BE fare drastic price increase -- UA's early April 2020 fire sale over?
Apr 14, 2020, 1:01 pm
#1
Original Poster
Join Date: Nov 2004
Programs: UA 1K (Million Miler). AA Gold (lifetime 1 Million). TK Elite Gold
Posts: 894
BE fare drastic price increase -- UA's early April 2020 fire sale over?
Hello. Last week, I reviewed BE fares from PHL to IAH for period from May to September 2020.
N fare basis was plentiful with itineraries in BE four times weekly in both directions.
Now, same fares have increased in price at least four fold with N basis availability >9.
What has happened in such a short time? Will N basis fares "normalize" or is the new "norm" for this routing?
N fare basis was plentiful with itineraries in BE four times weekly in both directions.
Now, same fares have increased in price at least four fold with N basis availability >9.
What has happened in such a short time? Will N basis fares "normalize" or is the new "norm" for this routing?
Apr 14, 2020, 1:12 pm
#2
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,392
Hello. Last week, I reviewed BE fares from PHL to IAH for period from May to September 2020.
N fare basis was plentiful with itineraries in BE four times weekly in both directions.
Now, same fares have increased in price at least four fold with N basis availability >9.
What has happened in such a short time? Will N basis fares "normalize" or is the new "norm" for this routing?
N fare basis was plentiful with itineraries in BE four times weekly in both directions.
Now, same fares have increased in price at least four fold with N basis availability >9.
What has happened in such a short time? Will N basis fares "normalize" or is the new "norm" for this routing?
Apr 14, 2020, 1:13 pm
#3
FlyerTalk Evangelist
Join Date: Aug 2015
Posts: 11,460
You were seeing their stop-gap pricing while they watched what was happening with demand. Prognosticating, I think they're done with the fire sale pricing.
Note that N is not a normal fare bucket, so N9 only means there are still seats on the plane. This is a change to the fare pricing, not the inventory management.
Note that N is not a normal fare bucket, so N9 only means there are still seats on the plane. This is a change to the fare pricing, not the inventory management.
Apr 14, 2020, 1:25 pm
#4
Original Poster
Join Date: Nov 2004
Programs: UA 1K (Million Miler). AA Gold (lifetime 1 Million). TK Elite Gold
Posts: 894
You were seeing their stop-gap pricing while they watched what was happening with demand. Prognosticating, I think they're done with the fire sale pricing.
Note that N is not a normal fare bucket, so N9 only means there are still seats on the plane. This is a change to the fare pricing, not the inventory management.
Note that N is not a normal fare bucket, so N9 only means there are still seats on the plane. This is a change to the fare pricing, not the inventory management.
Apr 14, 2020, 1:36 pm
#5
Join Date: Mar 2016
Location: Houston/DC
Programs: UA 1K, 1MM
Posts: 564
I have to agree with fumje. I believe the fire sale on fares is over (at least for now). UA finally realized that the only people who are flying right now "need" to travel. Glad I purchased most of my tickets out thru the end of July while the fares were low.
Apr 14, 2020, 4:33 pm
#6
Join Date: Jun 2006
Location: SJC/SFO
Programs: UA lifetime gold; Hilton Gold; Marriott/SPG Plat; Hyatt Discoverist
Posts: 2,954
The other day a flight from SFO-IAH-SAL (San Salvador in Central America) was over $5000 in business.
usually it is $1200-1500; I could not understand what was going on
This explains it.
usually it is $1200-1500; I could not understand what was going on
This explains it.
Apr 15, 2020, 3:29 pm
#8
Join Date: Jun 2001
Location: SFO/ATL/MEL/BKK
Programs: Marriott Plat, Hilton Diamond, IHG Diamond, Hyatt Globalist UA 1K MM, Delta Diamond
Posts: 2,678
Airfares have pretty much gone back to normal. No more super cheap fares, or last minute fares.. I was lucky to get BOS-SFO-LAS recently for $70. Used PP for J. Service sucked and no blankets. Wouldn't say it was worth much more than $70 lol. Even the BOS lounge was closed although it was advertised as open
Apr 15, 2020, 5:19 pm
#9
Join Date: Jan 2005
Location: New York, NY
Programs: UA, AA, DL, Hertz, Avis, National, Hyatt, Hilton, SPG, Marriott
Posts: 9,448
I seriously doubt we've seen the end of pricing variability and volatility related to the crisis. More likely is UA is tinkering with pricing to get an idea of (nonexistent) long-term demand elasticity, to compare with historical trends.
Speaking for myself only, I'm not even looking at long-term travel plans until there's more clarity on when things are going to spool back up. It's not good for my mental health!
Speaking for myself only, I'm not even looking at long-term travel plans until there's more clarity on when things are going to spool back up. It's not good for my mental health!
Apr 15, 2020, 7:09 pm
#10
Join Date: Jun 2004
Location: Washington, DC
Programs: UA Gold 1MM, AA EXP, HH Diamond, MR Gold, Avis PC, Hertz PC
Posts: 1,252
I'm wish I had taken advantage of the fire sale Cancun fares for mid-November. I'll just hold out until or if they come back down...if not, meh.
Apr 15, 2020, 7:20 pm
#11
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
Those fares only occurred while UA (and other carriers) figured out how to price in the new reality. Those ultra-cheap fares were not sustainable. Now that capacity is back to matching rational price demand, there is at least some hope that carriers pull through, albeit with a ton of government support.
Apr 15, 2020, 8:40 pm
#12
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,392
This has nothing to do with capacity matching demand. It's just that there's little reason to offer discounts when prices aren't the reason that people aren't buying.
Apr 16, 2020, 12:11 am
#15
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,392
The CDC-suggested two meter buffer is wholly impractical on an airplane. For a narrowbody, with UA's current Y seats, they'd be able to fill one out of every 9 seats -- you'd need to skip two rows and then fit one person in the window seat of the third row, basically. Even with lower fuel costs, there's just no way that they can charge enough for those seats to make it profitable.