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If B6 drops change fees, what happens to Mosaic?

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If B6 drops change fees, what happens to Mosaic?

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Old Sep 1, 2020, 12:28 pm
  #1  
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If B6 drops change fees, what happens to Mosaic?

Starting a post here for the first time in a while — boy, what an odd year for someone who typically travels constantly.

Given that UA, AA, and (perhaps most importantly) DL have eliminated change fees across the board on non-basic fares, I would be shocked if B6 doesn't follow suit.

If they do -- will they do anything to enhance Mosaic benefits? Waiving change fees has long been the most useful and valuable of those perks, at least for me. And while I appreciate free bags, I can get those easily with a cobranded credit card.

That essentially leaves us with discounted EMS for points, Even More Speed, and a few free cocktails as pretty much the only exclusive incentives for hitting Mosaic thresholds. Not a whole lot to get excited about there, and nothing that can't be bought.

Curious if they will do anything to respond, and if so, what?
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Old Sep 1, 2020, 12:35 pm
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Same issue for AS and likely same answer.

Anything that costs cash is off the table. Maybe a few shiny toys that don't mean much.

But, the reality is that FFP's are no longer the name of the game, at least for the next 3-4 years.
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Old Sep 1, 2020, 12:45 pm
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Originally Posted by Often1
Same issue for AS and likely same answer.

Anything that costs cash is off the table. Maybe a few shiny toys that don't mean much.
AS offers free upgrades to Y+ and F, which is a benefit that gets a lot more attractive with fewer people traveling.

Originally Posted by Often1
But, the reality is that FFP's are no longer the name of the game, at least for the next 3-4 years.
Not sure I follow you here -- previous travel downturns have seen airlines double down on FFPs to encourage profitable travelers to fly.
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Old Sep 1, 2020, 12:54 pm
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While we agree with your basic points, there are a few Mosaic benefits that you didn't mention:

- Comp EMS upgrades at the gate
- Extra Mosaic points earning
- Early boarding
- Free bags and other benefits for everyone on the same itin as the Mosaic
- Ability to change to confirm a same-day chance for no extra fee up to 24 hours before departure

Also, the devil is in the details. There are differences in how DL, AA, and UA have implemented these changes. Remember that a Mosaic, you can completely cancel your trip and get the full value back as a travel bank credit for future travel. This is not the same as waived change fees. It's a much more valuable benefit.

Additionally, if you change to a less expensive flight, you will NOT get the difference back on United and Delta (at least they haven't confirmed this yet). AA will credit you for the difference.

Lastly, this benefit is on any route that JetBlue flies. With Delta, they only waive it for domestic, PR, and USVI. AA also includes Canada, Mexico, and the Caribbean.

Just want to make sure folks understand the full picture here. Mosaic still has lots of value. Just not quite as much as before given the recent changes by the legacy carriers.
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Old Sep 1, 2020, 1:56 pm
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Good points, AutoSlash -- the devil is often in the details.

My only quibble is that comp EMS at the gate isn't a published benefit -- YMMV, and I would guess most Mosaics who don't hang around internet forums don't consider it in their calculus when renewing the status. And the credit cards do offer free bags to traveling companions, though only one each.

I do wonder if and how paid SDC policies will change in light of this -- in the absence of change fees it's a little hard to explain. I pity the CSR who has to explain "well, yes, your change fee is $0, but if you pay $75 we'll waive the fare difference of $125..."
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Old Sep 1, 2020, 2:20 pm
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Maybe we'll (finally) get Mint upgrades. Even just 2 or 4 a year, even on standby, would be very nice. I could definitely see a Mosaic "trying out" Mint this way and getting hooked. And it wouldn't cost JB much since the products would either get thrown out (food, wine) or given to a nonrev.

-J.
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Old Sep 1, 2020, 3:32 pm
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Originally Posted by dtremit
AS offers free upgrades to Y+ and F, which is a benefit that gets a lot more attractive with fewer people traveling.



Not sure I follow you here -- previous travel downturns have seen airlines double down on FFPs to encourage profitable travelers to fly.
Yup. Just ask CO, NW and US how that went.

