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Old Dec 4, 16, 12:18 pm
  #12  
Adam Smith
Moderator, Air Canada; FlyerTalk Evangelist
 
Join Date: Feb 2015
Location: YYC
Programs: AC SE100K, WS Gold, BA Silver, Marriott Titanium, Accor/Hilton/Radisson/NH Gold
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Originally Posted by jaysona View Post
Given how AC is flirting with the upgrade bidding - as in similar implementation to other airlines, I suspect AC will make it a fixed price to buy-up to the next tier level. I suspect the price range will be $500 - $1000 based on what I have seen others offer in the past.
Doesn't make much sense to me. You'd charge the same price to buy up to E35K for the guy who flew 33K AQM as for the guy who flew 25,001 AQM?

It's possible, but AC talks about wanting to reward profitable and loyal customers, a fixed fee to buy up doesn't make nearly as much sense.

I also figure the profitability would be better on a program where you bought missing miles, or at least the fee was tailored to your AQM/AQS. If you set a fixed fee based on an average P25K buying up to E35K, let's say $1000, who's going to pay it? The 33K guy probably won't bother. The 25K guy will only bother if he knows he can extract well over $1000 of value out of it. Whereas if you make them buy missing miles, or graduate the fee (e.g. $200 for every 1K AQM you're short), you'll probably sell more and better match the costs and revenues.
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