Airline subscriptions

Airline subscriptions, As airlines search for new ways to part customers from their money, United Continental Holdings Inc. this week said it is bringing back the annual subscriptions to roomier seating and checked bag fees that the old United Airlines offered for several years before the 2010 merger with Continental Airlines.

The timing may be more propitious this time around because United has competition in the roomy seat business. AMR Corp.’s American Airlines has launched a similar seat category called Main Cabin Extra on its fleet and Delta Air Lines Inc. has put Economy Comfort seats on its planes. In all three cases, the airlines’ most elite frequent fliers gain access to the roomier seats without charge. Delta gives its lower-status frequent fliers a price break. It will be interesting to see if American and Delta imitate United’s subscriptions as they did the seats themselves.

United, in the wake of its 2010 merger, has expanded its Economy Plus coach seating product to the Continental fleet, making the seats with more legroom available on a total of 700 mainline jets worldwide and on 180 smaller United Express jets. United, which pioneered Economy Plus seating and has long sold access to those sections of the coach cabin for individual flights, pioneered an annual subscription in 2006.

But when United shifted to Continental’s passenger reservation system in early 2012, the combined company stopped selling the annual package, due to issues with the ticketing system. It also dropped an annual checked-baggage service fee that pre-merger United began merchandising in 2009. The re-launch of both are available on the United website and the carrier claims it is the only U.S. airline to offer annual subscriptions, which may be given as gifts.

For one United customer flying in the continental U.S., the new Economy Plus subscription costs $499. A couple would pay $699. But up to nine persons traveling together could have a subscription for $899. A global annual pass would cost $699 for one, $899 for two and $1,099 for up to nine people, United said.

The new bag fee subscription also has options. A single individual traveling in the continental U.S. would pay $399 a year to check two standard bags per trip. A global subscription for that individual is $799 a year. But two persons who only want to check two bags per flight would pay $449 a year in the continental U.S.

Both products require the customer to join United’s Mileage Plus frequent flier plan, which means the airline can market to them specifically. Purchasing an annual subscription offers convenience and predictability for the passenger, but it also drives loyalty to United because the passengers have made an investment.

Airline subscriptions 2013-06-05T01:28:00-07:00 Rating: 4.5 Diposkan Oleh: My Videos Tube