Etihad unbundles business class, removes lounge access

I simply cannot fathom the logic on this trend. Isn't one of the key reasons people choose business class because it includes perks like lounge access. Nonsensical. 

Not always, MKS11.  For some folks, especially those travelling long distances, the primary reason they go for Business class is for the comfortable seating onboard that will help them sleep during flight and arrive in better shape at their destination. This fare would be targeted at those customers.

Imagine paying $5k+ and not being allowed into the lounge. They haven't made the fares cheaper either - unbundled business is a joke. 

I've always been a firm believer that business class only works as a complete package - if the goal is to get you to your destination well-rested and with minimal interruptions.

Sometimes a lounge is the most important part - a place to eat and fill up so you can just conk out on the flight. 

I totally agree with MKS11 that this is a nonsensical idea.  Given those with elite status are exempt from the lack of access to lounges, the one most likely to be impacted are those who only travel occasionally, hence don't have status, a significant proportion of whom are mature aged holiday takers.  For them, access to the lounge is part of the whole holiday package.  Those most likely to be disappointed will be those who have booked through a travel agent, not direct with the airline, who have been told the agent can get them a cheaper deal in business class but who hasn't told them the full conditions. (Given the lack of knowledge some travel agency staff seem to have, possibly out of ignorance themselves.)  I suspect the total savings the airlines make by exempting a limited number of business class passengers from the lounge is a pittance.   

For $51.00, why would you bother to go the cheap route?

There are possibly two reasons for introducing a fare like this, firstly it's to undercut other airlines in search engines by offering something the majority of customers will not buy go for and thus getting the Customer to pay more when they do go through with the booking.

Secondly it's just a method used to increase the price of the regular tickets.

The 'deal' above is such a poor example of a saving as the discount should be closer to 500 rather than 50. To some extent people should boycott airlines pulling stuff like this.

I would pay the extra $50.its just greed greed greed.its nothing else.va now for domestic charge you for 100% or 80% refund.greed again.

Given the small price differential, it doesn't seem worth it but, were the savings greater, I can see why some may do it.  Some people do not value the lounge and, let's face it, some lounges are complete zoos and you can quieter more relaxing areas in the general terminal.  Other people already have lounge access, be it via Etihad status or alternatives such as AMEX Centurion so they are happy to forego paying for it again.

Emirates also has an unbundled product with a greater saving which removes lounge access, seat selection and chauffeur transfers.

In the above example the nominal $60 difference for lounge access and more importantly cancel with a fee is worth it. I can see this gap rising in the future to maximise profits.

The basic fare would catch allot of people out with expectations, if not properly informed when purchasing. Typically less frequent travellers.

Never mind the lounge - the chauffer service would have to be worth more than $50 in itself. 

10,000 extra points is is already worth more than $50.  Why bother?

Business Class ticket through denied lounge access?

I’m pretty sure the gap between the base level fare, and next level up will increase substantially over time. The value of the additional points alone are $100 - $200 (plus probably more status credits), then there is the value of items that may possibly not be used, such as additional luggage allowance, chauffeur, and lounge.  The less tangible benefit of seat allocation may not mean much to some, and others may consider their chances of needing a refund to be close to zero. I wouldn’t be surprised is a price difference of 10-15% is in the works…..

Perhaps it's just a way to satisfy company bean counters who will see only the bill and that it is the unbundled fare but no details of what's included. The employee/traveller can then pull out a measly $50 odd bucks from his own pocket (not a big ask), upgrade to all the goodies and everyone is happy. Company accountants get to say we only purchased a bare bones fare and for chump-change the traveller still gets all his/her perqs. (lounge, flexibility , miles etc.)?? 

I'm fine with the concept of unbundling but the pricing here is baffling.  Insure yourself against a 1% chance of wanting to cancel, and take the free chauffeur, points, seat selection and lounge snacks. 

O, I see - they ditch lounge access for $51 and asking you to pay $260 if you like to get in for max 4 hours. Beautiful accounting!!!!!!! So if you remove it then they happy to "reward" you with $51, but if you like it back you have to pay more than 5 folds. To me it is really looks like electricity "rebate" for solar.