Wild speculation on UA's new strategy for Polaris, Upgrades and Award Space
I lurk here on FT a lot, and there are quite a few active threads right now regarding various problems, oddities, and dissatisfaction with UA's seat availability and pricing, particularly on premium cabin Int'l routes. Now, a month into 2019, I look at my upcoming travel (business and personal) and note that not very much of it at all, is on UA. So I started digging deeper into the why of that, out of a lot of curiosity, and went back to re-search for flights. My travel patterns alone obviously don't point to a trend in UA's business overall, but there are certainly a few patterns that seem to be emerging:
1) UA is no longer trying to compete (or even match) Business Class fares from most cities, at least to Asia. I have upcoming travel in late-winter & spring to TPE and SIN (separate trips). The former is on BR. The latter is on AC+SQ. For any dates within 2 weeks of either trip, UA is consistently $600-$2000 more expensive than other *A partners, and that's even in cases where UA is a connection and the other airline is nonstop. That also includes options on NH, which is in a JV partnership with UA for TPAC... My travel patterns this time of year have been relatively consistent for the last 3-4 years, and this is the first time in that timeframe where UA wasn't either price-matched or cheaper than the alternatives. 2) For leisure travel, to Asia and South America, award ticket availability heavily favors partners. For most Asian destinations, the only Business Class seats available are "Everyday" awards, priced at 175,000 points each-way. However, there's plenty of partner J space available at 80-90k! UA jacked the price of partner awards from 70k-80k to discourage partner redemptions... but then has jiggered its own award space in such a way that partner redemptions are the only reasonably-priced options! This seems to fly pretty hard into the face of their originally-stated goal of encouraging people to stay on UA metal. (And it's not like we're talking about full planes... for plenty of dates only 3-4 weeks away in Feb/March, there's lots of flights with P9 / I0.) 3) The criteria for making 1K (and thus earning GPUs) has continued to tighten. We're past the Jan 31 cutoff for the new program year, and this year's threshold is $15k PQD. In theory, this tightening should be winnowing away the ranks of 1Ks, thus making the category more exclusive, and thus making the GPUs less of a drain on UA's inventory. And yet, even aside from the PZ0 availability "error" currently occurring, upgrade space is scarcer than ever, meaning they're issuing fewer GPUs even as they make them all but impossible to actually use. It's difficult to fathom what strategy is in play here, that I can look <2 weeks out and see mid-week SFO-TPE sitting at Z9/P6, and yet cash-on-the-barrel, connecting flights from West Coast gateways like SEA, LAX or YVR are anywhere from $400-$1000 less expensive on AC, BR or NH. AND there's no upgrade space (PZ0), and no award space available for <175k points. Are corporate sales and Polaris so strong that they're actually selling all of these tickets close-in at exorbitant prices?? Are they just removing all advance availability and close-in or battlefield upgrading people who chose to waitlist, rather than releasing the inventory in advance? Or has someone in Revenue Mgmt just gotten approval to try something new, and we'll have to see if this bites them in the butt, in a few quarters...? I guess I'm in the minority in that I'm a small business traveler, so I'll never benefit from a corporate contract. But I have to imagine that if I'm buying J tix on other airlines because of this stuff, others have to be doing the same...? At this rate, I'll be lucky to make Gold on UA next year, much less 1k, if their pricing continues to be so out-of-whack, and I can never confirm an upgrade! (Not that I guess it matters... thank goodness for MM status??) Strange to be in a position where I'm no longer actively booking-away from UA, as I did in past years due to merger issues, service quality, etc... and finally when I wouldn't mind flying UA, they've implemented some (to me) incomprehensible strategy that makes it excessively expensive, unpalatable, or both, to actually book on them! I'm literally at a loss to figure out why, unless my travel patterns are just completely out of whack, vis-a-vis their target market. |
Originally Posted by Darlox
(Post 30747907)
1) UA is no longer trying to compete (or even match) Business Class fares from most cities, at least to Asia. I have upcoming travel in late-winter & spring to TPE and SIN (separate trips). The former is on BR. The latter is on AC+SQ. For any dates within 2 weeks of either trip, UA is consistently $600-$2000 more expensive than other *A partners, and that's even in cases where UA is a connection and the other airline is nonstop. That also includes options on NH, which is in a JV partnership with UA for TPAC... My travel patterns this time of year have been relatively consistent for the last 3-4 years, and this is the first time in that timeframe where UA wasn't either price-matched or cheaper than the alternatives.
