Air Canada Bid Upgrade Program

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Old Sep 19, 22, 7:39 am   -   Wikipost
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If I use a Bid Upgrade do I get additional SQM / SQD now for my flights?

No.

If I use a Bid Upgrade on an International Flight leaving YYZ/YVR do I get access to the Signature Lounge?

No.



AC Bid Upgrade - FAQs


https://www.aircanada.com/content/da...pgrade-FAQ.pdf

If your upgrade request is accepted, the fare conditions for the original ticket you purchased shall remain in effect and will be applicable with respect to cancellation policies, change fees, conditions for minimum and maximum stay, and rules relating to the accrual of frequent flyer miles. All other conditions will be per the upgraded fare class.

On the AC website:

"AC Bid Upgrade - Your opportunity to travel in a higher cabin class"

https://upgrade.plusgrade.com/offer/AirCanada


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Old Nov 10, 16, 3:27 pm
  #31  
 
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Originally Posted by 2078 Miler View Post
You have me intrigued. If the minimum bid is always accepted, it is essentially an LMU and I assume some seats get no bid. The LH model is a single sealed bid auction. For maximum economic efficiency, I would want a no-minimum, no maximum, all empty J seats are sold arrangement.


Actually, as I type, I realize that the auction might only be 'sealed' vis--vis the other bidders. The airline could very well know how hot the bidding is in the 72 hour window and adjust the retail price of the J seats accordingly. Admittedly, I have not read the fine print to find out if a third party 'seals' these bids.
For maximum economic efficiency, confirmed J passengers should also be able to enter a bid to sell their seat at the last minute.
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Old Nov 10, 16, 3:30 pm
  #32  
 
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Originally Posted by eigenvector View Post
For maximum economic efficiency, confirmed J passengers should also be able to enter a bid to sell their seat at the last minute.
Potential Pareto Improvement identified but still not Pareto Efficient
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Old Nov 10, 16, 3:38 pm
  #33  
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Originally Posted by 2078 Miler View Post
You have me intrigued. If the minimum bid is always accepted, it is essentially an LMU and I assume some seats get no bid. The LH model is a single sealed bid auction. For maximum economic efficiency, I would want a no-minimum, no maximum, all empty J seats are sold arrangement.
Won't happen.

There is an incremental cost of moving you from Y to J (they may have to cater an extra meal, you will likely consume more beverages, etc.), which would set some floor on it, though it would likely be around $50.

However, the bigger issue is that if you know you can always buy Tango and bid $50 and win, you'll stop buying Flex/PY+eUp or J. And this is what would result in a much higher floor.

They could do interesting things like not ranking bid. Who should get the seat? Latitude bidding $500 or Tango bidding $501? Though I'm not convinced they're clever enough to implement this in a sensible manner.
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Old Nov 10, 16, 3:50 pm
  #34  
 
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[QUOTE=canadiancow;27464243]Won't happen.

There is an incremental cost of moving you from Y to J (they may have to cater an extra meal, you will likely consume more beverages, etc.), which would set some floor on it, though it would likely be around $50.

QUOTE]



Yes. I think I added too much personal-experience bias to this quick thought as I tend to only fly at peak travel times when Y is oversold and that incremental cost is incurred as a result of op-ups. I know that some of those op-ups are awarded based on status, but I suspect that a few have gone to the lingering no-status GTEs. In either of those cases, the incremental cost is borne by AC, not the passenger, in exchange for the opportunity to oversell Y without actually leaving any confirmed passenger behind. With an auction, the winning bidder pays at least some of that cost.
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Old Nov 10, 16, 4:02 pm
  #35  
 
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Originally Posted by canadiancow View Post
Won't happen.

However, the bigger issue is that if you know you can always buy Tango and bid $50 and win, you'll stop buying Flex/PY+eUp or J. And this is what would result in a much higher floor.

From the economic efficiency side, I am not thinking that a the R games should be played concurrently with the auction. However, in respect of the fact that some people will pay more to better position themselves for the R games, I would suggest that higher fare classes could come with a fixed amount of non-transferable bid money.I.e., A flex fare comes with $200 bid money, but if the flex buyer does not add $51 cash, he will lose to a Tango bidder's $251 bid. The R games already has a similar risk. I buy a flex fare, but cannot use my eUps because a Tango flyer took an LMU while R=0.
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Old Nov 10, 16, 4:14 pm
  #36  
 
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You know a lot for someone with 2078 miles to your name.
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Old Nov 10, 16, 4:29 pm
  #37  
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Originally Posted by SparseFlyer View Post
You know a lot for someone with 2078 miles to your name.
I was thinking the same thing.
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Old Nov 10, 16, 4:31 pm
  #38  
 
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Originally Posted by SparseFlyer View Post
You know a lot for someone with 2078 miles to your name.


