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2014 Upsell Offers to Business/First (UFC/PCU) Questions/Discussion (Paid Upgrades)

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2014 Upsell Offers to Business/First (UFC/PCU) Questions/Discussion (Paid Upgrades)

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Old Oct 17, 2014, 9:01 pm
  #511  
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I think United's fare engine is drunk tonight.

I just booked a flight, IAH-LGA return for right after Thanksgiving. The post transaction pop up box said, upgrade? The IAH-LGA leg was listed as "unavailable" and the return leg alone was $679. Obvious pass, as I paid about half that for the ticket and because who cares that much for a 3 hr flight.

Then it tickets and I click upgrade flight, and it offers an upgrade on BOTH legs for $749 total.

No thanks jeffy. I'll wait for my $99-109 TOD and see how I feel.
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Old Oct 18, 2014, 5:17 pm
  #512  
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Flying IAH-MCO tomorrow, been booked on the same PNR (so same exact fare construction) with a companion. Split at checkin today. Went to check the upgrade offers from our reservations -
No-status reservation: $397
Platinum reservation: $465

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Old Oct 18, 2014, 8:36 pm
  #513  
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Originally Posted by mduell
No-status reservation: $397
Platinum reservation: $465
Well obviously since you pay UA enough money to make it to Plat, you can afford the extra $69.
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Old Oct 18, 2014, 10:33 pm
  #514  
 
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My take on these is that UA's mantra to Wall Street has been the ancillary fees are going to be the way to high profitability, so they are doing whatever they can to get them pumped up. With an assumption that elites aren't likely to take them, so they may as well offer them to the kettles for less.
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Old Oct 18, 2014, 11:03 pm
  #515  
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Originally Posted by 1kBill
.....With an assumption that elites aren't likely to take them, so they may as well offer them to the kettles for less.
Sorry the logic of this statement is escaping me.
1- Why wouldn't elites who travel far more frequently be a target for paid upgrades. Especially mid-level elites with low chances of CPU.
2-Since elites travel more frequently, they tend to be a high percentage of the passengers on most flights, why would you target only a portion of the customer base.
3-Why would you price something higher to a supposedly "less susceptible" group and lower to a "more susceptible" group? That is the reverse of most pricing models I am aware of.
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Old Oct 19, 2014, 7:21 am
  #516  
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Originally Posted by WineCountryUA
Sorry the logic of this statement is escaping me.
1- Why wouldn't elites who travel far more frequently be a target for paid upgrades. Especially mid-level elites with low chances of CPU.
2-Since elites travel more frequently, they tend to be a high percentage of the passengers on most flights, why would you target only a portion of the customer base.
3-Why would you price something higher to a supposedly "less susceptible" group and lower to a "more susceptible" group? That is the reverse of most pricing models I am aware of.
Because an elite being given these offers repeatedly (as they travel more) would become quite an alienating experience, and potentially damage long-term consumption of the brand (aka, flying UA).

Whereas there are fewer ramifications by targeting those less frequent customers.

Makes perfect sense to me - it's a dirty and quite telling behavior IMO.
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Old Oct 19, 2014, 7:28 am
  #517  
 
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Originally Posted by WineCountryUA
Sorry the logic of this statement is escaping me.
1- Why wouldn't elites who travel far more frequently be a target for paid upgrades. Especially mid-level elites with low chances of CPU.
2-Since elites travel more frequently, they tend to be a high percentage of the passengers on most flights, why would you target only a portion of the customer base.
3-Why would you price something higher to a supposedly "less susceptible" group and lower to a "more susceptible" group? That is the reverse of most pricing models I am aware of.
The short answer is because that isn't how UA looks at us at all...

