Alice Wang Joanna Chen Timmy Liu Bidding for Upgrades Alice Wang Joanna Chen Timmy Liu

Introducing... Bidding for seat upgrade Go online 7 days before flight sliding meter of minimum bid meter of likelihood of acceptance upgrade by one class only

Implications for Airline Price discrimination for those who value upgrade at prior upgrade price -no consumer surplus Air New Zealand able to extract more profit from flyers while filling up seats available

Implications for Flyers Economy class will not be affected People who set their value higher than set prices of each class will still buy the ticket Remaining people who value it less than the ticket price will buy one down and bid for the upgrade Difference: frequent flyers may have to bid more than they paid under the fixed upgrade system in order to upgrade.

Customer Response Inconvenient won't find out if upgraded until 3-7 days need to think Creates upset between the people who paid different bid amounts and ended up the same Frequent flyers are upset because might have to pay more than used to but still want to use their Airpoint Dollars

Measurement Bids > previous set prices Increase in revenue/income Number of flyers Might lose frequent flyers in the long run

Comments Questions Concerns Pay the losing bid more incentive for people to bid their actual value -end up paying less "more satisfaction" for the flyer better for airline, worse for flyers Poor treatment of frequent customers customers who are loyal like the price and system forced to probably pay more