1. Air Newzealand’s oneup plan
Christine Nguyen
Sofie Zarrabi
Kelsie Lofland
Kelsey Kado

2. No Set Prices
Many people do not like ambiguity. Uncertainty is scary especially when it comes to flying.
People also enjoy comparing and evaluating. They cannot do this with set prices.
This isn’t something people want to gamble on.
Those who are used to the set prices before already have an idea what the prices should be around so they will not think it is worth it to bid more.

3. Bidding process
“We are busy professionals & do not have time for such nonsense” –Deweese3
They are right. Those who are willing to pay for better seats are not willing to bid. In fact, New Zealand has a 7 day policy. Must bid 7 days before. Not everyone will remember or have time to remember this.
If you made an offer and you didn’t get it, you cannot make an alternative higher offer. You are done, you must try again next flight. This causes frustration!

4. Other cons
This plan renders no flexibility. With the OneUp program, people cannot try to upgrade their seat at check in.
For canceled flights with the seat upgrade, if it is within 7 days of a rescheduled flight, the seat upgrade will be refunded but you can’t get an upgrade on a rescheduled flight.
People who are lazy will be deterred by this fickle process.

5. Less profits or reduced quantity of customers?
Sure, the highest bidding prices could be a bit more than the set prices they had before but…there needs to be bidders for the bidding to work!
It will be a fail and be a worse end result than before if no one bids and participates.
Businesses like hotels and airlines should focus on customer loyalty. Customer loyalty keeps them going.

6. Customer Loyalty
“This could lead to less Business fares sold, which is bad overall for the airline and the product” –ajnz, Dec 21, 2011.
Business class is what generates the most revenues for many airlines so if they are dissatisfied, since they are willing to pay the most for certain flights and fly most frequently, something has to change. As mentioned above, business people do not have the time for this type of plan
Those with Airpoints are no longer special, the plan devalues them. People choose specific airlines just so they can earn more points and be treated with priority.
Upgrades should be kept as the benefit of being a frequent flyer.
In the short run, they might be earning more money but these are the people who are pulling in revenue in the long run. “Upgrades are the ‘holy grail’ and the sole benefit I really value” –oranjenakker.

7. Yay or nay?
It is safe to say we think that the proposed plan is not likely to succeed.
People will be very dissatisfied and Air Zealand cannot afford to lose their loyal customers.
“I’m so glad I’ve already jumped ship to Velocty”-birder, Nov. 21, 2011.