Qantas now offering cash upgrades!

[aus_flyer]

It appears that Qantas are now calling some international passengers prior to their departure and offering them the opportunity to upgrade from Y to J for a cash payment!

Qantas feeling the pinch?

 

[MissBurrill]

Sounds like what Jetstar offers at check-in. Pay to upgrade to Star Class. Wonder if you'll receive the points though.......

A few years ago in the USA I used check-in machines and the machines would offer a price for me to upgrade. They were random airlines over there.

Karen

 

[notzac]

It appears that Qantas are now calling some international passengers prior to their departure and offering them the opportunity to upgrade from Y to J for a cash payment!

Are there examples of this happening? Routes? Costs?

 

[NYCguy]

Qantas feeling the pinch?

The second the doors close, the empty seats = lost revenue. Why not ask someone to pay a bit extra to get their bum in the nicer seat, and make a little more money?

On the other hand, I am a firm believer that "cash" upgrades devalue the premium cabin experience for the other passengers who have paid a much more expensive fare to sit there. Points upgrades are different - you've generally earned those - but to pay $500 or whatever to move up a class cheapens the product.

 

[Dave Noble]

The second the doors close, the empty seats = lost revenue. Why not ask someone to pay a bit extra to get their bum in the nicer seat, and make a little more money?

Because in the long term, people will stop actually buying business class tickets and gamble on cheapie upgrades (c.f. USA carriers on domestic flights ) which is a lot more revenue lost in the long term

Dave

 

[aus_flyer]

Because in the long term, people will stop actually buying business class tickets and gamble on cheapie upgrades (c.f. USA carriers on domestic flights ) which is a lot more revenue lost in the long term

Dave

I agree entirely.

Perhaps Qantas may adopt a "from time to time approach" such that no one can rely on the ability to pay cash for an upgrade, thus those who really want to be confirmed in J will pay the extra.

As for examples... so far the only route I have heard of is BNE/SYD/MEL to LAX. $1200.

 

[MelUser]

i agree that this cheapens the product.

Can anyone please quote a source - ie where is this info on cash upgrades coming from?

 

[Platy]

A better solution for QF dealing with empty J seats is to lower the original purchase price (eg. the 2-4-1 offers, release and sell D class, etc). I agree that upgrade purchase is poor product marketing strategy, although, as a passenger ,I would be happy to take them up on the offer if the price was attractive.

 

[notzac]

I would be happy to take them up on the offer if the price was attractive.

Likewise! As quite a few people would, I should imagine.

 

[Leumas]

I wonder on occasions that cash upgrades are offered whether the points upgrade queue is already cleared or if QF prefer to offer cash upgrades than to grant the point upgrades...

 

[straitman]

Because in the long term, people will stop actually buying business class tickets and gamble on cheapie upgrades (c.f. USA carriers on domestic flights ) which is a lot more revenue lost in the long term

Dave

Dave,

An airline seat is a totally perishable commodity.

Traditional wisdom in the aviation industry partially supports what you are saying but not entirely. If this is done sparingly and in a controlled manner then it can have a very positive effect upon the airlines bottom line.

 

[Dave Noble]

Dave,

An airline seat is a totally perishable commodity.

Traditional wisdom in the aviation industry partially supports what you are saying but not entirely. If this is done sparingly and in a controlled manner then it can have a very positive effect upon the airlines bottom line.

I disagree in general. One time I can see it making good sense is if economy is oversold and they expect to have to otherwise do involuntary upgrades. If a cash upgrade avoids a free upgrade, it would make sense to me. Doing it for no good reason seems a bad idea

Dave

 

[Flying Fox]

This is very interesting. Any details on when, where and how much?

And was it a PA announcement?

 

[MelUser]

Sorry to ask again BUT

(1) Does anyone have any evidence of this happening? If so, how, when?

(2) What routes?

There is some discussion but are we really sure this is actually happening.

 

[comint]

One time I can see it making good sense is if economy is oversold and they expect to have to otherwise do involuntary upgrades.

I can think of more, e.g. perhaps in a situation where negative cash flow has been projected?

 

[docjames]

The cynic in me says it will be offered only on flights where Y is oversold (negating the need for "op-up" freebies).

 

[dajop]

It would also depend on the original fare paid for economy. If someone has paid, for example some paid $3500 for a return flexi-saver fare SYD-LAX (as fares) it is a different proposition to offering it to someone who has paid less than half of that for a red e-deal. Another possibility would be offer to those on an economy RTW ticket - the chance of an upgrade a single sector would hardly be enticing enough to subsitute a Y fare for a J fare . There are probably numerous scenarios where this could be selectively offered without necessarily significantly changing purchasing behaviour to favour Y fares with a good probablity of an upgrade. I lalso think that as it is so selective, it may just have something to do with oversold Y cabin ....

Or it could be just that companies have shifted their travel so much towards Y that any $$$ are a bonus, and deal with the consequences when the economy picks up....

 

[turtlemichael]

If this is really occurring, the marketers would be using all sorts of rationales to justify it

eg if someone tries J on the cheap, they may be so utterly thrilled with the product that they'll pay full whack next time. Or. It's not good for our image to have an empty J cabin. That of itself will encourage others to not pay for it next time as there is a chance of an op up and certainly a good chance of using points for the upgrade rather than dollars.

The real reason however is almost certainly a collapsing P + L account and possibly negative cash flow. The perception of the business class product and whether it is downgraded in the long term means nothing if you go broke in the short term.

 

[JohnK]

I can see how some people will purchase WHY airfares instead of business class airfares and hope to be offered a cash upgrade to business class instead.

It may well be attractive to some but I would not pay $1200 to upgrade SYD/MEL/BNE-LAX to business class. Personally for the extra $1200 I can put up with WHY for 14 hours....

 

[aus_flyer]

Sorry to ask again BUT

(1) Does anyone have any evidence of this happening? If so, how, when?

(2) What routes?

There is some discussion but are we really sure this is actually happening.

I think both your questions have already been answered.

I would not have made the post if I didn't know it was happening.

And I have already given the example I am aware of.