United Raising Fares Again
#16
Join Date: Sep 2010
Location: San Francisco Bay Area
Posts: 5,825
Personal debt continues to drop and saving rate is near its high over the past 10 years in the USA.
UA is raising prices because they can.
Capacity discipline is being adhered to, and simple supply and demand dictates that UA should be able to push through price increases.
Prices will be even higher at this time next year...
#17
Join Date: Jul 2002
Location: Virginia, USA
Posts: 4,511
Not to continue with this completely off topic direction, but you are both dead wrong.
Personal debt continues to drop and saving rate is near its high over the past 10 years in the USA.
UA is raising prices because they can.
Capacity discipline is being adhered to, and simple supply and demand dictates that UA should be able to push through price increases.
Prices will be even higher at this time next year...
Personal debt continues to drop and saving rate is near its high over the past 10 years in the USA.
UA is raising prices because they can.
Capacity discipline is being adhered to, and simple supply and demand dictates that UA should be able to push through price increases.
Prices will be even higher at this time next year...
It'll be interesting to see if your predictions about prices next year are similarly correct.
#18
Join Date: Feb 2003
Location: NCL
Programs: UA 1MM/*G. DL Gold for one more year.
Posts: 5,305
UA's clearly-stated strategy is to focus on large corporate accounts. While those fares are discounted, they also include a good deal of paid intl. F/C and other extremely lucrative sources of cash.
If OP doesn't like the fare he's offered, he shouldn't accept it and will need to seek alternatives or not fly. If he's joined by enough people, maybe UA (and others) will relent or go belly up.
UA is betting that the steady corporate revenue will beat the occasional leisure traveler or jumps ship to KettleAir, and UA's bets are likely the result of serious market research. Not that research isn't sometimes wrong. But, here what UA is doing does seem to make sense.
If OP doesn't like the fare he's offered, he shouldn't accept it and will need to seek alternatives or not fly. If he's joined by enough people, maybe UA (and others) will relent or go belly up.
UA is betting that the steady corporate revenue will beat the occasional leisure traveler or jumps ship to KettleAir, and UA's bets are likely the result of serious market research. Not that research isn't sometimes wrong. But, here what UA is doing does seem to make sense.
#19
Join Date: Sep 2010
Location: San Francisco Bay Area
Posts: 5,825
And unfortunately, I do believe that airfares will be higher in summer of 2013... I would love to be wrong on this one.
#20
Join Date: Jan 2005
Location: DEN
Programs: UA Gold-MM, AA Gold-MM, F9-Silver, Hyatt Something, Marriott Gold, IHG Plat, Hilton Diamond
Posts: 6,393
#21
Suspended
Join Date: Nov 1999
Posts: 24,153
I don't have all the details but my bro tells me his daughter's family's trip SFO-Italy, France, currently taking place, was cancelled by her when UA upped $200 per pax allegedly for fuel surcharges, apparently after the original tix were issued.
Piqued, MA reticketed the whole 4 week trek on Delta, presumably without paying any fuel surcharges, though with a connecting flight out of DTW TATL.
Just food for thought...
Piqued, MA reticketed the whole 4 week trek on Delta, presumably without paying any fuel surcharges, though with a connecting flight out of DTW TATL.
Just food for thought...
#22
Join Date: Nov 2009
Location: 12 stops from ORD
Programs: UA, AA, DL
Posts: 992
I don't have all the details but my bro tells me his daughter's family's trip SFO-Italy, France, currently taking place, was cancelled by her when UA upped $200 per pax allegedly for fuel surcharges, apparently after the original tix were issued.
Piqued, MA reticketed the whole 4 week trek on Delta, presumably without paying any fuel surcharges, though with a connecting flight out of DTW TATL.
Just food for thought...
Piqued, MA reticketed the whole 4 week trek on Delta, presumably without paying any fuel surcharges, though with a connecting flight out of DTW TATL.
Just food for thought...
#23
Join Date: Jun 2008
Posts: 4,187
I may be mistaken in my membory, but this seems like SOP from airlines going back sometime. If they are sucessful with one increase, they try another.
On a whole, the industry has been much more succesful since the DL/NW merger (NW often held out on fare increases), now with the UA/CO merger, there is less competion - except on certain route flown by WN and new LCC carriers. One can only imagine what will happen to the market place with further consolidation. Passengers almost never win in a merger - although I think the US/PI and the TW/OZ mergers may be exception.
They always say it is about creating a seemless network, but really codeshares, through fares, interline ticketing, and interline baggage is seemless enough in my book.
Indeed. And how long has MA been out of business anyway? Besides even when there was a Malev, it was a Oneworld carrier; what would they be doing tickeintg on DL?
On a whole, the industry has been much more succesful since the DL/NW merger (NW often held out on fare increases), now with the UA/CO merger, there is less competion - except on certain route flown by WN and new LCC carriers. One can only imagine what will happen to the market place with further consolidation. Passengers almost never win in a merger - although I think the US/PI and the TW/OZ mergers may be exception.
They always say it is about creating a seemless network, but really codeshares, through fares, interline ticketing, and interline baggage is seemless enough in my book.
I don't have all the details but my bro tells me his daughter's family's trip SFO-Italy, France, currently taking place, was cancelled by her when UA upped $200 per pax allegedly for fuel surcharges, apparently after the original tix were issued.
