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Old Dec 13, 2006, 2:14 am
  #16  
us2
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I don't see what this proposal gains. People who are that price sensitive don't want to be nickel and dimed to death with hidden charges. They want to get from A to B and know what it's going to really cost them. I've noticed a new Southwest ad on this very theme recently; the ad features a guy on a plane being forced to stick coins in the overhead, in the seat to get it to recline, etc. I think this approach plays right in to the hands of the LCCs who offer a known product at a fixed price. As some have noted, WN and B6 offer an arguably better coach product domestically as it is -- and make it easier to book their flights (no India and no .bomb).
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Old Dec 13, 2006, 3:31 am
  #17  
 
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I'm with us2 the worst thing that UA could do would be to have a million charges that start to kick in after you think that you've booked a great deal on a full-service airline. Knowing UA, these would be additional fares that fall into S and T buckets, further complicating the arcane pricing scheme that UA clings to. At least AC has simplified to 4 fares. This has always been one of Southwest's strengths - fare transparency.
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Old Dec 13, 2006, 8:52 am
  #18  
 
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My understanding is that AC only offers the lowest Tango fares on their website, and not through corporate travel agents. Last time I bought an AC ticket for work, it was a Tango Plus, and was the lowest available fare from the agent at work. I got 100% EQMs or whatever (on UA).

Is this the case, or am I on crack? One would assume United would do the same? (Part of the low fare is avoiding the margin usually given to the travel agents.)
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Old Dec 13, 2006, 9:34 am
  #19  
 
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Would Apply to Non-Elite Members

I think the important take away is that these "Bare Fares" would be offered to non-elites.
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Old Dec 13, 2006, 9:56 am
  #20  
 
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This would be the beginning of the end of United being a full service airline, imho.
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Old Dec 13, 2006, 10:02 am
  #21  
 
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Unbundling is coming and is the future.

For better or worse.
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Old Dec 13, 2006, 10:58 am
  #22  
 
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This is good in theory, but...

Originally Posted by whlinder
Unbundling is coming and is the future.

For better or worse.
I just don't see how this would work. Your average infrequent flyer wants two things that are usually in conflict: the lowest possible fare and a high-level of service, comparable to the heyday of air travel. UA could make all of the disclosures about added fees and limited seating and such, but the fact of the matter is that consumers don't want bare-bones service. If they did, a U.S. version of Ryan Air would have been created by now.
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Old Dec 13, 2006, 12:05 pm
  #23  
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From the ID talk it looks like you will be able to buy a bare fare, then choose from the a la carte menu an advance seat assignment, checked bags, etc. There is going to have to be some kind of enforcement of carryon limits for the bare fares. I can see all the BFs (Bare Farers) trying to lug on a duffel and 2 shopping bags to avoid the checked bag charge.

There are people are willing to forgo the extra services for a really cheap price. I remember taking the standby, no checked bags flights (ORD-LAX) some years ago for $25.
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Old Dec 13, 2006, 12:49 pm
  #24  
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Originally Posted by CHOwahoo
If they did, a U.S. version of Ryan Air would have been created by now.
Isn't that called WN?

Best, Dave
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Old Dec 13, 2006, 1:43 pm
  #25  
 
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Originally Posted by gfowler-ord-1k
From the ID talk it looks like you will be able to buy a bare fare, then choose from the a la carte menu an advance seat assignment, checked bags, etc. There is going to have to be some kind of enforcement of carryon limits for the bare fares. I can see all the BFs (Bare Farers) trying to lug on a duffel and 2 shopping bags to avoid the checked bag charge.

There are people are willing to forgo the extra services for a really cheap price. I remember taking the standby, no checked bags flights (ORD-LAX) some years ago for $25.
All this will lead to is full fare flyers staying away. You can't be all things to all people. There are thousands of failed business carcasses to prove this.
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Old Dec 13, 2006, 1:52 pm
  #26  
 
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I can't see myself purchasing any of these flights, as I often go on extended trips and have yet to do a roundtrip in a day ... but ... the name "bare fare" should be changed for marketing reasons. Perhaps "a la carte" or "fare du jour" would work. :-) It's less of a negative name.

You know, the next idea airlines will look into is having people stored in the cargo hold along with live animals. You'll be lucky to get a chamber pot to do your business in if you really have to go!
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Old Dec 13, 2006, 2:00 pm
  #27  
 
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Originally Posted by paytonc
I posted over in the investor conference thread:
The lowest of the low (Tango with all discounts) lacks standby, refunds, and any changes; earns no EQM, only 50% RDM, and 33% of online booking bonus miles; and adds fees for sports equipment, call center or airport service, changes, same day changes, onboard food, seat selection, and checked bags. (Higher fare classes don't pay those fees, and get lounge access, etc.)

Compared to that product, at least the LCCs allow checked baggage, customer service calls, and standby seating.
On AC:

1.*GOLD on Tango fare get access to Lounges.

2.Higher fares do pay fees to call center for NA bookings. Including "J" class fares.

3.There is no free same day standby on AC for any restricted discounted fares including discounted Business Class fare. I had to pay a fee for my "C" class fare (Discounted Business Class) for an earlier flight as my meeting finished earlier.

AC nickel & Dimes no matter what type of discounted fare you pay including discounted business.
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Old Dec 13, 2006, 10:27 pm
  #28  
 
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Originally Posted by zrudeboyz
Interesting concept and I do remember reading about AC doing this; but would UA reduce the lowest fares or strip these benefits from the current lowest fares?
I would bet money that it would involve stripping benefits from the current lowest fares. I don't know if they can actually pull this off in the US. AC might be able to in Canade...but here in the US there are many choices. I know that changes such as these would likely send me packing back to CO....well unless CO and UA are one I have no interest in flying UA if they want to fashion themselves into Ryanair.
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Old Dec 14, 2006, 2:19 am
  #29  
 
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While I have no problem with the Bare Fares concept, I was troubled by another idea discussed in the same section of the webcast:

Fare Unbundling And Value-Added
Product Features Provide Significant
Revenue Opportunities
• Premier for a day
– For a nominal fee, customers can purchase elite
status for a single trip which gives them
• Priority boarding
• Priority security line access
• Priority check-in, etc.
• One day Red Carpet pass
– Purchase a single visit airport club pass
What is upsetting to me is that this "Premier For A Day" really has the potential to undermine the value of Economy Plus and Priority Security Lines -- two elite benefits which are near and dear to all elites. Such a move muddies the segmentation of elites from fare shoppers and could easily deprive a 1K from E+ on a last minute booking -- UGS are guaranteed E+ and could "bump" a lower elite or one of these "singlke day wonders".

While I applaud UA's creativity, this one should have been DOA.
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Old Dec 14, 2006, 3:02 am
  #30  
 
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SQ and CX are all on bare fare concept. They usually sell bottom low fare (lower than UA) with no mileage accrual. They had succeed because they have a larger pool of travellers who are usually vacationers or casual flyers. That is also my reason not to choose them and put all my business to UA. If UA goes for bare fare, then it levels the playing field. My choice would not only limited to UA, I can then have SQ, CX, ANA and OZ to choose from.
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