FlyerTalk Forums - View Single Post - "Can United Continental Beat Its Bad Reputation?" - Investopedia
Old Mar 23, 2015, 1:43 pm
  #68  
channa
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Originally Posted by ACVBear
exactly . customers are an annoyance at best to UA.
I don't think that's the case. I think they just don't like Elites. They've practically said as much too.

We don't pay for call center fees, for bags, for E+, etc., and we get extra miles, possible upgrades, etc. UA sees that as revenue leakage when an Elite buys a ticket. They would much rather sell to a non-Elite who is more likely to pay for these extras, rather than give away perks that are given away free to Elites. The problem is that with those perks, that Elite brings with him a multiplier of repeat business, which is typically not present in the non-statused customer.

It's no different than how some companies view employees -- a company can view its employees as human assets who receive a competitive salary, a benefits package, and other perks, so that they can retain quality individuals and make their business prosper. Or, they can view employees as a costly liability that does work they could source elsewhere for less.

I think we know what UA's position is on that one as well.
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