Coming soon to an airline near you: the semi-confirmed reservation?

by Janice Hough on February 9, 2009

At this point most seasoned travelers know the drill. Want a cheap ticket? Pay for a nonrefundable ticket, and pay again for any changes. Which is one reason being bumped can be so frustrating, especially as the airline compensation is often less than it would have cost to voluntarily change the reservation.

But now Air Canada is working with a site called Optiontown.com to add a wrinkle to the process. No, they aren’t waiving penalties, but it will discount fares up front for travelers who volunteer at the time of booking to be bumped if necessary.

The new program, called the “Flexibility Reward Option,” gives an immediate discount, and then further credits when passengers are actually bumped. And the airline promises two to four days notice.

It’s an intriguing idea, but the discounts, $7 at time of booking (yes $7, not $70) and up to $50 for actually being bumped to a different flight, don’t seem worth the hassle. Maybe for a starving student, but even leisure travelers like to know their schedules in advance.

Presumably, however, these amounts can be adjusted according to demand, or lack thereof. In fact the discounts are currently so low that I would guess Air Canada expects low usage at first, while it tries to fine-tune the plan.

But passengers who are interested now can simply go to the Optiontown site, enter their Air Canada booking number and indicate if they are willing to take a flight either a few hours or a few days later than their current flight. Then the program will offer a choice of possible alternatives and of possible advance notification dates. (The discount is higher for those willing to be notified closer to departure date.) Optiontown will then notify them on or before that chosen date if their flight has changed.

If this catches on, there are all kinds of possibilities. Presumably airlines could offer higher up-front bumping bounties around the holidays, and in popular high-yield business travel markets.

If it catches on I can also see more and more potential issues. As in, what happens when travelers don’t get or don’t see the email notification? Or what happens when the new flight is also overbooked? Or canceled? And will there be any provision for things like priority on seat assignments? It’s one thing to fly a few hours or few days later; it’s another to be stuck in a middle seat.

And even scarier, what about the potential step of not only discounting for volunteering to be bumped, but charging more for a reservation where they promise NOT to bump you?

One thing is for sure: if Air Canada makes money with their “Flexibility Reward Option,” and passengers don’t revolt, we will soon be hearing the answers to these and other questions.

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  • Hal Wylie

    I have suggested in the past that airlines should offer at the lowest fare a ticket that is paid for at once in advance but gives no specific flight reservation – it is a stand-by ticket – good only 15 minutes before flight time to fill empty seats. This looks like a poor substitute.

  • Juan

    I have seen this on air-canada web-site. seems a gud option to me. I think it’s different than normal bumping at least they are informing in advance about your flight status. Liked the concept, but they only send reward through check/paypal and that bugs me. I am not comfortable with either wish they could have done credit card too. Any ways i think it’s good concept. Wishing to use it in future if they let me use credit card.

  • http://leftcoastsportsbabe.com Janice Hough

    Good point Juan, I think as noted they are offering very little money at first while they see how this works out so they can adjust it in future, credit card might be a way to do that. Thanks for reading.

  • Tim

    I actually signed up for this for my upcoming trip. I found this option pretty cool as I got to select my alternate flight (which is never the case in bumping) along with the deadline by which they will tell whether I’m moved or not, plus I already received $6 (next day, I would call that fast) plus will receive another approx $40 if they do move me which will be like icing on the cake as I will save on hotel as well (have selected the next day morning as my alternate flight).

    I too wish they provide the use of credit card but I don’t think that’s possible as to the extent I understand, credit card as meant to be pay in gateways and not pay out.

    I will definitely recommend everyone to try this on their next trip on AC. I hope AC extends this option to their international flights as well.

  • Dave

    here’s my 2 cents.

    I think this is a fairly decent offering from Air Canada. The key aspects of this service to me are
    a) ability to decide the alternative flight which makes sense for me.
    b) decide the notification period (days before departure I need to know if shifted or not)
    c) choose the reward that works for me

    So, I would not call this bumping as here the traveler is really driving this. If you are old enough to know the early days, the word bumping really originated from the fact that airlines used to ‘kind of bump/throw people out of their planes — those days standing at the airline gates — it was king of a forced thing — and hence the term ‘bump’. I still remember when we would stand at the gate just before boarding, and the gate agent would start announcing/asking for volunteers, I would start feeling shaky inside– not sure if I’d make the flight. But now, I hope with FRO, this should reduce overbooking situations at the gate. This Flexibility Reward Option or FRO as they call it (which I think is not bad!) seems to bring “customer respect/right” and choice back to travel business — the customer gets to make his or her own choice of whether it makes sense for him to participate or not.

    Moreover, with FRO, the customer always knows that either he is going to travel on flight A or flight B (both of which the customer has selected by him/her self. So there is almost nothing you are giving away by using FRO. Obviously if they shift you, you make a lot more cash back – especially if you combine the selection of alternative flights with other savings, like flying next day to save one hotel night, say $80 — the total savings of FRO and hotel — $140 with 100% convenience sounds like a bonanza to me. With so much ‘forced’ revenue features floating around with airlines — being forced to pay for food, aisle seats and bags, I think this is one good innovation from Air Canada to at least let the customer decide what they want and generate good cash savings.

    On the other side, I do agree that for getting cash reward, if there were to add credit card/airline credit, it would be more convenient than the snail mail check.

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