wxguy

Where did you see that? From:

morelegroom

Fascinating
When I was a state employee we were required to do the exact opposite. We bought the lowest fare and the University put 15% into an imprest fund for paying for changes and cancellations. Our auditors had determined that it was much cheaper than buying refundable tickets. In fairness we did little spur of the moment travel.

Hipplewm

The difference is my costs are passed on to a client. If I bought something and had to cancel and that money was lost my boss has to pay from company funds and that money isn't refunded by anyone.


If I by refundable, they add 15% and charge the client

win/win for my company and zero risk

flyerbjorn

I'm not sure that's a big problem. This change will benefit folks that already buy tickets in premium classes. It's an incentive to keep buying premium class tickets instead of upgrading.

I buy intl and domestic business most of the time and I don't use my GPUs and RPUs. Why? Cause I'd rather be confirmed in C/F than worry about upgrades. If I need a last minute change, that's easily accommodated. Just need to check which planes have seats, not upgrade space.

sapguy

Thanks for providing this example, which supports my strategy of using cheap paid F tickets in 2016.

As previously stated, my employer's Concur/AMEX booking engine only allows me to book the lowest available coach fare (which in some case could be M or B, but most often T or V) and that ticket is paid for directly by my employer. Once that ticket has been issued, I will immediately call the 1K desk and if I get a knowledgeable agent, I will then pay the difference for the lowest paid F fare (which I should already know from researching in advance on United.com).

It's a bit more work and a few more $$ out of my pocket, but I get:
1. A guaranteed F seat
2. 200% PQM, which is really the more important part for me ^

NH_Clark

Our company is moving to Concur next year. Looks like I might have to follow your process. I am seeing some cheap F fares for early next year. BOS-PIT with connections each way in F for $430. Low enough that I'll eat the cost.

sapguy

Yep, I think that it makes a lot of sense, with the 200% PQM scheme.

The key to success is to get a knowledgeable 1K rep when you call in since that rep will need to know how to waive the $200 change fees during the rebooking to paid F or C. Otherwise, the rebooking fee negates all the positives.

This means that you will need to call the 1K within hours of the Y ticket being issued in order for them to waive the change fees as a 'courtesy' to a 1K.

fireflash

Wouldn't the analogy in your situation be that you buy the cheapest fare, and charge your clients cheapest+15% for the cancellation contingency fund? That way the money doesn't have to come from generic company funds, it comes out of the specific pot of money you have assigned for this purpose.

Michael D

I see low fares for the F cabin but not fully refundable F fares.

RandomBaritone

Did you expect otherwise?

It's gratifying to see the airlines finally realize there's a significant cohort whose travel plans are generally fixed, but who enjoy riding up front.

sapguy

+1

And with the F domestic product steadily increasing in quality, 'reasonably priced' F tickets make more and more sense.

The newly refurbished F seats on the A320/319 are such a pleasure, compared to the pathetic old ones. The meals are getting marginally better too. They now serve the Goose Island Goose IPA as an alternative to the old standby Heineken and if they ever step up to Lagunitas, then we'll all be smiling

Now, if they can also improve the wines...

bldr1k

I made more than 20 flight changes last year. Obviously I try to reduce last minute changes but not because of cost - with United you get stuck in a crappy seat in the back of the plane.

When I cancel a non-refundable ticket I don't lose anything - it just costs me $200 or $300 to change it. Basic math would say that if a non-refundable one-way is $300 and a refundable is $500, you could change every single ticket one time and break even.

Hipplewm

Then who do you bill that to?

So, if I buy a ticket and cancel it, then buy another ticket to a different client, who pays the change fee? First client who doesn't get billed or second client who is overpaying for a ticket now? Or, My Boss?

I am not trying to be funny here, I just don't get it, most of the time, there is very little difference between refundable and non refundable. Going from M to Y/B is generally very little money. Sometimes, I book so late that there is no difference between refundable and non refundable. (I think that was mainly Delta though, haven't played enough with United to know for sure)

Also, if I buy a ticket and cancel it, do I have to do anything special to use the leftover money or what? What happens if I cancel, rebuy, cancel and rebuy 2-3 times between a ticket I actually fly? Do I pay a change fee each time or just the last time when I fly?

Also, what happens when you book 3 tickets for like one each day, just in case you are called and cancel the ones you don't use?

Michael D

No. I have never seen a fully refundable F class fare at 9.5 cpm. So if the example were fully refundable it is a rare example in my experience.

If I did find one I would snap it up if there was the slightest chance I might need it.

I like extra PQMs for discounted Business and First. It is not a game changer but yes it is a nod in appreciation at those who purchase such fares.

I would like to see some of those low F fares on my routes.

fireflash

That's where the whole charge ticket + 15% to build up a fund to pay for the change fee. Cheaper for the client and if there are fewer cancellations than expected, a tiny bit of additional profit.