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PN vs PZ -- Why such a difference?

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Old Jul 3, 2019, 10:23 am
  #46  
 
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Originally Posted by jsloan
Nonsense. UA has clearly shown that they have the ability to create as many buckets as they want. It’s not a lack of ability that’s preventing them from creating a 1K-only upgrade bucket; it’s a lack of desire.
I have some firsthand knowledge of what needs to go into creating the technical solution - it is far more complex than you think because of all the different systems it needs to touch.
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Old Jul 3, 2019, 10:25 am
  #47  
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Originally Posted by gldwebs
I have some firsthand knowledge of what needs to go into creating the technical solution - it is far more complex than you think because of all the different systems it needs to touch.
OK, but they do have the ability to do it — they did exactly that when they created the PZ bucket in the first place. That would have been the time to create the extra buckets, even if they didn’t add the business rules to link them to anything yet.

But, you’re right; I made it sound simple, and it’s not simple. Neither is it a priority, though.
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Old Jul 3, 2019, 10:27 am
  #48  
 
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Originally Posted by jsloan

OK, but they do have the ability to do it — they did exactly that when they created the PZ bucket in the first place. That would have been the time to create the extra buckets, even if they didn’t add the business rules to link them to anything yet.

But, you’re right; I made it sound simple, and it’s not simple. Neither is it a priority, though.
Yeah, with all their other technical challenges (that I cannot go into), it is far from a priority. I think you will sooner see a flying pig on their home page than see something like this implemented.
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Old Jul 3, 2019, 10:28 am
  #49  
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Originally Posted by spartacusmcfly
Let's call it 6x -- meaning the average GS spends 6x the average 1K. By that logic, the space should at least be PN6/PZ1. Not sure why you feel the upgrade availability should be 100% for GS and 0% for rest of preimium status customers.
It’s not a fair analysis: the PZ bucket attracts a much larger audience.
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Old Jul 3, 2019, 10:43 am
  #50  
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Originally Posted by gldwebs
Am I the only one here that recognizes UA is a business? I dont know many businesses that make money by creating a better product and constantly giving it away. The PN7 PZ0 makes a ton of sense. Most GS members are PAYING for F anyway (Im in paid F at least 75% of the time). GS members give 4-40x the revenue of 1k and are FAR more profitable. on a $ comparison - my $15k in flights to a 1k's $15k in flights (to compare equally) are probably worth 2x or more because mine are high value lower costs to UA. They WANT people with those flying patterns to be very happy. Last year I flew 88k actual BIS miles on around $50k in spend. That is far more valuable to them than the 1k flying 100k BIS for $15k. They WANT me to get an upgrade the few times I am stuck in coach then they want you to get it. I am not trying to be "Im better than you" here, but its a great business decision to keeping their money. Most 1k fliers are not necessary loyal, but are more likely hub-stuck to UA. Sure, an ORD person can go to AA, but there really isnt that big of a differentiation at this point to bother changing since you already spent the time building to 1k, have a bunch of banked miles, branded CCs, etc. You ARENT leaving unless your company makes you leave OR the competitors offer something awesome (which, they arent). I, on the other hand, could leave. I am buying international business class tickets. I could have bought my ticket on singapore airlines in their superior product, but I chose to consolidate with UA because I also fly to the EU (where I could fly LH F). They KNOW I would leave them because the GS benefits are not that much more above what I could get paying for F/C with top tier international fliers. This is the reality of the world. 1K and below are not getting something for free unless UA is 100% sure they wont sell it.

<NOTE: This post was not meant to piss anyone off but rather be a frank assessment of how I believe UA is looking at the difference between a GS and a 1K.>
This "<insert name of airline> is a business" argument has been brought out so many times over the years. Yes, the airline is a business, however United has an obligation to make good on the features and amenities that it promises customers - there is no value in, and actually an argument could be made for fraud, in stating "you will receive an upgrade certificate valid for Polaris Business worldwide from any W or higher fare" then taking deliberate steps to make sure the certificate can almost never be redeemed.

Delta is an example of an airline that has deliberately restricted global upgrades, made its frequent flyer program nearly unusable for any desirable redemption, and leads an almost useless global alliance, yet offers and communicates the value proposition of a product that is remarkably better than United - and has the ability to clearly articulate its value proposition and unique selling features, while continually improving the product. For example, Delta is introducing hot towel service and upgraded dining in international coach.

The problem with United is a very limited value proposition (hey, we're in Star Alliance and fly to lots of places - beyond that, really nothing), has no current unique selling features (Polaris is NOT unique, nor is it even great anymore), and does absolutely nothing to articulate any sort of value or benefit to customers - but just continually cuts service and product under the false narrative of "normalizing to the industry", which in Kirby's eyes means cutting or restricting along with other airlines, but refusing to follow other airlines in upgraded services or products.

