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UP FRONT..........................................................
Delta's Pricing Reforms - Week 2
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Delta's major fare restructuring, reported in last week's Crier, shows every sign of becoming the new industry standard for legacy carriers. While Northwest responded with a press release deriding Delta's initiative, they matched on competitive routes, as did US Airways, Continental and United. American (whose 1992 Value Pricing was an early and unsuccessful attempt to simplify ticket prices) quietly went beyond route-by-route matching but stopped short of systemwide implementation.
In the wake of Delta's announcement, airline stock prices nose dived, as the prospect of a profitable 2005 dimmed. Even more ominously, the lower fares could be another nail in US Airways' coffin.
As for discount carriers -- which, after all, forced Delta's hand by giving consumers the simple, low fares they demanded -- the majors' newly enlightened pricing could slow or even reverse the torrid growth posted by low-price airlines over the past 4 years . Why endure the cattle-car discomfort of Southwest if "full service" can be had for the same price, or for a modest premium?
When the dust settles, leisure travelers may find that the very cheapest fares have actually increased, as a partial offset to the slashing of first-class and unrestricted coach fares.
What do the new fares portend for frequent flyers?
With the lower first-class fares, it's a given that first-class seats available for upgrades will be harder to come by. That can only diminish the lure of achieving elite status, the principal benefit of which is upgrades.
And if the new pricing generates more customers, as Delta chief Gerald Grinstein is betting, load factors (a measure of seat occupancy) will rise, further reducing the availability of award seats for frequent flyer program members.
In a sense, that's poetic justice: road warriors will get the benefit of lower prices for first-class and walk-up fares, but their elite status will be worth far less.
ON SITE...........................................................
FrequentFlier Forum Topics
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As always, there's plenty of activity on the FrequentFlier Forum.
In the "Airline Programs" Forum, Ronald has a link to the AAdvantage mileage offer for H&R Block tax prep.
Also in the "Airline Programs" Forum, Q-daddy wonders: "Is Points.com for real?"
In the "Hotel Programs" Forum, wt is having trouble with the Starwood Preferred Guest Program: "Am I the only one frustrated with the crediting of points with SPG? While the SPG program has many positive features -- most of which have been articulated on this forum (and its predecessor) -- I have been frustrated by my need to follow up and ensure proper crediting of points."
And much more... Questions, answers? Post them to the Forum!
More: http://frequentflier.com/forums/index.php
MILES & POINTS....................................................
Alaska Awards for Fewer AAdvantage Miles
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Between Jan. 10 and Mar. 15, AAdvantage members may redeem 15,000 miles for roundtrip award travel on Alaska Airlines or Horizon Air between any city in Colorado, Montana, Idaho, Oregon, or Washington and the California cities of San Francisco, Oakland, San Jose, Sacramento, or Long Beach.
That's a 10,00-mile discount from the 25,000 miles normally required.
To make a reservation call AAdvantage reservations at 1-800-882-8880 and refer to Award Code SAS15A.
More: http://aa.com/apps/netSAAver/ViewAAdvantageAirlineSpecials.jhtml
BA Bonus for Biz, First Class
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In what the airline is billing as "Its Richest Ever Frequent Flyer Bonus," British Airways is offering U.S. and Canadian Executive Club members 40,250 bonus miles for business and first-class transatlantic roundtrips completed between Jan. 13 and Apr. 30. (Together with flight miles from any North America BA gateway, the bonus brings the roundtrip total to at least 50,000 miles... hence the atypical bonus.)
There's no limit to the number of times the bonus may be earned during the promo period.
Register (required) at http://ba.com/winteroffer.
Join Netflix to Earn Continental Miles
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Through Jan. 31, OnePass members who sign up for the Netflix DVD rental service for $17.99 per month will earn 2,000 bonus miles. Thereafter the sign-up bonus decreases to 1,000 miles.
Offer only applies to new Netflix customers.
More: http://www.continental.com/onepass/earn/shopping/netflix.asp
Redeem Frontier Miles for Ski Passes
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Through Jan. 31, Frontier EarlyReturns members may redeem 2,500 miles for a 1-day pass at the Winter Park or Copper Mountain ski resorts.
