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Old Dec 12, 12, 12:07 pm   #1
 
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AA announces pricing innovation, UA to follow?

Today AA announced a new pricing scheme for domestic flights, they will 'compete' on the non-refundable, deep discount normal tickets, but add bundling options for features such a checked bag, and the ability to change the ticket w/o a change fee later, priority boarding, premium drinks on board, etc.

Of particular interest I think, is the ability to buy "insurance" for the change fee (its looking like ~$50 more to waive a future change fee).

I doubt SHARES can support such a system, but it seems to me like a good strategy. I think for many people (especially leisure folks traveling on $200-300 tickets), the prospect of a $150 change fee is ridiculous, while they'd probably gladly pay $50 for the assurance they could change later if something comes up.

I was looking at IST-TLV on TK, the 'non-refundable' tickets were $400, but fully refundable added about $100 to the ticket, which made sense.
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Old Dec 12, 12, 12:16 pm   #2
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Originally Posted by entropy View Post
I doubt SHARES can support such a system
Per Jeff, SHARES was supposed to improve their time to market on such innovations. I guess that assumes the legacy SHARES programmers haven't all died off yet.
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Old Dec 12, 12, 12:18 pm   #3
 
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That change fee insurance is a tricky one. I can see plenty of "confusion" amongst the traveling public when they buy the insurance and then can't find availability on the flight they want to change to due to a zeroed out fare class. Going the other way and allowing an insured ticket to book into any fare class when changing just is a form of price slashing since nobody would need to buy the higher fare classes anymore.
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Old Dec 12, 12, 12:23 pm   #4
 
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After reading many of the comments over on the AA board it seems like a mess, confusing, el cheapo F seats, and the UI has bugs all over. Simply put it is likely a change I would not like over here.

Quote:
Originally Posted by channa View Post
Per Jeff, SHARES was supposed to improve their time to market on such innovations. I guess that assumes the legacy SHARES programmers haven't all died off yet.
Based on many of the observations of the new UI (negative fares, fewer filter/sorting options, don't really know what fare class you are buying, etc) it seems like some of the UA IT guys have found a new home at AA.
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Old Dec 12, 12, 12:28 pm   #5
 
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It is interesting to read this as a business traveler where all my bookings are booked by a third party these things mean very little to me.. everything that gets unbundled makes my travel more of a hassle... Unbundling = LCC to me...
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Old Dec 12, 12, 12:52 pm   #6
 
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Quote:
Originally Posted by channa View Post
Per Jeff, SHARES was supposed to improve their time to market on such innovations. I guess that assumes the legacy SHARES programmers haven't all died off yet.
Given how old the CO agents they hired out of retirement to work the Premier desk because they know SHARES are, I wouldn't pin much hopes on the programmers being available for system upgrades.
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Old Dec 12, 12, 1:29 pm   #7
 
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This actually looks pretty interesting. http://www.prnewswire.com/news-relea...183190171.html

My favorite part... 500-Mile Upgrade eligibility (upgrades available after AAdvantage elite status members have been confirmed)...

At least they are still upgrading their elites first. I would assume (perhaps dangerously) that this means no TODs on AA under this scheme?
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Old Dec 12, 12, 1:37 pm   #8
 
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Originally Posted by nova08 View Post
negative fares.
You mean as in negative $$? They pay me to fly? That is a change I would like!
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Old Dec 12, 12, 1:38 pm   #9
 
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Originally Posted by paulyras View Post
This actually looks pretty interesting. http://www.prnewswire.com/news-relea...183190171.html

My favorite part... 500-Mile Upgrade eligibility (upgrades available after AAdvantage elite status members have been confirmed)...

At least they are still upgrading their elites first. I would assume (perhaps dangerously) that this means no TODs on AA under this scheme?
Actually I am now confused.. so is Fully Flexible like Y or B? ie if you buy some of the last tix left at a premium you now get a drink plus group 1 boarding? Is this re-bundling or even if you are buying an expensive fare you have to buy up as well?

That said, the Choice plus with 50% miles, it states a $88 round trip [b]is this independent of miles?[b] ie a 8000 mile rtn to HNL?
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Old Dec 12, 12, 1:51 pm   #10
 
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Quote:
Originally Posted by paulyras View Post
This actually looks pretty interesting. http://www.prnewswire.com/news-relea...183190171.html

My favorite part... 500-Mile Upgrade eligibility (upgrades available after AAdvantage elite status members have been confirmed)...

At least they are still upgrading their elites first. I would assume (perhaps dangerously) that this means no TODs on AA under this scheme?
Technically maybe but I doubt it will be so cut and dry. My EXP friend has struck out on DFW-LGA the past few weeks. On the AA board someone posted a screen shot for DFW-LGA next monday (not sure of the return), Choice was ~$630, F was $770. Can't imagine there will be many upgrades if F is that low.


Quote:
Originally Posted by TomA View Post
You mean as in negative $$? They pay me to fly? That is a change I would like!
Yes, there is the screenshot over on the AA board to prove it
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Old Dec 12, 12, 1:56 pm   #11
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Quote:
Originally Posted by paulyras View Post
This actually looks pretty interesting. http://www.prnewswire.com/news-relea...183190171.html

My favorite part... 500-Mile Upgrade eligibility (upgrades available after AAdvantage elite status members have been confirmed)...

At least they are still upgrading their elites first. I would assume (perhaps dangerously) that this means no TODs on AA under this scheme?
Actually, this is a bit misleading as non-elites were always able to get in the upgrade queue for Y and B fares, and the press release refers to fully flexible fares, so I don't believe there has been any change. (I believe it was the same way on UA when they still had 500-mi upgrade certs?)
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Old Dec 12, 12, 2:17 pm   #12
 
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I just like the fact they are communicating the program out to their customers. Transparency! How refreshing and novel.
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Old Dec 12, 12, 2:32 pm   #13
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The lower tier - bag & group 1 - is the same as what they charge for the two on an ad hoc basis. The difference is that they are prepaid and inserted directly into the booking channel.

The higher tier - only $10 more - gets you a free drink and 50% bonus miles plus the SDC fees waived. If you could just buy the $10 option it'd be a no-brainer as a customer. But if you aren't going to buy the other two (or you get them via status) the 50% bonus points aren't a good deal until you're flying more than 2500 miles one-way (versus the $30ish/1000 they sell for at retail and discounting out the free drink at $7).

The really hard part for me to believe is that they are going to bundle these bits in to the receipt all as part of the "ticket" purchase, which is what I've seen implied but I haven't tested directly. Basically they're providing cover to people who want to "cheat" expense accounts to buy more miles and such while getting reimbursed. That could be a sticky situation.
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Old Dec 12, 12, 2:53 pm   #14
 
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Quote:
Originally Posted by TomA View Post
You mean as in negative $$? They pay me to fly? That is a change I would like!
Jeff paid me for my last flight! I gave him $323 then he gave me $600. That's definitely a change to like, except for the fact that I had to experience a 25 hour delay to get the $600.
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Old Dec 12, 12, 3:08 pm   #15
 
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Jeff paid me for my last flight! I gave him $323 then he gave me $600. That's definitely a change to like, except for the fact that I had to experience a 25 hour delay to get the $600.
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