What Are Upsell Fares?

 Consumers continue to be attracted to customized offerings. They appreciate paying for only those products and services they want. With the unbundling of seat price from extras (checked baggage/Wi-Fi/meal/headset/etc.) airlines are able to offer new products by creating bundles from which a customer can choose his or her ideal package of services. This new fare type is called “Upsell Fares” however airlines have different names for them such as branded or family fares. Currently, Upsell Fares are designed to bundle a fare and amenities into a variety of packages at different price levels, to include meals,seat assignment, checked baggage, award mile accrual, changes and refunds.Some airlines also offer services such as airport lounge access or in-flight Internet. The options are limitless.The seat price follows the traditional hierarchical order, depending on the booking class. Paying a higher price for a seat can typically buy more value and a better product. But Upsell Fares enable passengers to pay one price for more value (extras), even with the lowest fares or booking classes. Upsell Fares add value to the price for a seat by packaging the seat with extra features, sold at a higher inclusive price. Even discounted or budget airfares can be promoted as an Upsell Fare by charging a little more for the ability to change reservations or check in a bag.

The lowest upsell fare level in any booking class purchases the seat alone. It does not allow reservation changes, refunds for cancellation, checked bags,advance seat selection, inflight meals and headsets, etc. Even the highest fare level can be nonrefundable.Passengers can then increase the same fare (booked in the same class) to pay for a service package which may include refund ability in case of cancellation,changes to booked flights, checked bags, mileage point accrual, etc.The passenger may upgrade to a more expensive package price that offers more valued extras such as a premium seat with legroom assignment. The service options offered at one upsell level tend to repeat themselves at every higher fare level.