BA Enhances its short haul economy fare structure
Since there is so much speculation as to whether changes to make all with-luggage fares flexible will lead to a significant price increase, perhaps some guesswork on why BA might want to do this is called for.
At the moment there are real issues with excess hand luggage (hence yellow tag system) and HBO fares have become the norm for many customers, especially business customers.
Product difference between HBO and other fares was minimal (just a lower price for someone who would not normally have taken checked luggage anyway). Hence problems outlined above.
BA's initial response was to remove seat selection for status passengers (to a great deal of noise and complaint as we all know).
Meanwhile competition is offering more business friendly products like U2's flexi fare with free transfer to an earlier flight.
Against that background BA have adopted a model that looks like FlyBe or EI with a key feature previously conceded to U2.
If BA were now to charge its new semi-flexible with-luggage tickets at the old semi-flexible rates (which could be HBO or not), it would have a real competitive problem. More people would be pushed to HBO fares or, if needing luggage, would be looking elsewhere. The hand luggage problem would get worse.
Alternatively, if BA keep the new semi-flex fares at more or less the old with-luggage levels across all discounted fare buckets, what do they gain? Those complaining that they are not going to pay a with-luggage fare just for free seat selection now find it has another valuable benefit - free same day changes plus fare difference changes in advance. More are likely to opt for this fare and justifying it under corporate travel policies is easier - it's flexible (with luggage) vs inflexible (HBO).
By doing this BA remove a competitive advantage from a rival, address the hand luggage problem, gain some additional revenue and praise from frequent flyers for a genuine enhancement.
[I can't imagine BA moving holiday fares into HBO - even seasoned travellers often take luggage on holiday! That would be a poor commercial judgement and perhaps indicates that the new with-luggage fares are not likely to be exclusively high cost fare buckets.]
That, I would hope, is what is happening here.
If that is correct, two other issues remain. Will TP earning be altered so that HBO fares only earn lowest level of TPs but with-luggage earn standard rate? Will other status benefits such as lounge access be removed from HBO fares?
Perhaps BA is being coy on this because it has not decided to make these changes or perhaps it has not been mentioned them to avoid souring what could be a very positive announcement and this will slip out on a bad news day nearer the time.
Anyway, like so much of this thread, pure (but hopefully reasoned) speculation on my part.