What you need to know about bidding on flight upgrades for premium seats

First- and business-class seats are highly coveted by travelers searching for award availability and elite flyers hungry for upgrades. Reflecting the popularity of these fare types, many airlines now offer an additional method to access unsold premium cabin space: bidding for it.

Here's what you need to know about the bidding process and which airlines offer the service. We also offer tips to help you sit in premium economy, business class or first class at much better prices on some of the most popular airlines.

The bidding process

The upgrade bidding process is more or less the same from one airline to another. After completing your booking and receiving your e-ticket, one of two scenarios will likely initiate your bid: In one case, you will receive an email offering you the chance to bid on an upgrade. Otherwise, the airline's website will prompt you to bid when you check your flight — you'll often see a pop-up offer or a tab to begin a bidding process.

Terms and conditions for bidding on upgrades vary between carriers, but some standard rules generally apply:

• You may only place a bid after you have a ticketed reservation.
• There is a minimum and maximum allowed bid per flight segment. You can't just bid a dollar and hope no one else bids.
• You must enter payment information at the time of booking, but you won't be charged unless your bid is accepted. Accepted bids are nonrefundable unless your flight is canceled.
• If successfully upgraded, most programs give you the perks and benefits of your new travel class, including lounge access and extra baggage allowance. We listed some exceptions below.

It's important to note that even if an airline offers upgrade bidding, not all routes are necessarily eligible. Some airlines specifically state which routes qualify, while others make you enter your booking confirmation code to see if your flight is eligible.

Additionally, upgrade bids are usually per segment and passenger on your itinerary. For example, if you're flying from Los Angeles to Paris to London, you must make a bid for your Los Angeles to Paris flight and then your Paris to London flight. Your bid will be understood as per person if multiple people are on your ticket. If there are two people on your itinerary and you bid $200 for the segment upgrade, your bid is understood as $400.

Depending on the airline, there are certain time windows within which you can place your bid. Most require all online bids to be placed at least 72 hours before departure.

Airlines that allow bidding for upgrades

Many airline bidding programs are operated by the same company, Plusgrade, though individual airlines may impose their own specific limitations on the process. Here's some basic information on the bidding processes for the most popular airlines. Just note that there are many more international carriers that offer bidding options.

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Aer Lingus makes some flights between Ireland and the U.S. or Canada eligible for upgrades, though not all these flights are automatically eligible. You can only bid for upgrades on flights booked directly with Aer Lingus. Eligible customers will receive an email asking for a bid.

Air Canada offers the AC Bid Upgrade program, which allows passengers to bid on premium economy and business-class seats up to 48 hours before departure. Travelers can bid with Aeroplan points and cash; if their bid is successful, the payment will be debited to either their credit or bank account or their loyalty member account.

Air New Zealand's OneUp program allows passengers on international flights to upgrade by one class. You can move from economy to premium economy or from premium economy to business premier. If there are only two classes on the flight, you can upgrade from economy to business. You can submit a bid via email (which you may receive up to three days before departure) in your Air New Zealand account or through the airline's call center. Successful bidders are notified seven days before departure. You can pay with cash or your Airpoints Dollars.

Hawaiian Airlines is the only domestic carrier that offers a bidding upgrade program. With the Bid Up For First Class option, you can bid for premium cabin lie-flat seats and then manage or cancel your offer up to 28 hours before departing. If your bid is accepted, you'll be notified 24 to 48 hours before your flight; if it is not successful, you'll know 24 hours in advance.

Etihad Airways' Select Upgrades are not restricted by destination. However, certain tickets — including those booked using promotional fares, guest seat rewards, redemption tickets, free tickets, those upgraded using miles, bookings with multiple flyers and bookings with infants — are not eligible to bid for an upgrade. You may upgrade one class; for example, you could move from economy to business class or business class to first class. You will earn Etihad Guest miles at the base rate plus a 10% class of service bonus if your bid is successful.

Lufthansa allows upgrades from economy to premium economy or business class on long-haul flights. Those flying premium economy can bid for business class, and business-class travelers can bid for first class. Economy passengers on short- or medium-haul flights can bid for business-class upgrades. You must log into Lufthansa's website and submit your bid. You will receive a notification 24 to 36 hours before departure if your bid is accepted.

Related: How to upgrade to first class without spending a ton of money

Singapore Airlines' MySQupgrade allows you to bid for an upgrade in cash (U.S. dollars) or KrisFlyer miles within a preset range for flights booked through and operated by Singapore Airlines. You can make, change or cancel a bid up to 72 hours before the departure of your flight. You can only upgrade one class higher if you're paying with KrisFlyer miles. First-class upgrades are available for select routes if you're paying with cash via MySQupgrade.

Virgin Atlantic lets you bid to upgrade to the next higher class of service from the ticket you booked; this means you could move from economy to premium or premium to Upper Class. You must book tickets directly with Virgin Atlantic, and if your flight is eligible, you will receive an email invitation to make a bid. Virgin Atlantic lets you make a bid up to two days before your scheduled departure date.

Airlines that don't offer bidding for upgrades

These airlines do not offer the ability to set your own amount to bid for a chance at an upgrade, but they may allow fixed-price upgrades using cash and/or miles:

• Air France
• American Airlines
• British Airways
• Delta Air Lines
• Emirates
• KLM
• Qatar Airways
• United Airlines

Tips

There's no definitive strategy to ensure you win the bid at the best price. However, these tips should improve your chances:

• Use ExpertFlyer (owned by TPG's parent company Red Ventures) or a similar tool to see how many premium class seats are still available on your flight.
• Follow this equation for a bid price: Calculate the regular cost of a business-class seat. Subtract what you paid for the economy fare, and aim for around 20% to 40% of the remaining price.
• Bid slightly above the minimum to beat the crowd since most people will choose the minimum.

Many elite-status members do not welcome their preferred airline's offer bidding, as it can feel like their hard-earned operational upgrade chances are being auctioned off. Airlines offering flat-fee upgrades at the check-in counter and boarding gate compound this, providing even more obstacles to top-tier elite members who are high on the upgrade list but never clear. It's a tough act because airlines have to balance maximizing revenue streams with keeping their most loyal flyers satisfied.

TPG contributor Melanie Lieberman successfully bid on a flight upgrade for a Scandinavian Airlines flight from the New York City area to Oslo, Norway. SAS lets passengers bid on upgrades until 25 hours before departure for domestic and European flights. Lieberman upgraded from economy to business class at 450 euros ($440 at the time). From her research, she found that many travelers can win upgrades by bidding the minimum price. ExpertFlyer told her that business class on her SAS flight had wide-open availability.

A few of our readers weighed in on the TPG Lounge Facebook group, with one reader noting that they were able to get flight upgrades quite frequently with Plusgrade. Many airlines use Plusgrade for their upgrade programs, and travelers can also check for bidding opportunities.

Bottom line

In the end, bidding for upgrades has the potential for great value. By offering up a few hundred dollars, you can find yourself in premium economy or business class for much less than the amount your new seat neighbors paid.

The next time you fly one of these airlines and find yourself with a chance to bid, evaluate whether a bid that's likely to succeed offers enough value to be worthwhile. Hopefully, the strategies above can help you fly in premium classes at less than premium prices.

Related reading:

• Best airline credit cards
• Maximize your airfare: The best credit cards for booking flights
• The best credit cards to reach elite status