BLOG: Basic Economy Fares: What Do They Mean?

The airline industry has gone through many changes over the last 20 years causing consumers to continually adjust their expectations of comfort, service and cost when it comes to flying commercially.

One of the newest twists in the airfare offerings by the remaining big three carriers; United, American and Delta, is the onset of Basic Economy fares.

It’s often said the move to “unbundle” the options included in a ticket is an effort to offer cost conscious customers an alternative and to compete with the way low-cost carriers present fares.

In any event, Basic Economy fares are definitely advantageous to some travelers and organizations, but are they right for business travel?

Let’s dig down into what Basic Economy fares really offer to travelers.
Delta Air Lines Basic Economy

  • Seat assignments are not available until after check-in or at the gate
  • Seat assignments for individuals traveling in the same party may not be together
  • 100% non-refundable / non-changeable unless it is due to Irregular Operations (IROPS)
  • You will be in the last boarding zone
  • No access to paid or preferred seats
  • Basic Economy is not eligible for same-day confirmed or standby travel changes
  • Overhead bin usage for carry-on luggage allowed
More details on Delta’s Basic Economy fares can be found here.

 

American Airlines Basic Economy
  • Seat assignments are available at a cost 48 hours prior to departure or free after check-in / at gate
  • Seat assignments for individuals traveling in the same party may not be together
  • 100% non-refundable / non-changeable
  • Boarding Group 9
  • Basic Economy is not eligible for same-day confirmed or standby travel changes
  • Overhead bin usage for carry-on luggage allowed
* Regulations for international flights are different.

Full details on American’s Basic Economy fares can be found here.

 

United Airlines Basic Economy

  • Complimentary or upgraded seats not available
  • Seat assignments for individuals traveling in the same party may not be together
  • 100% non-refundable / non-changeable
  • Basic Economy travelers will board last
  • Basic Economy is not eligible for same-day confirmed or standby travel changes
  • No overhead bin space allotted. Full-size carry-on bags are not allowed – bag must fit under the seat. Bag check at the gate is $25.
* Regulations may be different for status members.

Full details on United’s Basic Economy fares can be found here.

 


Organizations may choose to prohibit the booking of Basic Economy fares when traveling for business because the savings achieved are less than the revenue lost with a single trip being cancelled.  Additionally, should your trip be impacted by a schedule change, some airlines require Basic Economy to be available on a new flight before they will re-protect you on it.

So for instance, in the comparison below, while the ticket savings is $50, if the individual is unable to travel, the entire ticket value is lost which is a loss of $156.40. Should the traveler need to check a bag, with the average bag fee being $25 each way, the savings achieved by booking the lower cost fare is not enough to buy a much more restrictive ticket.

 

 

 

 

 

 

 

 

To find out if your organization allows you to book Basic Economy, check with your travel manager or travel department.