New “EasyUp” Airfare Category Revolutionizes Coach, Business, and First Class Air Travel

Marks the death of Upgrading as we know it—but new opportunities abound. Some loyalty programs and mileage awards face possible extinction.

On Sept. 28, Delta did something revolutionary: It invented a new Business Class fare.

Quietly.

There were no press releases, no advertisements. It even got by me for a while.

Then, on Oct. 17, American followed suit and, again, mum was the word. Which is odd, because if an airline does something with the potential to challenge the way we think (our “mindset”) about the Business Class cabin, you’d think it would want to trumpet the innovation. Right?

Heck, American once spent millions in advertising just to tell us there was a little more legroom in economy class.

The Discovery

Delta and American have created a discounted economy fare to Europe and Africa, which has a flat $250 Business Class automatic-upgrade fee each-way built in to the fare for non-stops (add $50 for itineraries with connecting flights). This essentially takes the idea of “confirming an upgrade at time of booking” to new (and easy) heights.

Now, anyone can get into Business Class for as little as $1,222 (all in) round-trip to Europe. All you need to do is book 60 days in advance.

Leisure travelers, cruise travelers, business convention goers and others will be able to reap the benefits of this new pricing structure.

Meet EasyUp Fares

I’m calling the new product “EasyUp fares.”

Why? Two reasons: The structure of these new fares is a bit similar to domestic “Y-Up” fares, a term FCF popularized in the 1990’s based on the “up” letters in their fare code, and I think they are relatively easy to book!

See the Sabre (travel agent reservation system) screenshot below for an example of round-trip base fares (not including taxes) for the New York-Dublin route.

From East Coast or West: Now 48% to 74%+ Less

On Delta’s New York-Dublin route, the lowest Business Class fare was $4,627. The airline’s new EasyUp fare is $1,222, a decrease of $3,405 (74%). The chart below lists some new EasyUp fares.

Not Your Daddy’s Fare War

This is not a traditional fare war, which is usually well advertised and really just flash discounting, but instead they are a wholesale resetting of the fare structure, as EasyUp fares are valid year-round and have no ticketing deadline.

This may require changes in your “Upgrade Mindset” if you want to leverage the new opportunities. (More on this in a moment.)

One thing is clear: using miles is “dead” as a currency to destinations which now offer an EasyUp fare. (More on that too in a few minutes.)

EasyUp Routes In Play

Right now the EasyUp fare, which starts as low as $1,222 (all in) round-trip, is being offered to most destinations in Europe and Africa (see below). It’s a test flight of the new pricing structure with more cities coming on each time we check. Delta is leading the way, as its route network is bigger and thus has more unsold Business Class seats. More great news: EasyUp fares are also being offered from numerous domestic cities, too.

Upgrade Just One-way

Most people say that the overnight (eastbound) flight to Europe is the most important leg to upgrade. Others contend that the return flight is when you want Business Class the most. Either way, with EasyUp fares you can upgrade just one-way, for about $250 on many itineraries—or less.

This alone makes upgrading a consideration for many more people who have never done so before.

Upgrade Cost-Per-Hour

When it comes to the cost of upgrading, you have to think of two vectors: the quality of the seat and the time you’ll spend in it. I will settle for an indifferent seat on a short flight, say New York to Boston or Chicago, but I won’t when I fly from the U.S. to Europe—and certainly not to Asia. The best way to get a handle on this is calculating the cost-per-hour to upgrade, as shown in the chart below.

New EasyUp Business Class Fares Cost About the Same as Economy Class: When Baggage, Lounge & Preferred Seating Fees Are Calculated

American: Book an economy class ticket and you get one checked bag free. The second costs $60, the third $150 (each-way). But with American’s EasyUp fares, you get three free bags, which offsets the upgrade fee.

Delta: Book an economy ticket and the first checked bag is free. The second is $80 with a 50lb limit per bag. But with Delta’s EasyUp fares, you get two free bags and a 70lb limit per bag.

Offsetting the cost even more, is the lounge access, about $50 per visit, so your net upgrade cost each-way is really only $120. (The math: $250 minus $80, minus $50.)

