Has AA seriously dropped upgrade availability?
Oct 28, 08, 8:13 am
#46
Join Date: Aug 2002
Location: Mid-Levels, Hong Kong
Programs: AA EXP, CX MPC GLD, MR PLT, SPG PLT, National Exec.
Posts: 686
Originally Posted by bdemaria
The exit row seats are reserved by other elites. Are you suggesting that AA should reserve these for elites who book 2 weeks out only, 10 days, they should be held for gate assignment? No matter what someone is going to be unhappy.
In certain cases, playground "I called it" rules are actually the most logical.
In certain cases, playground "I called it" rules are actually the most logical.
Oct 28, 08, 9:49 am
#47
Join Date: Jul 2000
Location: 6E Westbound, 4E Eastbound
Programs: AA EXP & 3MM, Priority Club Plat since 1984
Posts: 6,274
Originally Posted by SJCFlyerLG
I don't know what you do to be able to book trips 6 to 8 weeks in advance, but mine are usually done with 2 weeks maximum notice, and most are done within one week. The change in priority to the original request has killed my hit rate. As a PLT, I have made less than 50% this year. Last year, I was at 80%. Given that my tix are bought with short notice, I am paying a lot higher fares than those who are getting the upgrade. This makes no sense to me from AA's revenue perspective.
Also, this year and next year are going to be really tough on PLT's because of the EQM bonus earlier this year. Tons of flyers have been bumped into the next tier because of it. On a 5:30PM flight DFW-SJC on Friday, there were 32 passengers on the upgrade list. I was number 8, and I booked this ticket 10 days out. I am even having trouble getting exit rows now.
Also, this year and next year are going to be really tough on PLT's because of the EQM bonus earlier this year. Tons of flyers have been bumped into the next tier because of it. On a 5:30PM flight DFW-SJC on Friday, there were 32 passengers on the upgrade list. I was number 8, and I booked this ticket 10 days out. I am even having trouble getting exit rows now.
I am able to coordinate my travel around industry events, and do go out of my way to book early.
As to quantifying revenue, If I am doing 80K of my 110K to 120K a year domestic, I still consider myself one of AAs best customers.
My last flight before Thanksgiving Day is that Tuesday, and both the Saturday segments and Tuesday segments were pretty full when I booked them September 9.
I think soon enough there will be threads: Platinum, the new Gold...........
Oct 28, 08, 9:56 am
#48
Join Date: Apr 2008
Location: EGGX <-> CZQX
Programs: AA CK, UA GS, DL 360, B6 Mosaic
Posts: 413
Originally Posted by oklAAhoma
Nothing "wrong" with CO's system, but then again there's nothng "wrong" with AA's either. AA seems to value those of us who purchase cheap fares early, so my guess is they think we are helping to keep them in business, too.
Of course, they probably model every route, which is why the HNL routes have so few upgrades available on them.
Cheers,
-Andrew
Oct 28, 08, 11:23 am
#49
Join Date: Mar 2004
Location: OKC/DFW
Programs: AA EXP/2 MM
Posts: 9,999
Originally Posted by britenbsas
Are there still a lot of people clearing at their upgrade window or has this become nothing more than a hollow marketing ploy?
Originally Posted by astanley
My simplistic view is that Revenue Management's forecasting models must place a higher value on cash flow (e.g. fares purchased long before the flight) and therefore they extend certain benefits to those fliers who are elite and purchase early. Late-in-the-game purchases are taken as a "given" at a certain percentage basis.
(And thank you for that. I tried to say the same thing several months ago, but failed. Your post conveys what I would have said had I paid more attention in Econ.
)
Oct 28, 08, 2:20 pm
#50
Join Date: Nov 2003
Location: JFK/LGA
Programs: AA Plt Pro/5 MM, BA Blue Bayou, HH LT Diamond
Posts: 5,180
Originally Posted by astanley
My simplistic view is that Revenue Management's forecasting models must place a higher value on cash flow (e.g. fares purchased long before the flight) and therefore they extend certain benefits to those fliers who are elite and purchase early. Late-in-the-game purchases are taken as a "given" at a certain percentage basis.
Oct 28, 08, 2:38 pm
#51
Join Date: Jan 2008
Location: LON/NYC/BHB
Programs: AA Executive Platinum, CO Silver, Starwood Preferred Guest Gold
Posts: 193
astanley makes a very interesting point that I had to think about for a bit - it all has to do with the time value of money - in other words the discount AA places on cash in the future when comparing it to cash right now.
For a $100ish each way LGA-ORD deep discount fare bought two months in advance to be worth the same (or even .66x as the EQM/EQP ratio would suggest) as a $400ish each way H fare between those two points bought on the day of departure, AAs discount rate for revenue would have to be extraordinarily high. This is commonly associated with companies on the brink of failing to meet fixed payments, who are thus willing to pay any rate of interest for cash right now. It is one reason why the interbank lending rate reached the levels it did at the height of the liquidity squeeze.
Obviously there are other factors at play here as well as time value of money, but perhaps the reason that BA gives more benefit to late-booking high-fare flyers than AA does is that it is in better financial shape?
I apologize if those figures are wrong, I have an AAirpass so I may be off by a bit.
For a $100ish each way LGA-ORD deep discount fare bought two months in advance to be worth the same (or even .66x as the EQM/EQP ratio would suggest) as a $400ish each way H fare between those two points bought on the day of departure, AAs discount rate for revenue would have to be extraordinarily high. This is commonly associated with companies on the brink of failing to meet fixed payments, who are thus willing to pay any rate of interest for cash right now. It is one reason why the interbank lending rate reached the levels it did at the height of the liquidity squeeze.
Obviously there are other factors at play here as well as time value of money, but perhaps the reason that BA gives more benefit to late-booking high-fare flyers than AA does is that it is in better financial shape?
I apologize if those figures are wrong, I have an AAirpass so I may be off by a bit.
