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November 19, 2019, 05:59:46 AM
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I must be missing something

 
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Fuzzy
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I must be missing something
« on: June 20, 2008, 08:01:23 PM »

How exactly does this 1) improve revenue or 2) cut costs?

Are they now in the hotel business? I remember the days of getting sweet fares for Saturday night stays but that had to do with filling planes. The supply/demand dealio.

I need to research this one a bit because I swear United is actively trying to go out of business.


http://www.msnbc.msn.com/id/25288127/

Quote
NEW YORK - United Airlines said Friday it will start requiring minimum stays for nearly all domestic coach seats beginning in October. It is also raising its cheapest fares by as much as $90 one-way.

The second-largest U.S. carrier said the moves are among a number of changes, including flight and job cutbacks, it is making to combat record high fuel prices.

The Chicago-based airline has been among the industry's most aggressive in pushing fares and fees higher in recent months, and those efforts have often been matched by other carriers. The industry is scrambling to raise revenue in a fight to forestall what is projected to be a record multibillion industrywide loss this year.

Starting Oct. 6, most of United's economy-class fares will require a one- to three-night or weekend-night minimum stay, spokeswoman Robin Urbanski said. The policy does not apply to fliers in other classes.

The new rules are bound to be unpopular with business travelers who prefer to catch a flight out early in the morning so they can be back home in time for dinner.

"They'll push back big time," said Mike Boyd, a Colorado-based aviation consultant. "It's one thing to simply raise fares. It's quite another to do it by imposing restrictions that appear to make it harder to conveniently fly."

Major carriers scrapped most minimum-stay rules put in place largely to discourage big-budget corporate travelers from snatching up the cheapest seats at the start of the decade, although United and other airlines recently started bringing the overnight rules back piecemeal.

Friday's changes are far more sweeping because they also apply to highly competitive routes where United goes head-to-head against lower-cost rivals such as Southwest Airlines and JetBlue Airways.

"What we did this week was almost across the board," Urbanski said. "At the end of the day, it's all about improving our profit as we combat these record high fuel prices."
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"You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose."
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Fuzzy
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Re: I must be missing something
« Reply #1 on: June 20, 2008, 08:06:45 PM »

I just read the last line I quoted again and have a question for Robin:

If you are flying a route every day, how are you improving profits by forcing me to take the flight on Thursday when I wanted to come back on the flight on Tuesday?

I've paid the fare. Does it matter if I'm on Flight XYZ Tuesday or Thursday?

I must have had one too many tonight. I can't figure out the reasoning behind the minimum stay. Just raise your damn ticket prices and quit playing the games.
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"You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose."
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gleek
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Re: I must be missing something
« Reply #2 on: June 20, 2008, 08:09:38 PM »

The answer is right here:

Quote
Major carriers scrapped most minimum-stay rules put in place largely to discourage big-budget corporate travelers from snatching up the cheapest seats at the start of the decade, although United and other airlines recently started bringing the overnight rules back piecemeal.

The carriers probably make most of their money off business travellers.
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Uisce Beatha
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Re: I must be missing something
« Reply #3 on: June 20, 2008, 08:10:32 PM »

My guess would be that there are high traffic days and low traffic days.  By requiring (multi-)overnight stays they feed the light days.  They have to run the routes pretty much every day to have planes in the right place for the following morning.

In argument with my argument is the fact that I haven't been on a domestic flight that's anything less than oversold in three years.

So WTF do I know?

Rant on.
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"If you're darker than a caramel, Reverend Al speaks for you." - Aasif Mandvi
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Fuzzy
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Re: I must be missing something
« Reply #4 on: June 20, 2008, 08:15:42 PM »

The answer is right here:

Quote
Major carriers scrapped most minimum-stay rules put in place largely to discourage big-budget corporate travelers from snatching up the cheapest seats at the start of the decade, although United and other airlines recently started bringing the overnight rules back piecemeal.

The carriers probably make most of their money off business travellers.

Not probably, they do. Always have.

If I'm selling something I think I'd like the big budget {insert whoever here} on my side.
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"You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose."
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Fuzzy
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Re: I must be missing something
« Reply #5 on: June 20, 2008, 08:20:43 PM »

My guess would be that there are high traffic days and low traffic days.  By requiring (multi-)overnight stays they feed the light days.  They have to run the routes pretty much every day to have planes in the right place for the following morning.

