Change Fee Increase to $200/300
May 2, 2013, 9:36 am
#421
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It would be a more meaningful point if the other airlines didn't match leaving UA with the fee.
May 2, 2013, 9:38 am
#422
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Last edited by iluv2fly; May 2, 2013 at 12:00 pm Reason: merge
May 2, 2013, 11:21 am
#423
Join Date: Apr 2003
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A: Frontier is shifting to an ULCC model. To my knowledge, UA is not out promoting itself as the new Spririt--even through they are heading in that direction.
B. You can simply purchase your ticket through the Frontier website and avoid the fees. Can't do that on UA.
C. Frontier has tiered pricing like American with reduced or no change fees/free bags/extra FF miles. UA also does not offer this program.
Disclosed fees with easy ways to avoid them > changing the fares rules without announcing the change and having to throw away or lose any ticket under $200.
May 2, 2013, 2:08 pm
#424
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You say this like it's a certainty. Did the other airlines follow US by charging for on board sodas and putting advertisements on tray tables? No.
Have other airlines followed DL with the MQD's yet? No.
I could go on and on. The only thing airlines typically follow each other on are fares.
Have other airlines followed DL with the MQD's yet? No.
I could go on and on. The only thing airlines typically follow each other on are fares.
I was wrong in that I said it might take 2 months for the other legacies to follow. It took less than 2 weeks.
May 2, 2013, 2:48 pm
#425
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Nope. I'll eat crow on that.
May 2, 2013, 2:52 pm
#426
Join Date: Aug 2009
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Maybe this will incentivize UA to have a tier system similar to AA? I like choice plus on AA and would like to see that implemented on UA as well.
May 2, 2013, 2:54 pm
#427
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Interestingly enough, the Choice plus prices have went up about $30 as well..
May 2, 2013, 3:24 pm
#428
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May 2, 2013, 4:01 pm
#429
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May 2, 2013, 4:14 pm
#430
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UA seems to be focusing on not undercutting its Y/B fares which are largely changeable/refundable. With a prioritized UG (as early as booking) and ahead of UA's freebie program, it seems to be attractive.
May 2, 2013, 4:24 pm
#431
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May 2, 2013, 4:52 pm
#432
Join Date: Jun 2004
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"Fund the Future" is their finincial plan. It refers to not only keeping labor costs down at every opportunity, but also increasing revenues at every opportunity. http://marketingworldblog.com/2011/0...o-jeff-smisek/
4 simple cornerstones: "Fly to Win" (not sure what that means,) "Fund the Future" (bring in as much cash as possible, pay out as little as possible,) "Make Reliability a Reality (Duh!,) and "Working Together" (I think it conflicts with "Fund the Future in view of executive pay and labor negotiations, if you ask me.).
4 simple cornerstones: "Fly to Win" (not sure what that means,) "Fund the Future" (bring in as much cash as possible, pay out as little as possible,) "Make Reliability a Reality (Duh!,) and "Working Together" (I think it conflicts with "Fund the Future in view of executive pay and labor negotiations, if you ask me.).
May 2, 2013, 5:15 pm
#433
Join Date: Sep 2003
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I do agree with a sliding change fee based on how far out until departure but we don't need the government telling the airlines they have to do that, if an airline sees a competitive advantage in doing something like that they will implement it on their own and we don't need the government telling the airlines they have to provide mandatory compensaion during disruptions, even weather. All that will do is raise airfares or fees even more than they already are in order to cover all that extra costs of providing compensation for everything.
Air travel is about the most elastic thing there is as far as demand. Air travel is never a necessity like food, clothing, housing. If the fees are too expensive or too much of a hassle people can just stay home or drive, simple enough then the airlines would have to lower the fees or airfares to get people to travel. The free market is a tug of war especially when demand for a product is extremely elastic.
Air travel is about the most elastic thing there is as far as demand. Air travel is never a necessity like food, clothing, housing. If the fees are too expensive or too much of a hassle people can just stay home or drive, simple enough then the airlines would have to lower the fees or airfares to get people to travel. The free market is a tug of war especially when demand for a product is extremely elastic.
Last edited by anc-ord772; May 2, 2013 at 9:03 pm Reason: Too fast!
May 2, 2013, 5:28 pm
#434
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I live/work in markets with lots of competition. Keeps prices nice and low. I absolutely want the government to require mandatory compensation for disruptions. I prefer to remind for profit entities that scrupulous practices will not be tolerated, even if the free market does.
May 2, 2013, 5:28 pm
#435
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I wouldn't be surprised if this starts to trigger some congress members thinking about new regulations needed. At some point where the change fee > average one-way ticket price, the tickets are de facto completely non-refundable. This may need to be disclosed more adequately.
Alternatively, it could make sense to have a sliding change-fee scale based on time to departure. Someone making a change 6 months out has a reasonable argument that the carrier has plenty of time to resell or adjust inventory; whereas, someone making a change 2 days out greatly limits the carrier's ability to resell that inventory.
On the flip side, maybe this relationship has to be made more symmetrical, like it is in the EU. Perhaps the US needs institute the rather serious delay/cancellation compensation that the EU has instituted. This way carriers are penalized just as much for "changes" to passengers' itineraries.
Alternatively, it could make sense to have a sliding change-fee scale based on time to departure. Someone making a change 6 months out has a reasonable argument that the carrier has plenty of time to resell or adjust inventory; whereas, someone making a change 2 days out greatly limits the carrier's ability to resell that inventory.
On the flip side, maybe this relationship has to be made more symmetrical, like it is in the EU. Perhaps the US needs institute the rather serious delay/cancellation compensation that the EU has instituted. This way carriers are penalized just as much for "changes" to passengers' itineraries.
So perhaps the smarter solution for airlines would be to simply make all low fare buckets 100% non-refundable and non-changeable. And disclose this information prominently when tickets are purchased (just as priceline and other merchants do). The result will be to boost sales of travel insurance and fee waiver products.
