Cathay Pacific explores online auction for seat upgrades

Cathay Pacific is considering an online auction - similar to ones on eBay - where passengers can bid to upgrade their seats.

In a move to boost earnings, the Hong Kong carrier - whose net profits tripled to HK$2.62 billion last year - is exploring a pilot project to sell premium economy and business class seats at cheaper prices, allowing it to fly fully booked more often.The plan would open up all available premium seat upgrades to all passengers. "Customers would be invited to place an offer for their booked flights via a website prior to their departure date. If their offer was successful they would be advised around four days prior to departure and the offer payment collected," said a spokesperson from International Customer Loyalty Programmes representing Cathay Pacific on Flyer Talk, a popular aviation forum.

Members of the airline's Marco Polo Club climb faster up the company's tiered membership system depending on how often and how far they travel. Currently, customers who gain the higher tier are more likely to receive better rewards.

But concerned frequent flyers fear free upgrades could be scaled back, a benefit that is offered to Marco Polo Club members, particularly on flights where economy class is fully booked.

The auction is designed to attract the highest bid, while currently, full-fare economy passengers and Marco Polo Club members are offered seat upgrades by Cathay sales agents for a one-off fee before the flight. Separately, at the airport, Marco Polo Club members are often upgraded to a better seat for free.

Air New Zealand is among a handful of airlines that introduced online bidding and initially encountered resistance from loyal passengers fearing cash upgrades would overtake reward upgrades.