You can even go so far as to say that Business Class can be had for the price of “Economy Comfort” given that its fee is in the $100 neighborhood each-way.

EasyUp Nuances

In addition to offering fewer destinations than Delta, American’s new fare differs in one significant way: American calculates taxes based on a discounted Business Class fare, whereas Delta does so on a discounted economy fare. Which do you think is better, for you?

On New York-Dublin, American’s EasyUp fare is $1,876, which consists of a $935 base fare and $941 in taxes. Delta’s EasyUp fare is $1,222, and is composed of a $935 base fare and $287 in taxes.

The Business Class Mileage Upgrade: Officially Dead

As you’ll see below, for many leisure travelers, miles should no longer be a consideration for travel to Europe in Business Class. Most business travelers usually fly at the company’s expense and are not using miles anyway.

EasyUp’s Killer Impact On American Mileage Upgrades

American’s Business Class upgrades using miles are half-dead. Why? Let’s take American’s New York-Dublin route for travel mid-week in September. It allows mileage upgrades on most published economy fares, starting at $753 plus the “co-pay” of $700, plus 50,000 miles. The miles have a replacement value of $1,548. This brings the cost to $3,001— $1,125 more than using the EasyUp fare.

American’s new EasyUp fare for the same itinerary is $1,876, which is only $423 more cash outlay than the mileage upgrade above, with the following advantages:

• 25% more miles earned (1,588, worth about $98)
• 50,000 miles saved, worth up to $1,548, for another day, perhaps for a domestic First Class ticket or to a destination that doesn’t offer low or EasyUp fares.

EasyUp’s Killer Impact On Delta’s Mileage Upgrades

Delta’s Business Class Upgrades Using Miles are Dead. The airline’s mileage upgrade program has never been good for travel to Europe, but EasyUp has killed it. On the New York-Dublin route for travel mid-week in September, for example, Delta only allows upgrades on M and B economy fares ($2,846 on this route) plus 50,000 miles—$3,505 more than EasyUp fares, which start at $1,222 (all in).

That’s $1,623 less than the lowest upgrade (M) fare alone, and EasyUps earn 150% base flight miles (9,500) and spare spending 50,000 miles, which have a “cost offset value” of $1,881. In short, the traditional mileage upgrade costs $3,504 more than EasyUp fare.

The (Not) New “Upgrade Mindset”

Loyalty programs are not dead, as they indeed have their place. Being shackled to them is dead. Although I might be the lone voice saying this—month in and month out for the last 16 years. EasyUp fares are a game changer for many when it comes to Europe. This time, perhaps, it will be more obvious than ever before that “going all in with one carrier” costs more than it’s worth oftentimes.

Upgrade Mindset: Exhibit #1

If you can book 60 days in advance, why go out of your way to earn miles by flying United, when its “loyalty” mileage upgrade “co-pay cost” to Europe is as much as $1,100?

It’s the same with US Airways, given its “loyalty surcharge” of $600 to upgrade.

Free Business Class Mileage Award Tickets: Nearly Dead

The return on your hard-earned miles plummets with EasyUp fares. Pay cash. Use miles for other scenarios.

The new EasyUp fares have also taken care of the number one problem in booking mileage travel: Availability.

American example: On New York-Dublin (which starts non-stop on June 12, 2013), AA charges 100,000 miles and $47 in taxes for a “free” Business Class award ticket. The EasyUp price is $1,876 (all in), which will also earn you about 8,000 miles.

If you book the free award ticket your return on miles is about 1.7¢ ($1,876 minus $47, divided by 108,000)—well below the bare minimum 2¢ return on miles I recommend generally speaking.

Delta example: On New York-Dublin, it charges 100,000 miles and $47 in taxes for a free Business Class award ticket, while its EasyUp price is just $1,222, which will also net you about 10,000 miles. The result: A return on miles of about 1.1¢ ($1,222 minus $47, divided by 110,000).

The other problem with free awards: You have to find an available seat. There wasn’t even one to be found from mid-June to the end of October on American New York-Dublin.

EasyUp Fares Not Offered On Your Route?

