When Airlines Auction Premium Seats, Some Passengers Win
Skift Take
Airlines are trying to monetize their best products. Imagine that. More and more, airlines look like a sustainable business. We'll see if it lasts.
Does having high-level elite status with an airline matter anymore?
I'm not sure it does, and I've stopped chasing it. Airlines offer lots of goodies to their most loyal members, but many frequent flyers focus on just one perk — upgrades to premium cabins. U.S. airlines are more generous than others, but most full-service carriers have some mechanism to permit loyal flyers to sit up front, using miles or chits.
Or at least they did. Business is booming just about everywhere except South America, and airlines can fill premium cabins with paying passengers. Often, passengers commit to premium travel at purchase, but increasingly, they're buying up after ticketing, sometimes at a discount, through an airline's mobile app or website. Last month, I wrote about how Delta Air Lines and United Airlines try to persuade passengers to spend more for a better experience.
This week, I wrote about a third-party technology called PlusGrade, which uses an auction-style system for premium seats. On more than 70 airlines, passengers can place a bid for how much they're willing to pay for an upgrade. “We want to make sure that as the door closes, every possible dollar has been earned and passengers get a better experience,” said Chris Engle, PlusGrade’s
