Revenue-Based Mileage Plan Discussion
#16
Join Date: Nov 2005
Location: Portland, OR
Programs: Alaska Gold 100k
Posts: 959
I used to fly southwest for business when it was the best option for my main travel cities. I must say that regardless of what fair I had (business class ticket same as saver) for seat selection - ALL coach and 100% filled in front 10 rows and NEVER ever a empty center. The only benefit was the points earned was extra. However didn’t help with status for a business traveler as I would always be able to achieve the companion status as using the credit card for everyday purchases counted towards elite status. $99 or $530 same seat humble seating situation.
With AS now serving my major travel cities there is NO chance I would select an alternative carrier as status on AS is meaningful with added value. It’s a bonus that the are an outlier with retained mileage basis for status compared to the legacies. I’ve been fortunate to have AS slowly but surely advance their route map in matching with my business travel needs.
With AS now serving my major travel cities there is NO chance I would select an alternative carrier as status on AS is meaningful with added value. It’s a bonus that the are an outlier with retained mileage basis for status compared to the legacies. I’ve been fortunate to have AS slowly but surely advance their route map in matching with my business travel needs.
#18
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 23,051
"Revenue-based" by itself (or applied to "program") is an ambiguous term. You have to specify which aspect(s) of the program are or aren't "revenue-based". Southwest has revenue-based redemption, the legacy US3 airlines only have revenue-based earning of redeemable miles (and not even that in all cases) plus a spend requirement on earning status. So there is no such one thing as "revenue-based", it covers a wide array of scenarios.
#19
Suspended
Join Date: Oct 2016
Location: PDX
Programs: AS DL
Posts: 9,038
The quotes in the original post are not quite accurate. True, EWR-SEA is about 2300-2400 miles credit and just over 1000 on other carriers. However, the person paying high fares are likely MVP or higher so there's at least a 50% bonus or more. Also some transcons are low yield, like JFK, where $99-$150 each way are common. Some are slightly higher (more expensive), like PHL-SEA. Frequent flyers will sometimes fly the lower yielding routes, like JFK.
In short, mileage based gives AS an advantage to an airline which is at a disadvantage. AS versus DL, AS is better at mileage, possibly subjective FA demeanor, bag guarantee, while DL is better at a small meal on selected transcon, seat back IFE, more domestic routes to accrue miles (like Savannah, Cincinnati, Hartford, Albany, LaGuardia, Madison, etc.), wide body aircraft. Upgrade chances are variable.
In short, mileage based gives AS an advantage to an airline which is at a disadvantage. AS versus DL, AS is better at mileage, possibly subjective FA demeanor, bag guarantee, while DL is better at a small meal on selected transcon, seat back IFE, more domestic routes to accrue miles (like Savannah, Cincinnati, Hartford, Albany, LaGuardia, Madison, etc.), wide body aircraft. Upgrade chances are variable.
#20
FlyerTalk Evangelist
Join Date: Oct 2014
Posts: 10,904
If Alaska were to go to a purely revenue based frequent flyer program I'd have no reason to fly them at all.
After a year of removing almost everything that sets them apart from everyone else (waived change fees 60 days out, fare difference credit when price drops, lack of basic economy) all that's left is a distance-based ffp with waived change fees for mid-to-high end elites.
If you remove that too they are just AA/UA/DL without the network, the partners, or the premium product on premium routes. I don't see how they can continue to exist if they just become a worse version of the competition.
After a year of removing almost everything that sets them apart from everyone else (waived change fees 60 days out, fare difference credit when price drops, lack of basic economy) all that's left is a distance-based ffp with waived change fees for mid-to-high end elites.
If you remove that too they are just AA/UA/DL without the network, the partners, or the premium product on premium routes. I don't see how they can continue to exist if they just become a worse version of the competition.
#21
Join Date: Aug 2007
Location: Near SEA
Programs: UA MM, AS MVPG75K, Marriott Lifetime Gold
Posts: 7,969
The quotes in the original post are not quite accurate. True, EWR-SEA is about 2300-2400 miles credit and just over 1000 on other carriers. However, the person paying high fares are likely MVP or higher so there's at least a 50% bonus or more. Also some transcons are low yield, like JFK, where $99-$150 each way are common. Some are slightly higher (more expensive), like PHL-SEA. Frequent flyers will sometimes fly the lower yielding routes, like JFK..
This feels like it's more self-reflective than anything
#22
Join Date: May 2013
Location: SEA
Programs: AS MVP Gold 100K
Posts: 2,030
I guess the assumption is the only reason to pay a higher fare is if you have elite status. Obviously that is not 100%, some will pay the higher fare for the ability to have a $125 change fee, or perhaps a premium seat, but mostly it would be someone with status. What does anyone without status get by paying a main cabin fare, other than the ability to change (for an additional fee)?
