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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)

javabytes Jun 27, 2011 7:22 pm


Originally Posted by rylan (Post 16630183)
in particular this shows up with P fares since the system is supposed to book them as A at the same price but often doesn't.

If this is the case, why does DL have separate P and A inventory?

rylan Jun 27, 2011 8:18 pm

Side effect from Delta creating P fares... the Amex certs book using A/D fares but if the booking engine is only trying to sell -up that goes into P, it is supposed to allow it and translate into an A from what I was told by a 'higher up'.

buffcoat Jul 27, 2011 12:08 pm

Monetization Example
 
I haven't received an upgrade for Friday's RDU-LAX flight (award travel, but still unusual), so I checked out to see the monetization on that flight.

The price was as low as $466 last week. It's now selling for $993, with upgrades priced at $101 each way. Can't see why you wouldn't pay the extra money if you're going to buy now...

My guess is that I'm still going to get a gate upgrade (seatmap shows 11/16 seats still available in F), but it's interesting to see how all this is progressing. Is it just the revenue department that decides on this stuff? And is it eventually going to be all flights?


As an aside, I believe that in my last 50 or so flights, I've never cleared at any time between the opening of the upgrade window and the gate. Does that just not happen?

akonradi Jul 27, 2011 12:23 pm


Originally Posted by buffcoat (Post 16808143)
As an aside, I believe that in my last 50 or so flights, I've never cleared at any time between the opening of the upgrade window and the gate. Does that just not happen?

It is possible to clear any time between the opening of your window and departure. I've cleared a few routes this year 1-3 days into the DM/PM window when there wasn't enough V/X space when it originally opened.

BusTrav8yrs Jul 27, 2011 12:28 pm

This is not necessarily "monetizaton" which seems to be the latest catch phrase. It can simply be that the only fare buckets left are B or Y which would jack up the price and bring it within $100 of first, can even be more than first some time Y vs P.

This has always happened. What may be different for you is that DL is not opening the V inventory as freely and early as they use to causing the gate upgrades you speak of.

buffcoat Jul 27, 2011 12:35 pm


Originally Posted by BusTrav8yrs (Post 16808321)
This is not necessarily "monetizaton" which seems to be the latest catch phrase. It can simply be that the only fare buckets left are B or Y which would jack up the price and bring it within $100 of first, can even be more than first some time Y vs P.

This has always happened. What may be different for you is that DL is not opening the V inventory as freely and early as they use to causing the gate upgrades you speak of.


Sounds reasonable... I flew this exact same combination a month ago and cleared at the window and was wondering what was up.

I'll bet they didn't have MORE than 11/16 seats in F available last time, either. I guess it's possible that a significant amount more Y is sold on this flight than last time in which case your explanation is the right one.

Lots of factors in play, I guess. And I guess it mostly doesn't matter whether I clear ahead of time or at the gate.

MR_MAMA Jul 27, 2011 12:46 pm

Someone who is paying $1000 on that flight DESERVES to be in first before someone on an award ticket. Its called running a business.

DiverDave Jul 27, 2011 1:08 pm

Given that the low fare buckets are zeroed out, the flight may be oversold.

David

PRWeezer Jul 27, 2011 1:18 pm


Originally Posted by DiverDave (Post 16808602)
Given that the low fare buckets are zeroed out, the flight may be oversold.

David

+1 Let's suppose a potentially oversold coach cabin, last minute buyers might then have to pay for a seat in First, or high fare coach as suggested (if they're willing to oversell coach further to account for no-shows, mis-connects, etc.). To someone in revenue management, that would sound like a winner, right? Of course logic would say, just clear the upgrades & free up seats in the back. But let's not go & try to apply logic here.

StayingHomeIsBetter Jul 27, 2011 1:33 pm


Originally Posted by PRWeezer (Post 16808665)
+1 Let's suppose a potentially oversold coach cabin, last minute buyers might then have to pay for a seat in First, or high fare coach as suggested (if they're willing to oversell coach further to account for no-shows, mis-connects, etc.). To someone in revenue management, that would sound like a winner, right? Of course logic would say, just clear the upgrades & free up seats in the back. But let's not go & try to apply logic here.

Therein lies the crux of the matter with respect to whether or how quickly FCM crumbles.

DL management has to jack up "last minute" ticket prices to make FCM work (otherwise, they sap all credibility from the pricing of the FC product).

