Airlines are offering ‘basic premium’ fares. Beware the potential catch.
JetBlue is planning discounted "Base" fares for its coming first-class cabin, which is expected to launch later this year. Thomas Pallini/Business ...
Thomas Pallini/Business Insider
Do you have champagne taste but beer money? JetBlue has a solution.
The US airline is pitching a lower-fare option for its upcoming first-class cabin, BlueFirst. Travelers just need to be willing to sacrifice some flexibility.
BI's aviation expert Taylor Rains has all the details on JetBlue's "Base" pricing option.
It's not just JetBlue's BlueFirst getting the Base treatment. Except for Mint, its highest-end cabin, all of JetBlue's seating options will include a "Base" fare option. Base fares for travelers don't include seat selection and have limited cancellations options. "Standard" fares function like a typical ticket while "Flex" offers … the most flexibility.
JetBlue is following in the footsteps of rival airlines Delta and United by embracing the "basic premium" concept. The idea is to lower prices for travelers by unbundling the perks some people might not want to pay for.
Delta and United's cheaper fare options take things a bit further than JetBlue, limiting the number of checked bags and lounge access a customer might have with a standard ticket.
So how much cheaper are these tickets? The price differential for JetBlue is unclear, but another airline offered an example.
When Delta launched its basic option earlier this month it provided a fare comparison for an unspecified trip: $2,689 for Basic Business, $2,889 for Delta One Classic, and $3,389 for Delta One Extra.
Critics of the trend say this could ultimately lead to travelers paying more for things that used to be included.
Airlines have a history of nickel-and-diming passengers. (Free checked bags used to be the standard. Now I sometimes have to pay for a carry-on.)
Airline executives are happy to pitch this as a way to give travelers more optionality, but the reality is you might need to shell out more for stuff you typically expect to get.
So it's less about tickets getting cheaper and more about having to pay a premium for what used to come standard.
On the surface, unbundling airline pricing isn't terrible. If you're willing to slum it at the airport bar before your flight and don't mind sitting middle (it's honestly not that bad), you should be able to save a couple bucks.
But the trend can be taken to the extreme. Michael O'Leary, CEO of the European budget airline Ryanair, once famously proposed charging people to use the onboard bathrooms. (The idea eventually got flushed.)
So you might be able to fly cheaper. Just don't expect an actual seat.
Dan DeFrancesco
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Dan is the lead writer for BI Today, Business Insider's flagship daily newsletter. Dan often interviews executives about everything from AI's impact on capitalism to robotics to the potential SaaSpocalypse as part of his work on the newsletter.Dan was an editor and reporter at BI, covering financial technology and market structure.His previous work includes everything from inside Robinhood's failed "Checking and Savings" product that eventually led to Congress getting involved to the internal arguments over JPMorgan's failed attempt to launch a finance app for millennials.Before joining Business Insider, Dan wrote about risk management in derivatives markets for Risk.net and fintech for WatersTechnology. He initially covered local sports for The Journal News, a daily newspaper serving the lower Hudson Valley. Got a tip? Contact this editor via email at [email protected].
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