Any strategic reason to withhold instrument upgrades on undersold J cabin?
#31
Join Date: Sep 2006
Location: QDF
Programs: AA EXP (2MM), Marriott Tit
Posts: 1,036
I think this is a case of dueling, uncoordinated algorithms. I've definitely seen situations where (2-class) front-cabin availability is reduced because Y is oversold, and the GA has to clear a bunch of upgrades at the gate. So with the assumption this is a thing, I suspect the chain of events goes something like:
- RM (either a person or an algorithm) makes the decision to oversell Y on a 2-class flight. Y availability it bumped up and J availability is reduced. (This seems to indicate that AA's inventory management system is unable to "marry" availability in different cabins together, so they are unable to offer both Y and J fares for the same "seat.")
- The algorithm that manages upgrade availability only sees the reduced J availability. It doesn't have access to the fact that J availability is artificially restricted.
#32
Join Date: Apr 2003
Location: SLC/HEL/Anywhere with a Beach
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Posts: 5,234
I think this is a case of dueling, uncoordinated algorithms. I've definitely seen situations where (2-class) front-cabin availability is reduced because Y is oversold, and the GA has to clear a bunch of upgrades at the gate. So with the assumption this is a thing, I suspect the chain of events goes something like:
- RM (either a person or an algorithm) makes the decision to oversell Y on a 2-class flight. Y availability it bumped up and J availability is reduced. (This seems to indicate that AA's inventory management system is unable to "marry" availability in different cabins together, so they are unable to offer both Y and J fares for the same "seat.")
- The algorithm that manages upgrade availability only sees the reduced J availability. It doesn't have access to the fact that J availability is artificially restricted.
Right now, that flight is showing F1, J2, W7, Y4. AA is not selling any discounted F or J seats, and if someone wants to sit in F or J, they'll need to pay full fare. There are a ton of unassigned seats in Y but I suspect its actually oversold in Y if it is Y4. They know someone will miss their flight and that they have some elites they can upgrade from Y to W. They also know how many SWU's are pending to get into J.
Unfortunately, for those of us who want are SWU's to clear early, it looks like AA's strategy was right on the money.
And ... the gate agent on this flight will be hopping tomorrow! Its likely there will be people at the gate with unassigned seats .. the gate agent will need to be moving people into W (hopefully elites and not those with discount tickets from an OTA who didn't get an assigned seat) then a couple of SWU's at the last minute.
#33
Join Date: Sep 2006
Location: QDF
Programs: AA EXP (2MM), Marriott Tit
Posts: 1,036
I disagree there is a disconnect in the RM process ...I believe AA's RM system does marry cabins together.
Right now, that flight is showing F1, J2, W7, Y4. AA is not selling any discounted F or J seats, and if someone wants to sit in F or J, they'll need to pay full fare. There are a ton of unassigned seats in Y but I suspect its actually oversold in Y if it is Y4. They know someone will miss their flight and that they have some elites they can upgrade from Y to W. They also know how many SWU's are pending to get into J.
Right now, that flight is showing F1, J2, W7, Y4. AA is not selling any discounted F or J seats, and if someone wants to sit in F or J, they'll need to pay full fare. There are a ton of unassigned seats in Y but I suspect its actually oversold in Y if it is Y4. They know someone will miss their flight and that they have some elites they can upgrade from Y to W. They also know how many SWU's are pending to get into J.
And ... the gate agent on this flight will be hopping tomorrow! Its likely there will be people at the gate with unassigned seats .. the gate agent will need to be moving people into W (hopefully elites and not those with discount tickets from an OTA who didn't get an assigned seat) then a couple of SWU's at the last minute.
More seriously, I believe that this is the biggest issue with the current situation. Dumping a ton of extra work on the gate agents hardly seems like a recipe for on-time departures. (I won't even mention customer satisfaction, because #GoingForGreat .)
#34
FlyerTalk Evangelist
Join Date: Apr 2001
Location: NYC
Posts: 27,231
I think this is the point at which our attempts to hypothesize run up against our lack of data...presumably they're trying to algorithmically balance all the competing phenomena we're talking about (selling J, selling Y, rolling Y pax into J, upgrading, etc.) both in space (seats) and time, while maximizing revenue. Not an easy optimization problem!