If you can be flexible, then it’s not an issue. Here are a few ways around it.

The Detroit Connection Strategy: Delta offers EasyUps to London and Paris, but only from Detroit. So, book that and a separate ticket to Detroit from your home airport.

The Bonus Destination Strategy: If you’re bound for Paris and flying from Los Angeles, fly to Brussels on Delta and take the high-speed Thalys train from the airport (or enjoy a nice little side trip, close to free of expense). If you’re going to London, fly to Dublin and make a connection.

Flying Beyond Europe and West Africa: You can use the fares as a springboard to destinations in the Middle East (like Tel Aviv) or East Africa (Nairobi) that aren’t covered by EasyUps. Look to Delta here because of its route network. Athens and Istanbul are only a two-hour flight from Israel, and Accra five hours from Nairobi.

Surprising EasyUp Perks

EasyUp fares earn the same number of base miles and elite qualifying miles (EQMs) as do other American and Delta Business Class fares it seems. The American booking code is “I” (125% base miles and 150% EQMs) and the Delta one “S” (150% base miles and MQMs). I find this amazing. I would have guessed that the airlines would reduce the miles earned on the new, amazingly low fares.

Perk Offset Value: New York-Dublin on Delta costs $1,222 and will earn you 9,528 miles (much more if you are a Delta elite status member), worth about $376 at the replacement cost. So your net fare is actually just $846 for a Business Class ticket.

Ridiculous Tax Games: Dead

Some mileage redemption programs saddle “free” mileage tickets with high taxes and fees—which drive many mileage members mad. EasyUp fares makes using miles for many of those award tickets obsolete.

One example: British Airways charges $964 in taxes—on top of the 98,000 miles—for a free Business Class award on New York-Dublin. An EasyUp with Delta will cost you $1,222.

In other words, pay another $258 and you’ll:

• Earn 9,500 miles (worth up to $376), and
• Avoid a paltry return on miles (as low as$0.003 per mile), and
• Save enough miles for two free domestic First Class tickets (worth up to $5,000+) or have them banked for high-priced Asian and South America destinations, and
• Not have to worry about mileage availability or flying on second-choice dates.

When Using Miles Isn’t Dead

1. From most departure cities to London and Paris: American and Delta are guarding these two cities, and I have yet to see widespread discounting here. Using miles for a Business Class upgrade or a free award ticket is often cheaper than paying the normal fare. Or buy an EasyUp fare to a low-cost European destination, like Dublin, for example, and buy a separate ticket and make a connection.

2. For First Class travel: EasyUps are only valid for international Business Class to Europe and Africa. FCF’s First Class recommendations still hold true for First Class travel to Europe and Africa. More on that in back issues.

3. For short notice travel: EasyUp fares require a 60-day advance purchase. Miss the deadline and mileage upgrades are still a good strategy.

4. On international carriers and Star Alliance airlines: Still a good way to go if the return on miles is decent. But, it might also be time to re-examine how much these carriers ought to be considered for low-cost premium travel to Europe in Business Class—as the cost going forward will be twice that of others.

Finding EasyUp Fares

New EasyUp fares can be booked online at American’s and Delta’s websites, Kayak, Orbitz, and many other online travel agencies; or contact your travel agent. See the airlines’ calendar search function for fares.

Upgrading EasyUp to First Class

Believe me, this was my first thought, too, on American, but it’s impossible. The fare allows it, but the planes American uses on EasyUp routes don’t have a First Class cabin. Unless AA starts offering EasyUps on the London route, where it uses a three-cabin B777, or deploys the B777 on an EasyUp route, such as Frankfurt. I will keep an eye on this one, as it would be an amazing opportunity. As for Delta, it doesn’t have a First Class cabin.

EasyUps & The Diplomatic Tightrope

Airlines have deep partnerships and they do everything possible not to step on each other’s toes. Here’s an example on the Amsterdam route: Delta flies from JFK and Newark, while KLM flies just from JFK. Which is why Delta only offers the EasyUp fare from Newark. Look at the math; it’s astonishing:

Asia First Class, Now in Play!

