Corporate travel is about to get harder: lower fares to be removed from legacy GDS
#241
Join Date: Feb 2000
Posts: 6,553
My experience here is that I take advantage of using AMEX Membership Rewards points for booking AA.com domestic business fares. For example: LGA-ORD $365 fare, I'd book via AMEX for 36,500 MR points but then get 35% rebate for having my AMEX Biz Plat card with AA selected as airline. I used this a bunch over the last 3-5 years. It's my primary redemption use case for MR points. Now, fares that are $365 or $389 on AA.com are routinely $489 on AMEX. Essentially, AMEX is not seeing the I and R fares (discounted domestic business class fares). Obviously I have no leverage and no other option here... if AMEX travel doesn't update, I just can't use that method for the AA fares.
Anyone else in a similar boat here? I'm not aware of any workarounds. Fares don't show online and phone agents haven't had any workaround.
Anyone else in a similar boat here? I'm not aware of any workarounds. Fares don't show online and phone agents haven't had any workaround.
Another workaround could be just a dummy, refundable any airline J-cabin booking for $365 via AMEXTravel pay with points, cancel & refund after 30 days to get statement credit, which offsets the real $365 AA.com you put on same credit card. Bonus here is you get the 5x. I recall in the past Alaska was super easy for me to self-cancel & get a refund. AMEX didn't clawback jack.
#242
Join Date: Mar 2005
Location: MSY
Programs: AA Plat Pro, UA Plat, VS Silver, Marriott Titanium, Hyatt Explorist
Posts: 2,531
#243
Join Date: Jul 2011
Posts: 2,331
This isn't what some of the posters on here booking their clients AWAY from AA will want to hear, but this interesting blog post is about how United is now copying AA by pulling their cheapest fares from being booked by 3rd parties and the continued migration to NDC. I Wonder where the tipping point is.
I low key love this. Adapt or get left behind!
https://crankyflier.com/2023/07/27/u...party-channels
I low key love this. Adapt or get left behind!
https://crankyflier.com/2023/07/27/u...party-channels
#244
A FlyerTalk Posting Legend
Join Date: Sep 2002
Location: LAX/TPE
Programs: United 1K, JAL Sapphire, SPG Lifetime Platinum, National Executive Elite, Hertz PC, Avis PC
Posts: 42,333
This isn't what some of the posters on here booking their clients AWAY from AA will want to hear, but this interesting blog post is about how United is now copying AA by pulling their cheapest fares from being booked by 3rd parties and the continued migration to NDC. I Wonder where the tipping point is.
I low key love this. Adapt or get left behind!
https://crankyflier.com/2023/07/27/u...party-channels
I low key love this. Adapt or get left behind!
https://crankyflier.com/2023/07/27/u...party-channels
I can’t think of a single company, except maybe Walmart that would buy Basic Economy fares, so it’s actually good riddance to get these off the GDS. I had an Amex Platinum agent sell me a UA basic economy ticket without proper disclosure and it was a hassle getting it canceled.
AA on the other hand, has NDC fares sprinkled across cabins and fare classes in a manner I can only describe as a legitimate attempt to undermine the trust and relationship between customers and travel agents by making agent fares appear more expensive vs what the agent can quote.
#245
Join Date: Jun 1999
Location: NYC/LA
Programs: DL Plat, AA Plat Pro, Marriott Titanium, IHG Diamond Amb
Posts: 7,532
At this time it’s only Basic Economy fares and their rationale was due to the ability to solicit ancillary revenue from these fares and it was easier for them to manage the ticket lifecycle in their own system.
I can’t think of a single company, except maybe Walmart that would buy Basic Economy fares, so it’s actually good riddance to get these off the GDS. I had an Amex Platinum agent sell me a UA basic economy ticket without proper disclosure and it was a hassle getting it canceled.
AA on the other hand, has NDC fares sprinkled across cabins and fare classes in a manner I can only describe as a legitimate attempt to undermine the trust and relationship between customers and travel agents by making agent fares appear more expensive vs what the agent can quote.
I can’t think of a single company, except maybe Walmart that would buy Basic Economy fares, so it’s actually good riddance to get these off the GDS. I had an Amex Platinum agent sell me a UA basic economy ticket without proper disclosure and it was a hassle getting it canceled.
AA on the other hand, has NDC fares sprinkled across cabins and fare classes in a manner I can only describe as a legitimate attempt to undermine the trust and relationship between customers and travel agents by making agent fares appear more expensive vs what the agent can quote.
UA is working on a much larger distribution project beyond just selling ancillary revenue- there’s a thread over on the UA forum on this. It’s a bit complicated but basically they want the ability to dynamically adjust fares in a way that goes above and beyond what’s currently possible using the traditional fare class/bucket structure.
#246
A FlyerTalk Posting Legend
Join Date: Sep 2002
Location: LAX/TPE
Programs: United 1K, JAL Sapphire, SPG Lifetime Platinum, National Executive Elite, Hertz PC, Avis PC
Posts: 42,333
No doubt this is a test by UA to see how it goes… I have no doubt they have their sights on expanding this beyond basic economy.
