First Class Monetization, or FCM: The Definitive Thread
Nov 8, 2012, 5:43 pm
#1231
Join Date: Oct 2010
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Didn't we cover this already in that thread after last quarter's results were posted? Paid F loads rose 8 points, revenue growth was a paltry 1%, and margin expectations were missed. Successful fuel hedges, lower fuel costs, same old story.
And if I recall correctly, paid F loads were touted as being 33%, up from 25%. However, at last year's investor day presentations they claimed a jump in paid F loads from 15% to 30%. Someone either needs to explain the trend or the spin.
http://milecards.com/3112/delta-adju...free-upgrades/
And if I recall correctly, paid F loads were touted as being 33%, up from 25%. However, at last year's investor day presentations they claimed a jump in paid F loads from 15% to 30%. Someone either needs to explain the trend or the spin.
http://milecards.com/3112/delta-adju...free-upgrades/
Nov 8, 2012, 5:55 pm
#1232
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Nov 8, 2012, 5:56 pm
#1233
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OP hasn't told us whether this was a refundable M fare or not. Presuming that it's a refundable M, it makes a lot of sense that a non-refundable P fare would be a bit less.
If you look through the rough breakpoints between fare buckets, refundability is almost always the most significant factor.
If you are the traveler who can work with a non-refundable/changeable ticket, you should definitely by the P fare.
Why anybody thinks they have a complaint about what appears to be a solid decision by an operating for-profit business is beyond me.
If you look through the rough breakpoints between fare buckets, refundability is almost always the most significant factor.
If you are the traveler who can work with a non-refundable/changeable ticket, you should definitely by the P fare.
Why anybody thinks they have a complaint about what appears to be a solid decision by an operating for-profit business is beyond me.
Nov 8, 2012, 5:57 pm
#1234
Join Date: May 2011
Posts: 198
It doesn't seem to make sense, but I agree with this. Maybe they are trying to lure someone with no concrete plans to grab a flight, and a cheap FC ticket might be the carrot to do it, while a coach ticket gets a yawn.
I can visualize some guy yelling out to his wife "hey Marge we can fly to xxx in FC for $400 what do you think about taking a trip?"
I can visualize some guy yelling out to his wife "hey Marge we can fly to xxx in FC for $400 what do you think about taking a trip?"
You are making a big assumption here: that a passenger will pay for the expensive M fare and fly coach. I think any business tries to get an advantage over the competitions offerings by doing stuff like this (offering web only fares and undercuts). I can almost guarantee that the P fare is not a published fare in this case but somehow run by a program based on F and Y availability. To "sweeten the deal" or entice the consumer, they sell a last minute P fare and give the passenger a first class seat. Having the two prices side by side it makes flying Delta and getting F a great deal. Unless you are on a higher fare flying the same O&D you can't really complain too much if someone is paying for the P fare.
As a side note, I have seen every US major carrier do this and I know it annoys many people but the only ones that can really be terribly upset are the ones that paid a higher fare for the exact same itinerary. Everyone else that is upset should be upset at themselves for not purchasing the seat for that price if they are unhappy that someone else did.
As a side note, I have seen every US major carrier do this and I know it annoys many people but the only ones that can really be terribly upset are the ones that paid a higher fare for the exact same itinerary. Everyone else that is upset should be upset at themselves for not purchasing the seat for that price if they are unhappy that someone else did.
Nov 8, 2012, 6:39 pm
#1235
Join Date: Aug 2002
Posts: 333
Edited to add I'm DM and upgraded 98% of the time, at 5+ days out.
Nov 8, 2012, 7:59 pm
#1236
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I'm curious how this was worded on the website:
Upgrade to First Class for just $30.00- more per person each way.
or
Upgrade to First Class for just $30 less per person each way.
Upgrade to First Class for just $30.00- more per person each way.
or
Upgrade to First Class for just $30 less per person each way.
Nov 8, 2012, 9:02 pm
#1237
Join Date: Jul 2011
Programs: DL PM, Hertz Preisdents Club, Marriott Platinum
Posts: 63
While I hate it too, it makes sense for last minute revenue
Nov 8, 2012, 9:12 pm
#1238
Suspended
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I am not sure about the rest of y'all, but I have paid a good bit more for my tickets this year and I have been flying to the same spots for quite some time... a lot more...
Nov 8, 2012, 9:48 pm
#1239
Join Date: Sep 2011
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Yes, load factors are very much in DL's favor. Summer prices peaked as high as I've ever seen before and then the Fall pricing never dropped as much as I recall in years past.
Nov 8, 2012, 11:07 pm
#1240
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And my most recent DL purchase was a non-refundable B fare.
There is no conclusion as to refundability that can be drawn solely on the basis of first character of fare basis code.
Nov 9, 2012, 12:47 am
#1241
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What part of DL's FCM is not ridiculous? I thought that's why we created the thread. Normal FCM is ok, DL's is just odd.
Nov 9, 2012, 4:30 am
#1243
Join Date: Jun 2010
Location: Austin, TX
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Probably the one who calls into the PSS line first. Also, if the P fare gets re-seated in coach due to IROPs they can call in and get a $200 voucher. If the M fare was upgraded and gets re-seated in coach, they might get a HOOU. I suspect that if all is handled properly and one knows the rules, the P fare is better off.
Nov 9, 2012, 5:40 am
#1244
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This is pretty clear... screw the biz traveler who is required to purchase a coach fare for domestic travel. At the same time, piss them off because their travel dept doesn't even look at P fares, so they buy the more expensive M and they're stuck in the back while random no-status kettle grabs the cheaper fare and sits up front.
+1 to TH on his comments as well.
+1 to TH on his comments as well.
Nov 9, 2012, 7:35 am
#1245
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It doesn't seem to make sense, but I agree with this. Maybe they are trying to lure someone with no concrete plans to grab a flight, and a cheap FC ticket might be the carrot to do it, while a coach ticket gets a yawn.
I can visualize some guy yelling out to his wife "hey Marge we can fly to xxx in FC for $400 what do you think about taking a trip?"
I can visualize some guy yelling out to his wife "hey Marge we can fly to xxx in FC for $400 what do you think about taking a trip?"