#23
FlyerTalk Evangelist
Join Date: Oct 2014
Posts: 10,904
I guess the assumption is the only reason to pay a higher fare is if you have elite status. Obviously that is not 100%, some will pay the higher fare for the ability to have a $125 change fee, or perhaps a premium seat, but mostly it would be someone with status. What does anyone without status get by paying a main cabin fare, other than the ability to change (for an additional fee)?
Inventory restrictions can also make saver unavailable. Only certain fare classes are the underlying class for published saver fares (which ones depend on the route) but once those are all gone (whether bought as saver or as main) you can't buy a saver fare any more. Also on days with expected heavy load they may not ever make any cheap fare classes available, so saver may never be available at all.
Some people might pay for premium (but not first). That is actually my behavior on domestic airlines where I don't have status. It's usually (but unfortunately not always) cheaper to buy main and pay for the premium seat than to buy saver and pay for it (ie, the cost difference of premium seat selection is usually more than the buy-up to main)
Also, re: changes, on a shuttle route, buying a cheap main fare at an inconvenient time and planning to pay the $25 same-day change fee might be cheaper than buying the saver fare at the time that you actually want to fly.
#24
Join Date: May 2013
Location: SEA
Programs: AS MVP Gold 100K
Posts: 2,030
Saver fares often have advance purchase restrictions. Only 3 days on some routes, but on others there is no saver fare with less than a 14 day restriction. That will force a lot of people into Main fares, whether they like it or not.
Inventory restrictions can also make saver unavailable. Only certain fare classes are the underlying class for published saver fares (which ones depend on the route) but once those are all gone (whether bought as saver or as main) you can't buy a saver fare any more. Also on days with expected heavy load they may not ever make any cheap fare classes available, so saver may never be available at all.
Some people might pay for premium (but not first). That is actually my behavior on domestic airlines where I don't have status. It's usually (but unfortunately not always) cheaper to buy main and pay for the premium seat than to buy saver and pay for it (ie, the cost difference of premium seat selection is usually more than the buy-up to main)
Also, re: changes, on a shuttle route, buying a cheap main fare at an inconvenient time and planning to pay the $25 same-day change fee might be cheaper than buying the saver fare at the time that you actually want to fly.
Inventory restrictions can also make saver unavailable. Only certain fare classes are the underlying class for published saver fares (which ones depend on the route) but once those are all gone (whether bought as saver or as main) you can't buy a saver fare any more. Also on days with expected heavy load they may not ever make any cheap fare classes available, so saver may never be available at all.
Some people might pay for premium (but not first). That is actually my behavior on domestic airlines where I don't have status. It's usually (but unfortunately not always) cheaper to buy main and pay for the premium seat than to buy saver and pay for it (ie, the cost difference of premium seat selection is usually more than the buy-up to main)
Also, re: changes, on a shuttle route, buying a cheap main fare at an inconvenient time and planning to pay the $25 same-day change fee might be cheaper than buying the saver fare at the time that you actually want to fly.
#25
FlyerTalk Evangelist
Join Date: Oct 2014
Posts: 10,904
My point is that there are lots of reasons. You may need or want the flexibility. You may want a premium seat or a first class seat and be willing to pay for it. You may book last minute travel for whatever reason, and saver fares may be unavailable to you.
I actually think that non-elites tend to pay higher fares than elites, because they tend to travel less, and only travel during really busy travel times (holidays when everyone else is traveling) and fares are just higher then. If you only fly twice a year, you are not an elite, and you are probably flying for Thanksgiving and Christmas, and paying 2-3x the "regular" fare. Also, you probably don't care too much about miles. Maybe you will redeem a free trip every few years, but most likely you will just forget about the miles and let them expire (if you even sign up for a FF account in the first place)
#26
Join Date: Dec 2018
Programs: Alaska MVP Gold 7K, MARRIOTT PLAT PREMIER WITH AMBASSADOR
Posts: 164
Honestly its the culture that is shown here that creates extreme loyalty and satisfaction. The other airlines will never get that and thats why consistently Alaskas company culture and service is far above any other option. I'd never even dream of looking anywhere other than alaska airlines site or app and this mentality and loyalty is exactly why well done!
#27
FlyerTalk Evangelist
Join Date: Nov 2013
Location: Los Angeles
Posts: 12,597
As far as "revenue based" MP, I posted in another thread that the extra cost to get full elite benefits can be considered like EQD, but the flyer gets the choice of whether to pay it for a given flight. On one of the US3 you have to either pay more for your flights or get a waiver to get enough EQD to get status. AS gives you the status with miles (and RDM also with the miles), but then gives you the choice at the back end whether to pay the dollars to qualify for your benefits on a given flight. For a short flight like SEA-PDX or LAX/BUR-SJC there's not much reason to. For a midcon or a transcon, the upcharge to use your elite benefits is generally less than you'd pay to upgrade to an extra legroom seat on the US3, and AS throws in a pretty reasonable chance of an upgrade to F, too.