Old Feb 12, 19, 3:52 pm
  #644  
VegasGambler
 
Join Date: Oct 2014
Posts: 3,853
Originally Posted by williwaw View Post
I have not been able to get data to look at this, but I've assumed that pre-Saver the marketplace might look like this for the same route on different airlines:

United: BE $130, Economy $160
Delta: BE: $127: Economy $154
Alaska: $140 Economy

Now this is a made up ideal scenario, so I expect objections there. But suspend disbelief for a moment... Alaska was in a situation where they had to make choice to advertise low enough to show up in OTA searches, but they were not the same product or pricing. So essentially leaving money on the table or getting passed over. I assume this because if the market is moderately well functioning the Economy (non-basic) should now balance out across carriers and routes with some exceptions where one carrier dominates. So for me the question is did the fares go up but go up to match a similar level of other non-basic fares?

As noted here, what complicates this is the market segmentation. There LCC or Ultra-LCC customers going anywhere, the business fares that exclude basic, and the loyalty types that are maybe caught in between. I assume or those with business travel, the big impact would result in being forced onto other carriers because AS is no longer competitive at economy. Haven't heard any concerns there yet. (And my personal experience has been AS is pretty close.)

Disclaimer: I am not an expert, I am not an airline revenue manager, I have enough skills to get on the internet. This post could be full of hooey.
I'm not sure that I really buy this.

The "extra services" that you get for Main (vs Saver) don't cost AS anything. AS doesn't care whether you sit at the front of the plane or the back of the plane. They don't care if the PE upgrade goes to you or the next guy. You are just paying money to improve your ranking vs other passengers. The difference in services provided doesn't really exist; this is just marketing and PR BS.

This isn't about selling a seat for $30 less; it's about charging you $30 to use the benefits which they claim you earned. The fact that they didn't inform you about it before you started earning is it the really disgusting part. It's a bait and switch. They tell you that if you fly a certain number of miles you will get certain benefits next year, and then when you've met your end of the bargain and it's their turn, they add a $30 surcharge to use those benefits. It's extremely dishonest.
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