If, as in some cases reported, they hold back 22 of 24 FC seats for FCM, only to give most of them away as UGs at the gate, they have to ask: "Did we just create a situation where we drove away 22 other potential coach PAX who were not willing to pay the "last minute larcenous" price we tried to extract from them?"

If the air travel market goes soft again, FCM goes by the wayside. What will remain will be the decreased perception of integrity in the Sky Miles program.

DiverDave Jul 27, 2011 1:56 pm


Originally Posted by StayingHomeIsBetter (Post 16808743)
Therein lies the crux of the matter with respect to whether or how quickly FCM crumbles.

DL management has to jack up "last minute" ticket prices to make FCM work (otherwise, they sap all credibility from the pricing of the FC product).

If, as in some cases reported, they hold back 22 of 24 FC seats for FCM, only to give most of them away as UGs at the gate, they have to ask: "Did we just create a situation where we drove away 22 other potential coach PAX who were not willing to pay the "last minute larcenous" price we tried to extract from them?"

Ah, but who's to say they aren't overselling coach by 22 seats in such a case?

Delta management may not always be so smart, but revenue management is always looking for ways to make a buck.


Originally Posted by StayingHomeIsBetter (Post 16808743)
DL management has to jack up "last minute" ticket prices to make FCM work (otherwise, they sap all credibility from the pricing of the FC product).

Remember, jacking up last minute ticket prices has been the legacy airline model for quite some time now.

David

StayingHomeIsBetter Jul 27, 2011 2:43 pm


Originally Posted by buffcoat (Post 16808143)
I haven't received an upgrade for Friday's RDU-LAX flight (award travel, but still unusual), so I checked out to see the monetization on that flight.

The price was as low as $466 last week. It's now selling for $993, with upgrades priced at $101 each way. Can't see why you wouldn't pay the extra money if you're going to buy now...

My guess is that I'm still going to get a gate upgrade (seatmap shows 11/16 seats still available in F), but it's interesting to see how all this is progressing. Is it just the revenue department that decides on this stuff? And is it eventually going to be all flights?


As an aside, I believe that in my last 50 or so flights, I've never cleared at any time between the opening of the upgrade window and the gate. Does that just not happen?

RDU to LAX, departing Friday (your day of travel), coming back Monday (assumed arbitrary day)

Posted M fare: $1000.00 (to the penny, AI) for evening non-stop.

P fare buy-up: $92.09 each way.

Full F fare for same itinerary: $2563.00

P fare represents a 61% reduction off of the full F fare.

DL is still willing to sell at least 9 FC seats on your outbound flight, but it definitely is V0. By my yardstick, you have been FCM'd.

What is interesting in that, a week from Friday, the same flight is V9.

You may be caught in one of those situations where, as the back fills up, DL management actually retracts V inventory that previously had been available.

The 8/5 non-stop flight (now V9) would be an interesting one to watch over the next week.

"...is it eventually going to be all flights?" While some are not yet ready to concede the fact, DL management has announced that they are piloting the program with the intent of broadening its application.

Months ago, when this first started rolling out, you would see some markets where P fares were discounted 55 to 65% off of full F (as cited above) while, in other markets, P fares were only discounted 30 to 40% off of full F.

Based on some random searches today, most any P fare that I am finding is discounted at least 50%, and often more like 60%, off of F.

It looks like the infection is spreading.

buffcoat Jul 27, 2011 2:45 pm

Removed because I don't feel like getting involved in a fight between two guys that spans multiple threads.

buffcoat Jul 27, 2011 2:48 pm


Originally Posted by StayingHomeIsBetter (Post 16809256)
RDU to LAX, departing Friday (your day of travel), coming back Monday (assumed arbitrary day)

Posted M fare: $1000.00 (to the penny, AI) for evening non-stop.

P fare buy-up: $92.09 each way.

Full F fare for same itinerary: $2563.00

P fare represents a 61% reduction off of the full F fare.

DL is still willing to sell at least 9 FC seats on your outbound flight, but it definitely is V0. By my yardstick, you have been FCM'd.



Does being FCM'd mean there definitely won't be any upgrades in this case? Just curious.


I'll definitely let you all know what happens on Friday.

NHFL9 Jul 27, 2011 2:53 pm

Last fall I was #21 of 48 or something like that as PM on a U fare for the RDU-LAX upgrade. One Diamond got upgraded after boarding was complete. Seemed like a very elite heavy route.


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