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Old May 5, 2017, 11:32 pm
  #1517  
spin88
 
Join Date: Feb 2008
Programs: 6 year GS, now 2MM Jeff-ugee, *wood LTPlt, SkyPeso PLT
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Originally Posted by emcampbe
And picking a single route (on a single or even few dates) to make assumptions in general also doesn't often work.

Take a flight I just booked - a July long weekend trip CVG-SFO. Three airlines fly nonstop on this route (well, once UA starts next month) - DL, F9 and UA - all once per day. On the days I want, UA isn't offering a BE fare, and is pricing at $400 round-trip for a T fare. F9 is at $328, but once you start adding stuff, its more than UA (regular seat is $12-24 each way, a carry on or checked bag is $35 each, each way, or a whole package of stuff is $81 each way). DL has an E fare on the route of $501 Round-trip, or $531 cheapest in main cabin. Plus the day I'm coming back DL doesn't have a nonstop, so in this case, DL charges significantly more for a basic fare than any of the nonstop competition (including UA regular fare), and is only nonstop 1 way. IMO, it would be really stupid to book DL (unless, perhaps, the timing of their morning westbound nonstop is more ideal for you, but that's a $100 premium to get that at a basic fare, and for me, the evening time on the UA flight is preferable anyway).

So the example I have counters the SFO-SEA example given earlier. And also shows that saying UA is competing with a basic fare vs. other carriers regular Y-cabin fares across the system just isn't correct. I'm sure Spin will come back and say why I'm wrong, and why it's the worst thing in the world for UA to have BE fares that match other regular fares on some routes, while at the same time hailing DL's strategy of charging a premium (a significant one, IMO, at 25% more in this case) for a basic fare on other routes.
(1) United is rolling out BE by markets, wait a few weeks and BE will hit that route. The key point is that it is system wide, including on highly competitive routes with all non ULCC carriers e.g. SFO-LAX, SFO-SEA.

(2) I don't have a problem with BE fares, they have their place. But that place is (a) advanced purchase - the type of fares non-business travelers buy, and (b) where there is direct ULCC competition. The example you use has - it appears - both qualifications.

(3) but what United is doing is very, very different. The point is that - given how it is being rolled out, as a sub-rosa price increase, leaving the UA BE fare to compete vs. OALs regular Y fares - it is not only not competitive, but it will likely drive away valuable traffic.

Put another way, if you want to pay UA $258 o/w for SFO-SEA for BE, when DL/AS/VX are all $258 in Y, and UA wants another $15 to Y, you are welcome too. But I think a lot of the market will view it very differently.
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