Well in my case it is mode rather than total.
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Old Nov 10, 16, 4:41 pm
  #39  
 
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Originally Posted by 2078 Miler View Post
Well in my case it is mode rather than total.
Do you usually take AC156? Or you prefer the day time flights?

If AC implements a no-floor bidding system for its J cabin, it would remove the incentives (for me at least) to buy Flex/Latitude/PE fares, and I fly more than the average SE. Think about how much money they would lose from people like me.

I am of the opinion that the minimum should be set at a level where the bidder wonders why s/he didn't just buy J in the first place.
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Old Nov 10, 16, 5:02 pm
  #40  
 
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Originally Posted by YYT82 View Post
Do you usually take AC156? Or you prefer the day time flights?

If AC implements a no-floor bidding system for its J cabin, it would remove the incentives (for me at least) to buy Flex/Latitude/PE fares, and I fly more than the average SE. Think about how much money they would lose from people like me.

I am of the opinion that the minimum should be set at a level where the bidder wonders why s/he didn't just buy J in the first place.


I usually take one of the overnight flights.


The unknown demand function here is whether passengers like you and I who are regularly paying a premium to buy Flex or higher so that they can play the R games and maintain status would pay or more less of a premium in accepted bids if they bought tango and really did not want to stay in Y. Would you buy a $500 flex fare over a $250 tango fare if it gave you $250 of bid money (which may or may not be enough)?


But why give any bid money to someone who has to pay flex or higher because nothing else is available when they book? In that case, it is only to encourage them not to use another airline.
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Old Nov 10, 16, 5:04 pm
  #41  
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Originally Posted by YYT82 View Post
Do you usually take AC156? Or you prefer the day time flights?

If AC implements a no-floor bidding system for its J cabin, it would remove the incentives (for me at least) to buy Flex/Latitude/PE fares, and I fly more than the average SE. Think about how much money they would lose from people like me.

I am of the opinion that the minimum should be set at a level where the bidder wonders why s/he didn't just buy J in the first place.
That would be too high, in my opinion.

It has to be at a level where it does save money and entice people who would NOT just buy J, but not so easy to get that you can do it every time.
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Old Nov 10, 16, 5:24 pm
  #42  
 
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The idea here is that AC will monetize a couple empty seats while collecting massive amounts of Data on how much pax would pay for the J cabin.

I'd pay good money to see that data.


Now, in true FT fashion, let's figure out a way to sabotage this.

I say we skew the data and bid the minimum on all our flights.

This is the best strategy because:

It'll skew their data downwards, making them think they should lower J prices.

The statistical analysis will lead them to believe that there's a potentially huge demand below their reserve price.

I can bet minimum + $1 and outbid everyone on FT.
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Old Nov 10, 16, 6:03 pm
  #43  
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Originally Posted by SparseFlyer View Post
Now, in true FT fashion, let's figure out a way to sabotage this.

I say we skew the data and bid the minimum on all our flights.

This is the best strategy because:

It'll skew their data downwards, making them think they should lower J prices.

The statistical analysis will lead them to believe that there's a potentially huge demand below their reserve price.

I can bet minimum + $1 and outbid everyone on FT.
I like your way of thinking.
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Old Nov 10, 16, 7:37 pm
  #44  
 
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Originally Posted by Jasper2009 View Post
I like your way of thinking.
Hey thanks!
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Old Nov 19, 16, 9:56 am
  #45  
 
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This is Canada, and the majority of the population dislikes the "bargaining" associated with the purchase of a low value product or service. Canadian consumers want a fair price on consumer items so that they can just do the transaction and be done with it.

Yes, I understand the concept of bidding for an upgrade, but it will be perceived as insulting and unfair by many consumers. It will be labeled "unfair' open to "rigging" etc. Canada is a country renowned for its inherent corrupt fixed bidding schemes particulary on government service and supply contracts. It is not to be unexpected that the Canadian perception of it being a rip off will attach. Oh sure, someone will come along and say, relax, it is only the clearing of an inventory. Maybe so, but in a consumer product and services market it is all about peceptions. Canadians dislike this type of approach to clearing inventory. People know that retailers often inflate the cost of goods before the 50% off or the "clearance" sale. It's an issue of transparency and of perceived unfairness.

Sparseflyer offers a tongue in cheek approach, but it is more than that. The comment demonstrates what the Canadian perception is of this type of scheme: A scheme easily manipulated and played with and not one to be held in high regard.

I expect that this is another idiotic idea brought to us by the Pickle Group.
My impression is that Air Canada has assembled a crack group of idiots to come up with the most assinine and useless options that don't have an immediate physical cost, but will eventually cost the company significantly in respect to the erosion of its already devalued brand image and diminished market goodwill. It is called the Pickle Group because their claim to fame was the substitution of junk pickles for actual food in the MLL and then mocking customers by referring to the pickles as a "delicious snack option".
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