I would adopt the British Airways method. BA upgrades only at the gate, once all paying Club Class passengers are accommodated. This is common sense. An upgrade is a privilege.. BUT a paying customer has actually bought that service. Therefore, any delay pleasing the customer who is being upgraded will not adversely affect that customer, as long as they are upgraded ultimately. However, denying a service, that a customer has paid for is likely to alienate potential customers.. and alienating high value customers is just poor business.
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