United to launch "No-Frills" fares in 2016 according to Credit Suisse analyst
#31
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This would be potentially damaging to a lot of business travelers using corporate travel agencies. Right now pretty much any fare class domestically in Y is equal for an elite (except for instant upgrades on Y/B/M for 1K, priority on CPU, and RDMs based on spend) so if you pick the lowest fare you're good to go. My company nags on policy technically being book lowest fare but allows you to pick a higher economy fare for time/carrier alternate airport preference (as long as it isn't ridiculously high in price, e.g. above $1K domestic roundtrip).
There's a giant red letter bold-and-italicized warning on the last page before confirming a booking which tells people booking Delta tickets that they have to click the "Fare Rules" link per segment to see if they have Booking Class E (and if they do, non-refundable completely, with no advance seat assignment [and a randomly assigned seat at check-in for no possibility of changes], but you do get miles).
Given that miles are spend based I would be very surprised to see fares that didn't earn miles, but airlines are keen to try anything nowadays it seems...
There's a giant red letter bold-and-italicized warning on the last page before confirming a booking which tells people booking Delta tickets that they have to click the "Fare Rules" link per segment to see if they have Booking Class E (and if they do, non-refundable completely, with no advance seat assignment [and a randomly assigned seat at check-in for no possibility of changes], but you do get miles).
Given that miles are spend based I would be very surprised to see fares that didn't earn miles, but airlines are keen to try anything nowadays it seems...
#32
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Unless anybody has solid data, I'll stick with what DL and AA have and UA likely has as well. People will jump at a chance to save $15-20 and if they get stuck in a middle seat near the lav or have $0 value if they can't make their flight, so be it.
Businesses which require their people to book "lowest logical" will beed to define these fares out of "logical." In the business environment they make zero sense. Not because of miles, UG's and other perks, but because they can't be changed and retain no value.
If a business won't change, that's a labor issue for the employee, not a fare issue for the carrier.
Businesses which require their people to book "lowest logical" will beed to define these fares out of "logical." In the business environment they make zero sense. Not because of miles, UG's and other perks, but because they can't be changed and retain no value.
If a business won't change, that's a labor issue for the employee, not a fare issue for the carrier.
#33
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Can UA please make these no frills fares not upgradeable including via TOD et all? Worst would to be sitting on a wait listed instrument and have it sold out from under you to a rock bottom fare with a TOD.
#34
Join Date: Feb 2014
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If businesses start requiring people to book fares that don't earn miles, then I predict that the amount of business travel will drop dramatically.
This will be very good for the airlines biggest customers (companies), very bad for airlines, and I would argue, a net positive for actual travelers (less time on the road, less crowded planes when we do travel, etc).
This will be very good for the airlines biggest customers (companies), very bad for airlines, and I would argue, a net positive for actual travelers (less time on the road, less crowded planes when we do travel, etc).
#35
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This "race to the bottom" is exactly what consumers have asked for.
NK wouldn't be the fastest growing airline in the country if everyone who flew them immediately swore them off completely and actually stuck by that.
Jetblue tried to keep more pitch but people didn't want to pay for it, so now that pitch is going away.
It would be intriguing if Kayak could show you the price per cubic inch of space you'll get, that might turn some heads! (I know this is in no way practical or really doable but it would be interesting none the less)
NK wouldn't be the fastest growing airline in the country if everyone who flew them immediately swore them off completely and actually stuck by that.
Jetblue tried to keep more pitch but people didn't want to pay for it, so now that pitch is going away.
It would be intriguing if Kayak could show you the price per cubic inch of space you'll get, that might turn some heads! (I know this is in no way practical or really doable but it would be interesting none the less)
Google Flights does this a little bit, and Hipmunk has tried with its "Agony" ranking, but I think it's time these sites regained their transparency lead and introduced things such as:
--A drill-down into the exact fare being purchased. Exact seat pitch, exact seat width (differs for exit rows and bulkheads, for instance), rating of the seat model being used, exact A/V/wifi options offered and whether included or not.
--Careful, precise listings of whether carry-ons and personal items incur a charge, along with water, soft drinks, etc.
--Perhaps an average rating of the exact seat from collated sources like SeatGuru, SeatExpert, and others.
This'll take a new level of big data from the advocates of transparency, but it's doable with today's technology.
Meanwhile, the airlines are counting on inertia and laziness from the transparent sites and are doing everything they can to make the true cost of travel difficult for most travelers to figure out.
#36
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#37
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I think they view people who have bought these cheapo tickets as a captive market and will definitely be hawking all the regular items. That's how the LCC's make money so it wouldn't make sense for UA not to offer upgrades as well.
#38
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Perhaps not so far off. It's a constant battle of transparency vs. opacity. The airlines keep finding creative ways to make fares more opaque. It's time for Kayak and the other sites, who carried the original banner of transparency, to ramp it up a notch.
Google Flights does this a little bit, and Hipmunk has tried with its "Agony" ranking, but I think it's time these sites regained their transparency lead and introduced things such as:
--A drill-down into the exact fare being purchased. Exact seat pitch, exact seat width (differs for exit rows and bulkheads, for instance), rating of the seat model being used, exact A/V/wifi options offered and whether included or not.
--Careful, precise listings of whether carry-ons and personal items incur a charge, along with water, soft drinks, etc.
--Perhaps an average rating of the exact seat from collated sources like SeatGuru, SeatExpert, and others.
