Originally Posted by
3Cforme
Sure it does. It shows people they can't buy $700 T fare tickets and upgrade for $500. DL can get people to pay $2500 for an M fare and use miles or a PMU/SWU to upgrade. It's called revenue integrity. It's why a Four Seasons doesn't drag people off the street with promises of $50 rooms that would otherwise go empty.
While I have yet to bag a $50 Priceline rate at a Four Seasons, I have at other 4 star properties (JW Marriot, Renaissance, higher end Sheratons and Hiltons, etc.). Those are rooms that would be left empty with no revenue had they not offered the deep-discount rates.
For the airlines, people will still pay the F fares for
guarantees of F seats, particularly on busy routes, JFK-LHR in July for example. Corporate travel departments won't risk sending a VP to the airport in hopes he/she will get upgraded for a lower upgrade fare. If nobody is paying the high fares for F, its not hurting business to offer more reasonable same-day upgrade fares, similar to how AS handles FC.