Originally Posted by
DrunkCargo
Well, revise upwards only... almost like open outcry... But agreed, this would not be the best option for the seller in this case because of the lack of consensus of the value of upgrade. A dutch auction would be hard to implement asynchronously, so I guess sealed bid it is.
Then how about this: Collect sealed bids at checkin time.
At flight close time, have the app SELL the upgrades at a price higher than lowest winning bid, LMU style... you know, pop up some promo on everyone's phone offering a live action "outcry" essentially. I guess then nobody would submit sealed bids then.... Well, nobody on this thread would. =P
Edit: Never mind; the cost of implementing the technology would far outweigh the incremental revenue.
That's a good idea actually. But I wonder if that would be too much of a logistical nightmare at the gate. Hmmm...
If I was AC, I would do this:
1. Clear all Altitude Upgrades
2. Process Bids for 50-75% of seats T-2 or 3 days (would depend on data about last minute J purchases and stuff).
3. Clear bids
4. Offer LMU T-24h adjusted for an internal reserve price and expected demand.
AC gets to fill J while still having an opportunity to extract more value with better priced LMU.