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Alaska looking at $100mn in "upsell" revenue opportunity, including basic economy

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Alaska looking at $100mn in "upsell" revenue opportunity, including basic economy

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Old Jan 25, 2018, 10:15 am
  #1  
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Alaska looking at $100mn in "upsell" revenue opportunity, including basic economy

Per the earnings call, once Alaska is on a combined reservation system, look at more upselling attempts. Basic economy was also mentioned as a potential move.
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Old Jan 25, 2018, 10:51 am
  #2  
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god i hope not unless elites get an exemption. They need to look at not being like their competitors if they don't want to lose customers.
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Old Jan 25, 2018, 10:59 am
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Just wondering if there were any other comments of note from the earnings call? From the articles I have seen, its mostly that they met expectations for 2017.
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Old Jan 25, 2018, 11:01 am
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Though this is purely anecdotal, a colleague of mine switched to AS purely because of the distaste of accidentally booking a UA basic economy flight through a TA. Said he will never fly UA again - it didn't matter that there was a way to buy out of it.

It seems like AS should avoid blindly following the DL "Enhancements" the same way AA and UA seem to do. Part of the draw to AS is that they are NOT AA/UA/DL.
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Old Jan 25, 2018, 11:02 am
  #5  
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Originally Posted by CDKing
god i hope not unless elites get an exemption. They need to look at not being like their competitors if they don't want to lose customers.
It would be negligent not to evaluate all revenue opportunities, and then prudent to explain why it didn't pursue "basic economy" after evaluating same.
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Old Jan 25, 2018, 11:35 am
  #6  
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People who book BE either choose to book BE or are not paying attention. They have nobody to blame but themselves. If you ask your TA to book F and wind up in BE, it is for your TA to fix it. If you miss the giant warnings on DL, UA, and AA when you select BE (which is generally its own column), you need to learn to read. If your employer requires BE, call a head hunter or lump it.

Of course AS is evaluating BE. It is at a substantial disadvantage in a tightening market and can't afford a situation where people simply won't book middle seats towards the rear of the aircraft but choose a flight with better options. If there is someone willing to pay for BE, there is no reason to whine about its existence.

Whether this all comes about and which exact aspects AS chooses, is a bit different.
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Old Jan 25, 2018, 11:46 am
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A couple analysts asked about this, and I appreciated hearing that they are considering options and haven't necessarily settled on a DL or god forbid UA/AA-style BE. They are totally correct in saying that their passenger mix is different and so other up-sell opportunities other than BE may be part of the $100m number. Their overlap with G4/F9/NK is much lower than the big three.

Part of this is going to be premium class on the VX airbuses.

Last edited by ktenorman; Jan 25, 2018 at 11:47 am Reason: typo
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Old Jan 25, 2018, 12:46 pm
  #8  
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Originally Posted by Often1
People who book BE either choose to book BE or are not paying attention. They have nobody to blame but themselves. If you ask your TA to book F and wind up in BE, it is for your TA to fix it. If you miss the giant warnings on DL, UA, and AA when you select BE (which is generally its own column), you need to learn to read.
Not everyone books directly with the airlines. And not all third-party sites make BE as clear as the airlines' own sites do.
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Old Jan 25, 2018, 12:46 pm
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Originally Posted by Often1
People who book BE either choose to book BE or are not paying attention. They have nobody to blame but themselves. If you ask your TA to book F and wind up in BE, it is for your TA to fix it. If you miss the giant warnings on DL, UA, and AA when you select BE (which is generally its own column), you need to learn to read. If your employer requires BE, call a head hunter or lump it.
There are no giant warnings on Expedia and other third parties. Ma and Pa Kettle go on Google Flights once a year for their trip, and sometimes get screwed over. And after decades of the legacy carriers screaming "We are better than Spirit!", unseasoned travelers are not ready for the possibility of this happening to them.

