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United to launch "No-Frills" fares in 2016 according to Credit Suisse analyst

United to launch "No-Frills" fares in 2016 according to Credit Suisse analyst

Old Dec 9, 15, 9:40 pm
  #76  
 
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Would people with the UA CC still get a free checked bag if they buy this E-?

The vast majority don't fly enough to worry about FF miles, and with the revenue RDM, they even care less. Most want the cheapest fares and a free checked bag.

Many have flown WN because of the free bags.
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Old Dec 9, 15, 9:57 pm
  #77  
 
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Originally Posted by NH_Clark View Post
hmmm.. I'm guessing you aren't or haven't been a salesperson road warrior. While corporate policies frequently dictate "lowest fare" etc.. there is a some fudge factor and that is completely at the discretion of the sales person a large percentage of the time. Not all companies.. but in the high-tech world quite a few.

So.. while your over simplistic and erroneous "dialogue" sounds to the neophyte as true.. no "successful" salesperson would ever use an excuse of ".. I don't get miles anymore" <face_palm> the conversation actually is something more like:

Manager: Sales are down
Sales Reps: Company has asked for costs to be reduced.. kept me from being on the road.. I'd rather be in front of the customer
Manager: I don't care what the bean-counters say.. get out there and get the numbers up

sales reps start flying again and book based on their own preference with a general nod towards "expense control"

So.. back to the topic: I'm guess this is UA's way of converting an existing leisure-flying base to up-revenue opportunities. George&Mary flying for vaca .. see cheap fare on UA.. book and then pay up for any additional "services" al la Spirit. They may be able to entice some competitor's customers over.. but unless they can undercut the fare.. I don't see George&Mary switching. Almost exclusively the leisure flyer uses fare as the deciding factor.
And you guess incorrectly. 40 years in sales and sales management in high tech.

High tech isn't the economy, but the notion that the removal of FFM from sales or other business travel will change it is patently ridiculous. If you don't think managers don't know the games sales people try to get points you are inexperienced in upper management. They do.

Let's see, manager is signing weekly expense reports and doesn't notice travel is down? Maybe in your company, but not the norm. " Corporate" doesn't dictate policy without going through the manager except in pathological companies.
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Old Dec 9, 15, 10:20 pm
  #78  
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MODERATOR NOTE AND TOPIC CHECK

Discuss the issue (which is "United to launch "No-Frills" fares in 2016") but not each other as future posts regarding the latter will be deleted

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Last edited by goalie; Dec 10, 15 at 10:20 am Reason: added more to the moderator note
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Old Dec 10, 15, 10:19 am
  #79  
 
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Originally Posted by Karl-MDW View Post
And with today's announcement about the return of free snacks, I wonder if E Lite customers will get these or whether the FAs will not even stop at these rows for free beverages and snacks.

It will be interesting to see how all this plays out.

At least United (and I think Oscar) are making a part of my fixation with flying a little interesting if not fun again!


LX doesn't have a seperate seating area for their "lite" fares, not sure about DL does. I doubt FAs would easily be able to easily tell the difference between "no-frills" and "really no-frills".
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Old Dec 10, 15, 10:36 am
  #80  
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Originally Posted by bocastephen View Post
Business travelers will always work the system to make sure their preferences and benefits are maintained - anyone who doesn't understand this happens every day is very naive.

Delta E fares are only on certain routes where they compete with LCCs - not every route, not every flight.
My emphasis. The idea that DL E fares are found only where DL faces ULCC competition is a bit of a fiction. E fares can be found on routes where DL faces no such competiton; indeed, to/from airports that have no ULCC carriers! (Check ATL-GNV, for example.)

Delta has expanded the city pairs with E fares very significantly. IMHO they're looking a big fraction of people to show they're willing to pay for a seat assignment in advance, and for elites to show they'll pay for upgrade eligibility.
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Old Dec 11, 15, 8:56 pm
  #81  
 
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I agree with those that worry what this does to business travelers at firms without contracts, but with lowest fare domestic policies (which is all I've ever seen). If the differences are really just ~$20, then it probably isn't a huge deal, and I think common sense wins (or individuals will pay the difference if they care). But I think about my usual route - BOI-NYC. I'm usually paying $500-800 for lowest Y. I wonder what happens to my fares in this model. If suddenly $500 is the unbundled no perks fare and $800 is the fare with perks, I'd face a serious challenge justifying a $300/trip delta (or even $100/trip), and that's also something I'd have a hard time deciding to pay for on my own.

Originally Posted by dank0014 View Post
I really don't believe this is going to affect business travel. Most businesses have contracts and agreements in place with UA (or other airlines for that matter).
I'm not sure I agree with this. I've always worked in smaller businesses, from 10-300 people. Even at 300 people, we're very far from being in a position to negotiate a contract. 50% of the US labor market is employed in businesses <500 people, and I'd guess only a very small percentage of those firms have any material contracts/discounts. Of course it really depends on the # of travelers - a 100 person company where everyone travels probably could make that happen, but in most firms a fairly small subset of the staff travels. So, yes, big consulting or b2b services firms (and the like) certainly have contracts and these firms likely won't be impacted. But for the 50% of employees that work for <500 person firms, that probably do have a travel policy requiring lowest reasonable Y fare, but don't have contracts, are likely to suffer from these types of fares. Fortunately for me, I set travel policy , but as I pointed out above, if the deltas are in the $100+ range for RT, then it will be hard to make the case to not use these fares.
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