Originally Posted by
TIMOS
.... Revenue will not be reduced that much. Half the cabin will likely be the corporations paying W fare buy up. The rest of the cabin will be leisure travelers buying up with co-pay. The only "lost" revenue UA has to refund is those who did W buy up or co-pay and did not clear. ....
I think the math is wrong -- only those using copay that are upgraded will pay, so UA loses the revenue of the non-upgraded copay option. And you have the cost of creating a new option and the CS issues of dealing with the added confusion / complexity.
Also, I very much doubt that half of those using GPUs are leisure travelers. My guess is 10% maybe 20% max at peaks (including normal business travelers on vacation). The leisure HVT is a much smaller community and is not really UA's (or any major airline) targeted market.
Originally Posted by
TIMOS
....And that is revenue UA should not have in first place. If UA is not providing the product (BF class) than they should not be receiving the money. ....
they have the revenue today.
Originally Posted by
TIMOS
....Would you cal refund of co-pay on a miles and co-pay "lost" revenue too?
Not the topic and for a variety of reason would not fly for that user group.
-- I wouldn't have an issue with UA making this change for GPUs but I will ask again -- why would UA do this if the business cabin is going out full most of the time and people on the waitlist as is??????
What is in this for UA? What compensates UA for the revenue lost??