Passes are good for use through Apr. 17. Limit: 4 passes per member.
This offer is not posted on Frontier's website. To take advantage of it, contact EarlyReturns at 1-866-263-2759 or EarlyReturns@flyfrontier.com .
EarthLink Connections Earn Southwest Bonus
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Through Mar. 31, Southwest Rapid Rewards members can earn 8 credits (halfway to an award ticket) for signing up for Internet access with EarthLink. Minimum term commitments and early termination fees may apply.
Follow the link below or call 1-800-644-9708 and cite the appropriate offer code: 1018429 for dial-up service, 1018427 for DSL, 1018426 for cable.
More: http://www.earthlink.net/southwest/8rapidreport/
United Offers Bonus for Tsunami Donations
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Mileage Plus members who contribute $50 or more by Feb. 28 to any of 5 eligible charities providing relief to tsunami victims will earn 500 bonus miles. In addition, if the donation is charged to a Mileage Plus Visa card, the credit-card miles earned for the donation will be doubled.
United and Chase (issuer of the Mileage Plus Visa) have earmarked 5 million miles each to promote these donations.
More: http://www.united.com/page/article/0,6722,51186,00.html
Fly United, Get a BlackBerry
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Mileage Plus members who fly roundtrip on United, United Express or Ted between Jan. 11 and Apr. 30 can earn a free BlackBerry 6230 or BlackBerry 7230.
Qualifying roundtrips may be in any class of service provided the ticket costs $250 or more. A maximum of 3 BlackBerrys may be earned per member.
As with the Avis offer mentioned last week, there's a catch to receiving the "free" BlackBerry: customer must activate T-Mobile service and subscribe to a qualifying 1-year service plan with monthly fees of at least $39.98.
Register at http://united.com/blackberry before flying.
Double United Miles for Shangri-La Stays
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Through Mar. 31, Mileage Plus members will earn double miles -- 1,000 miles per stay -- for stays at corporate rates and above at 44 Shangri-La hotels in Asia and the Middle East.
More: http://united.com/page/article/0,6722,1254,00.html
STEALS & DEALS....................................................
Deal Alert from SmarterTravel.com
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1) Florida Sale Fares on United from $158
Take advantage of United's new Florida sale and save on a winter flight to or from the Sunshine State. Prices start at $158 roundtrip, and destinations include Ft. Lauderdale, Orlando, and West Palm Beach.
Travel is valid through Feb. 16. Book tickets at least 10 days in advance, and by Jan. 18. The maximum stay is 30 days.
More: http://www.smartertravel.com/air/deal.php?id=8136
2) Domestic Sale Fares on AirTran from $39
If you're looking for the flexibility of an inexpensive 1-way flight, AirTran's latest sale might have what you're looking for. Prices start at $39 1-way, and destinations include Los Angeles, Orlando, Raleigh, and more.
Travel on Florida routes is valid through Feb. 16. Travel on all other routes is valid through May 25. Book tickets at least 10 days in advance, and by Jan. 18. After Feb. 16, fares are not valid on Fridays or Sundays.
More: http://www.smartertravel.com/air/deal.php?id=8099
SWEEPS & FREEBIES.................................................
Win a Trip to Vegas
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Enter Vanity Fair's "Vacation in Las Vegas" sweepstakes by Feb. 8 for a chance to win a trip for 2 to Vegas, including air, hotel and tickets to a Celine Dion concert.
Enter by subscribing to the magazine, or, without subscribing, by filling out the online form.
More: http://vanityfair.com/contests/getaway/sweepstakes/lasvegas
[Visit http://frequentflier.com/sweeps.htm for more travel sweepstakes.]
READER RANTS & RAVES..............................................
Feedback from the Frontlines of Travel
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"Are you guys aware that in 2004 Continental only allowed 1/2 mile for elite status on Internet fares? Northwest who partners with Continental then did the same thing if you flew Continental and were a NW elite flier, you received half miles for the trip on a Continental flight.