It's like we're trying to summarize in a few paragraphs what AA has probably built millions of lines of code for over the past several decades...
#35
FlyerTalk Evangelist
Join Date: May 2001
Location: South Bend, IN
Programs: AA EXP 3 MM; Marriott Bonvoy Lifetime Titanium Elite
Posts: 18,561
I look at this from the perspective of a paid J traveler. I don't want upgrades to clear in advance of a flight. Why? Because my plans are highly dynamic. I often need to travel with less than 24 hours notice and rarely return home from a trip on the day I had originally planned. If there are no available seats on the flights I need, then the flexibility of a J ticket is useless to me. You don't need your upgrade until the flight boards. If they upgrade you early and I cannot get a paid seat, I have to book elsewhere and that is a revenue loss for AA. I am actually surprised they ever upgrade in advance of departure.
#38
Join Date: Aug 2010
Location: LAX
Programs: AA Lifetime Gold but PlatPro thanks to LPs
Posts: 4,439
So there's a balancing act, with AA using its analytics to determine when it's unlikely to sell a business class seat and therefore okay to release it as an upgrade or reward. But of course they're taking into account probably dozens of variables, beyond what we can comprehend as FTers. And yes, perhaps they have been skewing the equation toward later clearing -- if, for example, they're selling more last-minute/high-fare business class tickets than they used to (due to, say, a better economy or a more competitive product), then the opportunity cost of giving a seat away as an upgrade/reward has increased as well, and they may be more likely to wait.
The overall goal is to maximize revenue.
#40
Join Date: Apr 2003
Location: SLC/HEL/Anywhere with a Beach
Programs: Marriott Ambassador; AA EXP 3MM; AS MVP, Hilton Gold, CH-47/UH-60/C-23/C-130 VET
Posts: 5,234
I look at this from the perspective of a paid J traveler. I don't want upgrades to clear in advance of a flight. Why? Because my plans are highly dynamic. I often need to travel with less than 24 hours notice and rarely return home from a trip on the day I had originally planned. If there are no available seats on the flights I need, then the flexibility of a J ticket is useless to me. You don't need your upgrade until the flight boards. If they upgrade you early and I cannot get a paid seat, I have to book elsewhere and that is a revenue loss for AA. I am actually surprised they ever upgrade in advance of departure.
I think AA has a pretty good sense of how to plan for that, which is why the plane tomorrow is J2 without any discount J fares or upgrades available. On the other hand, if I'm flying to Dublin on a Wednesday night and they haven't sold any J seats, they know they can upgrade me and keep an EXP customer.happy. Unfortunately, for the EXP's of the world, AA would be making a mistake to upgrade early on this route, even though it would personally benefit me.
#41
Join Date: Dec 2011
Programs: UA
Posts: 384
A good handful of people must have cleared SWU's in the past 10-12 hours... the cabin is now no longer undersold by any means for tomorrow morning's flight. I don't think there is anything wrong with AA's RM strategy, as it still encourages people (well, corporate accounts) to buy business class fares and not rely on upgrade instruments as any sort of guarantee. At the end of the day, it is still win-win for both AA and for passengers -- if the loads are light and you have an upgrade instrument, you'll get upgraded, even if it's at the airport or within hours of departure. Contrast with United where you have to buy a specific fare class to even be able to use your GPU's, even if there are available seats up front.
#43
Original Poster
Join Date: Jun 2011
Programs: United Premier Platinum
Posts: 638
Quick update:
I ended up clearing at about T-30. I checked EF after clearing and saw, as the above poster mentioned, that the inventory seemed almost completely cleared out.
FWIW, AA125 for Aug 18 was cancelled outright about 3 hours ago, so in this case all is moot.
I ended up clearing at about T-30. I checked EF after clearing and saw, as the above poster mentioned, that the inventory seemed almost completely cleared out.
FWIW, AA125 for Aug 18 was cancelled outright about 3 hours ago, so in this case all is moot.
#44
FlyerTalk Evangelist
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Definitely not all moot, call AA and get rebooked onto another option on JL or CX etc. now...
#45
Original Poster
Join Date: Jun 2011
Programs: United Premier Platinum
Posts: 638