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AA hard sells First upgrades to entire economy cabin

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AA hard sells First upgrades to entire economy cabin

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Old May 5, 2023, 12:37 pm
  #91  
 
Join Date: Nov 2007
Location: Los Angeles
Programs: AA LT Gold
Posts: 3,646
Originally Posted by EXP100
When you accept and understand that AA (and also other US domestic airlines) has become credit card mill that happen to prospect for applicants while flying them from Point A to Point B (often not on time) you understand the new "loyalty" scheme. I agree a day of reckoning is coming and maybe soo
Originally Posted by WeekendTraveler
Agreed. Legacy airlines are near-monopolies that get revenues through credit cards, and they happen to fly planes to generate additional revenue.
I am no financial expert but am I reading this correctly in AA's annual report filed with the SEC?
Credit card is roughly 10% of their total revenue?
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Last edited by carlosdca; May 5, 2023 at 12:49 pm
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Old May 5, 2023, 12:52 pm
  #92  
 
Join Date: Feb 2022
Programs: AA EXP; SQ Gold
Posts: 178
Originally Posted by Dave Noble
There is value to the programme for AA to encourage people to use AA for its travel - it is encouraging peopel to make transactions with it. Someone who is tied to using the airline by virtue of a pretty card is perhaps unlikely to go away just becuase someone else got a better upgrade offer

Loyalty is a one way street - the airline isn't loyal to the customer - think of the customer as a potential cash cow that needs milking
This "take" seems to view the consumer as a mindless idiot who doesn't behave rationally. While brand value is really difficult to quantify, this behavior in the long run hurts consumer perceptions and ultimately revenue generation. AA, UA, DL all benefit from elites who essentially treat their services as "luxuries" (in the economic sense, not necessarily the experiential sense). That is, consumers are at times willing to pay a premium to stick with their preferred airline if they can afford it, on the margin, and if they feel that paying the premium gives them a quality upgrade to their experience in return (the quality upgrade could come in the form of better customer service from phone agents, more checked bags, preferred boarding, "free" upgrades, etc.). If this quality margin elites benefit from is eroded across the board, at all airlines, then fare price eventually becomes the only differentiator.
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Old May 5, 2023, 3:26 pm
  #93  
 
Join Date: Sep 2005
Programs: Mileageplus
Posts: 246
Apologies for this geeky question: Does anyone know if AA is using a particular fare bucket for the upgrade offers? I am curious what the fare calculation looks like on the face of the ticket to see how they've priced it and the inventory they used. Or, perhaps they are using an EMD and processing it similar to purchasing a seat assignment. Sorry, it's the detailed geek in me when it comes to airline ticketing.
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Old May 5, 2023, 6:12 pm
  #94  
 
Join Date: Dec 1999
Location: NYC/PHX
Programs: IATA, Sabre, AvgeekAgent
Posts: 1,958
Originally Posted by 1kprem
Apologies for this geeky question: Does anyone know if AA is using a particular fare bucket for the upgrade offers?
No apologies! I've only jumped on this once. Was rebooked in J inventory on a $240-ish transcon upgrade on the A321T.

Ticket was not reissued or revalidated--upgrade charge was made on a separate document (teletype in Sabre noted it as "Instant Upsell Ancillary EMD").

I ended up cancelling trip and had to request a refund to trip credit for the upgrade. The underlying ticket remained under agency control in Sabre for future exchange.
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Last edited by NYC Flyer; May 5, 2023 at 6:20 pm Reason: amplification
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Old May 11, 2023, 9:46 am
  #95  
 
Join Date: Apr 2017
Posts: 125
Talking

Originally Posted by hbtr
I agree, 2 payment methods on a single transaction would be awkward and probably wouldn’t work with corp TAs. Having said that, it would sure be nice if upfaring was a simple transaction that you could do online. Right now you have to call in, wait on hold, ask the automated system for an agent because it doesn’t recognize the word “upfare,” explain to the agent that you are trying to upfare rather than upgrade, convince the agent that you should only be required to pay the fare difference and not a change fee, wait while they contact the rate desk because your ticket had a corporate discount, and so on.
Come on, where's your sense of adventure?
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Old May 13, 2023, 8:44 am
  #96  
 
