FlyerTalk Forums - View Single Post - "Guaranteed Reservations in Economy Class" privilege - E75K/SE100K
Old Mar 7, 2024 | 11:05 pm
  #69  
flyingcrooked
All eyes on you!
 
Join Date: Oct 2022
Location: Ottawa, Canada + Edinburgh, Scotland
Programs: AC Super Elite 100k, Star Alliance Gold
Posts: 1,310
Originally Posted by Transpacificflyer
I agree with the AC policy change and understand why it had to be done. The benefit was offered when flights were not at full capacity and there were always a few empty seats. Today, many routes are flying with 100% load factors. I was surprised by my AC 65 flight the other day to see the long waitlist for Y. They were asking for volunteers to give up their seats too. (Half the J cabin was upgrades). If the airline bumps a generic Y class pax to place the elite flyer, there is a compensation amount of between $900 and $2400 to be paid. I expect that most of the bumps will occur on the popular longhauls, so the $2400 is incurred. The cost adds up. Despite the airline saying the option was used infrequently, I expect that is in respect to the total amount of transactions. However, if people were bumped 100X or more that's $2,400,000.+ I expect this frill was costing the airline $1 million or more. (Of course that's me speculating, and in the absence of the actual data, I can't offer a definitive value, but the point is that the frill was costing the airline without much benefit to it in return.) People in Y have a reasonable expectation of flying and they should not be subject to such an arbitrary and unfair practice.
A full fare Y fare in long haul makes up for that compensation penalty, and I suspect many of the basic fare flyers would leap at the chance to voluntarily move to another flight for less than the compensation level for an involuntary denial. AC probably made money on this benefit.

edit: it would be interesting to know how often the benefit led to involuntary denial vs (a) being absorbed at no cost by no shows, or (b) volunteers, many of whom are delighted to take a later flight in return for hundreds of dollars — a genuine win/win.
flyingcrooked is offline