Piqued, MA reticketed the whole 4 week trek on Delta, presumably without paying any fuel surcharges, though with a connecting flight out of DTW TATL.
Just food for thought...
Piqued, MA reticketed the whole 4 week trek on Delta, presumably without paying any fuel surcharges, though with a connecting flight out of DTW TATL.
Just food for thought...
Last edited by iluv2fly; Aug 3, 2012 at 5:54 pm Reason: merge
#24
Join Date: Jul 2005
Location: East Coast
Programs: UA Lifetime Gold, AA Lifetime Platinum, Delta PM, Marriott Gold, Hilton Diamond
Posts: 1,522
#25
Join Date: May 2003
Location: Redwood City, CA USA (SFO/SJC)
Programs: 1K 2010, 1P in 2011, Plat for 2012,13,14,15 & 2016. Gold in 17 & 18, Plat since
Posts: 8,826
$10 increases don't mean we're all paying more
Getting back OT, it's important to keep in mind who these increases are aimed at. It's not the Kayakers, who have the flexibility to shop for fare sales based upon destination. This is all about getting a few extra bucks from the traditional road warrior, the person flying SFO-ORD or LAX-JFK on a regular basis. For most of us, $10 here, $50 there, is irrelevant, because we're looking to buy when the timing's right, at prices well off an M, B or Y fare.
We also have, as mentioned, some flexibility in where we fly. I just saved a whole lot of $$$, and improved upgrade options, by flying SFO-BRU instead of SFO-CDG in a couple of weeks. Sure, I'll miss the inner guts of CDG, but I'll get over it.
Rather than focus on the mythical $10 increase across-the-board, we need to see what's happening to average fares overall.
#26
Join Date: Jan 2009
Location: Washington
Programs: United 1K 1MM, Marriott Plat, Hilton Gold, Hertz Prez
Posts: 250
My wife is a silver as are my two sons, but going forward my wife is so pissed off at UA that she is shifting the family's travel elsewhere. She particularly disliked a comment made by a UA executive about UA elites having been "over entitled" and as a result now not being able to pick an E+ seat at time of booking.
She is an exec at a major national retailer and her biggest efforts there have been working with the sales force to enforce the culture that the customer is key and most important. This is what drives sales and loyalty. In her opinion she says that the new United just doesn't get it and predicts that eventually all the "over entitled" elite customers will just disappear from their flights.
PS...and by the way, who in their right mind thought the Spring break travel time was a good time to initiate the merger...and how could the senior management staff have agreed to it? My personal thinking is that it was a bunch of MBA's (not entrepreneurs) looking at spreadsheets.
My new motto when anything goes wrong these days is, "I've been Jeff'ed."
#27
FlyerTalk Evangelist
Join Date: Oct 2006
Location: SFO/SJC
Programs: UA Silver, Marriott Gold, Hilton Gold
Posts: 14,891
Not to go too OT, but as long as there is an agreement, a carrier can issue a ticket with segments on whatever carrier they want. In Feb., I was ticketed on TK via ORD, and despite them being in *A and UA offering non-stop service on my connector, they flew me AA.
#28
Join Date: Jun 2008
Posts: 4,187
Well, yes, of course. And I have purchased from UA directly on 016 stock a ticket for travel entirely on AS. But such is rare. OP was discussing a UA ticket, which was apparently was rebooked by MA for travel on DL -- all because of price, not irrops or anything. I'm just highly confused as to what transpired.
#29
Join Date: Apr 2012
Location: NYC
Programs: DL plat
Posts: 318
Just looking at an NYC-CHI run for 8/9-8/11 and united is starting at $437. I've flown this route many many times and never seen it this high without being 1-2 days before. ITA shows options for AA at 280, DL, WN, B6, and NK (not an option though) at around 330.
Now I'm willing to pay a little extra to keep the miles under one roof with hopes that its sunny after it pours, but I'm sorry, the privilege of flying UA E is not $150 more than anyone else. Plus marine air terminal at LGA > terminal C zoo.
Not sure what type of customer this price is really targeted at..
Now I'm willing to pay a little extra to keep the miles under one roof with hopes that its sunny after it pours, but I'm sorry, the privilege of flying UA E is not $150 more than anyone else. Plus marine air terminal at LGA > terminal C zoo.
Not sure what type of customer this price is really targeted at..
#30
Suspended
Join Date: Jun 2012
Programs: UA PP, AA, DL, BA, CX, SPG, HHonors
Posts: 2,002
Just looking at an NYC-CHI run for 8/9-8/11 and united is starting at $437. I've flown this route many many times and never seen it this high without being 1-2 days before. ITA shows options for AA at 280, DL, WN, B6, and NK (not an option though) at around 330.
Now I'm willing to pay a little extra to keep the miles under one roof with hopes that its sunny after it pours, but I'm sorry, the privilege of flying UA E is not $150 more than anyone else. Plus marine air terminal at LGA > terminal C zoo.
Not sure what type of customer this price is really targeted at..
Now I'm willing to pay a little extra to keep the miles under one roof with hopes that its sunny after it pours, but I'm sorry, the privilege of flying UA E is not $150 more than anyone else. Plus marine air terminal at LGA > terminal C zoo.
Not sure what type of customer this price is really targeted at..