Basic economy fares: Alaska Air benefits; Hawaiian launches

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Fare segmentation is now part of the business strategy for most of the large US airlines. Alaska has launched its "Saver Fares", and Hawaiian is preparing to debut "Main Cabin Basic" in the face of growing competitive pressure in its markets from Hawaii to the US west coast.

Alaska has stated that the roll-out of its Saver Fares has exceeded expectations and it expects to generate USD100 million in incremental revenue from segmentation this year.

Hawaiian, also, has outlined its revenue expectations from fare segmentation and its estimates reflect the size and scope of its operations.

As segmented fares reach a certain level of maturity, airlines will work to add more sophistication into how they revenue manage their fare tiers, and Alaska seems interested in ways to do that once its gains more familiarity with managing its Saver Fares.

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