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-   -   First Class Monetization, or FCM: The Definitive Thread (https://www.flyertalk.com/forum/delta-air-lines-skymiles/1230437-first-class-monetization-fcm-definitive-thread.html)

tikiboy Apr 11, 2012 6:57 pm


Originally Posted by MSPeconomist (Post 18376567)
Some of us work for places where we have to jump through hoops to be reimbursed for a FC fare even if we can document that it's cheaper. There have been times when I've purchased more expensive full Y to avoid these problems.



I would not do it this way. Being reimbursed for a ticket that was cancelled and refunded could be considered fraud, even if you then purchased and used a more expensive ticket.

I agree with the hoop jumping and the fake receipt. I've been tempted to do the fake receipt in order to change my return for a routing that lets me visit friends/family. In that case, the creative routing was cheaper than flying the straight-forward round trip, but the accounting department wants us to stay in policy and not try and make exceptions.

I like the buy-up concept. It frustrates me, as a DM, when I see some people in my company (with lower status) wait until the last minute to buy a ticket, and it's virtually the same price to buy the M-fare or first class ticket than my SLUT fare. Our corporate online site allows this, as it's still the lowest available fare (compared to other last minute fares), but they are getting more MQMs and potentially the front cabin seat. I won't rat anyone out at my firm, but I do believe in karma.

MSPeconomist Apr 11, 2012 7:39 pm

To return to the subject of LAS flights, I've been told at times that there are lots of purchased FC on these due to high rollers (apparently casinos comp FC tickets for players they really want) and some periodic high level trade shows and conventions that are traditionally held in Vegas.

pbarnette Apr 11, 2012 9:09 pm


Originally Posted by Vuelos (Post 18376258)
:rolleyes:

Corporate travel rules often do not allow F purchases.

But they allow employees to spend more to buy a ticket from an airline with which they have status? If not, couldn't DL better chase business travelers by focusing on the things that corporate customers care about? Specifically, wouldn't DL be better off aggressively pursuing corporate contracts, seeking scheduling advantages in key business markets, and, where needed, lowering pricing? All of these are much better options for maximizing revenue than giving away your premium products.

I've asked before, but am still waiting on a compelling answer... How does DL extract revenue premiums from elites if elites are constrained by corporate policies and too few to fill the cabin on their own? DL has to charge market-rates. Corporate customers, as a result, pay market rates. No loyalty program will change that calculus for any airline of any scale.


Originally Posted by Vuelos (Post 18376258)
Does $50 for an upsell to the 1x/year customer versus an upgrade to a customer who flys 25k+/year on your airline make sense?

I believe it does. This is especially true when the $50 gets you to $650. Will the last-minute ticket sell without the inducement of a nominal up-charge for F?

gator21 Apr 12, 2012 10:11 am


Originally Posted by bubbashow (Post 18376170)
Gator....you will end up wanting to bang your head against a wall after just a few hours talking about this. So many on here have no business sense whatsoever and will argue until they are blue in the face. According to them, DL should NOT sell F....they should save it and reward them. DL has found a pricing model that is actually moving some F inventory, and they can't stand it. They are unwilling or unable to purchase the service that they desire.

No head banging here. I agree with DL's model.
If I want a FC seat, I buy a FC seat. If I can't afford a FC seat or policy doesn't allow for a FC seat, then I know I have to fly coach. It is a "TREAT" when DL allows me to fly up front. It is not expected. It is a gift.

It is a free market. Airlines set up whatever programs they want, charge what ever they want and people either buy into it or choose another product/airline. For those who argue their company doesn't allow it, well you made a choice when you went to work for that company. A choice which says you will follow their policy. If you don't like the policy, change companies, get another job. It is a free market. Nothing or no one is forcing you to remain with the company or fly DL.

HongKonger Apr 12, 2012 1:05 pm


Originally Posted by 3Cforme (Post 18374673)
Not really. One could pay Southwest $535 for their lowest (anytime, not even Business Select) fare SDF-LAS tomorrow.

I move that any new thread with FCM in the title gets the OP a 30-day suspension. If that works the rule can be expanded to any threads asking 'Do I have lounge access?'

One is a complaint and not a very sympathetic one. The other is (usually) an honest question. Let's not attack people asking honest questions, most of whom are noobs.

mrredskin Apr 12, 2012 2:27 pm

OP, i flew the exact same flight two weeks ago. 18 of 24 were open. they upgraded the diamonds and plats (i think) at the 6pm window (1.5 hours from now). I was upgraded as a gold (T) about 2-3 hours before the flight. buddy of mine was last on upgrade list due to no status, t fare. he got the last seat up front after i recommended him waiting at the gate and letting the GA know what he was doing. fortunate for us, since we weren't in the air until 11:30 due to a brakes issue.

i was pis$ed about it too. absolutely no reason to hold back that many seats. i complained about it and got one of those replies that say sorry about 50x.

stevekstevek Apr 12, 2012 2:45 pm


Originally Posted by pbarnette (Post 18377246)
But they allow employees to spend more to buy a ticket from an airline with which they have status? If not, couldn't DL better chase business travelers by focusing on the things that corporate customers care about? Specifically, wouldn't DL be better off aggressively pursuing corporate contracts, seeking scheduling advantages in key business markets, and, where needed, lowering pricing? All of these are much better options for maximizing revenue than giving away your premium products.