In argument with my argument is the fact that I haven't been on a domestic flight that's anything less than oversold in three years.

So WTF do I know?

Rant on.

Yeah, I'm ranting for no particular reason. I don't fly United and really don't care how they run their business.

But they have a way to fill the light routes/days. Price those particular flights cheaper. I don't see how the minimum stay does this unless it's pretty selective. In other words, if they are making me stay 2 nights when I go visit Graceland no matter when I fly that tells me they aren't filling light planes. I know that was the reason for the Saturday night stay cheap fares. The first preference of business travelers would not be to stay somewhere on a weekend. But I remember some great fares if you did.

And you're right. If you have flown on a plane the past couple of years that hasn't been full you have tons of money and were kickin' it private.
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"You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose."
From Oh the Places You'll Go, by Dr. Seuss (Theodor Geisel)
Uisce Beatha
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Re: I must be missing something
« Reply #6 on: June 20, 2008, 08:24:14 PM »

Half my friends are airline pilots.  I'll gather an opinion or two and report back.  Not that they'll necessarily know, drunk bastards the lot.
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"If you're darker than a caramel, Reverend Al speaks for you." - Aasif Mandvi
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Spanky
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Re: I must be missing something
« Reply #7 on: June 20, 2008, 08:25:45 PM »

Half my friends are airline pilots.  I'll gather an opinion or two and report back.  Not that they'll necessarily know, drunk bastards the lot.
I hope none of them work SWA.
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Fuzzy
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Re: I must be missing something
« Reply #8 on: June 20, 2008, 08:26:57 PM »

Half my friends are airline pilots.  I'll gather an opinion or two and report back.  Not that they'll necessarily know, drunk bastards the lot.

They work for Northwest?  Wink Grin

Like I said, I find this more curious than anything. If they are in competitive routes it seems they will be losing business travelers to another carrier who may not require the same minimum stay.

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"You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose."
From Oh the Places You'll Go, by Dr. Seuss (Theodor Geisel)
Uisce Beatha
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Re: I must be missing something
« Reply #9 on: June 20, 2008, 08:29:42 PM »

Half my friends are airline pilots.  I'll gather an opinion or two and report back.  Not that they'll necessarily know, drunk bastards the lot.
I hope none of them work SWA.

One does.

I'm joking of course.  They're mostly ex- or nearly ex-fighter pilots and the movies don't lie too much about how hard these guys party (well, prior to turning into old guys like me.)  But when it comes to flying they're deadly serious.  There is zero chance they'd get near a cockpit with any effects, residual or not, of alcohol in their systems.

Smart guys too.  But they like to play dumb.  "Pull up, houses get smaller.  Push down, houses get bigger."
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"If you're darker than a caramel, Reverend Al speaks for you." - Aasif Mandvi
"Well, you can tell by the way I use my walk, I'm a woman's man: no time to talk." - stroh
Fuzzy
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Re: I must be missing something
« Reply #10 on: June 20, 2008, 08:32:38 PM »

I've got a buddy who was a pilot until just after 9/11. Same thing - used to party like a rock star but it was letter of the law stuff when it came to flying. I respected him greatly for that.
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"You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose."
From Oh the Places You'll Go, by Dr. Seuss (Theodor Geisel)
stroh
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Re: I must be missing something
« Reply #11 on: June 20, 2008, 09:12:39 PM »

I could fly a plane.
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Uisce Beatha
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Re: I must be missing something
« Reply #12 on: June 20, 2008, 09:14:42 PM »

I could fly a plane.

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"If you're darker than a caramel, Reverend Al speaks for you." - Aasif Mandvi
"Well, you can tell by the way I use my walk, I'm a woman's man: no time to talk." - stroh
stroh
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Re: I must be missing something
« Reply #13 on: June 20, 2008, 09:17:20 PM »

 Laughing
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gleek
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Re: I must be missing something
« Reply #14 on: June 20, 2008, 09:20:17 PM »

Pappy.Boyington.surrenders

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Woman, open the door, don't let it sting. I wanna breathe that fire again.
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