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Why doesn't AC add more value to Latitude?

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Why doesn't AC add more value to Latitude?

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Old Sep 3, 2008, 4:40 pm
  #1  
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Why doesn't AC add more value to Latitude?

It would seem based on what I've read on this forum the only reason why anyone buys Latitude fares are:

1. So they can upgrade.
2. So they can reserve a seat, then cancel and rebook later and not pay a change fee (holds the seat).

The other stuff AC gives you is minimal:
1. 1 extra bag ($25 value)
2. 1 BOB snack ($6 value)
3. Extra AP miles if you book online (assuming they get credited)

Why not add some extra value to this fare and make it worth it? Some ideas:
1. 125% status miles
2. Free MLL access
3. Priority boarding on flights without executive class seating

I think the cost of these extras would be outweighed by the extra revenue of the fare options.
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Old Sep 3, 2008, 4:54 pm
  #2  
 
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Originally Posted by YXUFlyboy
It would seem based on what I've read on this forum the only reason why anyone buys Latitude fares are:

1. So they can upgrade.
2. So they can reserve a seat, then cancel and rebook later and not pay a change fee (holds the seat).

The other stuff AC gives you is minimal:
1. 1 extra bag ($25 value)
2. 1 BOB snack ($6 value)
3. Extra AP miles if you book online (assuming they get credited)

Why not add some extra value to this fare and make it worth it? Some ideas:
1. 125% status miles
2. Free MLL access
3. Priority boarding on flights without executive class seating

I think the cost of these extras would be outweighed by the extra revenue of the fare options.
Correct me if I'm wrong, but in the old days - like pre-CCAA before there was such a thing as latitude, AC's highest Y fare classes gave you flexibility/refundability and upgradability in certain circumstances, but no more in the food, lounge or perks (unless you had status). If Mr. Latitude had a hot meal, Mr. Seat Sale had a hot meal. If Mr. Latitude had a two-free-bag allowance, Mr. Seat Sale had one, too. Mr. Latitude has lost his hot meal, but still gets free food, and everything else you mention. Mr. Seat Sale, on the other hand, has yielded much of his flexibility and perks for his lower fare.

So I don't see why adding some perks to a Latitude fare is going to change the purchasing behaviour of Mr. Seat Sale, who has had his name changed officially to Mr. Tango Plus, a.k.a. known to his most intimate friends as Mr. Tango for short.

What adding perks could do is convince Mr. Big Shot Executive Class that it's not worth all that extra money for a big seat if Mr. Latitude is getting more perks.
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Old Sep 3, 2008, 5:03 pm
  #3  
 
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Same argument for hotel rooms. I can book an "internet only" non-refundable rate or a higher refundable rate. Same room type and perks subject to your particular hotel program status.

However, I can't upgrade to the President's Suite on the basis of some non-existent coupon...

Compared to what a fully-refundable mid-week fare would have cost pre-CCAA, the Lat fare is a pretty good deal.
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Old Sep 3, 2008, 5:13 pm
  #4  
 
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Originally Posted by Braindrain
Same argument for hotel rooms. I can book an "internet only" non-refundable rate or a higher refundable rate. Same room type and perks subject to your particular hotel program status.

However, I can't upgrade to the President's Suite on the basis of some non-existent coupon...

Compared to what a fully-refundable mid-week fare would have cost pre-CCAA, the Lat fare is a pretty good deal.
I'll go further and say that AC has kept advance seat selection free for Lat, but not lower fares. And in future it could price either its premium IFE content or wireless internet differently within the Y cabin.
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Old Sep 3, 2008, 5:15 pm
  #5  
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Originally Posted by Sebring
What adding perks could do is convince Mr. Big Shot Executive Class that it's not worth all that extra money for a big seat if Mr. Latitude is getting more perks.
Maybe so... but when was the last time you paid full fare for J? Seems to me most of the time the first class cabin is being filled up with I.
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Old Sep 3, 2008, 5:16 pm
  #6  
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Originally Posted by Sebring
I'll go further and say that AC has kept advance seat selection free for Lat, but not lower fares. And in future it could price either its premium IFE content or wireless internet differently within the Y cabin.
Not true - advance seat selection is free with T+ but not T.
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Old Sep 3, 2008, 5:17 pm
  #7  
 