"Now in 2005 Continental is back giving full miles for elite membership to their one pas members, but if you fly on a Northwest and a Continental flight a NW world perks member received 100% miles for the NW portion, but 50% for the Continental portion. In other words, NW world perks fliers seem to favor Continentals planes and service over NW, but in 2004 and 2005, they get only half the elite miles on Continental flights, even though, in 2005 Continental one pass members get 100% miles for elite status on internet purchased tickets once again. Naturally, if a person wants to keep gold or platinum status, and he is a world perks member, they don't fly Continental any longer.
"I am wondering if you are aware of this crazy mixed up situation, as I've never seen it in your column." (Art)
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"After spending $25.00 for a copy of my Hertz car rental invoice United Air refused to reinstate my 32,000 miles after corresponding with them since Nov.2004. They never informed me that these miles would be forfeited and I feel that they were being dishonest . I also am a member of their Silver Wings life member. Their deals on Silver Wings is not competitive with other travel clubs. Don't waste your money.
"Don't fly with United." (Clarence)
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"I would not use CheapTrips. I joined on November 15, 2004 and, changed my mind 2 days later. The membership was cancelled immediately, but my credit card has yet to be credited with my $75. Voice mail messages to Customer Care are never answered. I have reached their Customer Care person, after fulfilling all their conditions for a refund, and am now told it is our of her hands. This goes on and on." (Margaret)
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"I also had a problem getting my refund from CheapTrips. I finally sent them a letter and copied the Better Business Bureau and the District Attorney. I then got my refund." (Nancy in San Francisco)
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"Just wanted to warn others about the hotels.com site.
"I was booking a group tour so had to go through their phone sales instead of internet. I reserved 3 different hotels for one night each for 6 rooms. I was quoted some great fares over the phone and booked the rooms. When I got my credit card statement, I had over $4,000 charged to it. It was never mentioned that the rooms would be charged up front. Also I was charged almost double the price quoted on every room. I called to talk with them and they had no explanation. When I tried to cancel, they insisted I owed them $450 in cancellation fees. I told them I wanted the rooms at the price that I was promised and not what I was charged for but they wouldn't back down. I was on hold for hours trying to resolve this and talked with several people who were rude. I finally got someone who was going to refund the money and give me a $50 voucher for my hassle. They only refunded 17 of the 18 rooms. It took several more phone calls and two months of waiting to resolve this. Then they kept my $25 change fee so I called again. I finally had to get the credit card company to cancel payments in order to get the $25 back and credit cards are very reluctant to cancel payments on hotel billings. Save yourself the hassle and find another travel site. I never got the $50 voucher either, not that I would use it." (Lynn)
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"Here's another scam that some airlines use (at least, Air Canada does this).
"Suppose you book a round-trip flight on a modestly-discounted fare. If you cancel, you are given a credit for the flight (to be used within a year, only by the person who initially booked [no buying other people a ticket with the credit], with a $30 re-booking fee...all costs in Canadian dollars).
"Let's suppose you have $400 worth of credit for this (real-life) example. You call Air Canada to book another flight, using your credit. For this example, let's suppose you want to fly one-way on a fare that is advertised at $59+fees & taxes for a total of $134. You figure that the cost to you ought to be $164 (because of the $30 rebooking fee), leaving your account with a $236 credit.
"But then comes the Air Canada fine print. First the rebooking fee cannot be paid out of your credit, since the credit is only for your *travel* costs. Second, since your initial flight was a return fare, you are rebooking two flights for a $60 rebooking fee. Pretty irritating, right? But then you discover it didn't matter anyway because you are not allowed to maintain a credit after this first rebooking. Your $59+fees+tax+rebooking fare all of a sudden costs $400 !!
"And no. You *cannot* use any of the credit to (for example) pay the extra fee for traveling with your dog. That has to be paid separately because the credit is only for *your* travel costs.
"Rather than allowing Air Canada to emerge from bankruptcy protection after reorganization, the courts should have required the people who think up these sort of "rules" to be publicly flogged and have their fingernails pulled out. By the way, other airlines -- including Air Canada's low-cost competitors in Canada, like Westjet -- do not have this policy." (Jeff )
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If you have a rant or a rave, e-mail us at rants@frequentflier.com.
Until next week...
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