Airlines’ new strategy: Auctions for Upgrades

Airlines which have traditionally offered better-seat upgrades to their best customers as a perk of loyalty are now increasingly using auctions to make money from empty seats.

The carriers typically work with third-party companies such as PlusGrade or SeatBoost to manage the process, in which ticketed passengers are given an opportunity to bid on available premium seats. While the U.S. Big Three are not in the mix (American tried it in 2013), Hawaiian and Virgin America are, as are such major overseas lines as Lufthansa, Latam, Aer Lingus and Qantas.

Passengers are contacted a few days before departure, asking what they would be willing to pay for an upgrade; closer to flight time they find out if their bid was accepted. The high bids get the seats. At least a few airlines are also auctioning “neighbor-free” seating that allows coach passengers a guarantee of an empty seat next to them.

For more details from the travel business news site Skift, click HERE

Photo: Virgin America 1st-class: What’s it worth? (Albert Domasin/Wikipedia)

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