Search Results for "basic economy".
Between Alaska or JetBlue or even Delta, and Southwest, I had more confidence buying from Southwest. They’ve given up that advantage. But expiring flight credits is better for the balance sheet, since it writes off a liability, even though expiring flight credits is worse for incentivizing repeat business.
Airlines used to treat award travel customers better than customers on paid tickets. After all, passengers traveling on points had shown a lot of loyalty to get there. It was their reward, and the trip was something to be celebrated!
That’s not really true anymore, but until now only Delta has been willing to say so explicitly.
Members with status can still book preferred and extra legroom seats for free on basic economy fares. But seat coupons will no longer work for other members to save money on seats when buying the cheapest fares.
With greater Elliott sway, and Kelly leaving, rumors are swirling in Dallas that other changes pushed by Elliott will be implemented. We may or may not learn details at the airline’s investor day this month. Two major changes that are being widely discussed at headquarters are an anticipated end to free checked bags, and the introduction of basic economy.
Here’s what basic economy would look like if Southwest moves forward, I am told.
United Airlines offers less value on a basic economy ticket than competitors do. They don’t allow basic economy passengers to bring a regular carry-on bag on, and they haven’t allowed basic economy passengers to check in online, wasting passengers’ time. Fortunately they’re relaxing the online check-in rule but they’re doing it in a strange and troubling way.
Most people don’t realize that basic economy restrictions aren’t the same across airlines and that United Airlines offers much worse value than competitors.
They’re expected to offer extra legroom seats at the front of the cabin, in what’s being referred to as Love Cabin. These seats would be assigned. Southwest could offer blocked middle seats for sale in Love Cabin, along the lines of Frontier, where the airline sells a seat block to both the aisle and middle seat passenger as an option. And they’re preparing to increase fleet utilization – cheaper additional flying using current aircraft – by offering redeye flights for the first time. New union contracts now provide for redeye operations, and the airline no longer has to turn their systems off and on in a reset each night which required operations to halt.
The airline would certainly issue a denial because these plans aren’t finalized in the sense that they could change, timelines could shift, and they have not been announced yet. Announcements are expected at the airline’s fall Investor Day. Consider this a work in progress, though it’s expected that the final version will fall along these lines.
Basic economy matters as a way to differentiate corporate travelers (who generally pay more) from leisure customers (who are price sensitive). The old methods of Saturday night stay and 14-day advance purchase no longer hold.
But customers aren’t as stupid as airlines assume, or maybe even used to be. They compare the offerings of airlines – at the same price, nearly everyone offered better value than JetBlue. Certainly Delta – which has free wifi, too – offered better value in both New York and Boston than JetBlue’s basic fares. That hurts JetBlue, which wins only when customers go out of their way to choose them over competitors.
United Airlines denied boarding to a passenger and wouldn’t provide a refund – because they were traveling on a basic economy ticket and weren’t checking a bag.
Ultimately, she bought a ticket on American Airlines and her duffel bag fit just fine under her seat and as you’ll see in the video she ultimately made it to Key West, Florida after a ‘planes, trains and automobiles’ experience.
Delta has begun imposing basic economy restrictions on their cheapest coach awards for international travel. Not only does Delta charge a ton of miles for travel, they now will require you to pay for seat assignments and pay a fee to cancel and redeposit your miles unless you spend even more. They’re uncompetitive with American and United in this regard.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
