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Discussion in 'General Discussion | Miles/Points' started by misman, Jun 10, 2017.
The did predict this very phenomenon back in February. The purpose of 'basic economy' is to get you to pay more:
Even Amazon is getting in on the game with EBT Card Prime membership.@ $5.95, budget members increase returns, and maybe purchases, lot to be said for supplemental incomes.,
We have to wonder if they will no be pledged with returns, as for the airlines, one buy a budget access, and someone else carries their luggage on the plane, and saves them a seat.
Many services gained popularity by allowing their security to be compromised, as in the case of DirecTV, and even the cable company.
It is just a game, and the companies know the game..
Reminds me of Credit Card Churning,,,
Airlines are playing a big game and we people are not even aware of it. Its quite possible that this game will go on forever without us even realizing it.
Of course it ups the overall revenue. Why would you ever think it would do differently? That's what businesses do. They increase the price of the stuff you want until demand equilibrates with supply.
We predicted this last fall when we saw the United Investors day slide deck.. the writing was on the wall back then already. It's really trite that UA continues to market this as LOWER pricing, when in reality its the same lowest price that was already in the market (to compete in various markets with competitors and fare sales) and jacked up the AbBE (anything BUT basic economy) fares for all flyers who want to maintain some semblance of benefits. This too shall change, next recession.
You also have to see how the accounting itemizes the overall picture. Anything not part of the fare base is not taxed. Hence, the airlines get 100% of the auxillary upsold services.
I've stopped looking at cumulative comparing sites because of this bait-and-switch effect. Now, I just do directly to airline's website. Paying a bit extra means I may have a chance of an upgrade, priority queues, using a lounge and less headaches. As humans, we are myopically trained to see immediate results without seeing the bigger overall picture.
The market requires companies to do so, otherwise they will become bankrupt.