New revenue management: LH overbooks F
#1
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New revenue management: LH overbooks F
LH had a very strict stance on not overbooking F but that's changing now during a trial period:
Revenue Management has identified some routes with very frequent changes by full fare ticket holders so that F is not sold at the optimal point.
For a trial period till the end of the year, LH will sell up to 10 seats up to a certain point before the flight, ensuring the highest number of paid for tickets at departure.
They are certain that their forecasts are so precise that they never have to offload or downgrade any passengers as 10 sold seats would go down to 8 due to the mentioned frequent changes.
In case there would be an actual overbooking situation very close to departure, Frankfurt would discretely reach out to some passengers and offer them some kind of deal in case they are willing to change their flights.
The change will increase revenue but will at the same time further minimize the changes of an upgrade with miles or an award ticket.
Revenue Management has identified some routes with very frequent changes by full fare ticket holders so that F is not sold at the optimal point.
For a trial period till the end of the year, LH will sell up to 10 seats up to a certain point before the flight, ensuring the highest number of paid for tickets at departure.
They are certain that their forecasts are so precise that they never have to offload or downgrade any passengers as 10 sold seats would go down to 8 due to the mentioned frequent changes.
In case there would be an actual overbooking situation very close to departure, Frankfurt would discretely reach out to some passengers and offer them some kind of deal in case they are willing to change their flights.
The change will increase revenue but will at the same time further minimize the changes of an upgrade with miles or an award ticket.
#2
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#3


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Let's hope they will still keep overbooking Y over the pond like crazy so that we poor S econ tix passengers can enjoy more op ups to C. Well actually this change means less C to F op ups so probably less Y to C op ups too
I agree thought that it is an interesting idea. I thought that LH overbooks all classes.
I agree thought that it is an interesting idea. I thought that LH overbooks all classes.
#4
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that's a significant change. Interesting to see if it will work out for LH. Definitely bad news for last minute award tickets and upgrades.
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#7
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BA has been doing this for years, but unfortunately their crystal ball does not seem to be as accurate as LH thinks their crystal ball is, with the results of quite frequent downgrades during boarding on oversold flights.
Of course with LH this will also result in less opportunities for last minute upgrades with miles or vouchers.
Of course with LH this will also result in less opportunities for last minute upgrades with miles or vouchers.
Last edited by Rambuster; Aug 26, 2013 at 9:20 am
#8
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I cannot believe LH would oversell during some of the very major conferences/events in Beijing, HK, Shanghai for example where the travel dates are pretty much locked and the passengers are full F paying fare and have very unflexible agendas.
Last edited by TRAVELSIG; Aug 26, 2013 at 10:07 am
#9




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overbooked F-pax can still travel in C ...
hopefully on a full flat horizontal seat
hopefully on a full flat horizontal seat
Last edited by f0zzyNUE; Aug 26, 2013 at 8:37 am
#11
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[QUOTE=SMK77;21332632]
They are certain that their forecasts are so precise that they never have to offload or downgrade any passengers as 10 sold seats would go down to 8 due to the mentioned frequent changes.
Yes, sure, LH Revenue Management, when have we ever known them to 'mess up' ?
They are certain that their forecasts are so precise that they never have to offload or downgrade any passengers as 10 sold seats would go down to 8 due to the mentioned frequent changes.
Yes, sure, LH Revenue Management, when have we ever known them to 'mess up' ?
#12
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