Originally Posted by
ryman554
You want to give your attention to high volume and high yield (GS.and top 1k), and ignore low volume and low yield
That’s the problem with the airline industry, though. You simply can’t afford to run your business like this. UA absolutely
needs seat fillers. If you work out their annual profit and compare it to the number of flights that they run, it’s, what,
maybe $1000 per flight? Probably less. As much as some people on this board like to complain about “Kettles,” UA can’t survive catering only to high-level elites. They simply couldn’t make money with planes that were only 10% full. Low volume, low yield passengers are individually unprofitable, but collectively they can make the difference between a profit and a loss.
Originally Posted by
bluedemon211
Having EVERY passenger except GS clear into the PZ bucket is insane. There is no differentiation between 1K through Silver. Based on that, it makes perfect sense that PZ is rarely available.
I think the main effect that would have would be to mean that 1K GPUs are only particularly valuable when on the same reservation as the 1K. I don’t think it’s “insane” to use the same bucket for everybody when the vast majority of requests for PZ space come from 1Ks.
Originally Posted by
villox
I suspect the number of non-1Ks using PZ is extremely small. Only 1Ks (and GS) get GPUs. Anyone else would have to be using a mileage plus award with copay and I just don’t think it’s happening that often.
Exactly.
Originally Posted by
bluedemon211
However, other than for GS, every mileage upgrade + co-pay clears into PZ. That's not an insignificant volume.
I really do think it is an insignificant volume. Mileage + co-pay offers are relatively expensive and still require a whole lot of miles — miles that somebody who’s a lower-level elite is only getting from credit card spending.
Originally Posted by
VegasGambler
As a lowly Gold, I would love it if they would open up lots of PZ space. I could confirm miles + copay upgrades ahead of higher level elites by buying before them. But 1Ks would see fewer upgrades, not more.
If you did that enough to have much of an effect on 1K clearance, soon you’d be a 1K yourself.
Besides, given the choice, I suspect UA would rather have your business than mine. Mileage + co-pay awards mean you’re spending much more money on your flight than I likely am on my W or R fare — plus, you’re depleting your MileagePlus balance, which helps their balance sheet as well. If they’re really lucky, they may be able to
sell you the very miles you’re using to upgrade your flight.