Does Free Alcohol in MCE Decrease the Value of Gold Status?
 

I see the complimentary access to MCE within 24 hours of the flight as the greatest benefit of Gold status.

Now that MCE includes free alcohol, I wonder if more people will buy up to MCE and decrease chances of a Gold member getting a free MCE seat within 24 hours of the flight. Thoughts?

Unlikely. It is not unlimited alcohol. Maybe just one free drink, like CK and EXP gets in coach.

Ah, I didn't know it was just one free drink. Thanks!

I haven't seen it reported anywhere that it's just one free drink. AA's release says as "Complimentary beer, wine, and spirits," which makes me believe that you can get a drink on each beverage service.

MCE is still pretty pricey on long hauls. Maybe a few more people will buy up on shorter flights, especially if they're gold already - it can be as low as $10-15 on shorter flights, so if you have a drink every time you fly that makes it a good deal. Personally I can remember the last time I paid for alcohol when I was alone (I drink in the lounge and when I'm gambling and sometimes in F), so I can't personally identify.

so one? :p

For the manority of flights, pretty much. Call button?

ha. there's also a button over your head with a pic of a person offering a beverage. You can probably push that for a drink (assuming the Credit Card Saleswoman cares enough to stop texting and offer a beverage).

Sometimes the FA will give a CK/EXP two instead of one drink. Others go strictly by the limit of one.

If it is more than one drink - then I suspect a CK/EXP in MCE would get more than one. They may give you two - but I doubt they would give you 4 or 5. Likely what was said above - a drink per cart service. Some people ask for a double, maybe they would accommodate that - but we will see. Probably more up to the FA working at the time.

Only 13% of AA passengers fly more than once per year. My guess is that the 87% percent of passengers are deciding if they want to cross the hurdle between Basic Economy which is anywhere from $10-$300, will not be down for another $10-$40 at that point. It seems like a move to scrape a few extra bucks from business passengers that are not yet elite; however, every job that I've had wont even let me expense extra leg room seats, so in the end, it should be ok for Gold folks.

I am retiring this year and will not hit ExPlat this year and become a leisure traveler from now on.

I have 3 million miles on AA and this is good news for my wife and myself.

As a permanent Platinum I always get to book a MCE seat on my trips.

No. I think the implication here is that it will make more people buy MCE, which will reduce availability at T-24. But this ignores the fact that MCE seats often come open just before T-24 as higher level elites (who selected MCE at time of booking) get upgraded.

Plus it increases the value of "free MCE at T-24", which is a Gold benefit.

No. It adds a benefit to MCE pax with no harm to anyone else, whether they bought up (people who are driven by cost will snatch BE) or status.

I disagree. It decreases the perceived value of EXP status, because now anyone in mce gets a free drink. I mean I guess I still get a free snack...

Hopefully they let exp have free sparkling or something, if they're going to charge extra for that.

Woudnt most OWE/Ex Plats be sitting in MCE already and wont see a change to the benefit?

I'm a free agent and loving it (all personal travel). When priced the same out of my airport - non-hub so usually connecting - I have been choosing Delta for their EC rather than MCE on AA because they do serve alcohol.

Agreed with this. I don't buy the "change in perceived value". If I have a benefit and then other people seated around me also get that same benefit without impacting my ability to continue getting the benefit, it doesn't make the benefit any less valuable to me. Unless you are a DYKWIA type who wants to feel important :rolleyes:.

An exception would apply in the case where someone is doing a bunch of MRs to obtain EXP so they can get a free drink in coach-- in this case, they can now buy up to MCE and be just as happy (of course, ignoring all the other benefits of status). But again, it's creating more ways to get a benefit (buy MCE or have status, not just one or the other). That's unquestionably a good thing for frequent flyers.

Everyone gets sparkling according to T+L The Hidden Perk You'll Get With American Airlines? Extra Legroom Seats | Travel + Leisure. I find it hard to believe that 1 free drink per flight was such a value point over the other exclusive EXP benefits that remain.

If you get free booze, you get free booze. Why does it matter that the guy next to you also gets it and what he paid for his seat?