So, yes, United is a business - but it's a very poorly run business with the wrong leadership and just happens to be making money off the coattails of a strong economy, but as the economy weakens and global travel demand softens, it is at greater risk vs carriers who still offer a desirable product at a fair price. I am not suggesting that United give away all of its seats for mileage redemptions and upgrades, but there should be more transparency and a clearer path to customer expectations around this benefit.
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Old Jul 3, 2019, 1:19 pm
  #51  
 
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Originally Posted by bocastephen
So, yes, United is a business - but it's a very poorly run business with the wrong leadership and just happens to be making money off the coattails of a strong economy, but as the economy weakens and global travel demand softens, it is at greater risk vs carriers who still offer a desirable product at a fair price. I am not suggesting that United give away all of its seats for mileage redemptions and upgrades, but there should be more transparency and a clearer path to customer expectations around this benefit.
I think the US market has shown that it doesn't matter. All the major legacy carriers are doing about the same thing. Leave one because you dont like the benefits and go to the other until you realize its no different. For most business travelers (which is where the money is at) its around best schedule for the right price. I wouldnt be surprised if one day almost all the benefits of FFP are completely gone. Already, most domestic business flights go out with near full PAID F since the prices dropped for F vs Y and internationally, they frequently go out full. Revenue management technology is so sophisticated today that there is little guess work. All that you will be left with is a program for spending the miles given to you by your credit card, since those are SO profitable.
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Old Jul 3, 2019, 1:31 pm
  #52  
 
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One other aspect of this not addressed here is how much inventory of PZ is released and used in reality vs. PN space. Yes, I get that it's frustrating to see PN7 PZ0, but I also wonder how much of the challenge in using GPU's is related to the fact that with so many 1K's and GPU's as the main means of upgrading, the space just goes very quickly.

As an example, I monitored PZ space very closely last year on LAX - SYD and while PN space sat unused for weeks, the day PZ space opened (at PZ4), I immediately confirmed into 2 of those spaces and within ~6 hours the rest was gone. The GS pool is much smaller and GS has many more means to get into business class with GS benefits so there's a visibility issue in all of this - if PN space sits available much longer, it will always be very visible that there's availability, and with so many 1K's, a lot of the PZ space that comes available gets taken very quickly and thus you will see PZ0 the majority of the time.

Just thinking the comparison of total PZ vs. PN space released and used on aggregate each year would be slightly different from anecdotal searches, and given GS numbers vs. 1K, even if PZ space doubled, a majority of folks would still be unhappy.
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Old Jul 3, 2019, 1:44 pm
  #53  
 
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Originally Posted by spartacusmcfly
I completely understand UA offering more benefits to GS vs 1K. That said, I get frustrated when I see flights like this. Why PN7 and PZ0? Is the 1K really worthy of zero upgrade benefits, while the GS gets access to 1/4 of the J cabin? I completely understand PN2/PZ0 or PN6/PZ4...but I can't understand PN7/PZ0. Seems completely arbitrarily. Is there some logic to this or simply a poorly written algorithm on the part of United IT? BTW, the flight is completely empty in J right now! SFO-BOS in late August...


Any sense of how often this brilliant algorithm refreshes? Weekly, daily?
I only wish I experience this more often, quite honestly I have seen PN AND PZ BOTH ZERO far too often. I can’t even remember when I’ve seen PN space greater than zero. Of course, as usual, YMMV.
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Old Jul 3, 2019, 1:56 pm
  #54  
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Originally Posted by nomad420

I only wish I experience this more often, quite honestly I have seen PN AND PZ BOTH ZERO far too often. I can’t even remember when I’ve seen PN space greater than zero. Of course, as usual, YMMV.
Well I'm waiting for PZ>PN, but so far n luck.
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Old Jul 3, 2019, 2:05 pm
  #55  
 
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Originally Posted by spartacusmcfly
Sorry, what does x4-x10 spend mean? Are you saying a GS typically spends 2.5x more than a 1K in a calendar year?

yes. Typically at least 2.5 times and up. Approx GS spend is $45k min and up on exclusive UA metal in premium fares. 1K can be $15k with virtually all *Alliance.
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Old Jul 3, 2019, 2:09 pm
  #56  
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Originally Posted by gldwebs
I think the US market has shown that it doesn't matter. All the major legacy carriers are doing about the same thing. Leave one because you dont like the benefits and go to the other until you realize its no different. For most business travelers (which is where the money is at) its around best schedule for the right price. I wouldn't be surprised if one day almost all the benefits of FFP are completely gone. Already, most domestic business flights go out with near full PAID F since the prices dropped for F vs Y and internationally, they frequently go out full. Revenue management technology is so sophisticated today that there is little guess work. All that you will be left with is a program for spending the miles given to you by your credit card, since those are SO profitable.
I would say to the contrary - there is a vast difference between Spirit/Frontier and Delta, and big difference between Southwest and United. However, only Delta is able to establish a reputation for a premium product that does get a price premium, and Southwest continues to maintain its own reputation for no-frills value with great service, often at a higher price than Spirit/Allegiant or Frontier. At this point, only United and American are struggling with their own identity, lacking a clear product vision, any communication of their value propositions or what makes their products desirable - and what do they have in common? They are both led by someone who is a protege of arguably the worst (from a customer/employee perspective) airline leader in history, next to Frank Lorenzo, Ben Baldanza.