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Originally Posted by Sebring
So I don't see why adding some perks to a Latitude fare is going to change the purchasing behaviour of Mr. Seat Sale, who has had his name changed officially to Mr. Tango Plus, a.k.a. known to his most intimate friends as Mr. Tango for short.
My ears are burning...
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Old Sep 3, 2008, 5:17 pm
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Originally Posted by YXUFlyboy
Maybe so... but when was the last time you paid full fare for J? Seems to me most of the time the first class cabin is being filled up with I.
You don't know that and I don't know that. It seems to me that more and more people are booking restricted J (i.e. C), or using special promotions like 50% off J.
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Old Sep 3, 2008, 5:20 pm
  #9  
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Originally Posted by Sebring
You don't know that and I don't know that. It seems to me that more and more people are booking restricted J (i.e. C), or using special promotions like 50% off J.
Maybe someone with KVS could survey some common AC flights and tell us...
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Old Sep 3, 2008, 5:33 pm
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Originally Posted by YXUFlyboy
Seems to me most of the time the first class cabin is being filled up with I.
Or those of us who have upgraded from Latitude passes. I have never missed an upgrade since AC started to sell the passes in ... what was it? 2005?
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Old Sep 3, 2008, 6:33 pm
  #11  
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I think the OP doesn't recognize the true value of the LATITUDE fares because s/he isn't an elite member or use passes. Otherwise it would be very clear that this is really a discounted business class fare for AC's best customers and there is indeed considerably more value than listed.
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Old Sep 3, 2008, 6:53 pm
  #12  
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Originally Posted by Shareholder
I think the OP doesn't recognize the true value of the LATITUDE fares because s/he isn't an elite member or use passes. Otherwise it would be very clear that this is really a discounted business class fare for AC's best customers and there is indeed considerably more value than listed.
No I get that - my original post says I understand that aspect of it. But if you had no upgrade certificates, or you're stuck in a CRJ, there's no way of upgrading. Then I have to ask - why would you pay extra for Latitude?

I do use passes, but they're all T+ because the fare difference is very high. And you're right, I'm not AC*E (though I will be AC*P next year and may make AC*E before the year is out). Don't get me wrong - I'm certain I'll use my upgrade certificates next year and then I will buy Latitude. But if that's the only benefit, why wouldn't AC just let you buy discounted Executive directly on-line?
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Old Sep 3, 2008, 8:03 pm
  #13  
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Originally Posted by Sebring
...or using special promotions like 50% off J.
Where do you find those promotions with AC?
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Old Sep 3, 2008, 8:17 pm
  #14  
 
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Originally Posted by YXUFlyboy
But if that's the only benefit, why wouldn't AC just let you buy discounted Executive directly on-line?
1- Upgrading is not the only benefit. Latitude fares are fully refundable, eligible for standby, and can be changed on the day of the flight at no cost and with no fare difference. All of these can be useful benefits for some people. Once in a blue moon I need one or more of these features. There's no reason why plenty of people wouldn't need them too. (Sometimes on FT people fall into a trap of thinking what's good for them must be good for everyone.)

2- I don't know why Exec prices aren't lower than they are. I guess people actually buy them at the prices they do charge already.
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Old Sep 3, 2008, 9:48 pm
  #15  
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"or you're stuck in a CRJ, there's no way of upgrading. Then I have to ask - why would you pay extra for Latitude"

That's why I buy T+ for my western commuter routes (regular fare or pass) because of too many DASH-8s! and just short-haul so bearable even if a front cabin is available.

But I buy Latitude (pass product only) for:

complimentary or any certificate upgrades (100% success)--sitting in a comfortable seat for transcons is appreciated
last minute T+ fares can be almost same or more as Latitude fare (and I often fly last minute--this is a marginal benefit as I am sure I could plan better with just a bit of time and thought--but hey sometimes I don't want to have to think)
free meal (marginal benefit)

I think it is reasonable value as it comes (ultimately) out of my pocket. I think there is better value on F and C class travel on domestic Air China flights mind you!
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