This'll take a new level of big data from the advocates of transparency, but it's doable with today's technology.
Meanwhile, the airlines are counting on inertia and laziness from the transparent sites and are doing everything they can to make the true cost of travel difficult for most travelers to figure out.
Google Flights does this a little bit, and Hipmunk has tried with its "Agony" ranking, but I think it's time these sites regained their transparency lead and introduced things such as:
--A drill-down into the exact fare being purchased. Exact seat pitch, exact seat width (differs for exit rows and bulkheads, for instance), rating of the seat model being used, exact A/V/wifi options offered and whether included or not.
--Careful, precise listings of whether carry-ons and personal items incur a charge, along with water, soft drinks, etc.
--Perhaps an average rating of the exact seat from collated sources like SeatGuru, SeatExpert, and others.
This'll take a new level of big data from the advocates of transparency, but it's doable with today's technology.
Meanwhile, the airlines are counting on inertia and laziness from the transparent sites and are doing everything they can to make the true cost of travel difficult for most travelers to figure out.
#39
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There was a poll over at the United Insight Boards (forum run by moderators working with United) about this, so no doubt it is coming. Sounds like they're still gathering feedback on how to roll it out. Here were some of the questions:
- United is considering a new ticket pricing option to better compete with low cost carriers. This would be an option to purchase a ticket at the lowest fare (approximately 5-10% less than the next best price) but you would not have the ability to choose a seat, use Premier benefits, or change your ticket. Based on this description, how interested would you be in this new discounted ticket option, if at all?
- Given the restrictions of not having access to choosing a seat, not being able to use Premier benefits, or not being able to change your ticket, how likely would you be to purchase this discounted fare option, if at all?
- Assuming you’ve purchased this lower-fare ticket, how interested are you in the opportunity to buy back some aspects of your Premier benefits (i.e. Economy Plus seating, ability to change tickets), if at all?
Poll results were mostly a negative reaction (but I doubt this would stop United from pursuing this). 80% of over 150 respondents are "Not at all interested" in this
- United is considering a new ticket pricing option to better compete with low cost carriers. This would be an option to purchase a ticket at the lowest fare (approximately 5-10% less than the next best price) but you would not have the ability to choose a seat, use Premier benefits, or change your ticket. Based on this description, how interested would you be in this new discounted ticket option, if at all?
- Given the restrictions of not having access to choosing a seat, not being able to use Premier benefits, or not being able to change your ticket, how likely would you be to purchase this discounted fare option, if at all?
- Assuming you’ve purchased this lower-fare ticket, how interested are you in the opportunity to buy back some aspects of your Premier benefits (i.e. Economy Plus seating, ability to change tickets), if at all?
Poll results were mostly a negative reaction (but I doubt this would stop United from pursuing this). 80% of over 150 respondents are "Not at all interested" in this
I love how they say 5% to 10% lower.
SFO-LAS is $29, LAX-ORD is $41.
We didn't see prices just 5-10% north of that before F9 and Spirit came to town.
Are they telling me they'll offer me a $41 ticket LAX-ORD with no perks or a $43-$45 ticket LAX-ORD with perks? I don't think so.
If you look at it historically, the "low fare" was $129 or so, and the ultra-LCC match fare is $41.
I think that's more in line with what we'll be looking at.
#40
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Without elite benefits, I'll just book the lowest priced ticket. Does United really want this?
#41
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No. They want you to pay up for a fare that comes with benefits. Which I suspect most of us here will do. I personally will not buy a non-upgradeable, non-changeable, no seat assignment, no E+ fare.
#42
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I definitely think it pays to look at the way Delta has rolled this out. Consider a route like MSP-FLL, which is hub-to-vacation spot for DL, and also a non-stop route served by NK. All of Delta's published E fares MSP-FLL are $10 cheaper than a normal fare on a half round trip basis, and they are actually using backwards differential faring to achieve this. Think like an /UPDI fare for premium cabin travel, but instead the cheap E fare is VEVQA0MN/[something chopped off on ITA] which books into E and requires both V and E space to book (and is discounted $10 from the underlying basis).
Meanwhile, NK is still underselling DL on that route by $25 each way, and the DL site pops up this giant, scary warning about E fares if you try to book one. I honestly think DL (and AA and UA if they follow) are going to be careful about this, and not jump in to try to force their customers further down towards the bottom. They know a lot of the customers they have left value what little is still available even in Y-.
#43
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I agree. Watching the way DL has marketed E fares as "basic economy", I actually think the legacies' strategy here might be to deliberately highlight all the drawbacks of these new fares in an attempt to make customers feel better about paying a small premium to stay off of LCCs. It also takes the pressure off to match an LCC fare with a "full service" fare of their own.
#44
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And a lot of those pax aren't exactly potential lifelong elites; I'm sure UA is taking that into account w/r/t the poor experience.
#45
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My guess is that "status" will be bumped to the bottom of the line according to fare paid, status, etc. - like with upgrades now. My hunch is that if I try to use the lower fare, I will be not be able to book a seat until the day of the flight and then wait listed for E+ or even an aisle or window seat in E-. I 'll bet upgrades to business or domestic first will not be allowed - unless maybe as a benefit of the Explorer Card.
We'll see.
But if they took out the elites from getting E+, than it will be really empty!
Especially when an 739 on DL has only 21 E+ seats vs UA having 42!
Plus UA is famous for copying DL.