The Extra Mile

Frequent flyer awards evolve from "free" to "for fee"

September 27, 2004 - When, in July 2003, Air Canada imposed fees for award tickets not booked on the airline's own website, members of U.S.-based frequent flyer programs held their breath, anticipating a similar move by carriers in this country.

Just over a year later, on Aug. 23, 2004, their fears were realized when United announced that they would begin assessing Mileage Plus members a service fee for award tickets booked via phone or at the airport. The following day, Northwest weighed in with its own version of award fees. And in short order, Northwest's award fees were adopted by American, Continental and US Airways.

Details of the new award fees -- which in most cases apply to revenue tickets as well -- are as follows:

Air Canada set the precedent for ticketing fees in 2003, with a $25 CAD surcharge for Aeroplan award tickets booked through the airline's reservations center or ticket offices.

On Sept. 6, American Airlines began charging a $5 fee for award bookings made via American's reservations centers and $10 for award tickets booked at the airport. AAdvantage Executive Platinum members and AAirpass customers are exempt.

At Continental, a $5 fee is now assessed for award bookings made via Continental's reservations centers, and a $10 fee for bookings at U.S. ticket counters. Fees are waived for OnePass Platinum Elite members and their traveling companions booked on the same itinerary.

Northwest's fee structure, which has become the de facto industry standard: a $5 fee for award bookings made via Northwest's reservations centers and a $10 fee for award tickets booked at the airport. Fees are waived for Platinum Elite members of Northwest's mileage program.

United's $15 handling fee for awards not booked via United's website doesn't take effect until Oct. 15. Mileage Plus 1K and Global Services members will not be assessed the handling fee.

And US Airways now collects a $5 fee for award bookings made through US Airways' reservations centers and $10 for award tickets booked at the airport. Dividend Miles Chairman's Preferred members will not incur the new fees.

Calling the new costs "handling fees" suggests that the only difference between booking an award over the Internet and booking by phone with an airline reservations agent is the extra manpower costs associated with the latter. In fact, an airline customer-service representative often has easier access to awards than a consumer trying to self-book on the carrier's website, and may be able to reserve award seats that an Internet user can't. And an agent also can manually override the pesky capacity restrictions that routinely stymie would-be award travelers.

Still, with the new fees consumers should first try reserving their award trips online. If that proves futile and they are forced to call the airline's reservations center, there's some comfort in knowing that the $5 fee is only charged if an award booking is successfully confirmed. And at least for now, the call itself is toll-free.

Fall hotel offers

Responding to the traditional post-summer drop off in demand for travel, most major hotel chains have rolled out miles and points promotions for the fall and winter months. For full details on the following offers, visit the hotels' websites.

Through Nov. 30, members of Best Western's Gold Crown Club International program will earn either double points or double airline miles for qualifying Best Western stays.

Through Dec. 31, members of Choice Hotels' Choice Privileges program will earn a 5,000-point bonus for every two qualifying stays at Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, or MainStay Suites hotel in the U.S. During the same period, stays at Choice's lowest-priced brands, Econo Lodge and Rodeway Inn, will earn double America West FlightFund miles and triple Southwest Rapid Rewards credits.

Between Sept. 13 and Dec. 17, Priority Club Rewards members will earn 3,000 bonus points or 1,000 bonus airline miles after every three qualifying nights at InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express, Staybridge Suites and Candlewood Suites hotels. Maximum bonus during the promo period: 30,000 points or 10,000 miles.

Marriott Rewards members will earn 5,000 bonus points after every third qualifying stay charged to an American Express card between Sept. 15, 2004 and Jan. 31, 2005. A maximum of 25,000 bonus points may be earned during the promotion.

Members of Red Roof Inns' RediCard Preferred Member program will earn 4,000 bonus points after every two stays at any Red Roof Inn between Sept. 6 and Oct. 17.

Look for bonus offers from Hilton and Starwood in the weeks to come.