Buying Discount Business Class Fares vs. Upgradeable Economy
As I've written about lately, there have been a ton of super cheap business class airfares recently - even to Europe during peak season. Continental also usually runs a pre-summer sale on business class, so I expect more low fares (and subsequent matching by competitors) to appear in the next month or so.
These fares are so low, they are almost as cheap as coach. I almost feel sorry for the people who don't know any better and are booking coach for pennies less, rather than getting to enjoy full lie-flat seats (and tons of extra miles) on their flights.
I ran into another case of this situation when I was presenting options to a client for an upcoming trip to Israel. Israel awards are tough, because there are few gateways and those flights are in high demand - especially around Jewish holidays. I've read many reports that Tel Aviv routes are among the most profitable for the airlines - not surprising since it's a long trip and not many people want to connect in Europe and extend an already lengthy flight (plus the connection times on most carriers don't line up nicely and require day long layovers).
So when I started researching whether a client should upgrade or flat out buy a business class ticket, I was once again reminded that business class is sometimes only a tiny bit more than upgradeable coach fares - especially on Delta who restricts international upgrades to the highest fares (Y, B, and M).
Check out the difference for this itinerary:
Upgradeable coach fare on Delta= $3,256 plus 50,000 miles to upgrade roundtrip
Discount business class fare (I) = $3,347
So "splurging" an extra $91 saved my client 50,000 miles per ticket - a steal if you ask me and the reason why you should always check the price of business class when booking an upgradeable award or a coach ticket that seems really expensive.
While this situation is extreme, there are some things you should know about discount business fares. They are usually only available 30-90+ days in advance. Also, they carry cancellation penalties, so they don't have the same flexibility as full-fare business class. However, most airlines will give you a voucher (less a cancellation fee), so it's not like you will lose the entire value of the ticket if you need to cancel.
I've also seen a lot of domestic US airlines closing the gap between traditional first and business class fares and discount coach prices. Continental has been marketing upgrades much more aggressively lately - whether at check-in or anytime before your flights, much to the chagrin of their frequent flyers who have noticed marked decreases in their complimentary upgrades. Delta has also announced a planned initiative to "monetize" first class, which could make the cabin more accessible than it's ever been in the past.
While I personally love my near unlimited complimentary domestic upgrades, I think it's smart of the airlines to have more sensible upgrade policies. For example, Delta restricts L,U,T fares (the most common, cheap fares) from upgrading at the gate when seats are still available. So even if you want to pay the $50-$150 fee - you aren't allowed since you bought a cheap ticket. Since most customers don't even realize what fare class they are buying, I think this policy makes no sense. In fact, it aggravates people because they see the "First class seats available for upgrade" and approach the gate agent with credit card in hand, only to be turned away because they didn't purchase a YBMHQ or K fare.
And while the airlines have been rebounding, with oil prices creeping up again, I bet they'll be more aggressive about capitalizing on new revenue sources. And as flyers are already mad about fees, giving them the opportunity to purchase up to first class while not breaking the bank, could be a mutually beneficial situation.
[card card-name='Premier Rewards Gold Card from American Express ' card-id='22035076' type='javascript' bullet-id='1']
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.