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Originally Posted by Babu
(Post 8603532)
Well, I think Tilton would have 2 answers to this question:
1. Attracting more (allegedly high spending) elites to the airline, and 2. Charging for at-the-gate upgrades, ranging in price based on this distance.
Originally Posted by cova
(Post 8603551)
CO load factors are around 85% - so 15% of the seats are unused. Now on key flights, key times, they go out 100% full. But what is the impact on average. Yes some loss revenue - but what about the competition. Are you losing some business - maybe higher rev business - because of the competition.
These are aggregate numbers, so it's hard to get anything meaningful from them. If I'm not mistaken, long haul international flights have on average much higher load factors. Regardless you have to look at the entire scenario in the big picture. If over the summer period and you end up upgrading econ pax into those E+ seats that you haven't sold, you lose. Every time you go out with full plane and spill demand without passing the revenue loss into the ticket prices of those that are actually flying you lose. It can be an escalating downward revenue spiral. |
Originally Posted by Hartmann
(Post 8603612)
Regular customers are content flying CO back and forth across the Atlantic the way it is now. What I and others are proposing is a slight increase in legroom for those customers who want a slightly better experience without paying BF prices.
Don't expect to pay less than that for BA WT+. Aside from matching the odd fare sale, you're unlikely to see any European airline selling business class seats across the pond for less than €2200. Normally it's more like €3000. |
CO is the SWA of the Legacies
CO makes it their business to know what the customer wants. If you dont think that they do then look at the the many canges that they have done as a result of the do and other comments we have given them over the years.
CO I think to a degree has a model similiar to SWA in that it does a lot of the work inhouse or through companies it owns or works with closely. It all comes down to the dollar that we want to spend which isnt that much as we would not be on Flyertalk. Yes, CO is not risk takers to the highest degree, but you have to remember all the risks that they have taken to get to this point with the airline. Just think is Bethune and Larry hadnt come to CO and worked so hard to turn it around. We could very well be talking about how the SWA hub at IAH doesnt offer the flights that we want. In the end i think they provide a quality product that we all enjoy (it is just that we dont get to enjoy it - domestic first - as much as we would like |
Originally Posted by airzim
(Post 8603657)
United is not, at least in multiple experience I've had, charging at the gate upsells for those E+ seats. I have no status on UA and I've either been able to select those seats during OLCI, or asked at the gate by the agent.
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I guess it doesn't matter what you call standard rewards, because you'll never find one on any route people would like to fly.
The downward spiral continues. |
Originally Posted by rbrenton88
(Post 8603829)
I guess it doesn't matter what you call standard rewards, because you'll never find one on any route people would like to fly.
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Originally Posted by graraps
(Post 8603693)
But, across the Atlantic, BF is effectively priced at E+ levels. They have year-round sales at around $2000, and the current offers start at $900+ (EWR-DUB return), as long as you are willing to surrender a bit of flexibility.
Don't expect to pay less than that for BA WT+. Aside from matching the odd fare sale, you're unlikely to see any European airline selling business class seats across the pond for less than €2200. Normally it's more like €3000. |
Originally Posted by airzim
(Post 8603456)
I disagree. CO has three products; economy, domestic first, international business.
Also, in terms of the numbers of products CO offers, you left out one more variation a la Hawaiian BF, this one the "International First Class" which is offered to the Caribbean and northern Latin America which features BF service but on domestic FC-equipped ships. So the fact is CO tailors its product to its various markets. An E+ on ultra long-haul and even TATL would effectively meet the demand in that market place the same way that having BF service but on a B73NG is appropriate for northern Latin America. |
I guess one good thing is that there won't be any changes to the redemption amounts of mileage BusinessFirst upgrades.
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Originally Posted by xyzzy
(Post 8604017)
That's not true at all
The fact that CO is apparently not changing the standard reward redemption mileage for Asia/S.America J awards is, frankly, an implicit reflection that these rewards are all but impossible to book. |
I would think that a E+ product would be more than extra pitch. Most airlines offering E+ have slightly wider seats, more pitch, and improved meal service. CO could do the same on its 777's/787's: 2-4-2 (versus 3-3-3) with 36-37 in. pitch and, say, a Y meal on BF china. Most airlines offer E+ pax a distinct menu, separate check-in, and amenity kits, too, but if CO wanted to keep it very simple they could do what I suggested above and accomplish 80-90% of the E+ objective.
