United’s fares go naked
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United Airlines is proposing what they call “bare fare” pricing for air tickets. The a-la-carte pricing model turns Air Canada’s recent introduction of a menu of fare discounts on its head, almost to the letter.
While Air Canada proposed a discount, if you were willing to forgo certain services, United is starting with a low base fare and tacking on surcharges.
Prices for each service haven’t been finalized, but checked luggage, seat assignments, the ability to change your ticket after purchase, and the accrual of frequent flyer miles are all in play: You’d have to pay extra for any or all of them.
I’m really on the fence about this, though I’m leaning negative. On the one hand, I just want to shake my head in dismay at the fact that things like a seat assignment — which, in my world, approaches the status of a basic human right — are becoming a commodity requiring payment. Stay classy, United!
At the same time, this is going to make apples-to-apples comparisons between competing airfares harder, and introduces a new layer of complexity for online travel agencies.
Yet I DO see the appeal for some travelers who really aren’t that picky. It lets customers choose exactly what they want or need. Or, perhaps better: it lets INFORMED customers choose exactly what they want. But will everyone who searches for a low fare really know which services they’re getting on one airline, and which ones they’re NOT getting on the other?
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December 15th, 2006 at 7:53 pm |
If this catches on, I’ll quit flying with United. Flying al a carte isn’t in my plans. This, I feel is just going to piss off customers.
It seems that the airlines are trying to make a buck off of everything that should be included in the price of your ticket.
December 16th, 2006 at 9:14 am |
One thing that a lot of the commentary misses about this story is that these are *in addition* to the regular fare structure. In other words, it’s like a Hilton Hotels adding a discount hotel chain. If you don’t want to stay there, that’s fine, there is still the regular Hilton chain. Same with Bare Fares… you can always purchase the fares that you always have. Bare Fares are not a replacement of the current fare structure, but an addition to it.
December 16th, 2006 at 10:26 am |
Gopher:
True, these “bare fares” will be in addition to other fares — to start. It may become the norm, though, depending on whether or not other airlines pick up on this.
The comparison with a hotel chain starting a separate brand isn’t quite right, though. It’s more like the Hilton selling some rooms in the same hotel without television or housekeeping services. A separate hotel chain (say, the Hampton Inn?) can lead to different expectations. But if it’s different service inside the same brand, that leads to friction.
But who knows, it may work out well. If I can buy a fare that earns miles and gives me a seat assignment in Economy Plus, but gives me a discount for not making changes or not checking luggage, then it could work for me.
I’m more pessimistic about how these fares will be received by people who aren’t as obsessive-compulsive about travel as I am. Comparison shopping is about to get harder. To avoid confusion, perhaps the airline will only sell these bare fares through their own website, and not on Orbitz or Expedia.
December 16th, 2006 at 5:47 pm |
The air canada model is horrible for consumers. As the post points out, this will simply be a way of milking passengers by getting them to pay for things they currently get for free. Paying for a seat assignment? That’s beyond belief. I’ve been a 1K flyer on United for years and am already appalled by their declining cabin service. This is one more reason to hope that Virgin opens their US carrier soon.
What’s next? Paying to recline or open and close the window shade?
December 16th, 2006 at 8:06 pm |
Don’t give them any ideas.
December 17th, 2006 at 7:36 pm |
I like that, $40/degree of incline.
I know cable TV operators do this in some markets. Also, MickeyD’s does this now with their morning breakfasts letting you choose your beverage and thus letting you get the “standard” price or “premium.”
With the current absence of general service lately (counter agents, food, etc), I don’t see this as much of a change…
December 19th, 2006 at 9:13 am |
[…] In an age when airlines are toying with the idea of charging a fee for a seat assignment, it’s nice to see a hotel chain moving in the opposite direction. […]
February 5th, 2007 at 8:34 am |
[…] As usual, the airline’s business case is understandable. Less luggage means lower expenses for the airline, and we’re already seeing signs that we’re headed for a-la-carte ticket pricing. But that doesn’t mean we have to like it. For those who are traveling with a second suitcase, this is effectively a fare hike. […]