AS to Introduce "Saver Fares" (Basic Economy), End Fee Waivers and Add Fees
#91
Join Date: Apr 2003
Programs: B6 Mosaic, Bonvoy LT Titanium (x SPG LT), IHG Spire, UA Silver
Posts: 5,848
Yes, I know, a lot of FT hates WN's model and loves F upgrades. FT is also the far end of a distribution of the traveling population. WN has made a very successful large airline out of proving time and time again you don't need first class, extra legroom seats, RJs, or assigned seating to be a very successful large airline, as long as you offer a distinctive and unique value proposition that people can latch onto, plus lots of frequencies at prices that are competitive. I would not want to bet against them proving you don't need Basic Economy either, and holding off all the Xerox Basic Economy airlines in their core markets (like CA).
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AS's branding and market position has become so nebulous, it seems like management has still not come to understand who they are trying to attract as customers, what those customers want, and how they fit into the newly competitive landscape.
I don't love WN for sure and boycotted UA for over a decade but now find myself on both as I would rather take the most convenient and best value flight when the difference is product is so small--especially for flights within the West Coast which are generally a couple hours or less.
#92
FlyerTalk Evangelist
Join Date: Jun 2001
Programs: DL 1 million, AA 1 mil, HH lapsed Diamond, Marriott Plat
Posts: 28,190
I love E75s vs. 737s (especially WN 737s without power or AVOD) but you can't beat 10 frequencies with 3 in a short-haul network like intra-CA. Business travelers don't want to sit around waiting for the next flight. They (we) will be happy to expense the buy-up fee to get back two hours earlier. AS winds up getting a higher mix of (low) leisure fares while running a higher cost plane.
#93
FlyerTalk Evangelist
Join Date: Aug 2007
Location: SEA, but up and down the coast a lot
Programs: Oceanic Airlines Gold Elite
Posts: 20,393
I wouldn't be too surprised if AS really cuts back at both SFO and LAX and concentrates at SJC and SAN, which are not as saturated from competition other than WN. VX never had a unique route out of SFO or LAX. B6 was able to find a niche flying to places no one else wanted to go from JFK and BOS. Maybe AS will be able to do that from SJC and SAN. They can't out of SFO or LAX.
The only way a VX purchase makes sense is if you're going for CA markets because SEA/PDX are likely topped out for fueling any growth... and even WN knows SFO/LAX are important in the CA scheme of things, and they have top positions at OAK/SJC plus SNA/LGB/BUR/ONT.
It's a huge market, really. Over 20 daily frequencies out of SFO, which is arguably WN's weakest station in CA (in terms of market share). The fact that you don't use it doesn't mean it's not terribly important if you're an airline actually trying to expand in CA.
#94
Join Date: Aug 2006
Location: SJC
Programs: DL PM MM, Marriott Titanium
Posts: 3,276
Then what was the point AS of spending 2.6 billion dollars for VX? They had been doing that kind of service from SJC/SAN for years (AS is #2 in both markets now). Why not let B6 spend the cash and hand them VX's dead weight if you actually don't want to serve SFO or LAX customers after you make the purchase? It's not like Boeing wouldn't sell you all the planes you'd like if you want the VX fleet.
The only way a VX purchase makes sense is if you're going for CA markets because SEA/PDX are likely topped out for fueling any growth... and even WN knows SFO/LAX are important in the CA scheme of things, and they have top positions at OAK/SJC plus SNA/LGB/BUR/ONT.
It's a huge market, really. Over 20 daily frequencies out of SFO, which is arguably WN's weakest station in CA (in terms of market share). The fact that you don't use it doesn't mean it's not terribly important if you're an airline actually trying to expand in CA.
The only way a VX purchase makes sense is if you're going for CA markets because SEA/PDX are likely topped out for fueling any growth... and even WN knows SFO/LAX are important in the CA scheme of things, and they have top positions at OAK/SJC plus SNA/LGB/BUR/ONT.
It's a huge market, really. Over 20 daily frequencies out of SFO, which is arguably WN's weakest station in CA (in terms of market share). The fact that you don't use it doesn't mean it's not terribly important if you're an airline actually trying to expand in CA.
2) I know there are lots of NorCal - SoCal flights, just has no interest to me. It's also the market where being comfortable really isn't as important because you're not in the air for an hour. Now, if the state gets its act together and can build a decent high speed train, I wonder what will happen to all those flights?
#95
Join Date: Sep 2007
Posts: 998
As much as I HATE HATE HATE these fee's, I'm almost kinda slightly open to them just because I'm stick of constantly seeing $90+ one way from PSC to SEA since it's a strong route for AS. I hate when I see all these other short routes that are like $49 to $69 one way and I never catch a break on this route (PSC is my home airport). I doubt I would book these fares when actually going on a trip I want to enjoy, but if they were actually that cheap I totally would book these for a day trip to Seattle and back just out of the blue. It's hard to pay near $200 just to spend 12 to 14 hours in Seattle for the day but I hate the drive and the hotel + parking makes a weekend trip jump up a lot....
