humanoid94

However they spin this, it sounds a lot like these will not be a "whole new fare" but instead strip benefits from the lowest fare classes. Basically, they are trying to adopt the Ryanair model without super cheap ($.01 fares) fares and while there are other carriers offering more benefits (checked baggage!) for less money.

I really think a merger with CO is in the best interest of my UA friends, this airline is really on a slippery slope.

jeffjfj

But then it's not much different from the E+ upsells that are offered now on many (most? all?) flights. Instead of $99 for an E+ upgrade, sell the upgrade plus some "priority access" for $140. I'm sure there are plenty of elites (even 2P's and 3P's) who are now getting bumped by 1-time E+ upgraders.

As for "segmentation", the only reason it's even there now is as an attempt to maximize revenue. If "muddier segmentation" leads to even more revenue, UA will do it. If UA thought they'd make more money by having lowest-fare pax board before 1K's, they'd do it. Unfortunate as it is, UA's "loyalty" (like any airline's) extends only as far as the bottom line.

whlinder

I myself am extremely skeptical of how successful such a model will be in the U.S., especially with WN and their "fee-free" marketing, but the airlines are just scratching the surface of unbundling now and it will get worse and worse (if you think unbundling is bad, if you think it is good then it will get better and better).

as219

I'm pretty sure this is false. In the first place, UA just kicked out all non-UA *G and non-elite Y/B fares from automatic E+ access. That's a lot of folks that used to sit up there but now aren't. Second, keep in mind that as it stands now, E+ buy-up opportunities don't come until check-in at the earliest or at the latest at the gate. The only elites being "bumped" out of E+ are basically irrops or standbys; any elite who books more than 24 hours in advance is virtually guaranteed to get E+ unless, of course, E+ is already sold out.

Of course, full-fare elites who switch at the last minute and wind up paying top dollar for E- seats will be peeved and rightly so. The easy solution is to hold back a handful of E+ until the last minute. But this is going to be a problem regardless of any policy changes; full planes are full planes.

BigAppleCoder

This sounds akin to what Continental and Delta tried to do a few years ago when they lowered the EQM value by 50% on lowest fares. There was such a huge outburst from the FF community that they backed off. Lesson learned - don't f*ck with FF accumulation. United should pay heed.

LinBros

While the concept of "Premier for a day" has not been launched and therefore may change significantly before it does, the description that was provided on the webcast seemed to indicate that it would be offered at time of booking.

That would put it in significant conflict with real elites who tend to book close and are concerned about E+ seats going to those who haven't earned them. The concept of buying E+ access for a year seems less intrusive since if used frequently the purchaser was likely to move to elite status anyway.

If the "Premier for a day" maintains traction, hopefully it becomes a day of departure product which is a slightly more expensive version of E+ upsell.

waxhell

Sounds like my corporate travel policy would nickle and dime me into taking these low cost fares. This may be what UA is banking on, that some corporate travellers will be attracted by these fares due to very restrictive corporate policies.

ChrisA330

Wrong. $20 for the cheap Tango and Tango Plus...free for others

Wrong again. Free same day standby on Latitude and Executive fares.

http://www.aircanada.com/en/news/oneway/index.html

camachinist

Purchase such fares as walk-up? ^

Otherwise

Given the short-staffing currently extant, dealing with the additional problems generated by a la carte fares would be counterproductive, IMO.

Time to short UAUA?

Pat

yyzprincess

I paid changed fee for C-Discounted fare. I posted this several times on AC Forum.

SFOTRAVELER

I believe this "disaggregation" model is pervading so many other sectors of American consumerism, that it will be easily understood by most of the general flying public. It's another pushback to the "massclusivity" and "snobmoddities" trends epitomized by buying up into E+ (see: http://www.trendwatching.com/trends/)

Another "bare fare" story here: http://www.denverpost.com/business/ci_4826081

Dieuwer

I really depends on the final price the "Premier for a day" product will have.

If it is low enough to attract the average mom-and-pop flyer, I will seriously undermine the loyalty of the UA FF. Why exclusively fly with UA in the hope of maintaining elite status if you will get scr*w*d anyway at check-in because some infrequent flyer snatched the last exit row or upgrade seat away from you because he paid for the "premier for a day"?

ElmhurstNick

Unbundling is a great concept. Except it works both ways... right now I bundle my L/T and Q/U travel all onto one airline. Domestically, I fly about 40% L/T segments, 35% S/W/V, and 25% Q/U.

If United unbundles and won't give me exit row because I buy too many L/T segments... then I'll unbundle as well. The Q/U fares could easily have been A fares on US, DL, or AirTran. The S/W/V fares and the work L/T ones can go to a mix of Southwest, JetBlue, and Frontier.

And the leisure L/T segments? Well, I just won't take those trips anymore, at least not domestically.

gglave

There's chatter on the Air Canada forum about United following AC's model and going "a la carte."

http://www.denverpost.com/business/ci_4826081

United is considering selling tickets that would offer customers a bare minimum for air transportation that would not include in the price the ability to check bags, get frequent fliers and assigned seats. The "bare fare concept" would feature a basic promotional fare and the option to buy seat assignements, the ability to check bags and get a frequent flier mile credit.

United's senior vice president of planning Greg Taylor said United thinks such a concept has "a lot of potential going forwrard" during United's investor day presentations today.

I realize the majority of pax just pick the lowest fare, and therefore UA has no choice but to do this.

However, unfortunately for me and United that will cost them my USA-flights business. Currently, if I have to book a business trip I can usually convince the bean counters to steer the booking to United and get a few Air Canada aeroplan miles. If United goes a-la carte like AC, what I *won't* be able to do is convince the bean counters to steer it to a United fare class that includes points, seat selection, checked bags etc. If that's the case I'll probably just book my US travel on whatever carrier works best and/or start steering my travel over to Delta Airlines - There's no incentive for me to pick United.

(Apologies if there's already a thread about this - I searched the forum and couldn't find one.)

Cheers,
Geoff Glave
Vancouver, Canada

milepig

Previously discussed at:

http://www.flyertalk.com/forum/showthread.php?t=635199