Over the past 10 years, we have seen airlines in the United States do a better job of making money. First class would cost a lot back in the day. Most seats wouldn't be for sale, but for people to upgrade. The percentage of first class seats that are paid for has increased, as airlines decrease the price difference between economy and first class.
When first class is worth it, how much extra do I have to pay, and how do I decide if I want to upgrade or not.
We are all on the same page if we share a bit of background. We're not talking about the A380 first class with shower suites, we're talking about your run of the mill domestic first class experience in the U.S.
Domestic first class tickets include the following:
Sometimes airlines fly wide body aircraft with fully flat beds on domestic routes, so it could be worth going out of your way for, if you're willing to pay a premium. You can see my post about the best domestic flights.
The bed has direct aisle access.
It looks better than your first class seat.
If you want to look at it based on distance, I think first class is worth $50 per hour. For me, that seems to be a good starting point for crunching numbers, even though there are a lot of variables.
For two reasons, I derive value from first class. I can be as productive in the air as I am on the ground. Domestic first class is not something to be excited about, but it is a comfortable place to work from and can double as an office.
I wonder if I could work in the economy. It's absolutely true. It is quite uncomfortable due to the lack of privacy, the lack of shoulder space, and the fact that someone could recline into my space. I'm getting older. If I can avoid this experience at a good price, I will.
First class for me is about the space. I don't want to get drunk "just because" unless I'm flying international first class on a top airline, which would be a good enough occasion for me.
I have Executive Platinum status in the AAdvantage program and fly American Airlines the most. There is a theory that entitles me to unlimited domestic upgrades. Sometimes those upgrades clear easily, while other times they don't, as American sells 80% of domestic first class seats.
How do I decide between paying for first class or getting an upgrade?
The odds of my upgrade clearing are analyzed first.
I give a discount to the fare difference. The fare difference between economy and first class on American Airlines is $200.
I get a 25% return on my spending. My out of pocket was $200 to $150.
decisions are made on a case-by-case basis. I might be willing to pay an extra $25 per hour for first class if I think I have a 50% chance of an upgrade clearing.
Delta does a good job with its first class pricing and it's based on my willingness to pay. The breakeven point for first class pricing is based on my math.
I have SkyMiles Silver Medallion status with Delta and it's not easy to get an upgrade. Economy class on a Delta flight from Miami to Boston costs $127 and first class costs $327
Is it possible to sit in a first class seat for three hours? I only view this as costing $170 after taking the value of the miles I would be earning into account. It can be difficult to get a good seat without paying extra, as a Silver Medallion.
For a similar example, let's take a flight from Tampa to Chicago on American, where the economy is $169 and the first class is $418.
Is it possible to sit in a first class seat for three hours? I apply a 25% discount to that difference to account for the 11x AAdvantage miles and 5x Membership rewards points I would earn, so that really only costs me an extra $189.
The Delta example shows that the math is the same, but the upgrade is more expensive. I have a better chance of getting an upgrade on American than on Delta. I would most likely pay for the economy and hope for the best.
The Miami to Houston to Puerto Vallarta itinerary on United has an economy class price of $268 and a first class price of $488.
Is it possible to sit in a first class seat for six hours? I would apply a discount to account for the miles I would earn, so it would cost me less than $200. Is that worth the time in first class? This is a no-doubt choice.
For others, I think it's worth considering whether you have status more generally and what value you get. In some cases elite status will give you free checked bags, extra legroom economy seating, priority boarding, etc., which will reduce the value of first class.
If you don't have status and know you're going to check two bags, you can subtract the cost from the price difference. Extra legroom economy seats, priority boarding, etc. could be factored in.
Everyone values first class differently, so there is no formula for determining how much a premium is worth.
I value first class at $50 an hour over the economy because I can work more efficiently in it. It doesn't include things like being comfortable, getting a meal and free drinks, and earning bonus elite qualified miles.
I consider my upgrade chances, as well as the miles I am earning for the difference in fare, when I make a decision on what to book.
How do you decide if you should pay for first class?