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Originally Posted by pbarnette
(Post 8604097)
I don't know about your experience, but I rarely/never see CO priced at much less than $3000, though I know that they tend to charge more for ex-EU itineraries, and we never see the BF sales.
However, if you 'd like to go to EWR between "18DEC07 THROUGH 01JAN08 ON THE OUTBOUND TRANSATLANTIC SECTOR" and are prepared to depart from MXP, you may be in for a surprise. ;)
Originally Posted by pbarnette
(Post 8604097)
Indeed, they always seem to be among the more expensive options. As for EU airlines, BA routinely charges just over $2000 for J if you are departing from outside the UK.
Originally Posted by pbarnette
(Post 8604097)
And that isn't taking corporate discounts into account, where my understanding is that the EU airlines (BA, in particular) are very aggressive.
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Originally Posted by TWA Fan 1
(Post 8604228)
Agreed. E+ would simply be a fourth product. Where is it written in stone that three products is acceptable in terms of operational simplicity but four are too complex? Especially if that fourth product can be effectively targeted on the ultra long-haul routes (777 & 787's only) in order to meet demand and make a profit for CAL.
Also, in terms of the numbers of products CO offers, you left out one more variation a la Hawaiian BF, this one the "International First Class" which is offered to the Caribbean and northern Latin America which features BF service but on domestic FC-equipped ships. So the fact is CO tailors its product to its various markets. An E+ on ultra long-haul and even TATL would effectively meet the demand in that market place the same way that having BF service but on a B73NG is appropriate for northern Latin America. I don't think E+ with just extra leg room can cut it. I think they have to offer a product differentiation on par with BA, NZ, VS etc. Having said that I don't think CO is going to offer an E+ product unless it can be operationally justified on all long haul aircraft. It is not in CO's best interest to set an expectation that they have econ plus on TATL flights, except for every market that has a 757 on it. That would a customer service nightmare particularly if you're charging a premium for the product. And since I don't think the 757 can handle E+ seating, and given that it is a significant portion of their long haul fleet, I don't see it happening in the near term. That being said it may happen one day in the future, when the 757 is not plying the Atlantic. In regards to UA not charging for E+, I took a flight several weeks ago and that was exactly my experience., they didn't charge. This was also true on several flights prior to that all within this year. |
Originally Posted by cova
(Post 8601952)
UA E+ is still in the coach cabin - just the extra leg room. CO allows Elites and full Y passengers to select seats in the premium section of coach. CO could simply add more leg room to those seats and then have premium economy. I believe that is the way UA does it. |
Originally Posted by graraps
(Post 8603693)
But, across the Atlantic, BF is effectively priced at E+ levels. They have year-round sales at around $2000, and the current offers start at $900+ (EWR-DUB return), as long as you are willing to surrender a bit of flexibility.
Don't expect to pay less than that for BA WT+. Aside from matching the odd fare sale, you're unlikely to see any European airline selling business class seats across the pond for less than €2200. Normally it's more like €3000. Wt plus can be had for 600 dollars during low season. |
Originally Posted by boxinbull
(Post 8604612)
Wt plus can be had for 600 dollars during low season.
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Originally Posted by airzim
(Post 8604516)
That being said it may happen one day in the future, when the 757 is not plying the Atlantic.
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Originally Posted by airzim
(Post 8604516)
But you're ignoring the fact that this are still only three different types of seating offered, regardless of what they call it or the service that's provided on board. It is still fundamentally the same product offering.