Join Date: Feb 2022
Programs: AAdvantage
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Originally Posted by carlosdca
I am no financial expert but am I reading this correctly in AA's annual report filed with the SEC?
Credit card is roughly 10% of their total revenue?
But revenue doesn't necessarily drive profits. Where are the profits coming from?
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Old Mar 28, 2024, 2:46 pm
  #97  
 
Join Date: Mar 2024
Posts: 3
Originally Posted by Mr. BoH
In general, I respect AAs efforts to monetize the F cabin. I think of upgrades as "if we have open seats just before takeoff, we'll give them to you". But if he post above is true, I am a bit bothered by AA charging elite members more than non-elites to upgrade...
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Old Mar 28, 2024, 2:51 pm
  #98  
 
Join Date: Mar 2024
Posts: 3
Agreed. As an EXP it’s disappointing to see F seats available at 100 hours out and not receive an upgrade. AA waits until they start boarding to give an upgrade at which point there is barely one F seat left. AA should revise their statement on timing. They would rather have an extra $150 over my loyalty speaks volumes.
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Old Mar 28, 2024, 2:57 pm
  #99  
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Originally Posted by Cmckenna07
Agreed. As an EXP it’s disappointing to see F seats available at 100 hours out and not receive an upgrade. AA waits until they start boarding to give an upgrade at which point there is barely one F seat left. AA should revise their statement on timing. They would rather have an extra $150 over my loyalty speaks volumes.
That the seats are selling is an obvious reason why AA is not giving them away for free - if it didn't think that it would sell them, then more chance that it would offer the upgrade earlier.
Indeed - of course the airline would prefer $150 rather than zero The airline has no loyalty to you, it just wants you to act like a loyal puppy to it

Its relation to you is transactional
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Old Mar 28, 2024, 2:59 pm
  #100  
 
Join Date: Mar 2024
Posts: 3
Unfortunately I agree with you 100% and the recent changes have made it even more obvious!
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Old Mar 28, 2024, 5:31 pm
  #101  
 
Join Date: Jun 2017
Location: Houston , TX
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Originally Posted by Cmckenna07
Agreed. As an EXP it’s disappointing to see F seats available at 100 hours out and not receive an upgrade. AA waits until they start boarding to give an upgrade at which point there is barely one F seat left. AA should revise their statement on timing. They would rather have an extra $150 over my loyalty speaks volumes.
it’s only $150 and that now earns LPs and miles. Why not just purchase an upgrade then ?
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Old Mar 28, 2024, 6:14 pm
  #102  
 
Join Date: Oct 2003
Location: DCA
Programs: UA LT 1K, AA EXP, Bonvoy LT Titan, Avis PC, Hilton Gold
Posts: 9,658
Some relatives (no status) - flew a mid-con last week and were offered upgrades for $100 which they took.
The issue is what is the value of frequent flyer EXP to a twice a year flyer with no status? Apparently less than $100 per flight - if any value at all.
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Old Mar 28, 2024, 6:26 pm
  #103  
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The use of free upgrades would seem to me to be something that AA will give should it not sell the seats, as opposed to not collecting money for them

It isn't whether the EP member is worth $100 per flight but whether the airline can sell the seat. Should it go unsold then an EP member will be able to grab it. If wanting certainty of travelling in business class, pay for it
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Old Mar 28, 2024, 7:18 pm
  #104  
 
Join Date: Oct 2003
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Originally Posted by Dave Noble
The use of free upgrades would seem to me to be something that AA will give should it not sell the seats, as opposed to not collecting money for them

It isn't whether the EP member is worth $100 per flight but whether the airline can sell the seat. Should it go unsold then an EP member will be able to grab it. If wanting certainty of travelling in business class, pay for it
The difference is - the cost of the First Class seat is much higher if you buy it when you ticket (because you wanted it) as compared to what is offered two days before flight to entice you. This is what we call 10's of Dollars on United Forum.
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Old Mar 28, 2024, 7:26 pm
  #105  
 
Join Date: Jul 2008
Location: PHL
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Originally Posted by cova
The difference is - the cost of the First Class seat is much higher if you buy it when you ticket (because you wanted it) as compared to what is offered two days before flight to entice you. This is what we call 10's of Dollars on United Forum.
An EXP could also buy the upgrade for $100 - it’s not like the option isn’t there. It’s not like upgrades are only being offered to relatives without status.
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