I hate the existence of fares from UA and AA that don't allow a roller bag. It's absurd for any carrier to pretend someone going on a trip doesn't "need" more than a backpack (since anything that's an ancillary fee should be for an optional service like a seat assignment). So if AS is reading and they decide to start introducing BE fares, they better copy DL or plenty of their SEA traffic is hosed.
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Old Jan 25, 2018, 1:49 pm
  #10  
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Originally Posted by Gig103
It's absurd for any carrier to pretend someone going on a trip doesn't "need" more than a backpack (since anything that's an ancillary fee should be for an optional service like a seat assignment).
I've completely flown to Vegas on NK for a weekend, using an NK-approved under seat size backpack as ALL my luggage. Underwear, socks, shirt, pants, swimming suit, 311 bag and dopp kit all fit.
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Old Jan 25, 2018, 1:56 pm
  #11  
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Originally Posted by eponymous_coward
I've completely flown to Vegas on NK for a weekend, using an NK-approved under seat size backpack as ALL my luggage. Underwear, socks, shirt, pants, swimming suit, 311 bag and dopp kit all fit.
I am glad that you didn't have to self-amputate for an "incompletely flown" flight ... which is the first thing I thought of when reading your "finely crafted" post
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Old Jan 25, 2018, 2:07 pm
  #12  
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Originally Posted by eponymous_coward
I've completely flown to Vegas on NK for a weekend, using an NK-approved under seat size backpack as ALL my luggage. Underwear, socks, shirt, pants, swimming suit, 311 bag and dopp kit all fit.
I have flown mileage runs with just a backpack, too. Even internationally. But I think your example is probably not a very common one (neither is mine for the general traveling public). I am always amazed about the steamer trunks that people try to get on the rental car shuttle at LAS when I just have a small rollaboard. What are they doing that I am not doing?
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Old Jan 25, 2018, 2:13 pm
  #13  
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Originally Posted by Eastbay1K
I am glad that you didn't have to self-amputate for an "incompletely flown" flight ...
Well, it IS NK. Getting completely there can be a challenge, with or without luggage.

Originally Posted by notquiteaff
I have flown mileage runs with just a backpack, too. Even internationally. But I think your example is probably not a very common one (neither is mine for the general traveling public).
Sure, but "not common" isn't "absurd (because nobody actually does this)". I pack light for weekend trips all the time. And of course NK/UA/AA are trying to capture revenue by catching lots of people in "but I can't travel without a full-sized carryon" mode. They wouldn't be making ancillary revenue otherwise.

That being said, my NK ticket was $47 to go SEA-LAS. Had I bought it at the airport it would have been cheaper. I've spent more on Vegas bar tabs.

Last edited by eponymous_coward; Jan 25, 2018 at 2:20 pm
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Old Jan 25, 2018, 2:18 pm
  #14  
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Originally Posted by Gig103
There are no giant warnings on Expedia and other third parties.
With respect to Delta Basic Economy bookings on 3rd-party sites:

There are warnings on Expedia. Specifically, they use the term Basic Economy - in another color, with a hyperlink.

There are warnings on Orbitz. Specifically, they use the term Basic Economy - in another color, with a hyperlink to restrictions (nonrefundable, seat assigned at check in, no upgrades, board in last group). Orbitz shows Basic Economy for United, too, with UA's restrictions.

There are warnings on Travelocity. There are warnings on Orbitz. Specifically, they use the term Basic Economy - in another color, with a hyperlink to restrictions (nonrefundable, seat assigned at check in, no upgrades, board in last group).

Amextravel.com appears to block Delta Basic Economy fares - at least for the DTW-FLL pair and dates I checked.

At some point people are responsible for reading comprehension and the choices they make.
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Old Jan 25, 2018, 2:18 pm
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Originally Posted by notquiteaff
I have flown mileage runs with just a backpack, too. Even internationally. But I think your example is probably not a very common one (neither is mine for the general traveling public). I am always amazed about the steamer trunks that people try to get on the rental car shuttle at LAS when I just have a small rollaboard. What are they doing that I am not doing?
For me, I have a pelican with my tools (38.7lbs) a small roll aboard with my safety shoes, work clothes, off duty clothes (PJs & 311), and a backpack with my laptop, electronics and chargers. Since I have to haul so much I try to limit what else I bring along to as little as possible. If I am attending a conference I will have my speaker clothes and non-speaker clothes which I manage to fit into my small roll aboard plus the backpack with the electronics. It is only when I will be doing both a week long meeting and a mini vacation at the end so it is 2 weeks that I take a full size suitcase. Even then I plan on doing laundry for a trip of that length of time. It is just too difficult to be hauling too much stuff when traveling.
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