My corporate travel policies permit me to be loyal to Delta:

a) I have some latitude in pricing (up to $150 I think) for fares,
b) I can choose different times.
c) Obviously, DL is often (even usually) the cheapest logical, or nearly so.

In most cases, all the airlines in my markets are all pretty close in price (NYC), so I could choose DL anytime or never. My company actually has a contract with *A so I actually go out of my way to choose DL.

But, my corporate travel policies make booking F unpleasant:
Once, I ended up with an F booking, because I "held" a reservation for a flight within the window with V inventory. I got the upgrade before ticketing, and so the ticket showed a confirmed F seat. This puts a big red flag on the expense report. I ended up having to go back and forth with 2 different "travel policy auditors" in my expense report, and then explain the situation to my boss.

That's the more annoying thing than $50 -- regardless of where the $50 comes from.

So, I agree with bubbashow: If after the fact I could go and pay $50 at DL.com out of my own pocket, I'd have less to complain about, though I'd then need to decide whether DL's FC service was really worth $50 to me.

Father-of-3 Apr 12, 2012 4:26 pm

If I could go online and pay the difference for first versus coach I would do it quite often. For me an extra $100-200 is often worth it. Today there is no way to do that so Delta is unable to monetize that seat with me. Anytime I've seen upgrades being sold at the gate ice been very confident I was getting one anyway but have told colleagues to jump on them. A $150 upgrade at the gate is a fair offer and a good way to monetize the seat. I know it means Silvers won't get upgraded but they can pay the $150 and do so.

What I think would be extraordinary would be to offer a tiered price based on status. $25 for Diamond to upgrade, $50 for Plat, $100 Gold, $150 silver and $200 for others.

vxmike Apr 12, 2012 4:43 pm


Originally Posted by AllanAtlanta (Post 18382632)

What I think would be extraordinary would be to offer a tiered price based on status. $25 for Diamond to upgrade, $50 for Plat, $100 Gold, $150 silver and $200 for others.

This is similar to what AA does with it's sticker system, but they still respect the order of elites.

This would split the different between respecting elites but still increasing revenue -- similar to AA and it's sticker system.

However, it will not maximize revenue. They would have to make the upgrade price the same for EVERYONE or else it will be too tempting to offer non-status flyers upgrades before elites the way FCM currently works.

AA's system really is the most fair for an airline wanting to monetize upgrades. Even if Delta went to the same system but eliminated free upgrades for Diamonds, they'd still make money and have a "fair" system.

Digital01 Apr 12, 2012 6:30 pm

Looks like I'll be heading to the battlefield tomorrow for this upgrade. Hopefully it works out for the better :)

Leezell Apr 13, 2012 3:53 am


Originally Posted by AllanAtlanta (Post 18382632)
A $150 upgrade at the gate is a fair offer and a good way to monetize the seat. I know it means Silvers won't get upgraded but they can pay the $150 and do so.

Huh? I'm sure I'll be corrected if I'm wrong, but gate upgrades aren't sold unless all medallion members (and companions w/ upgrade requests) have already been upgraded.

ElmhurstNick Apr 13, 2012 5:46 am


Originally Posted by bubbashow (Post 18376416)
They'd make it a lot easier and move a lot more if they put it under the purchased extras portion of the itinerary page.

Absolutely. Even though WN gives me 40% back for Business Select fares as a A-List Preferred, if DL offered splitting the "buy K or higher, upcharge to P" into two line items that I could show our expense report people, I'd give them a lot of my last-minute business even though I'd have to connect most of the time.

F9 does this for buying their "stretch" seating at booking, and it's a snap for me to get the receipt through our expense process because they break it into two lines.

Bicostal Apr 13, 2012 1:34 pm

FCM - seriously Delta?
 
DM on an M fare - #1 of 5 with EIGHTEEN open in front at T-22. Eleven open in coach.

Geees....this is for a Saturday midday flight to DTW of all places.

BamaGirl Apr 13, 2012 6:57 pm

DM on a K fare- #1 of 9 with 16 FC available tomorrow ATL-LAS.

cfischer Apr 13, 2012 9:45 pm


Originally Posted by baccarat0809 (Post 18319648)
I VDB'd into domestic F about 2 weeks ago. Was supposed to fly LAX-ATL-BUF and flew LAX-DTW-BUF. The deal to get my seat ~ which was in back on the LAX-ATL segment as I didn't clear as a DM on a B fare ... the worst, part, however was for another DM, as there was one DM on a Y fare that didn't clear on that flight - and this was on the 330!!

So yeah, you can VDB directly into domestic F (on-line shows paid B flown F, not flown V or X, and boarding pass showed F class)

my last VDB cleared into V and I don't see the reason to decline a fine VDB for F vs. V.


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