Where Luxury Lacks, Savings Abound with “Basic Economy” Fares; United to Test Low-Cost Option at MSP

united

Photo Courtesy of United Airlines

Note: This was originally published on the Aviation Queen blog, where I was fortunate enough to post as a guest contributor thanks to the immense kindness of Benét Wilson.

As one of three major U.S. airlines committed to offering travelers low-cost tickets with fewer amenities, United will soon test its basic economy fares in Minneapolis.

And while signs point toward these fares becoming a regular fixture in commercial aviation – mainly as a way for larger airlines to compete with low-cost carriers like Spirit and Frontier – flying has certainly transformed over the last several decades.

Having worked as a flight attendant for Eastern Airlines in the 1970s and 1980s, when donning more fashion-forward uniforms and serving meals on china in first class were the norm, my mom says flying was more “glamorous” back then.

But now, she says, plane rides almost feel more like bus trips, which isn’t too surprising with the rise of discount airlines, and more recently with these low-cost fares. Delta is already offering the no-frills option, and recently American announced that they’ll begin offering basic economy fares in 10 select markets starting this month.

United first announced plans to offer basic economy fares last November, and in mid-January, President Scott Kirby said they would debut at Minneapolis-St. Paul International Airport. “When you think of the number of flights coming in, the number of customers choosing United, and the airports… MSP was a great market to test this in,” United Spokesman Jonathan Guerin said.

United basic economy fares provide the same onboard experience as standard economy with a few exceptions, most notably: you can’t choose your seat and full-sized carry-on bags are not permitted. But you are allowed one personal item that you must store underneath the seat in front of you.

Brett Snyder, who runs the popular Cranky Flier blog, sees basic economy as a good way for legacy airlines to offer low fares while stripping out amenities for those who don’t need them. “While this might mean an increase in the lowest selling fare that allows for carry-on bags and advance seat assignments, those fares aren’t really sustainable today,” he said.

And it’s no surprise that basic economy has received some pushback. Senator Chuck Schumer (D-NY) recently voiced his concerns in a press release, citing the cheap fares as just another way for very profitable airlines to nickel and dime passengers. Through an upcoming FAA bill, he’ll push for new customer protections that “undo unfair policies” such as “banning” the free use of overhead bins.

The only issue is – the major airlines aren’t banning the free bin space because they’re not making you purchase a basic economy fare… it’s simply another option. These days, customers want choice and they want control, and that’s exactly what these fares are providing.

“There will always be pushback anytime the airlines do anything, even if it’s not bad,” Snyder said. “The reality is that you really shouldn’t buy these fares if you want a carry-on or a seat assignment, and the airlines will tell you that multiple times before you buy the ticket,” he added. “But people will still make that mistake and then complain.”

Another concern has been how airlines will keep track of those flying on basic economy fares. For United, Guerin said it shouldn’t be difficult, as it will be noted on your boarding pass and you’ll be in the last boarding group. This provides several opportunities for airport employees and gate agents to see if you have a full-sized carry-on, which will need to be checked and will be subject to the standard checked-bag fee. For domestic flights, you’ll pay $25 for your first checked bag and $35 for your second. But basic economy passengers who arrive at the gate with a full-sized carry-on will also need to pay a $25 gate handling fee.

United’s basic economy fares will go on sale during the first quarter of 2017, for travel during the second quarter. They’ll be available for routes between MSP and the airline’s seven U.S. hubs, eventually rolling out into other domestic markets.

Ultimately, while flying may not be the lavish experience it once was, it’s clear that the airlines have done their research in targeting this price-sensitive niche. Many people are just looking to get from point A to point B on the cheap, and now they have options outside of simply choosing a low-cost carrier.

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