-2013, so I do believe they've somehow gotten better at allocating the seats. Obviously my sample size isn't massive, but going from a hit rate of 4 out of 20-30 to 0 out of my past 40-50 is a bit of a bummer. Not sure if it's better statistical models for the airlines or if my main airline throughout the 00's (UA) increased the total number of upgrade instruments available to 1K's, thus decreasing the odds that any given flight would actually need to Op UG a 1P. It seems like every TATL I'm on these days has a waitlist a mile long - US being the lone exception.
In terms of auctioning off upgrades, I think it'll get piloted on some shorter domestic U.S. routes first, not TATL.