No sooner had I written that EasyUps would likely spread to Asia than I found that they had—and not only that, but on the routes offered you can actually upgrade from economy to First Class for a flat fee—starting at $625 each-way.

American is offering EasyUp fares from most U.S. departure cities to Beijing and Shanghai, based on a mid-range economy fare. This equals a savings of about 74% on American’s Washington, DC-Beijing route. The lowest First Class fare was $16,352 (all in), whereas American’s new First Class fare is now $4,285, a decrease of $12,067.

It’s an even better deal than Business Class, which comes to $5,135, $850 more than First Class—something you don’t see every day. Fine print: Booking code P, 45-day advance purchase required. This fare is based on low season travel; fares vary depending on season.

EasyUp Fare Fine Print

• Fares follow the typical economy-class cycle. In other words, the lowest fares are mid-week (usually Sunday to Thursday,but can vary by region). Fares go up during summer (high season for economy) and on weekends. Much of this is the opposite of what we normally see with premium fares.
• The “upgrade math” is based on “non-promo” economy fares (usually T class). When airlines run short-lived fare sales, the upgrade cost will be higher.
• 60-day advance purchase required.
• Minimum stay is 10 days; maximum stay varies by airline and destination and ranges from 30 days to 12 months.
• Change fee is $275 to $400 depending on airline and destination.
• Tickets are non-refundable.
• Fares earn base miles and EQMs at Business Class levels.
• Fares allow an open-jaw itinerary. Example: You can fly New York-Frankfurt and return from Rome.
• Travel seasons vary by country.
• To get EasyUps, the special economy fare must also be available. (Yes, weird.)
• Fares are not offered on either carrier’s code-share partners.

Other EasyUp Shockwaves: Low-Fare Carriers

If I were these guys, I’d be in a panic. Why fly Air Berlin, Air Europa, or Iceland Air when EasyUp fares are a better deal, require fewer connections, and usually offer better seats? On New York-Frankfurt, Air Berlin charges $2,955 round-trip in Business Class (departing Feb. 11 and returning Feb. 25). The flight requires a connection, and the Berlin-Frankfurt leg is in economy. You can fly non-stop on Delta for $1,939, a savings of $1,016 (34%), without a connection, and in a better seat: Air Berlin offers a 170-degree recline, while Delta’s flight offers its new flat-bed seat.

FCF Predictions

1. EasyUp fares are here to stay. While these new fares feel too good to be true, and the tiny pessimist part of me wonders how they can stay, if I had to guess, I must say the new fares will stay and we will only see changes in the cities that qualify for the fare (American added Frankfurt as I was writing this report.) Rules will be fine-tuned, certainly. Over time, the advance purchase rule will probably be pushed further out, especially if the airlines get a lot of takers for the new EasyUp fares.

2. United and US Airways will match, eventually. United has historically been cautious when it comes to new, radically low, premium fares, but gives in when it feels its back is against the wall. It will only be a matter of time before it introduces similar fares, if on a limited basis. Don’t look for Germany to be in play because United is so closely tied to Lufthansa, just as American is not offering the fare to London likely because of its ties with British Airways, which would not be happy to have its fares undermined in such a primary market. US Airways is also a “yes” on select routes to Europe.

3. International airlines will not roll out EasyUp fares. Air France, British Airways, Lufthansa, Virgin Atlantic and other large international carriers will not offer EasyUp fares, if I had to guess. It seems that they would rather give seats away to mileage members. (Not a bad thing, yet tempting to desire low-fare availability over award availability—in the new paradigm.)

A good example of this is the great free award availability British Airways has on many routes from the U.S. to London in both Business and First Class, and Air France’s and Lufthansa’s frequently encouraging award travel on routes with lighter premium travel loads by offering special discount award sales.

4. EasyUp fares will decrease mileage-award inventory for advance bookings. Look for mileage space to pop-up closer to your departure dates. Airlines with EasyUp fares are not interested in “giving away” seats to mileage earners if they can dump them for cash.

5. EasyUps will spread to some Asia and South America routes, depending on how it works for Europe.

6. Look for American to offer more fare upgrade options to Asia, particularly from economy and Business to First Class.