United Gets Punitive With Their Basic Economy Fares

Delta was the first U.S. legacy airline to introduce basic economy fares, which was their attempt to compete with ultra low cost carriers like Allegiant and Spirit. For select passengers booking the lowest fares, you can’t select seats in advance, can’t make any changes to your ticket, and aren’t eligible to upgrade.

Spirit-Airlines

Both American and United plan on introducing basic economy fares in 2017. Typically we see American and United following Delta’s lead, though in this case United is taking it a step further than the competition when it comes to basic economy fares.

So, what makes United’s upcoming basic economy fares the most restrictive?

  • You won’t receive any elite qualifying credit, meaning no elite qualifying miles, elite qualifying segments, or elite qualifying dollars
  • You won’t be allowed to bring on a full sized carry-on, but rather will be limited to a personal item (there’s an exception for elite members, Star Alliance Gold members, and those with United’s co-branded credit card)

united-lounge-london-heathrow-62

Both of those are extremely restrictive, and it’s a way for United to punish both elites and non-elites who book basic economy fares (elites will care about not getting elite qualifying miles, non-elites will care about not getting a free carry-on).

United plans to enforce the carry-on restriction by having basic economy passengers board with group five, which should make it easy for gate agents to police bags.

However, I’m sure some people have been wondering how strict gate agents will be, and figured those on basic economy fares are best off just trying to board with their bag, and worst case scenario they’ll pay what they would have otherwise paid. Not so fast, as United has a restriction in place to prevent that.

Specifically, if you book a United basic economy fare and try to carry-on a bag, you’ll not only pay the checked bag fee, but also a “convenience fee.”

So in addition to the $25 first checked bag fee you’ll pay a $25 convenience fee, for a total of $50.

united-checked-bag-fee

What United is doing here is very similar to Spirit. They charge $35-55 if you pay for a checked or carry-on bag at the time of booking or check-in, while they charge $100 if you pay at the gate.

spirit-bag-fees

So while I’m not at all a fan of United eliminating free carry-on bags on basic economy fares, if they’re going to do so, being punitive about those who try to bypass the restriction is the right thing to do. Otherwise you’re just giving basic economy passengers an incentive to try their luck at bringing the bag on. Given how busy gate agents are, and how they already struggle getting flights out on-time, that seems like a recipe for disaster.

However, I wonder:

  • How prominently they’ll display this convenience fee at the time of booking
  • How many gate agents will actually charge the fee, given that they’re usually in a rush to get the door closed; something tells me a lot of gate agents will just be “courtesy” gate checking bags, because they’d rather not collect $25 than have a flight leave late

Are you surprised to see United add a “convenience fee” for those checking a bag at the gate? Is it the right move?

(Tip of the hat to Wandering Aramean)

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Jim Guest

what a fucking nonsense untied is. why couldn't they incentivize not bringing bags and charge equal for everyone else. pay back customers $15 if they don't show up with bags. produces same result with more potential for revenue. plus higher moral among customers! Instead of showing me $300 ticket while booking show me a $ 350 ticket. fucking morons these piece of shits. where do these idiots come from? They need to be sued for gouging.

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Guy Guest

@Jason: I don't think that's basic econ because United shows that flight giving PQMs. Plus it's "K" not the supposed (and dreaded) "N" class. I did the same search as you but for next weekend (Sat, Jan 28; EWR-FLL, UA1290/0600-0914 or UA142/1825-2136): * $101 (K) -- lowest econ * $603 (M) -- flexible econ * $308 (P) -- disc biz In this case, I'd buy the P class ticket. You get 1.5 PQS & 200% PQMs vs. K but yeah, it's not flexible, refundable like M, but hey it'll help you keep your 1K, and get you there (1K not FLL) faster.

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Jason Guest

***United already has begun this punishment of both the infrequent bargain seeking economy pax and elites who self finance their own frequent travel and have shown loyalty in order to gain the benefits that were promised as a thank you for that loyalty. [7 year 1K pax here].. Let me give you an example as posted today per the UA website; EWR - FLL: Sat Jan 21st on UA One way Economy Fare options = $69 BASIC Economy or $600 FULL FARE Economy Nothing in between. Usually a route like this would have a cheap Economy fare for approximately $220 (which I'm fine with paying and also enjoy earning the complimentary space available upgrades, and most importantly; earning the needed PQM & PQD to retain my status as a loyal 1K). HOWEVER, I will be unable to EVER AGAIN EARN ANY ELITE STATUS, MUCH LESS retain my 1K STATUS moving forward at this new pricing structure which FORBIDS earning PQD & PQM !!! This is MASSIVE BAD NEWS!! These new punishments ELIMINATES the "middle class flier" basically by taking away the mid level pricing structure long utilized to fund travel for middle class families and small business owners. Now there is an ENORMOUS DIVIDE of the corporate executive class who can afford to bill their travel departments the gigantic price increase for Full Fare Economy and the LOW INCOME pax in the far far back of the plane. United made a financial decision to nolonger care about servicing the middle class passenger, like myself, who managed to earn 1K status based on purchasing all my flight segments with discounted Economy fares, in Economy. (Mind you i still also spent the needed dollar quota required for earning 1K) I have NEVER felt more INSTANTLY discarded as a customer as I do today by United Airlines. I'm hurt, offended, furious and in shock to be honest.

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Cullen Guest

You can't even possible start comparing UAL vs Spirit Look at United vs Spirit in baggage fee income. The latest I could find was from 2015. UAL 673,000 vs Spirit 289,000. Destination UAL vs Spirit 342 vs 59 Ual vs Spirit fleet 724 vs 93 It's hard to count efficiency when you have that big a difference in fleet size. Also Spirit flies one common aircraft. UAL has 7 different types of aircraft and has 13 different models of said aircraft compared to Spirit's 3 models of same aircraft. That's just mainline alone. You have a niche market & customer airline vs a global one with one of the best route networks out there. Basic economy only being available in select markets and not all the time. Will be interesting to see what markets will be the test bed.

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AlexS Guest

It looks like the ghost of Smisek is still plaguing United. United is forgetting that Spirit has far more efficient aircraft, lower staff costs, and lower overhead costs. Winning the race to the bottom isn't a win. If the airlines, especially United, want to improve their on-time performance, they could start by making the first checked bag free and charging for large carry-ons.

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