People seeking affordable travel by reviewing cheap travel options such as cheap airplane tickets, discount hotel rooms, and cheap vacation packages, are finding that sometimes they can secure more desirable seats on international flights through an auction process.
The auction approach is becoming increasingly attractive to many international airlines. In the past upgrading a coach ticket to business or first class usually could only be done by:
Redeeming frequent flier miles
Spending a fixed amount of money determined by the airline
Redeeming certificates awarded to elite frequent fliers
A new trend has emerged whereby many international airlines are making upgrade auctions available to its fliers whereby customers bid against each other for seats in business or first class. Currently upgrade auctions are being offered by seven international airlines, including Air New Zealand, Brussels Airlines, Czech Airlines, El AL, Etihad, TAP Portugal, and Virgin Atlantic.
Although no U.S. airline is currently auctioning upgrades, experts expect that it will only be a matter of time.
The auction process is working as follows:
Several days prior to departure the airline contacts passengers, asking if they would like to bid for a seat in the next class of service.
The airline sets either a minimum bid or a bidding range.
Passengers interested can put in offers and then wait a couple of days to find out if theirs are winning bids. Only winning bidders are notified. Auctioning upgrades is believed to create the greatest possible profit for airlines who sell upgrades.
Some critics of the auction approach to seat upgrades claim:
This is yet another annoying ancillary fee designed to make flying that much more expensive.
Such an approach will erode the value of airline loyalty programs. Historically elite frequent fliers have been given first access to upgraded seats. Even when they have had to pay in the past, typically the airline set the upgrade price in advance and elite members were given varying levels of preference in securing upgraded seats depending on their level of elite status.
Supporters of the auction upgrade process defend it noting that passengers only offer as much money as they are willing to spend and only get charged if they receive it.
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