FlyerTalk Forums - View Single Post - [Speculation] 100K Program Changes - Wants, Wishes and Dreams
Old Sep 26, 2022 | 12:54 am
  #49  
Flying for Fun
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Originally Posted by hyedmd
If X fares start earning 50% EQM, that won't be because a tiny fraction of their customers (100k elites) now have the benefit to cancel or upgrade the fare.
It is apparent that you totally missed the point!

Saver X fares serve a purpose. That fact that they can't be changed is by design. It creates revenue through breakage. If you want an unlimited get out of Saver Card, what are you willing to give up to offset the "breakage?" Earning less EQM or RDM only is an option! No?

AA provides all the benefits for their Elites on Basic Economy fares, baggage fee waiver, checked baggage, boarding group, seat selection, access to MCE, eligibility for upgrades. Since AAdvantage is revenue based, purchasing a cheaper fare results in earning fewer Loyalty Points.

That is an offset that AS doesn't have. The solution would be to lower the EQM earnings to offset the loss of breakage as well as the loss of revenue from purchasing Saver X while still providing all of your other benefits. There is potentially also a loss of Premium Class revenue since you are occupying a seat without charge and someone in Main doesn't want the remaining middle seats.

The number of 100K Elites may be a small fraction but in SEA, that could be impactful. There isn't an unlimited number of Saver fares. If 100Ks are buying Saver fares with the ability to change them and taking away Saver inventory for infrequent flyers, there is a good chance someone is flying DL that day.

Oh, and one other thing! AA BE fares can't be changed. Just like AS, the money has flown, whether or not you are accompanying it.

James

Last edited by Flying for Fun; Sep 26, 2022 at 2:39 am
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