Bidding for seat upgrade?
 

I got the insight survey a couple of days ago. One of the questions that caught my eyes was on "bidding for seat upgrade". Looks like CX was considering to implement such system.

https://twitter.com/JALPak/status/37...931328/photo/1

It's an interesting idea. Probably could generate more revenue than giving out free op-ups. But then those sticking to MPC because of the op-ups might give their business elsewhere.

I don't want AsiaMiles to turn into an Air New Zealand style "currency".

why don't they introduce standup seat like RyanAir or charge for toilet like EAsyJet

I think they were talking about using cash to bid for upgrade but I could be wrong.

I really hate this idea... even worse than charging rebooking fee for redemptions.
It makes the airline looks cheap.

Could you not have just posted this image, instead of leading everyone to your Twitter...

https://pbs.twimg.com/media/BTm-KEvCEAAeo_a.png:large

Already being used by BA and IB

Featured on CNN recently:

http://edition.cnn.com/2013/09/03/tr...rticle_sidebar

You were assuming the image address wouldn't change

So if you go through a Travel Agent you will lose this privilege?

it seems like Air NZ's one-up. may not be a bad idea for a quick sale of premium class on short-haul with strong Y but weak W/J demands.

Depends on how this is implemented. Right now it's just a survey asking for opinions.

very very cheap, cash or miles speaking. fearing that to slap on a "uniform upgrade cost per leg" would cost the airline dearly as some may want to pay much more for an upgrade as opposed to others.

anyways, most people who owns some money is not stupid - and had they wanted to pay they would have bought a ticket at the higher class in the first place. I dont really think this would end up helping them generate heaps amount of income. it's way easier had they allow paid upgrade at checkin for all ticket holders. - seriously, i dont get it. people get O class tickets, but why dont you let them upgrade to J by paying the full fare difference (just a transparent fixed cost)?

anyway, if you want to see this as a way for CX bashing, I dont think it will work very well. I dont see why I cant book J/F for Japan domestic flights either as a tag-on. seems like market segmentation to me.

This is a bad idea and I can imagine most of the best CX customers would be highly annoyed by it.

But if it does get implemented, there should at least be a component that favors higher MPO members. For example, make it only available to MPO GO or higher (of course, I'm a GO so I would say that). Or offer it to elites at a (reasonable) flat rate first, then open it to bidding by everyone else.

If it's wide open to any steerage passenger on the lowest fare, and they can bid their way up past the elites for a few bucks, that would be a recipe for revolt.

with all the overseas LCC's coming in CX will have to start doing that soon-or risk losing market share

Wonder if CX ever does this, will they do it with any empty seats up front or only honor bids when there is cabin oversold situation. Sounds like if they are solicitating bids, it will be the former, as long as there are empty seats CX will take whatever money it can to fill them up. So let's say this: someone bought a discounted Y, made a bit for $100 USD for Y+. Y+ has 5 seats left. In theory, if say the bids are $400, $400, $300, $200, $100, all five of them will have "won the bid" and sit in Y+ with some paying $400 more and as little as $100. That in itself isn't a problem because in CX's accounting eyes it made extra revenue.

However, the concern should be shrew travelers can game the system to end up paying less than what they were willing to pay in the first place. Say if Y+ is sold at $2500, he knows Y+ cabin is unlikely to be sold out, and he can buy a cheap Y ticket at $1000 and submit a bid for say another $1000 to give himself a good chance of winning, that from his perspective he saved $500. Shrew traveler that knows seasonal loads should be very able to take advantage of the situation, so instead of his original willingness to pay Y+ price, he can game the system and fly Y+ at cheaper fare.

Same can be said for Y+ to J. A person could be willing to pay $6000 J fare, but would just buy $2500 Y+ fare, make a solid bid of another $2000 for J, and during low-seasonal loads will very likely win the bid, and instead of willing to pay $6000 for J he now only paid $4500 for J.

I agree with a poster here that this kind of bidding will only worked on short-regional flights when no one is dumb enough to pay 3 to 4 times extra for just 1 to 3 hours of Business Class on their own dime (unless you are on corporate dime), but may be tempted to make a bid to sit up front at minimal cost. However, for longer flights, this might backfired.

CX can also implement the system to take into account of status and total yield instead of just the marginal one. The beauty of this is it's not a public system. CX can change it at any time and be as inconsistent as it wishes. It can even test different strategies on different routes/flights too.

could you expand on the bit " with all the low overseas LCC coming in" bit, I think this just might make a very interesting section for comparison and discussion.

For example on TPE HKG they have various other airlines competing but not exactly LCC.

Which routes are you thinking of and airlines you class as LCC.

I think the only ones I have ever used was Air Cebu and Air Asia I have used but always flown business class which I thought was great value for money between TPE & KUL.

I used an upgrade from BA recently for a 2.5 hr flight and it wasnt exactly a bid it was first come first served at 80 Euro. When I booked the flight the seats were not business class but the middle seat blocked up front. So I normally bag the exit row seats with no seat in front of you as they are simply the roomiest seats on these kind of flights around europe.

Lucky me ended up and a different plane type with real where the outside and inside seats are actually pushed to make a very slim middle seat and the legroom was actually way better than normal economy.

I ended up with a nice seat, a hot meal, loads of legroom and was first off the plane at LHR T5.

I think bidding will be a good idea and certainly good for people who might strike lucky and do a hell of job promoting CX business class products.

The travel agents I do know have all told me that CX is making it harder and harder each year to work with them unless you are booking group tours. They really want the end user to book direct with them by the sounds of it. Would be interesting to see if those that can bid are only allowed to do where they booked direct not via an agent.

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Club europe had been that way for a long time - tge 2 seats on the side eating into the middle

I often find BA very competitive when travelling in Europe and the only problem seems to be getting miles credited, yet when I fly them long haul miles post really fast.

CX seeking opinions here: http://www.flyertalk.com/forum/catha...ck-sought.html

I will cease flying CX until they stop this fiasco. What a disgrace for a world-
class airline.

I HATE this idea.... period!

Nothing wrong with this idea as airlines such as Air NZ and Etihad Airways are doing this. It's all about filling seats and getting the extra ancillary revenue for seats that would otherwise go empty.

I know this topic gets sensitive amongst FFP members as it would disadvantage them from their freebie op-ups.

This is what it boils down to. If you want to travel one class higher, then pay for it!

its not just this - if you refer to the other thread - there are other valued areas which would be impaired if this goes thru (which it, seemingly, will)

and now i am not sure if we need 2 threads talking about exactly the same problem...

I am closing this thread. You can continue discussion here: http://www.flyertalk.com/forum/catha...ck-sought.html

sxc
Cathay Pacific Moderator