I don't think E+ with just extra leg room can cut it. I think they have to offer a product differentiation on par with BA, NZ, VS etc. Having said that I don't think CO is going to offer an E+ product unless it can be operationally justified on all long haul aircraft. It is not in CO's best interest to set an expectation that they have econ plus on TATL flights, except for every market that has a 757 on it. That would a customer service nightmare particularly if you're charging a premium for the product. And since I don't think the 757 can handle E+ seating, and given that it is a significant portion of their long haul fleet, I don't see it happening in the near term. That being said it may happen one day in the future, when the 757 is not plying the Atlantic. In regards to UA not charging for E+, I took a flight several weeks ago and that was exactly my experience., they didn't charge. This was also true on several flights prior to that all within this year. Second, regarding your comment about any E+ on CO standing out from the competition, that's precisely what we've been discussing since this thread took on the issue of E+. As I have written a few times before, I believe that CO's introduction of E+ should be as revolutionary regarding premium economy as the launch of BF was for international J. CO should redefine the category as a catalyst to having E+ be a major money maker. Every time I have flown UA on E+ (I have no status on UA) they have charged me. But CO's E+ would not be like UA's E+, it would be a highly differentiated product with more legroom, more comfortable seats (but otherwise configured in the row patterns as E- [3-3-3 on the triple 7's], all the technological bells & whistles such as full internet access, int'l powerports, etc. There would every reason for customers to pay a hefty premium for CO's E+. But why should any CEO want to make money if it adds a little slight extra complexity to the business model? |
Originally Posted by senatorgirth
(Post 8605099)
There's speculation that when CO unveils the new BF product with the 787 roll out that the 757's will not have the new BF seat. Thus, the 757's might offer a different hard product irrespective of all this E+ conjecture.
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Originally Posted by airzim
(Post 8604516)
But you're ignoring the fact that this are still only three different types of seating offered, regardless of what they call it or the service that's provided on board. It is still fundamentally the same product offering.
Regarding BF, the three kinds of aircraft that are configured with this arrangement all have significantly different seats, with different widths and different recline angle. In domestic FC, there are at least two different configurations and a number of different seat widths. In CO economy, the 753's and the the 767 variants have 32" seat pitch while the other ships have the dreaded 31" pitch. Finally, there is also a variety of seat widths in this category depending on the a/c model. Then, of course, there are the RJ's and the turboprops, where there is still more variation. I realize that CO sells these products as categories, regardless of the differences, but the fact it they are there. The only reason CO ought to consider E+ is as a serious money maker which is could absolutely be on its ultra long-haul routes, where most if not all of its competition offers standard economy seat pitch of 32 to 34 inches or a premium economy product or both. |
CO and E+. Not going to happen in the near future. I think that if we were to see it, we'd hear about a lot of people wanting an upgrade into it or wanting free access for <insert your status here> elites. For it to be 'meaningful', it would have to be expensive...and hence forget upgrading. If think it the market were really there, the product would be there because CO loves money (and they should) :)
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Originally Posted by Renard
(Post 8605358)
If think it the market were really there, the product would be there because CO loves money (and they should) :)
There is definitely demand for more domestic F seats on Transcons out of EWR (especially to SFO and LAX). As frequent anecdotal evidence on this forum shows, CO Transcons are often sold out in F days if not weeks in advance on certain transcon flights. This has been the situation for years. Not until 739ERs come online next year will CO have taken any significant steps to meet the added demand. |
There been quite a bit of back and forth about whether or not CO will offer an E+ section. My opinion is they won't, the reason is that Larry and the other powers that be don't think their E-cabin (thanks TWA FAN 1 for that one), is out of date or needs any improvement, so why offer a E+ that they will just have to upgrade elites to if they can't sell all of the seats for an additional premium.
Originally Posted by CO Insider
(Post 8589147)
Bear in mind, Anglo Large Clawed Otter, the 'Program Changes' are only the bad news (which we're required by our own terms and conditions to announce in advance). As you've heard from the DO, we have a number of positive changes in the works (like priority standby for Elites), we're just not going to publicly announce them until they're live.
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Originally Posted by graraps
(Post 8604453)
You are right that all CO sales seem to be done ex-EWR, and not a lot from Europe.
However, if you 'd like to go to EWR between "18DEC07 THROUGH 01JAN08 ON THE OUTBOUND TRANSATLANTIC SECTOR" and are prepared to depart from MXP, you may be in for a surprise. ;) |
Originally Posted by ANDYBNJ
(Post 8605535)
Back to the 2008 One Pass changes. Scott said that this was the bad news, do you guys think this is it for the bad news or is there more to come? If this is all of the bad news, other than the priority standby and million mile recognition, what other positive changes do you expect to be announced for 08?