UA is working on a much larger distribution project beyond just selling ancillary revenue- there’s a thread over on the UA forum on this. It’s a bit complicated but basically they want the ability to dynamically adjust fares in a way that goes above and beyond what’s currently possible using the traditional fare class/bucket structure.
UA is working on a much larger distribution project beyond just selling ancillary revenue- there’s a thread over on the UA forum on this. It’s a bit complicated but basically they want the ability to dynamically adjust fares in a way that goes above and beyond what’s currently possible using the traditional fare class/bucket structure.
#247
Join Date: Sep 2005
Programs: Mileageplus
Posts: 251
AA and UA are just following IATA’s whole vision of NDC
In terms of dynamic pricing it all seems to fit into IATA’s vision of the “personalized offer”. I hate that term “offer” as it seems more likely I’ll be denied a better price than the next. Maybe my zip code will be a determining factor(?). Tariffs and inventory will be created or adjusted on the spot subject to algorithms based on how the airline sizes up a traveler. And I think that could be subject to lawsuits if it seems discriminatory.
Here is a quote from Yanik Hoyle (IATA) on the vision for NDC. Taken from airlines.iata.org.
“In a digital world, airline customers' expectations for personalized offers, real-time information, and seamless transactions are growing,” says Hoyles. “Retailing can move airline distribution to the future through de-commoditization, selling new products in new ways, and being closer to the customers. It will enable richer customer engagement and dynamic offer creation.”
Here is a quote from Yanik Hoyle (IATA) on the vision for NDC. Taken from airlines.iata.org.
“In a digital world, airline customers' expectations for personalized offers, real-time information, and seamless transactions are growing,” says Hoyles. “Retailing can move airline distribution to the future through de-commoditization, selling new products in new ways, and being closer to the customers. It will enable richer customer engagement and dynamic offer creation.”
#249
A FlyerTalk Posting Legend
Join Date: Sep 2002
Location: LAX/TPE
Programs: United 1K, JAL Sapphire, SPG Lifetime Platinum, National Executive Elite, Hertz PC, Avis PC
Posts: 42,333
On its face it must be declared illegal and shut down before it even gets to a live test.
#250
A FlyerTalk Posting Legend
Join Date: Jan 2002
Posts: 44,733
You are making an assumption - then using his assumption as fact and so declaring that it must be made illegal
I doubt very much that the airlines would use metrics that woud be illegal to discriminate on and so the assertion seems flawed to me
I know that here I can quote for a piece of work and can decide what I want to quote based on what I think the company will pay
I doubt very much that the airlines would use metrics that woud be illegal to discriminate on and so the assertion seems flawed to me
I know that here I can quote for a piece of work and can decide what I want to quote based on what I think the company will pay
#251
Join Date: Jul 2011
Posts: 2,331
You are making an assumption - then using his assumption as fact and so declaring that it must be made illegal
I doubt very much that the airlines would use metrics that woud be illegal to discriminate on and so the assertion seems flawed to me
I know that here I can quote for a piece of work and can decide what I want to quote based on what I think the company will pay
I doubt very much that the airlines would use metrics that woud be illegal to discriminate on and so the assertion seems flawed to me
I know that here I can quote for a piece of work and can decide what I want to quote based on what I think the company will pay
...that jump gets a big old eye roll and a laugh out loud from me
#252
Join Date: Sep 2005
Programs: Mileageplus
Posts: 251
As with any change, the success of NDC will be on how well it is received in the marketplace: the buyers, the third party sellers and by consumers.
As a lesson to me, I may be out $40 on a lounge pass that I was offered along with the airfare purchased in March for a flight last week. This was on the airline’s website. The day of our flight we found the lounge had been temporarily closed for five weeks. Did the airline proactively refund my EMD? Nope. I wrote customer service but no luck, yet. I feel I may as well kiss that money goodbye.
Will I ever buy another lounge pass when offered? Nope.
As a lesson to me, I may be out $40 on a lounge pass that I was offered along with the airfare purchased in March for a flight last week. This was on the airline’s website. The day of our flight we found the lounge had been temporarily closed for five weeks. Did the airline proactively refund my EMD? Nope. I wrote customer service but no luck, yet. I feel I may as well kiss that money goodbye.
Will I ever buy another lounge pass when offered? Nope.
#253
Join Date: Jul 2011
Posts: 2,331
As with any change, the success of NDC will be on how well it is received in the marketplace: the buyers, the third party sellers and by consumers.
As a lesson to me, I may be out $40 on a lounge pass that I was offered along with the airfare purchased in March for a flight last week. This was on the airline’s website. The day of our flight we found the lounge had been temporarily closed for five weeks. Did the airline proactively refund my EMD? Nope. I wrote customer service but no luck, yet. I feel I may as well kiss that money goodbye.
