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Watch out for new "Basic" airfares

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#1 Limeaid



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Posted 10 August 2017 - 02:10 PM


On American flights that offer basic economy, for instance, the price of standard economy fares rose an average of 117 percent between the time they were first offered and the flight departed, compared with the industry average increase of 20 to 50 percent, the study found. 
During an earnings call last month, Don Casey, American’s senior vice president of revenue management, explained how basic economy helps to increase revenue. He said that basic economy gives the airline a chance to “generate more upsell to the product that we offer to customers today.”


Upsell to higher prices, right.