United just rolled out a new three-tier fare structure across all its cabins – including something no U.S. carrier has offered before: a stripped-down, “basic” business class fare.
In a release Friday, the Chicago-based airline announced it will soon offer three fare options for United Polaris business class, stripping out benefits like a second checked bag, Polaris Lounge access, and the ability to make changes or cancel for a voucher.
United Chief Commercial Officer Andrew Nocella gave a rosy perspective on the new structure, saying the options “give customers more choice” and that travelers can choose “great value, added perks, or maximum flexibility.”
Delta has been giving travelers “more choice” for a while now, and we knew it was only a matter of time until United followed suit. But in doing so, United actually beat Delta to offering those stingy basic business fares it's been teasing for a while now.
What we've learned from Delta's rollout of similar fares, including Comfort Basic, Premium Select Basic, and Delta One Basic, is that it doesn't amount to savings for travelers. These fare types simply allow United to strip away benefits from extra-legroom seats, premium economy, and, most annoyingly, the United Polaris cabin, while charging the same or higher fares.
The rollout of the new premium cabin fare structure will start slowly. The airline expects to launch the fares “in select markets” later this month. The economy cabin pricing structure has been three-tiered for years, so there is no change to the fares.
Hello, “Polaris Base” … i.e. Basic Business Class.
According to the chart, this Base fare for the Polaris cabin strips away seat selection, just one checked bag, the ability to make changes, and even United Polaris Lounge access, substituting inferior United Club access instead. Only the Polaris Standard fare gets seat selection, a second checked bag, and Polaris lounge access. The top tier “Flexible” fare is only distinguished by being refundable.
The same tier structure applies to Premium Plus – United's premium economy seats.
Premium Plus Base also doesn't include seat selection – basically guaranteeing a middle seat, and also doesn't allow changes or refunds. The Standard fare includes seat selection and changes, and the Flexible fare is fully refundable (not just an airline credit), just like Polaris.
The only positive is that United is branding the front cabin on transcontinental and Hawaii flights as Polaris, giving those travelers access to the Polaris Lounge (when booking Standard fare or above) or the United Club (for those who buy the base fare).
Our Take
This is a huge loss for travelers, as it was when Delta started down this path last year.
While United says it will offer travelers “value” with these base fares, color me skeptical. Delta did not measurably lower prices when it implemented the same changes last year, and United lowering prices out of the goodness of their hearts – especially at a time when airfare is rising across the board – simply isn't going to happen.
“Unbundling” the premium cabins (as industry insiders call it), may lead to more choice for consumers, but what it's really doing is stripping away benefits to the fares while keeping them at the same price. Now you have to pay up for a “Standard” fare to get what you used to get with any Premium Plus or Polaris fare.
Bottom Line
United will join Delta in unbundling its extra-legroom and premium economy cabins – and takes things even further, becoming the first U.S. airline to introduce a basic business class fare.
By breaking up its business class and premium economy fares into three distinct tiers – Base, Standard, and Flexible – United will charge the same for fares that include less as the airline rolls out the new system this month.