Delta has made it clear that product quality matters....features matter....service matters...and people WILL pay a reasonable premium for a better experience.

Airlines are doing well today because the economy is strong and fuel prices are under control - that can, and will change in the future - and when it does, airlines who don't have a plan to capture and maintain business from a shrinking customer base will discover they are in a very bad situation. I support foreign ownership of a US operating airline, provided the foreign owner is from a country that does not have economic or political conflict with the USA and crews are US citizens or residents, as it would inject capital into the industry and create competition for US carriers, forcing them to either innovate or be swept away.
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Old Jul 3, 2019, 2:18 pm
  #57  
 
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Originally Posted by bocastephen
I would say to the contrary - there is a vast difference between Spirit/Frontier and Delta, and big difference between Southwest and United. However, only Delta is able to establish a reputation for a premium product that does get a price premium, and Southwest continues to maintain its own reputation for no-frills value with great service, often at a higher price than Spirit/Allegiant or Frontier. At this point, only United and American are struggling with their own identity, lacking a clear product vision, any communication of their value propositions or what makes their products desirable - and what do they have in common? They are both led by someone who is a protege of arguably the worst (from a customer/employee perspective) airline leader in history, next to Frank Lorenzo, Ben Baldanza.

Delta has made it clear that product quality matters....features matter....service matters...and people WILL pay a reasonable premium for a better experience.

Airlines are doing well today because the economy is strong and fuel prices are under control - that can, and will change in the future - and when it does, airlines who don't have a plan to capture and maintain business from a shrinking customer base will discover they are in a very bad situation. I support foreign ownership of a US operating airline, provided the foreign owner is from a country that does not have economic or political conflict with the USA and crews are US citizens or residents, as it would inject capital into the industry and create competition for US carriers, forcing them to either innovate or be swept away.

and thats why GS matters so much to me and many UA fliers. Without it’s very rich (relative) benefits I wouldn’t be so loyal to UA. And. UA knows this. This the PN vs PZ inventory really matters. And as suckey as it maybe for a 1K (again) I totally get it.


Also to understand that loads are a dynamic thing. PZ7 can turn to PZ1 or PZ0 at the drop of a hat due to revenue J purchase. Thus safeguarding some inventory is a great differentiating benefit for a GS where many (like GPU clearing) are increasingly harder to achieve.
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Old Jul 3, 2019, 3:30 pm
  #58  
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Originally Posted by saccoNY



and thats why GS matters so much to me and many UA fliers. Without it’s very rich (relative) benefits I wouldn’t be so loyal to UA. And. UA knows this. This the PN vs PZ inventory really matters. And as suckey as it maybe for a 1K (again) I totally get it.


Also to understand that loads are a dynamic thing. PZ7 can turn to PZ1 or PZ0 at the drop of a hat due to revenue J purchase. Thus safeguarding some inventory is a great differentiating benefit for a GS where many (like GPU clearing) are increasingly harder to achieve.
Or due to the changing of the hour. Upgrade space, like any discount bucket, changes more often because of some forecasting calculation than because of load conditions.
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Old Jul 3, 2019, 3:40 pm
  #59  
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Originally Posted by n8-the-gr8
Yes, I get that it's frustrating to see PN7 PZ0, but I also wonder how much of the challenge in using GPU's is related to the fact that with so many 1K's and GPU's as the main means of upgrading, the space just goes very quickly.
I’d wager it’s almost none.

Originally Posted by n8-the-gr8
As an example, I monitored PZ space very closely last year on LAX - SYD and while PN space sat unused for weeks, the day PZ space opened (at PZ4), I immediately confirmed into 2 of those spaces and within ~6 hours the rest was gone.
The fact that you booked 2 may well have made UA re-evaluate its load projection and decide it could sell the other seats after all. The assumption you’re making, that somebody else was watching and gobbled up the two other seats, isn’t necessarily true.

FlyerTalk is not a representative sample of UA flyers.

Originally Posted by bocastephen
However, only Delta is able to establish a reputation for a premium product that does get a price premium
DL’s best reputation is on the UA forum. DL flyers love to hate DL in much the same way that UA flyers love to hate UA.

To the extent that they get a price premium, I imagine it has less to do with people being willing to pay more for a superior product — because we have countless examples that people, en masse, simply aren’t, and more to do with the specific routes that they fly and the hub premiums they’re able to extract.

Nearly every flyer-unfriendly change that UA has implemented has been a copy of something DL’s done, sometimes taken to the next degree (e.g., BE).
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Old Jul 3, 2019, 4:07 pm
  #60  
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Originally Posted by Kmxu
..
One of my wishes is that UA will downgrade the upgrade priority of R class (premium plus). Non elites should not be placed ahead of elites with high economy fare class. I have no problem with A and O classes because they are much more expensive than R class and most Economy class fares.
How are non-elites going from PP to C?
Would actually be nice if A/O/R cleared into PN with a GPU.
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