FlyerTalk Forums - View Single Post - LMU (Last Minute Upgrades) fare discussion & questions
Old Jul 12, 2015, 11:37 am
  #5  
superangrypenguin
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LMU fares discussion

Since it was asked that we try not to talk about LMU fares in the LMU thread and just to try and post the numbers and that's it, I thought I'd start a new thread.

It has been discussed again and again who pays for the LMU fares and why is it priced where it is

I'll copy and paste my guess as to the first question, and then try to guess the answer to the second question.

1). If you think about it, it's not the prices that are stupid. People pay for these fares (which I agree would make them not very bright). But AC would not charge prices like this is no one bought them (especially with J cabins leaving with empty seats).

So someone somewhere is buying these....my guess: executives with a whole wad of cash who work for companies who only pay for Y. (IBM say as one of the companies that do this based on what I read on here). In this case, then the person would pay for those LMU fares.

2) Well AC has said that they want to preserve the integrity of the J cabin pricing. So they want us to eUp or pay up. I don't think AC has the intention to sell every seat possible that they can by way of the LMU program. I think AC full well knows that it's pricing is insane, but if they can "on occassion" sell someone a seat at say $200/hour or something which most of us think is nuts (or higher than that $/hour), they laugh all the way to the bank. E.g. they're after the one off's, but NOT to sell every seat because that would go against their philosophy of the integrity preservation thing.

This would also explain why they haven't done an auctioning thing of these seats. I mean if they don't have the intention to actually sell them, then they will price it at whatever they want, and then will well...sell them, rarely.
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