Return of Revenue Upgrades?
 

I just returned from FRA, so I've been out of touch. But a 30-second sound byte on CBS Network News around 6:35am this morning reported (paraphrasing): "Many airlines are resuming the process of Revenue Upgrades at the check-in counter. This is good news for regular flyers but bad news for Elites."

A Revenue Upgrade allows anyone (Elite or not) to obtain an upgrade (at the airport) --- if a FC or BF seat is available --- by simply paying an extra fee ranging from $50 to $300 per person. I was able to get a RU on a Vancouver to Anchorage Alaska Air flight for my wife and me, in 2005, for $50 each just by asking if FC seats were available. However, my past requests of CO Reps got an answer: "We haven't given out RUs for years."

The outlook for those Elites looking for automatic upgrades (without FFMs) is not good if RUs for CO have returned. Once the word gets out, every Tom, Dick, and Larry(!) will cough up $50 to move up to FC. Tom and Dick but not Larry would likely pay up to $300 extra for long flights (like EWR-LAX).

NW has been offering them for a while, but only after all elites are upgraded. I was flying MSP-JFK a few months back and heard the announcement in the gate area. I almost stood up and offered the upgrade for $40 cash as my companion rather than the $50 to NW, but didn't do it in the end. I also don't think that they had any takers, as we still went out with empties.

In the end it all depends on how the carriers implement it. If they allow these upgrades prior to elite upgrades then they will lose their elites, plain and simple. If not it is just another incremental revenue stream that doesn't really affect me one way or the other.

For domestic flights - CO FC is always full - sometimes all with paid FC fares. I do not see CO going this route.

I have seen US and DL offer it for short segments at $50 - but many times no takers - like CLT to BWI, ATL to DCA.

This was the subject of todays Wall Street Journal "Middle Seat" article.

It shows the anything for a few dollars more revenue that airlines are doing today. It also went into more airlines offering Y-up fares at time of booking so business flyer's can book Y and fly F (nothing new here for CO).

Yeah, any purchased upgrade is going to be predicated coming from the highest coach bucket.

The Kettles aren't going to splurge on their L to an F for $50, don't worry.

$50?! That's enough to feed Cletus, Cooter, Scooter, Luther, Eunice and Quita twice-over at either the Golden Corral or Sizzler.

This is not 100% true. I have to buy cheapest available for my routes, so that means an L or some other super-discount fare every now and then. I flew AA MCO-DFW/DFW-DCA a couple months back. I only paid ~$150 for each segment on a pretty low fare class, but was definitely going to upgrade on the MCO-DFW when offered, though I ended up stand-by on the earlier flight instead (and had a great exit row with tons of legroom).

Again, these upgrades are only offered after all elites are accomodated (save a very late arrival into the gate area), so I do not think it will have a negative impact on elite upgrades.

Delta and United have been selling buy-ups at the gate and at check-in respectively for a while now but only after all their elites were upgraded.

Delta has been doing it for a long time (as noted), but only on non-LUT fares and only after all Elites have cleared or will clear.

US is another issue altogether - there is evidence that US agents will hold back clearing Elites into FC then sell those empty seats to non-Elite customers in order to generate revenue. Perhaps there is a commission or sales incentive for them to do this, but of course it's US, so why be surprised.

I doubt CO would do this - the number of flights which go out with empty FC seats is so small, the revenue collected may not be enough to offset the cost of implementing the solution to support the technological and training requirements.

If CO do bring back the revenue upgrade, then I'm sure it will be due to lvteacher's compelling letter. :rolleyes:

every AA flight i've taken this year has offered me a buy-up on at least one segment.

I was really surprised when I saw Delta sell upgrades on a flight from SFO to ATL last week. There were six seats left (DL has a screen that shows how full each cabin is). I wasn't on that flight, but it made me suspect that upgrades on DL must be a lot easier to get compared to CO--that has been my experience on DL to date. Having seats in FC to sell--well, I don't think I have seen that on a CO flight since the week after 9/11. (Or, when a flight heads off to Europe with empty seats, and elites sitting in coach on full fares willing to pay with miles--a different story! ;))

LOL--fun thread!! Thanks for the flashback! :D

IIRC, CO offers revenue upgrades on its HNL flights.

a Loooooong time ago I bought a rev-up IAH-SEA on co, before I was elite. I think it was $150, probably not the best use of cash but it was very nice :)