It seems a free upgrade will no longer be the preserve of the well-connected, bolshy or randomly lucky airline traveller.Various airlines are now launching online upgrade auctions that allow passengers with economy tickets to take part in a blind bid for available business class seats in advance of their flight.
Austrian Airlines followed Air New Zealand, El Al of Israel, Etihad of Abu Dhabi and Virgin Atlantic in becoming the latest carrier last week to start auctioning upper-class seats to economy passengers.
Plusgrade has developed technology to enable the blind bidding – and the U.S. software developer which is based in New York claimed it is speaking to several other airlines about working with them.
The company’s chief executive Ken Harris said: ‘The concept came from the fact that if a flight leaves from London to New York right now and no-one is sitting in seat 2A, that seat would be lost forever.
He told MailOnline: ‘We’re definitely seeing a lot of rapid adoption by more and more airlines.’
Mr Harris went on to say that the idea should not put off business travellers from buying luxury seats upfront because ‘you’re going to want that peace of mind that you’re sitting in the upper level’.
He added that Plusgrade is working on a project with El Al, ‘where you can bid for an extra seat next to you – a neighbour-free guarantee’. Mr Harris said: ‘Anyone who’s flown in economy is really hoping that they’re the lucky one. They could ensure that by paying a nominal fee.’
The business model works for carries trying to generate extra revenue on seats that would otherwise be unused, while trying to avoid reducing earnings from business travellers already paying full fare.
On a flight where empty business class seats are expected, a passenger booking in economy will be offered an upgrade – but airlines refuse to state the average winning bid.
They are concerned that revealing successful bids would set a ‘price list’ that may result in current business-class passengers switching to economy, and then attempting to bid for a better seat.
Only some passengers who currently have economy seats are invited to take part in the auction, with a ‘host of internally-prioritised goals’ deciding who is eligible, according to Plusgrade.
Auctions by Air New Zealand see bids placed at least a week before departure, and its website suggests that an upgrade from economy to premium economy on a London Heathrow to Auckland flight could cost around £550 through an auction.
Source:jowhar
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