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Author Topic: United Rolls Back Some Of Its Basic Economy  (Read 1635 times)

Offline SearchGuy

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United Rolls Back Some Of Its Basic Economy
« on: September 06, 2017, 11:19:33 AM »
« Last Edit: September 06, 2017, 11:45:59 AM by SearchGuy »
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Offline AJK

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Re: WOW! United Rolls Back Basic Economy!!!
« Reply #1 on: September 06, 2017, 11:24:38 AM »
Just as AA rolls it out nation-wide.

ROFL.
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Offline Dan

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Re: WOW! United Rolls Back Basic Economy!!!
« Reply #2 on: September 06, 2017, 11:24:54 AM »
#FakeNews
You fell for the clickbait title?
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Offline SearchGuy

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Re: WOW! United Rolls Back Basic Economy!!!
« Reply #3 on: September 06, 2017, 11:28:42 AM »
Quote from: Dan on September 06, 2017, 11:24:54 AM
#FakeNews
You fell for the clickbait title?
Isn't that what clickbait is all about?
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Offline AJK

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Re: WOW! United Rolls Back Basic Economy!!!
« Reply #4 on: September 06, 2017, 11:29:17 AM »
Worrisome, though, is "However, we under-appreciated that incremental revenue from buy-up would be more than offset by share loss to legacy carriers without similar Basic Economy offering."

It's not perfectly clear, but if that terms is used accurately, it means pax have been booking away to DL and AA--not B6, WN, and AS.  If so, that means that AA's full-fledged jump in the pool may see less of "booking away," and UA may reconsider.

Then again, how could Kirby know that pax are booking away to legacy carriers w/o BE, and not to non-legacy carriers?
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Offline Dan

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Re: WOW! United Rolls Back Basic Economy!!!
« Reply #5 on: September 06, 2017, 11:29:24 AM »
Doesn't mean you have to post it here with a #FakeNews title.
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Offline SearchGuy

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Re: WOW! United Rolls Back Basic Economy!!!
« Reply #6 on: September 06, 2017, 11:30:44 AM »
Quote from: Dan on September 06, 2017, 11:29:24 AM
Doesn't mean you have to post it here with a #FakeNews title.
Honestly I didn't read through before posting...  ;D
Tweaked the title
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Offline Geshmak25

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Re: United Rolls Back Some Of It's Basic Economy
« Reply #7 on: September 06, 2017, 11:39:18 AM »
I don't get why economy basic is being viewed as "customer unfriendly". It gives the option to the customer to pay less if they so choose. Did it bump up the cost for the regular customers?
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Offline AJK

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Re: United Rolls Back Some Of It's Basic Economy
« Reply #8 on: September 06, 2017, 11:44:34 AM »
Quote from: Geshmak25 on September 06, 2017, 11:39:18 AM
I don't get why economy basic is being viewed as "customer unfriendly". It gives the option to the customer to pay less if they so choose. Did it bump up the cost for the regular customers?

Yes.
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Offline Geshmak25

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Re: United Rolls Back Some Of It's Basic Economy
« Reply #9 on: September 06, 2017, 12:00:58 PM »
Quote from: AJK on September 06, 2017, 11:44:34 AM
Yes.
In general what was the % increase for the regular fare type?
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Offline ariIs

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Re: United Rolls Back Some Of It's Basic Economy
« Reply #10 on: September 06, 2017, 02:00:36 PM »
Quote from: Geshmak25 on September 06, 2017, 12:00:58 PM
In general what was the % increase for the regular fare type?

The fare increase is the 'buy-up' amount to regular economy.
United (and other airlines) often match fare prices with each other - so if you look on Expedia or Google Flights you'll see the same price from a bunch of airlines.
However, it only displays the lowest price - so by making a lower tier (basic economy) they can now give you less product for the same price.
Just check the LAX->NYC route - price of JetBlue and United is exactly the same for a lot of dates. But this is United basic economy fare (no carryon or seat selection), vs. JetBlue economy fare which includes carry-on and seat selection.
Therefore they're effectively just raising the regular economy fare by the amount of the buy-up.
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