FlyerTalk Forums - View Single Post - How would you design the upgrade process if you were in charge?
Old Apr 8, 2016, 8:24 pm
  #1  
dank0014
 
Join Date: Jan 2013
Location: LA
Posts: 1,281
How would you design the upgrade process if you were in charge?

If you were in charge of United, how would you operate the processing of upgrades (CPUs, RPUs, GPUs, etc).

I am looking for a discussion around what you believe would be the optimal procedure for processing an upgrade, not an upgrades never clear conversation, upgrades don’t exist, etc. Also, keep in mind that it has to make sense to the business as well.

I was thinking through the logistics specifically focused around the CPUs and TODs (I believe RPUs and GPUs should clear immediately if more than 50% of F is available at time of applying instrument).

With that being said, I understand why United would want to process TODs to generate new revenue; however, we have proof in many cases where they sometimes charge elites more than a non elite even on same fare classes. With that being said, UA has a tool already in place (current upgrade list) and why not expand that list (doesn’t have to be shown publically) where every passenger is ranked by elite status, fare class booked, and tie breaker as needed based upon check-in or time booked. From this, UA could set a base upgrade rate for say when <50% of F booked, 50-75% booked, 75-99% booked and base the upgrade (TOD) rate by distance (<500, 500-750, 750-1000, and so on) and also by if it’s a hub to hub route, international, etc. From this, they could use that list mentioned above, meaning if you are #1 on the list, your TOD would be the base upgrade cost (e.g. $59). As you continue to go down the list, you make it dynamic….so for passengers 1-5 on the list, they would be a $8 difference, meaning #2 on the list would be offered $67, #3 $75, #4 $83, #5 $91 to upgrade, and then for passengers say 6-20 difference between each spot drops to $6, so #6 is offered $97, #7 $103, and so on. Eventually 21-40 may be a $3 difference, and beyond #40 maybe $1 difference between each spot, meaning if you are say #80 on the ranking list, you would basically be offer an upgrade based upon this route and distance say for $199. In this situation, the elite wouldn’t be beat out, and more likely gives the elites a free chance of getting an upgrade unless that passenger at spot #80 really wanted to shell out a large upgrade fee because they already purchased a low fare class and also have no status with the airline. Obviously, if no one bites on the upgrade rates, then they would process the upgrades for free as they do in today's process (when the system works right). This basically still allows passengers to "jump the queue," but in this case, they have to pay more to jump ahead of the line (better than say #80 jumping ahead of #1 for the exact same $59 rate).

One may argue that it's kind of already this that in the way it's supposed to work that a low fare class should be paying more than say someone who booked a Y,B,M fare for example but it doesn't take into account elite status so that one time flyer could get ahead easily.

Thoughts?
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