Will I ever buy another lounge pass when offered? Nope.
As a lesson to me, I may be out $40 on a lounge pass that I was offered along with the airfare purchased in March for a flight last week. This was on the airline’s website. The day of our flight we found the lounge had been temporarily closed for five weeks. Did the airline proactively refund my EMD? Nope. I wrote customer service but no luck, yet. I feel I may as well kiss that money goodbye.
Will I ever buy another lounge pass when offered? Nope.
#254
Join Date: Feb 2022
Programs: AA EXP; SQ Gold
Posts: 191
This will be up to the DOT, FTC and CFPB along with various states to decide if this type of dynamic pricing where the price for an air ticket will be different for different people based on a cloud of fuzzy data the airlines are pulling together and likely refusing to disclose or share with government stakeholders. I am most certain that this fuzzy data will include gender, race, age, economic status, income, credit scores, travel frequency, banking data, employment type and probably thousands of other data points that will allow an AI system to dynamically calculate the highest margin fare a person will be willing to pay - and by doing so, this could reduce competition among airlines and lead to higher prices for most travelers.
On its face it must be declared illegal and shut down before it even gets to a live test.
On its face it must be declared illegal and shut down before it even gets to a live test.
Generally speaking, "A seller charging competing buyers different prices for the same "commodity" or discriminating in the provision of "allowances" — compensation for advertising and other services — may be violating the Robinson-Patman Act." In the case of airfares, the value of the "commodity" would be defined as the value of a seat in a particular cabin, with particular refund/baggage/other restrictions, on a particular routing for a particular airline at a particular moment in time. I'm a trained PhD economist (but not an attorney), though I have a little bit of tangential knowledge of anti-trust regulations, and I believe that if an airline attempted to perfectly price discriminate by charging customer A more than customer B, when each are booking the same ticket around the same moment in time, as a result of exploiting knowledge regarding customer A's vs. customer B's spending habits, they would be violating the Robinson-Patman Act. Indeed, it would seem that ANY use of personal knowledge about particular consumers in making pricing decisions would violate this act.
However, an airline could dynamically adjust prices based purely on changes to inventory by the second (Spirit already does this to some extent), and as long as they were not exploiting an individual consumer's data to further adjust prices relative to prices shown to other consumers, they may be within the bounds of the law.
#255
Join Date: Aug 2022
Programs: AA Executive Platinum (Oneworld Emerald)
Posts: 135
This is called perfect price discrimination in economics, and yes, it is generally illegal under the Robinson-Patman Act. See https://www.ftc.gov/advice-guidance/...man-violations
Generally speaking, "A seller charging competing buyers different prices for the same "commodity" or discriminating in the provision of "allowances" — compensation for advertising and other services — may be violating the Robinson-Patman Act." In the case of airfares, the value of the "commodity" would be defined as the value of a seat in a particular cabin, with particular refund/baggage/other restrictions, on a particular routing for a particular airline at a particular moment in time. I'm a trained PhD economist (but not an attorney), though I have a little bit of tangential knowledge of anti-trust regulations, and I believe that if an airline attempted to perfectly price discriminate by charging customer A more than customer B, when each are booking the same ticket around the same moment in time, as a result of exploiting knowledge regarding customer A's vs. customer B's spending habits, they would be violating the Robinson-Patman Act. Indeed, it would seem that ANY use of personal knowledge about particular consumers in making pricing decisions would violate this act.
However, an airline could dynamically adjust prices based purely on changes to inventory by the second (Spirit already does this to some extent), and as long as they were not exploiting an individual consumer's data to further adjust prices relative to prices shown to other consumers, they may be within the bounds of the law.
Generally speaking, "A seller charging competing buyers different prices for the same "commodity" or discriminating in the provision of "allowances" — compensation for advertising and other services — may be violating the Robinson-Patman Act." In the case of airfares, the value of the "commodity" would be defined as the value of a seat in a particular cabin, with particular refund/baggage/other restrictions, on a particular routing for a particular airline at a particular moment in time. I'm a trained PhD economist (but not an attorney), though I have a little bit of tangential knowledge of anti-trust regulations, and I believe that if an airline attempted to perfectly price discriminate by charging customer A more than customer B, when each are booking the same ticket around the same moment in time, as a result of exploiting knowledge regarding customer A's vs. customer B's spending habits, they would be violating the Robinson-Patman Act. Indeed, it would seem that ANY use of personal knowledge about particular consumers in making pricing decisions would violate this act.
However, an airline could dynamically adjust prices based purely on changes to inventory by the second (Spirit already does this to some extent), and as long as they were not exploiting an individual consumer's data to further adjust prices relative to prices shown to other consumers, they may be within the bounds of the law.
I'm sure you know this, but for anyone else reading this: this is why fares without a Saturday night stay over are more expensive (business travelers are less price sensitive but less likely to stay on Saturday), and why fully refundable fares tend to be so massively more expensive (again, more likely to be business travelers).