If that mattered, people would go nuts over the fact the they paid $1,000 for a seat which somebody else bought for $200.

I can't remember the last time any flight I was on--including TA--had any sparkling wine available in regular coach, MCE, nor even PE. It's been years, despite claims to the contrary in the back of the magazine or on the beverage menu.

I did just case out MCE prices on a trip I have next week and I think they have increased the MCE prices (unless they were already liquid) to cover the booze. I paid $24 each way (at 50%, so retail at $48 each) and they are now showing at $32 each, so that would be $64 retail. That's a third more expensive that they were a couple months ago when I bought the ticket. I have another trip at the end of the month where I have NOT bought MCE and I think I'll wait until T-24 to see what happens.

I have a seven segment RT booked for July and was lucky enough to get a free status challenge through work which has bumped me up to Plat again from Gold. Free MCE + a drink if my upgrade does not clear? Sign me up!

I don’t think it decreases any value for elites - those who already receives a drink will continue to receive one and those who didn’t now will receive one.

If MCE prices went up then this decreases the value for those who pays for MCE and doesn’t consume alcohol.

What I wonder is this benefit only valid on the first round and if someone wants a second they will have to pay? Sorry a little out of the loop on this new benefit.

I think there will be some small number of times when enough people are tempted to buy up to MCE and it will impact availability, but it will be rare. A rational buyer (not everybody) will realize that if you want a drink, just pay on the plane. Also, there is no value to this for most people on morning flights and many people on afternoon flights.

As to the questions about whether you get one per beverage service or not, it's probably a moot point for me. The vast majority of my flights are 2.5 to 3.25 hours. I've only seen the FA's come around with the beverage carts 2X in Y one time over the last year-and-half that I've been paying attention.

Oh good to know. Sitting in MCE not realizing this had taken effect already, was surprised no credit cards were asked for today.

I mean overall it's good, by reducing perceived value i mean when I list whether exp is worth it or not, this factor is no longer part of the calculation (think about justifying MRs to a colleague - you won't be able to say, cause I am exp, I get free drinks even when I have to sit in the back - they'll just say, but I get that too).

Any nonelites newly choosing MCE based on the addition of free alcohol will likely be offset by nonelites who decide not to opt for it based on the marginal price increase.

Just to add insight as to the product cost (I'm ITB), a bottle of Woodford Reserve is invoiced to AA at a cost of around 53 cents, delivered to the caterer.
Add on the additional cost of putting it on the aircraft and carry it around in the air makes me believe there would be hardly any significant increase in MCE fares.

Yes but have to also look at the opportunity cost. AA will lose out on the $5-6 profit margin per drink sold. At the same time AA will turnover liquor inventory quicker which will help decrease inventory costs.

Some have reported MCE prices have gone up nominally and one case posted above they went up around $8.

In the grand scheme of things I think this enhancement will be neutral for AA’s bottom line. All a wash between the slightly incremental revenue they will see from MCE revenue and the added cost of serving free drinks.

And VOILA, here is how they are devaluing MCE for gold members. Just a little extra info on the email announcing the free booze. I am very mad about this."Beginning September 5, AAdvantage® Gold members will no longer receive 50% off the purchase of Main Cabin Extra seats at the time of booking. You will continue to receive complimentary access to Main Cabin Extra within 24 hours of your flight."

if its more than one free drink it devalues premium economy.

Wait... wut?

PE is international, MCE is (now) domestic. (Once the refits are completed.)

So it's more along the lines of MCE becoming domestic PE.

Im waiting for AA to announce that MCE now constitutes a separate cabin class and that an upgrade from economy can be only upgraded to MCE. Kind of like how an upgrade internationally is now an upgrade from coach to PEY.

Bolding mine. What? That is not the case!

Perhaps I'm confusing this with UA or DL but I heard this was in teh works for AA.

Certainly not "now" and hopefully not in the works, but could be. Who knows!!

As far i've seen MCE exists on planes with Premium Economy. 789 for example has J/Y+/MCE/Y