Businesses like Plusgrade, which generated $3.5 billion in business last year, according to the company, are booming in the post-lockdown return to travel as fliers look to treat themselves, and airlines have more premium seats available because of the continued slowdown in business travel.
“Airlines are trying to convert leisure customers to high-end leisure customers,” said Kevin Stamler, the founder and chief executive of SeatBoost, an auction service that currently works with three airlines, and has plans to start working with seven more this year. “It’s the cheapest way to upgrade.”
On two separate flights on foreign carriers last year, I was offered upgrade opportunities and made both winning and losing bids, which inspired me to look more closely at the practice. The following is what I learned, and explains why you might find upgrade auctions on your next flight, train ride or cruise.
How auctions work
Though participating airlines can set the terms and timing of the sales, most work like this: Within a week of departure, passengers get an email notifying them of an opportunity to bid on an upgrade. (Upgrades often are to business class but may also cover premium economy, a step up from economy with more legroom and often improved food and beverage service.)
The email usually sets a minimum bid, which is the threshold for participating, and sometimes a suggested bid above that. Bids apply to the total number of passengers in a reservation, so, for example, a $300 upgrade offer for a couple traveling together on the same booking would be $600 total. Bidding passengers supply a credit card for the payment in the event that it wins.
Going Once, Going Twice: How to Bid on a First-Class Seat
- Advertisment - 