Rex to launch eBay-style bidding for upgrades

The ‘real-time’ process mirrors the web giant’s in that it will allow passengers to up their offer if they are outbid at any stage.

Rex’s director of media and external relations, Michael Venus, said “All passengers love an upgrade. This new element of gamification in the bidding process will be a fun and economical way for our economy passengers to experience our amazing business class product and service.”

The airline described the initiative as an “Australian first”, and it will be available to customers seven days before departure. A special introductory offer means minimum bidding will start from $10.

Qantas’ rival scheme allows customers to bid using cash or points, but only on “selected flights”. Etihad also offers a similar auction scheme.

Rex said the new initiative is being rolled out ahead of its upcoming loyalty program. Other “passenger enhancements” will include the introduction of neighbour-free seating in economy and new or refreshed lounges in Adelaide, Brisbane, Sydney, and Melbourne.

Rex’s move comes days after it announced a “major expansion” of its new FIFO business to directly challenge Qantas in its strongholds of Queensland and the Northern Territory.

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The business said on Friday it would “immediately” lease another two more Dash 8s on the very same day it formally completed the acquisition of the regional services wing of Cobham.

The Flying Kangaroo is attempting to fully acquire charter and FIFO operator Alliance, which has a strong network in the state and territory.

Qantas and Rex have been involved in a long-running dispute over network expansion, with Rex launching flights between major capital cities and Qantas flying on previously small, Rex-exclusive routes.

On Friday, Rex mocked Alliance’s “30-year-old” Fokker 100s and said resource companies in the Alliance stronghold of Queensland had been facing “severe issues with capacity and reliability in recent years”.

Qantas’ deal to buy Alliance has, however, yet to be cleared by the ACCC, which has already raised concerns. It currently holds a 19.9 per cent stake in the carrier, with the new agreement seeing it acquire the airline outright.

How Rex’s ‘real-time’ bidding works

Making your initial bid

• All customers make their initial bid in the same way. Either by
  • visiting the Rex Bid Up page com.au/rexbidup any time after you have made a booking; or
  • via a link in a Rex email sent at 7 days prior to departure inviting you to bid for an upgrade
• You can bid an amount of your choosing within the minimum and maximum range set for the flight
• Simply enter your payment details. Payment for your upgrade will only be processed if your offer is accepted by Rex and you are successfully upgraded.
• You only have to enter your payment details once during your initial bid, you won’t be asked to enter details every time you change a bid with real time bidding
• After you have made your initial bid you simply sit back and when real time bidding commences we will let you know if you are outbid and no longer in the running.

When is real-time bidding commences

• Real time bidding commences 7 days prior to departure
• Real-time bidding allows you to receive updates on your bid and to change your bid in real time
• if you have been outbid and are no longer in the running for an upgrade you will receive an email that you have been outbid.
• You simply click on the link provided to go to the Rex real-time bid update page.
• Real time bidding closes 3 hours before departure with upgrades confirmation occurring shortly after.

How do you update your bid in real time?

• Real time bidding will tell you what the highest bid amount is.
• You can choose to increase your bid to outbid this amount, or you can choose to bid an amount between your initial bid and the maximum bid possible
• You do not need to keep re-entering credit card details. Payment details are securely stored and payment will only occur if your bid is successful
• Real-time bidding will let you know when you are back in the running, or in first place. However, Real-time bidding doesn’t let you know exactly where you fall in the list. Where you fall will obviously change as other passengers participate in the bidding process.
• The bidding screen will update in real-time as other passengers make bids. You can then choose to change your offer based on what is occurring in real time.

Once you have finished bidding you can simply close the real-time bidding screen and wait until bidding closes to see if you have been successful.

What happens if I am outbid again?