For Sale, Elite-Level Ground Services

July 2010
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With its announcement of “Your Choice” on June 15, American Airlines became the latest carrier to sell elite-level pre-flight services such as priority boarding to back-of-the-bus customers. It’s the latest wrinkle in “fare unbudling,” otherwise known as charging for things that used to be free, such as two checked bags and meal service.

Some of the airlines have gone beyond selling items that used to be free, and are now offering ground service items that used to be reserved for the airlines elites, Business, and First Class travelers. In other words “unbundling premium class fares” by selling premium ground services to the passenger that does not mind flying in coach but is willing to pay extra for pre-flight services.

As always with airline marketing innovations, there are winners and losers. If you’re an elite, Business, or First Class customer, you lose because the carrier is making privileges you earned by spending a lot of money available to anyone. It dilutes elite status and the value of premium-class tickets, and it makes the line for premium services longer—literally in the case of First Class check-in, which US Airways sells.

If you’re a coach customer, you benefit, since you now are being offered an á la carte menu of ground services. For example, United’s Premier Travel package from San Francisco to Los Angles, which includes Economy Plus seating, early boarding (group 1), priority security line, premier check-in, 25% bonus miles, and two checked bags free—costs $112 round-trip. Adding that to an economy ticket starting at $160, brings the total to $272. A First Class ticket on that same route, which gets you the same ground services (but a better seat), costs about $750.

Here’s a rundown of what premium ground services the major U.S. carriers have put up for sale.

American

“Your Choice” program currently offers the Boarding and Flexibility Package, which puts you in line to board after Priority Access passengers (First, Business, and elites), and it also includes some flexibility when changing your ticket. Later this summer it will sell the “Boarding” piece only for the introductory price of $10 one-way, with other services going on the menu after that. For more information: American Airlines Your Choice

Continental

Doesn’t directly sell elite ground services, but does offer them as a benefit of its Presidential Plus credit card, which costs $395 annually. Services include free baggage check (up to two), priority check-in, express security lines, anytime boarding, and expedited baggage handling. It’s a good deal from a benefits standpoint as it also includes Presidents Club membership (annual cost is $475). For more information: Continental Airlines Presidential Card

Delta

Doesn’t sell Sky Priority ground services or offer them as part of a credit card package.

United

“Travel Options by United” is United’s menu of elite ground services. You can buy them one at a time or as a bundle, for a day or for a year. You can buy an Economy / Plus seat (more leg room) for one flight or spend big and buy Premier Travel Plus, which includes Economy Plus seating, Red Carpet Club access, early boarding (area 1), priority security line, premier check-in, bonus miles, and two free bags. (United elites, First, and Business Class passengers still get to board before passengers who purchase the option.) We believe that American’s new program, as it grows, will mirror United’s program. For more information: United Airlines Travel Options

US Airways

Right now it sells some services directly and as benefits of a credit card. You can buy seats up front (aisle or window seats in the first few rows of economy) and early boarding (zone 2) through “Choice Seats”. You can get First Class check-in and early boarding (zone 2) with the carrier’s Premier World MasterCard (annual fee $89). US Airways elites (Chairman, Platinum, and Gold), Star Alliance Gold, and First and Business Class travelers still board first. For more information: US Airways Premier World MasterCard US Airways Choice Seats

The bottom line: Want a carrier loyal to its elites and premium travelers? Choose Delta. Want the full ground services menu? Book United.

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