A Bare Fares World
Bare fares are what cheeky ultra-low-cost carrier Spirit calls its
stripped-down airfares: extra-cheap published ticket prices with few
perks and plenty of restrictions that force travelers to pay extra for
seat assignments, carry-on bags, and so on and so on. It’s a business
model that flyers love to hate, but one that has made Spirit solidly
profitable and a Wall Street darling.
Of the Big Three legacy airlines, Delta
was the first to embrace the concept, in 2012 introducing Basic Economy
fares to compete with Spirit on routes where the two carriers competed.
Today Delta offers Basic Economy on 40 percent of its domestic
routes, and expects to expand coverage to its entire domestic network
before the end of 2017.
This week, the two remaining Big Three airlines, American and United,
put their own versions of unbundled fares on sale in select markets.
On Monday, United
introduced its Basic Economy fares on flights between Minneapolis/St.
Paul and its seven U.S. hubs (Chicago O’Hare, Denver, Houston, Los
Angeles, New York/Newark, San Francisco, Washington Dulles).
The Minneapolis rollout is just the beginning: Eventually, United’s
Basic Economy will be offered across the U.S., the Caribbean, and on
shorter Latin America flights.
And a day later, on Tuesday, American
customers could book Basic Economy fares for travel beginning March 1
on 10 routes, from four of its hub airports in Charlotte, Dallas, Miami,
and Philadelphia.
As will United, American will expand its Basic Economy availability “in line with customer interest.”
So by the end of this year, unbundled fares will be widely if not
universally available for U.S. domestic flights. For now, Delta’s are
the most customer-friendly, as theirs don’t restrict carry-ons or elite
miles. But it’s highly likely, given the nature of competition in the
industry, that Delta will soon adopt the harsher version of Basic
Economy, to match American and United.
Travelers are always suckers for low prices, and that’s what Basic
Economy is all about. But it’s also about restrictions, that can make
for a less comfortable flight experience, and surcharges, that can make
the final price a shocker.
By Tim Winship at SmarterTravel,Com
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