United Airlines says passengers are buying up to more expensive premium fares at very high rates, and it plans to keep expanding the strategy. I do not doubt that removing benefits from the cheapest tickets can persuade people to spend more, but I remain fully convinced that this represents an annoyingly punitive strategy for passengers who have already paid for first class or business class and will not cultivate “brand loyal” customers.
His assessment of customers choosing higher fare tiers was particularly direct:“The buy-up rates are incredibly high.”
Nocella also argued that the choices benefit customers and that United carefully explains what passengers are purchasing. He compared the process to the development of basic economy and indicated that fare segmentation in the other cabins remains in its early stages.
A great solo travel tip spotted this week on Live and Let's Fly.