The error of the last economic crisis (which did not have a health component) was the carriers cut fares and increased benefits when they should have cut capacity and frequency to keep PRASM manageable. Won't ever happen again.
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Old Sep 1, 2020, 4:09 pm
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Originally Posted by GW McLintock
Maybe we'll (finally) get Mint upgrades. Even just 2 or 4 a year, even on standby, would be very nice. I could definitely see a Mosaic "trying out" Mint this way and getting hooked. And it wouldn't cost JB much since the products would either get thrown out (food, wine) or given to a nonrev.

-J.
One idea is to offer space-available Mint upgrades to Mosaics who booked Blue Extra fares. They probably wouldn't do this because it might actually lower revenue since a certain number of folks who would have booked Mint might just book Blue Extra instead and take their chances, but a limited number of upgrade certificates per year would solve that problem. One can dream...
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Old Sep 1, 2020, 7:27 pm
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With no change fees, the market for Blue Extra plummets.
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Old Sep 1, 2020, 7:34 pm
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Originally Posted by AutoSlash
One idea is to offer space-available Mint upgrades to Mosaics who booked Blue Extra fares. They probably wouldn't do this because it might actually lower revenue since a certain number of folks who would have booked Mint might just book Blue Extra instead and take their chances, but a limited number of upgrade certificates per year would solve that problem. One can dream...
Maybe... nahhhhhhhhh

-J.
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Old Sep 2, 2020, 5:33 am
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I hope they take their time and figure out something that makes sense across their fare options and mosaic rather than just follow UA's move. DL seemed to have just copied UA. AA actually came up with something that was a little different.

I like the idea of limited number of mint upgrades for mosaic who book blue extra fares. Maybe they can add 1 or 2 free check-in for blue extra to incentive people. Otherwise, I don't see how they can justify a $70 premium over the regular blue.

Maybe for 4+ hour flights, they can offer 1 complimentary snack pack and 1 alcoholic beverage for those that booked under blue extra. That along with free luggage check in would justify maybe $100 premium over regular blue and also limited number of mint upgrades for mosaic.

Make limited # of confirmable EMS upgrade a published benefit for mosaics. 1 complimentary snack pack on flights longer than 2 hours.
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Old Sep 2, 2020, 7:24 am
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Doubt that any of this occurs. UA, DL & AA all face the same issue and yet all of them proceeded. The value of a flexible fare bucket just went away but there will still be those who book in it.

In a cash-starved industry, anything that costs cash is a gonner.
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Old Sep 2, 2020, 7:31 am
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Originally Posted by Often1
In a cash-starved industry, anything that costs cash is a gonner.
Revenue positive idea --> Buy-ups to Mint via a bidding system (seen it on other carriers) with a discount/incentive for Mosaics to get them a bit cheaper. If a Mint seat goes out empty, it's $0 revenue. Yes, there's a bit of cost associated with catering/liquor, amenity kit, but if they can get say $250 extra revenue for it (which I might might pay on a transcon), then it could be cashflow positive. It would have to be weighed against cannibalization but it seems like an idea that could work in theory and be a win-win. An empty Mint seat is to nobody's benefit.
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Old Sep 2, 2020, 8:00 am
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Originally Posted by AutoSlash
Revenue positive idea --> Buy-ups to Mint via a bidding system (seen it on other carriers) with a discount/incentive for Mosaics to get them a bit cheaper. If a Mint seat goes out empty, it's $0 revenue. Yes, there's a bit of cost associated with catering/liquor, amenity kit, but if they can get say $250 extra revenue for it (which I might might pay on a transcon), then it could be cashflow positive. It would have to be weighed against cannibalization but it seems like an idea that could work in theory and be a win-win. An empty Mint seat is to nobody's benefit.
That requires a bidding system or some other IT application, and that it works and isn't always broken (like just about everything else, i.e. the website and the app).

-J.
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Old Sep 2, 2020, 9:31 am
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It is also not necessarily a revenue-generator. Would take some fairly sophisticated marketing research to determine whether the people bidding are people who would have paid for the Mint seat if the bid system were not available. If Mint becomes upgrade class, there may be a hit to revenue.
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