Originally Posted by Darlox
(Post 30747907)
2) For leisure travel, to Asia and South America, award ticket availability heavily favors partners. For most Asian destinations, the only Business Class seats available are "Everyday" awards, priced at 175,000 points each-way. However, there's plenty of partner J space available at 80-90k! UA jacked the price of partner awards from 70k-80k to discourage partner redemptions... but then has jiggered its own award space in such a way that partner redemptions are the only reasonably-priced options! This seems to fly pretty hard into the face of their originally-stated goal of encouraging people to stay on UA metal. (And it's not like we're talking about full planes... for plenty of dates only 3-4 weeks away in Feb/March, there's lots of flights with P9 / I0.)
Originally Posted by Darlox
(Post 30747907)
Are corporate sales and Polaris so strong that they're actually selling all of these tickets close-in at exorbitant prices?? Are they just removing all advance availability and close-in or battlefield upgrading people who chose to waitlist, rather than releasing the inventory in advance? Or has someone in Revenue Mgmt just gotten approval to try something new, and we'll have to see if this bites them in the butt, in a few quarters...?
Originally Posted by Darlox
(Post 30747907)
I guess I'm in the minority in that I'm a small business traveler, so I'll never benefit from a corporate contract. But I have to imagine that if I'm buying J tix on other airlines because of this stuff, others have to be doing the same...? At this rate, I'll be lucky to make Gold on UA next year, much less 1k, if their pricing continues to be so out-of-whack, and I can never confirm an upgrade! (Not that I guess it matters... thank goodness for MM status??) Strange to be in a position where I'm no longer actively booking-away from UA, as I did in past years due to merger issues, service quality, etc... and finally when I wouldn't mind flying UA, they've implemented some (to me) incomprehensible strategy that makes it excessively expensive, unpalatable, or both, to actually book on them! I'm literally at a loss to figure out why, unless my travel patterns are just completely out of whack, vis-a-vis their target market.
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Originally Posted by Darlox
(Post 30747907)
1) UA is no longer trying to compete (or even match) Business Class fares from most cities, at least to Asia. I have upcoming travel in late-winter & spring to TPE and SIN (separate trips). The former is on BR. The latter is on AC+SQ. For any dates within 2 weeks of either trip, UA is consistently $600-$2000 more expensive than other *A partners, and that's even in cases where UA is a connection and the other airline is nonstop. That also includes options on NH, which is in a JV partnership with UA for TPAC... My travel patterns this time of year have been relatively consistent for the last 3-4 years, and this is the first time in that timeframe where UA wasn't either price-matched or cheaper than the alternatives.
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Originally Posted by Darlox
(Post 30747907)
(And it's not like we're talking about full planes... for plenty of dates only 3-4 weeks away in Feb/March, there's lots of flights with P9 / I0.)
Originally Posted by Darlox
(Post 30747907)
Are corporate sales and Polaris so strong that they're actually selling all of these tickets close-in at exorbitant prices?
Originally Posted by Boraxo
(Post 30748222)
Concur. The old Continental used to throttle *A partner awards but UA discontinued that process after the merger.
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Originally Posted by mduell
(Post 30748377)
Also 9 seats isn't a lot when you're still a month out.
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Originally Posted by mahasamatman
(Post 30748393)
P9 doesn't mean 9 seats. It means at least 9. In fact, with P9, it's almost guaranteed that there are at least twice that many actual Business Class seats open.
And it certainly doesn't mean at least 18, regardless of there being an eligible P fare currently published. |
Is it possible that there is a significant preference for some consumers to fly UA internationally as opposed to partners, especially after the introduction of Polaris?
