Value of 1K when GPUs don't clear despite 20+ open seats?
#106
Join Date: Nov 2013
Location: PHX, SEA
Programs: Avis President's Club, Global Entry, Hilton/Marriott Gold. No more DL/AA status.
Posts: 4,422
My interpretation is that it isn't malicious (as someone is claiming), but rather United has decided the morale boost of NRSA in premium cabins is more valuable than the GPU or saver miles. They are allowed to look after their employees, afterall.
#107
Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,686
I was merely suspicious.
I mean, how do you explain 16 J seats are open when the flight is about to close the door but there is no saver award?
Meanwhile, 16 UA employees are on standby, nobody else is even on upgrade list. Yet PN=PZ=IN=I=0.
The only way to ensure these UA employees to ride in business class for free, is to block these spaces by IM.
Nobody can redeem miles for the saver award, and nobody buying tickets 24 hours before departure can upgrade because you can't even request waitlisted if PZ=0.
Yes United is a private company, but this kind of behavior (if true) hurts the bottom line of United.
I mean, how do you explain 16 J seats are open when the flight is about to close the door but there is no saver award?
Meanwhile, 16 UA employees are on standby, nobody else is even on upgrade list. Yet PN=PZ=IN=I=0.
The only way to ensure these UA employees to ride in business class for free, is to block these spaces by IM.
Nobody can redeem miles for the saver award, and nobody buying tickets 24 hours before departure can upgrade because you can't even request waitlisted if PZ=0.
Yes United is a private company, but this kind of behavior (if true) hurts the bottom line of United.
#111
Join Date: Oct 2015
Location: ORD
Programs: 1K
Posts: 121
#112
FlyerTalk Evangelist
Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,720
My son did get upgraded just now, so my immediate problem has been solved. But the broader quesion remains as to how United trades off "the value of loyalty" against "additional revenue" it can generate with the last-minute offers. It's of course perfectly reasonable for United to prioritize that additional revenue over whatever future revenues they would get from my loyalty, but then it becomes reasonable for frequent flyers to investigate other airlines where that loyalty may be rewarded with better perks (such as upgrades that are more likely to clear).
Lots of interesting points and counter points here. Thank you for engaging. All major airlines have GPU (or equivalent) policies for a reason: those loyal flyers account for a large share of the airlines' business. So the key question is whether not letting GPUs clear within T-24 even when 20+ seats are open is a profit-maximizing strategy for united.
Let's think about the extremes just to make this point clearly:
At one extreme, selling all open Polaris seats to the highest bidders until the last minute, before allowing any GPUs to be redeemed, is not optimal because then GPUs become virtually worthless, and the loyalty unravels.
At the other extreme, I admit that clearing GPUs when there are only, say, 3 open seats is not optimal for united because they'd like to wait and see if someone buys a ticket last minute.
So the optimal strategy is somewhere in between these extremes. I'm only arguing that choosing to not allow GPU redemption when there are 20+open seats and trying to sell them, is not optimal strategy because it does not engender loyalty. It sounds like others feel differently
Let's think about the extremes just to make this point clearly:
At one extreme, selling all open Polaris seats to the highest bidders until the last minute, before allowing any GPUs to be redeemed, is not optimal because then GPUs become virtually worthless, and the loyalty unravels.
At the other extreme, I admit that clearing GPUs when there are only, say, 3 open seats is not optimal for united because they'd like to wait and see if someone buys a ticket last minute.
So the optimal strategy is somewhere in between these extremes. I'm only arguing that choosing to not allow GPU redemption when there are 20+open seats and trying to sell them, is not optimal strategy because it does not engender loyalty. It sounds like others feel differently
But on the flip side I have made >24 hour changes on numerous TATL and TPAC flights in paid C. I appreciate that UA keeps some seat open for paid business travelers rather than forcing us to downgrade or wait for another flight (which wouldn't be smart business sense).
I agree that United seems to err on the side of being way too conservative in clearing GPUs when inventory is wide open, but in the end it doesn't really matter to me if it is 2 hours, 2 days or 2 months. If PZ=0 at time of booking, I won't count at all on clearing the GPU.
Last edited by Boraxo; Mar 13, 2019 at 10:13 am
#113
Join Date: Nov 2012
Programs: BA Bronze, United 1K, HH Gold, SPG Platinum, Marriott Platinum
Posts: 3,477
If R=0 at time of booking, I won't count at all on clearing the GPU.
#114
FlyerTalk Evangelist
Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,720