How Low- & Mid- Tier Elites Can Jump to the Head of the Upgrade Line

August 2010
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The airlines call their lower elite tiers silver and gold (or the equivalent), but the benefits are not up to that billing. Platinum (or the equivalent) members get first dibs, and now that airlines are selling elite-level services to economy-class passengers, the line has gotten even longer. The airlines have done a kind of reverse alchemy, transmuting precious metals into base ones. Tin class anyone?

Instead of playing upgrade lottery, here’s a way to do an end run around the obstacles faced by lower level elites: Buy a B- or Y-fare ticket (that’s the abbreviation for full-fare economy). Within North America and to the Caribbean, Mexico, Central America, and sometimes Hawaii, the fare comes with a bonus, an instant upgrade to the next higher class (Business on three-cabin aircraft, First on two-cabin ones).

Buy a B- or Y- fare ticket: The tactic is best used on highdemand and high-priced domestic routes, where for example a Business Class seat on Continental from LAX to Boston can run about $2,122, while the B fare is about $922. High-priced international routes, such as Cancun and Antigua. B and Y fares are an especially good option when you’ve missed the advance purchase deadline on a discounted First Class fare. These fares also give you that other increasingly scarce privilege, the freedom to change your mind for free. Y and B fares rarely carry cancellation or change penalties, whereas discounted First Class tickets do.

These fares are best suited to bottom- and mid-tier elites, who, under the current system, have a hard time cashing in on their status when it comes to upgrades, and for the corporate traveler who is no longer allowed to fly domestic First Class.

Of course, this move comes with a trade-off: Full-coach fares usually do not earn mileage bonuses. But then some discounted First Class fares don’t either. Perhaps less of a trade-off (until it happens): If the aircraft is changed at the last minute, you might lose your upgrade.

Where to find Y and B fares: Contact your travel agent, who has access to a GDS (global distribution system), which shows fares by booking codes. If you’re your own travel agent, you may be able to find them on airline website pages. Continental, for example, lets you search for fullfare economy in the category called ”What is your fare preference?”. Then, on the next page, “Choose flights” option, it shows the fare class as economy (B), and also as an elite upgrade fare. American’s reservations page also lets you search for specific fares on the “Flight” option page; Y and B fares are listed under “Economy Flexible”.

I checked more than 500 routes on the five major U.S. carriers to see which ones repaid full-fare economy with an instant upgrade. Here’s what I found.

American offers an instant upgrade for North America, including Hawaii, Mexico, and the Caribbean. For the last two, the instant upgrade program delivered big savings. From Boston to St. Thomas, a B fare is $838, whereas Business Class is $1,252, a savings of $414. From Washington, DC to Cancun, the B fare is $658, while Business Class is $858, a difference of $200 (which could be used to upgrade your room). On most U.S. domestic routes AA no longer offers a B fare. One exception is to Anchorage: a B fare from Houston is $1,470, as opposed to the First Class fare of $2,154, a savings of 32% ($684). Most routes only offer the Y fare, which is usually priced higher than a discounted domestic First Class ticket. To Central America, you are better off buying a promotional First Class ticket.

Continental offers an instant upgrade on Y and B fares in North America, including Hawaii (but only from California), and to northern South America, except Lima. Elites can see savings of 52%+. For example: From San Jose to Tampa, the instant upgradable fare is $768, while the lowest First Class fare is $1,592, a $824 (52%) savings. The B fare from Philidelphia to Cancun is $872, whereas the lowest Business Class fare is $1,223, a difference of $357. From Houston to Montego Bay, the B fare is $880, while Business Class is $1,380, a $500 difference. To Central America you are better off buying a promotional Business Class ticket.

Continental is the only airline about which I can honestly say that it pays to have elite status. So if you’re close, it’s worth making the effort to snag it, as a closer look at that San Jose-Tampa fare will show. If a non-elite upgrades to the lowest economy fare with miles, the price comes to $608 (including the $350 R/T co-pay as of Aug.1) plus 30,000 miles. The instant elite upgrade ticket is $768, only $160 more. If that seems like a lot, consider this: You can’t buy 30,000 miles from Continental for $160. Plus the B fare earns the same number of redeemable miles (100%) and Elite Qualifying Miles (150%) as a discounted First or Business Class fare.

I will add this to my wish-list for the post-merger Continental-United airline. Continental, in various ways, is more elite-friendly than United, and I hope it will continue to be, rather than auctioning off elite-status privileges.

Delta has one of the worst mileage-upgrade programs in the air, mainly because its upgradable economy fares are many times the price of a discounted Business Class fare. Its instant-upgrade program is no different. Delta allows them on Y fares only in North America (excluding Hawaii) and northern South America. Y fares in many cases are about the same or more as discounted First Class fares. I did come across a few domestic routes where you could save more than $1,000, among them Los Angeles to Detroit, on which a Y fare is $1,005, while the lowest First Class fare is $2,142, a difference of $1,137. The moral: On routes with high First Class fares, check the Y upgrade fare before booking.

United is the only major U.S. airline that has done away with free instant upgrades on Y and B fares. When United changed over to the “Unlimited Domestic Upgrades” a few months back, it made upgrades dependent on elite status, no matter what the fare code.

On a side note, United also just recently introduced a new travel option: Premium Seating. It gives anyone who purchases an economy ticket, for domestic or international travel, the option to pay for an upgrade on the spot. That means airport upgrades have just been dropped a notch as they can only be confirmed after all other upgrades have been cleared. Sample one-way upgrade prices are: Denver to Salt Lake City, $75; Phoenix to SFO, $150; Washington, DC to Houston $225; LAX to Philadelphia $375; Chicago to Paris $689; and SFO to Hong Kong $999.

Now, one could assume this all works together: Start over-pricing the free B upgrade fares so that no one uses them anymore, and then take the free upgrade away from elites (which at this point none would really miss) and sell it to everyone (elites and non-elites). I tested this on the Washington, DC to Houston route, where a B fare is currently $2,412 round-trip and the lowest First Class fare is $1,614. Last year at this time, a B fare ticket was $1,358 and First Class was $1,568. So in the last 12 months, the B fare increased 78% ($1,054).What will happen when the merger is final between Continental and United? I hope Continental will win this round, otherwise we will see another benefit disappear for the elite.

US Airways offers instant upgrades on Y and B fares for North America (excluding Hawaii). For domestic travel, the B fare upgrade is a hit-or-miss. On the San Francisco to Newark route, the B fare is $1,146 and the lowest First Class fare is $1,456, but on the majority of routes to Central America, the Caribbean, and Mexico, we found that a discounted First Class fare was a better option.

Conclusion: The best airline for Y and B fares is Continental. If you fly AA, Delta, or US Air domestically, always check the full-fare upgrade, just in case, especially if the ticket price is high. To the Caribbean and Mexico, both American and Continental offer savings when booking the B fare. None of the U.S. major airlines offer any savings to Central America because discounted First Class tickets are so low.

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