That would explain just about everything- they can charge a premium because they get it. Another possibility is they make more money selling TOD upgrades than upgrading FF'ers. |
Originally Posted by Boraxo
(Post 30748222)
Concur. The old Continental used to throttle *A partner awards but UA discontinued that process after the merger. Maybe it is cheaper to pay the partners than to give up a seat that will likely be sold at a nice profit.
. PMCO did no such thing. |
Originally Posted by Boraxo
(Post 30748222)
Ditto for Europe. BA is $1000 cheaper for SFO-LHR (used to be the opposite). Admittedly UA has a better product now. And of course on the US side the demand is far higher for UA (people want UA miles) than BA.
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Originally Posted by ctownflyer
(Post 30749053)
PMUA did starnet blocking.
PMCO did no such thing. Wonder how long it will take UA to fix the "glitch" blocking SQ, TAP and Thai award bookings? |
Originally Posted by Darlox
(Post 30747907)
I
3) The criteria for making 1K (and thus earning GPUs) has continued to tighten. We're past the Jan 31 cutoff for the new program year, and this year's threshold is $15k PQD. In theory, this tightening should be winnowing away the ranks of 1Ks, thus making the category more exclusive, and thus making the GPUs less of a drain on UA's inventory. And yet, even aside from the PZ0 availability "error" currently occurring, upgrade space is scarcer than ever, meaning they're issuing fewer GPUs even as they make them all but impossible to actually use. |
The pricing problem mainly seems to be in the first part of 2019. I've found $2.8K RT TATL discount business for two flights in May and June and while doing a little early research even found PZ on flights for dates that are pretty set in stone for the fall. (Per my usual practice, when I find that, I book it. Worst case is a change fee.) For the spring, I've been booking more BA, even though I am not keen on connecting at LHR due to the short initial flight. They do have more upgrade space, though.
What UA revenue management is doing eludes me (I know they pay a lot of money to do it - I am also familiar enough with it to question whether it is working optimally). On international, they seem to be doing contradictory things - trying to charge more and advertising Polaris while degrading the experience, putting in more J seats while taking away PZ and loyalty benefits. Maybe they think they have found a way to get more money for a lesser product, but count me skeptical. |
It's odd for sure.
So far this year, I have only flown and booked E tickets with GPU applied (and cleared, luckily), and award tickets. P fare pricing, as of yet, is out of reach for me. I'll likely make 1k again, but with lower PQM/GPU earnings. |
Originally Posted by Darlox
(Post 30747907)
At this rate, I'll be lucky to make Gold on UA next year, much less 1k, if their pricing continues to be so out-of-whack, and I can never confirm an upgrade! (Not that I guess it matters... thank goodness for MM status??) Strange to be in a position where I'm no longer actively booking-away from UA, as I did in past years due to merger issues, service quality, etc... and finally when I wouldn't mind flying UA, they've implemented some (to me) incomprehensible strategy that makes it excessively expensive, unpalatable, or both, to actually book on them! I'm literally at a loss to figure out why, unless my travel patterns are just completely out of whack, vis-a-vis their target market.
Increasing 1K PQD, reducing the P bonus to 1.5 while continuing to ratchet fares, incomprehensible faring strategies like LAX-BOS that I've pointed out elsewhere, and eviscerating PZ is too much. It's time to spread the dollars again. However, it's important to note that UA is doing well, and I am a "self-managed" nobody. The reality is I will miss the old 1K more than the new 1K will miss me. |
Even when booking through United.com sometimes the partner flights are better priced. Especially to India (I know these two flights sell briskly in J and for good reason). Sure, there is the JVs, but still I smile when I see this. Almost seems like an encouragement to fly partners. Oh well...
Probably will end up just like last year: grab whatever flight to make $15K and then spend the rest on AC, LH, LX. And go to SU and MU when *A is just too expensive for my company's blood. Better MU in J than any plane in Y when going TPAC. |
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