However, with all that said, I suspect they'll mimic Delta on this route and be like $9 cheaper or something. $80 one way for a less then 1 hour flight (that has like 5 daily departures) is way not worth giving up all the normal things that come with a normal fare. These Saver fares will just be a joke to get AS to show up at the top of a fare search list, not actually sell cheap seats. (Since to be honest, most flights seem to go out pretty full anyway...)
However, with all that said, I suspect they'll mimic Delta on this route and be like $9 cheaper or something. $80 one way for a less then 1 hour flight (that has like 5 daily departures) is way not worth giving up all the normal things that come with a normal fare. These Saver fares will just be a joke to get AS to show up at the top of a fare search list, not actually sell cheap seats. (Since to be honest, most flights seem to go out pretty full anyway...)
#96
Join Date: Sep 2006
Location: Berkeley, CA
Programs: UA Silver, Southwest A-List, Hilton Diamond
Posts: 818
FT is also the far end of a distribution of the traveling population. WN has made a very successful large airline out of proving time and time again you don't need first class, extra legroom seats, RJs, or assigned seating to be a very successful large airline, as long as you offer a distinctive and unique value proposition that people can latch onto, plus lots of frequencies at prices that are competitive.
#97
FlyerTalk Evangelist
Join Date: Aug 2007
Location: SEA, but up and down the coast a lot
Programs: Oceanic Airlines Gold Elite
Posts: 20,393
I'd probably be more worried about the Big One (San Andreas or Cascadia subduction zone earthquake).
#98
Join Date: Sep 2006
Location: Berkeley, CA
Programs: UA Silver, Southwest A-List, Hilton Diamond
Posts: 818
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Edit: Sorry, upon posting, I notice that I'm taking this thread off topic, so mods please feel free to cut as you see fit.
Last edited by FlyingBear; Apr 24, 2018 at 2:41 pm Reason: Off topic note.
#99
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,624
The mileage-based loyalty program is a big competitive disadvantage in short-haul markets. Southwest gives you credit based on fare, which is not that different for a 250-mile flight than for a 1000-mile flight. It's not 16 one-ways for a free trip anymore, but the full fare traveler is raking in the rebates on Southwest. By design. The program is so simple that even the tech wizards out here understand it and use it. What good is a generous loyalty program if nobody responds to its incentives because they don't understand it? That, more than anything, was the genius of Southwest's 2011 switch to revenue-based earnings and redemption. It hurt me but it mostly helped the 99% who are not gamers.
So I am adding another requirement to win the California market: In addition to frequency and dropping change fees, Alaska will need to adapt Mileage Plan to provide reasonable (competitive with WN) earnings for short-haul customers. This is a tall order.
Last edited by nsx; Apr 24, 2018 at 2:50 pm
#100
FlyerTalk Evangelist
Join Date: Aug 2007
Location: SEA, but up and down the coast a lot
Programs: Oceanic Airlines Gold Elite
Posts: 20,393
What good is a generous loyalty program if nobody responds to its incentives because they don't understand it? That, more than anything, was the genius of Southwest's 2011 switch to revenue-based earnings and redemption. It hurt me but it mostly helped the 99% who are not gamers.
#102
Join Date: Sep 2006
Location: Berkeley, CA
Programs: UA Silver, Southwest A-List, Hilton Diamond
Posts: 818
So thinking about it a bit more, what I would suggest to AS on the off chance they are reading this is that if they are going to do away with the 60-day change policy, consider keeping VX's Plans Change Pass. For flights where the is a bit of uncertainty, I would be willing to shell out $25 for a non-refundable fee in order to have the ability to make a change as needed. Or perhaps offer it at a discount for MVPs? Granted, I have no clue how this would play out with the Best Fare Guarantee. Ideally, it would have been nice if they maybe kept the 60-day changes on non BE tickets. However. if we are going to lose the change policy regardless and unbundling is the future, this would be an OK middle ground to me.
#103
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,624
Yes! I recently booked a transcon nonstop (formerly VX) on short notice. I used Avios since I expect them to sucker punch us with devaluation of US domestic redemption before I can deplete my balance. I regard Alaska miles as twice as valuable as Avios points. I am looking forward to seeing less than 1000 Avios in my account and saying "Adios Avios".
#105
FlyerTalk Evangelist
Join Date: Aug 2002
Location: Bay Area, CA
Programs: UA Plat 2MM; AS MVP Gold 75K
Posts: 35,068
Some negative publicity about this in the Bay Area: https://www.sfgate.com/chris-mcginni...s-12860783.php