1. The view elites as someone already committed to them and no need to reward
2. See #1 - they already have us so they focus on others...
3. IMO It's become all about customer acquisition to UA, not retention. They are assuming - perhaps falsely - that their elites are going to mostly stay with them, so they focus all their efforts (and marketing spend i.e. less expensive upgrade costs) on converting their less committed customers into the brand with a better experience.
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Old Oct 19, 2014, 8:37 am
  #518  
 
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Originally Posted by WineCountryUA
Sorry the logic of this statement is escaping me.
1- Why wouldn't elites who travel far more frequently be a target for paid upgrades. Especially mid-level elites with low chances of CPU.
2-Since elites travel more frequently, they tend to be a high percentage of the passengers on most flights, why would you target only a portion of the customer base.
3-Why would you price something higher to a supposedly "less susceptible" group and lower to a "more susceptible" group? That is the reverse of most pricing models I am aware of.
Actually, it's UA's logic that escapes me. Offering low ball U/G's to non-elites while pricing them higher - often substantially higher - to elites does not strike me as a profit maximizing method since UA loses the non-elite ancillary fees that non-elites would pay (bag fees, meals, E+, etc.) Then there's the irritation factor to elites that must be worth something, even in UA's convoluted thinking that elites are over-entitled.
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Old Oct 19, 2014, 9:07 am
  #519  
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Originally Posted by mduell
Flying IAH-MCO tomorrow, been booked on the same PNR (so same exact fare construction) with a companion. Split at checkin today. Went to check the upgrade offers from our reservations -
No-status reservation: $397
Platinum reservation: $465

I'd love to see UAInsider explain this one.
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Old Oct 19, 2014, 10:17 am
  #520  
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Originally Posted by 1kBill
My take on these is that UA's mantra to Wall Street has been the ancillary fees are going to be the way to high profitability, so they are doing whatever they can to get them pumped up. With an assumption that elites aren't likely to take them, so they may as well offer them to the kettles for less.
The mistake is thinking that United is in the airline or transportation business. It's in the ancillary fees collection business; it only provides air transportation (at the lowest possible level of service) to generate opportunities to collect fees.

Originally Posted by halls120
I'd love to see UAInsider explain this one.
I e-mailed United a couple weeks ago about my case where the price difference is about 3-4x and am still awaiting a response.

Last edited by Doppy; Oct 19, 2014 at 10:25 am
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Old Oct 19, 2014, 10:53 am
  #521  
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Originally Posted by halls120
I'd love to see UAInsider explain this one.
We will never hear this "officially" addressed, unfortunately.
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Old Oct 19, 2014, 10:55 am
  #522  
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Originally Posted by UA-NYC
Because an elite being given these offers repeatedly (as they travel more) would become quite an alienating experience, and potentially damage long-term consumption of the brand (aka, flying UA).

Whereas there are fewer ramifications by targeting those less frequent customers.

Makes perfect sense to me - it's a dirty and quite telling behavior IMO.
I continue to believe that the principle explanation for the price discrimination is that UA wants to send message to its frequent flyers that they can not count on a free or cheap upgrade. WFBF. Whereas with the occasional flyer, they view it is a pure revenue opportunity with no long term ramifications.

But some interesting theories out here and no real way to know what the "real" answer is.
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Old Oct 19, 2014, 1:50 pm
  #523  
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$39 for MSP-ORD a few weeks ago on a 737. I took it since I was rebooked onto the flight and had a middle seat assigned. I'm a general member and jumped in front of the ~20 on the upgrade list.
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Old Oct 19, 2014, 1:56 pm
  #524  
 
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Just another anecdote...

My friends, non status on AS, received a text the morning of their recent SEA-SFO flight offering a buy up to F for $50 each (2 pax).

They were checking bags anyway, so took it thinking 'I am only paying $25 extra to sit in F'.

Hopefully all of the loyal AS elites were accommodated before this TOD offer was broadcast!

Texting out upsell offers - Nobody has observed this behavior (yet) with UA, right?
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Old Oct 19, 2014, 2:11 pm
  #525  
 
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Originally Posted by LarkSFO
Just another anecdote...

My friends, non status on AS, received a text the morning of their recent SEA-SFO flight offering a buy up to F for $50 each (2 pax).

They were checking bags anyway, so took it thinking 'I am only paying $25 extra to sit in F'.

Hopefully all of the loyal AS elites were accommodated before this TOD offer was broadcast!

Texting out upsell offers - Nobody has observed this behavior (yet) with UA, right?
HA! I'm pretty sure United is years away from mastering that technology...
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