As for benefits? My guess is that we could see some increased availability with the change in their mileage valuation, but I'm honestly not holding my breath - as tight as award availability is, I don't think a 5% increase in their internal valuation is going to suddenly unleash a torrent of free seats. But my guess is that their biggest enhancements will be things like priority standby for elites and award availability showing up for AF, which I would categorize as "system improvements." They will be nice to haves, but I don't think we will see anything that will dramatically change the value proposition of OnePass in a significantly positive way. |
I don't think 2008 is going to be a year where you will see many changes at all to the program. The big changes of a few years ago (50% EQM, etc.) are still in place and CO seems to be happy with them.
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Originally Posted by Anglo Large Clawed Otter
(Post 8605422)
I'm not sure your analogy holds in all cases. There is definitely a market for true international F service to certain destinations out of New York (especially HKG, PEK, PVG, NRT, DEL, BOM, TLV & LON). Does CO offer an international F product? No.
There is definitely demand for more domestic F seats on Transcons out of EWR (especially to SFO and LAX). As frequent anecdotal evidence on this forum shows, CO Transcons are often sold out in F days if not weeks in advance on certain transcon flights. This has been the situation for years. Not until 739ERs come online next year will CO have taken any significant steps to meet the added demand. As Anglo points out there are many market segments CO has chosen not to fill, as in Anglo's international F example. There are other markets CO has chosen to underserve, such as domestic F. E+ is simply another market segment they have decided not to fill. It's just that simple. Just as with the lack of international F or the undersupply of domestic FC, it is not clear if they are making or losing money by abandoning this demand. All that is clear is that they are not filling demand. |
Originally Posted by ANDYBNJ
(Post 8605535)
E-cabin (thanks TWA FAN 1 for that one),
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Originally Posted by ANDYBNJ
(Post 8605535)
Back to the 2008 One Pass changes. Scott said that this was the bad news, do you guys think this is it for the bad news or is there more to come? If this is all of the bad news, other than the priority standby and million mile recognition, what other positive changes do you expect to be announced for 08?
CO did say at the DO that it was looking at simplifying its reward charts. That might cause a few adjustments - but likely no significant changes. |
Originally Posted by cova
(Post 8607064)
And I believe the positive news may offset the bad news.
I wouldn't exactly call these positive changes. I'd call them "it's about d&mn time" changes. |
Originally Posted by channa
(Post 8607224)
..These are all things that other airlines have been offering, for well over 10 years.
I wouldn't exactly call these positive changes. I'd call them "it's about d&mn time" changes. |
Originally Posted by channa
(Post 8607224)
I wouldn't exactly call these positive changes. I'd call them "it's about d&mn time" changes.
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Originally Posted by channa
(Post 8607224)
What positive news? Sorting standby lists by Elite status? Offering a Million Miler program? These are all things that other airlines have been offering, for well over 10 years.
I wouldn't exactly call these positive changes. I'd call them "it's about d&mn time" changes. |
STOP OVER rewards are here!
Was reading the email from CO about changes to Onepass and noticed that stopover rewards are part of the improvements. Don't recall that being mentioned before.
http://www.continental.com/web/en-US...tion=OFOP-INTL |
Actually the stop over awards have been there for some time. I just read what it says on Continental.com and I'm pretty sure that's always been the case -- that you could stop once along the routing between your origin and destination. Maybe it's new that you can use them for domestic itineraries, but I'm pretty sure it was always an option, at least for international reward tickets.
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A stopover reward apparently is just a 3 legged journey in the US (at standard levels).
I used to think you used them in combination wtih a normal award. but most other rewards allow a stopover if they're NA-> non-NA. |
They've had stopover awards as far back as I can remember at 35,000 miles - but of course you could only get it if all segments had standard availability - I don't think there was an EasyPass option. It's come in handy a time or two, especially since a (domestic) stopover is not an option with United awards. (or at least, not back when I needed one last). As Entropy mentioned, most all international awards include a free stopover.
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In todays WSJ can anyone Confirm this??
Sorry everyone I was away and did not see Scotts Thread, till those below posted the Link, Didnt see it as it got buried past Page 1, too bad its not a Sticky
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Ya must have missed Scott's announcement :)
http://www.flyertalk.com/forum/showp...12&postcount=1 |
Your #1 is correct. Your #2 is incorrect. The changes announced so far can be seen here. I'll be merging this thread with that one.
Xyzzy CO forum moderator |
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