United Details Bare-Bones Basic Economy Fares
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Update 1/18/17: As USA Today reports, Minneapolis will likely be the first destination to get United's new basic economy fare — it could roll out there later this quarter. More domestic flights will follow, along with flights to the Caribbean and eventually long-haul destinations.
Update 11/15/16 12:03PM: We just found out a bit more about Basic Economy fare restrictions —MileagePlus members will not earn any elite-qualifying credit, including miles, segments or even elite-qualifying dollars (which doesn't make much sense). Below is the full scoop from United:
On December 1, United's rolling out a much-improved business-class product, with new lounges, better food and beverage options, branded bedding and more. But while United's most profitable customers have Polaris to look forward to, those who typically fly in coach will have a new option to avoid: Basic Economy.
Delta was the first legacy carrier to launch such a product, which you may know as "E" class. These fares exclude seat assignments, complimentary (or paid) upgrades, same-day changes and other benefits that coach passengers would otherwise expect. American is planning to launch a similar product next year. United, however, has been a bit mum on the subject, but following today's investor presentation, the cat's now out of the bag.
United's new Basic Economy fares will go on sale early next year for travel beginning in the second quarter. It's not clear if these fares will come at a lower price than what we're seeing today, or if the current lowest fares will become "Basic Economy." Either way, these fares come along with a lot of restrictions, which you can see outlined below:
Once you're on the plane, the economy experience won't be any different than what you have today — for non-elite passengers, at least. Elites (and everyone else) traveling on these fares won't have access to advance seat selection, Economy Plus or first-class upgrades. Flight changes will not be permitted, even with a fee. Additionally, Basic Economy passengers won't earn elite-qualifying miles (but they will earn redeemable miles based on the fare), and they'll board in the last group (unless they have priority boarding from status or a credit card, such as the United MileagePlus Explorer Card). The biggest change of all, however, is that Basic Economy fares do not include an overhead carry-on bag. If you're traveling with a small rolling bag, you're going to have to check it. That said, there is an exception:
MileagePlus Premier members and certain credit card members will retain boarding priority and be permitted an overhead carry-on bag.
So if you're an elite member you will still be able to bring aboard a rolling carry-on, but you won't earn EQMs and you won't have any chance of upgrading. My hope is that these fares are even cheaper than what we have today, and today's lowest fares will still fall into the "Economy" bucket. We'll know in a few weeks...
The other big story today is that United's "evaluating" premium economy. American's premium economy is already flying (here's our review) and Delta's version will launch next year. It looks like United is considering adding another cabin of its own, but details are very light at this point. From the slide below, it does appear that premium economy would be offered on both domestic and international flights, if United opts to launch it at all.
Overall, today hasn't brought great news. The only way Basic Economy will be an appealing addition is if these flights are priced at levels far below what we're used to today, but that's unlikely to be the case. Instead, you might end up paying more to retain the benefits you currently enjoy as an elite member, such as Economy Plus and first class upgrades, same-day flight changes, elite-qualifying mile earning and more.
Will you be avoiding United's new Basic Economy fares?
H/T: Edward Russell
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
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 $6,000 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.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.