U P F R O N T

Travel Agents: Dead Men (and Women) Walkin'
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For travel agencies, it's been a long, slow death, not by a thousand cuts but by a few.

When I got my first airline job, almost 25 years ago, travel agents sold 85% of all airline tickets. More importantly, the airlines viewed agencies as a valuable and cost-effective channel for distributing tickets. And they gladly paid agents commissions on ticket sales.

Gradually, following deregulation of the airline industry, the airlines' perception of agencies changed, from revenue-producers to cost-increasers. Of course, the airlines had no viable alternative to the agency network, so they couldn't afford to risk alienating agents altogether. But airlines dealt with agencies with a new underlying premise: they're a necessary evil.

In the mid-1990's, airlines finally acted on their growing disdain for travel agencies: they cut the prevailing 10% commission in half, to 5%.

Late last week, Delta took the next step, as inevitable as it was unthinkable: they stopped paying travel-agent base commissions entirely. The new policy affects all U.S. and Canadian agencies, and only leaves in place so-called override commissions paid to large agencies capable of shifting market share measurably.

As we go to press today, the commission cut has been matched by American, Continental, Northwest and United. That should be sufficient momentum to pull the remaining airlines along in their wake. There's no looking back...

So much for history. What does all this mean to us, as travel consumers?

The most immediate effect will be higher prices for tickets purchased through travel agencies. Agents will have to charge service fees where there were none, or increase them where they existed previously. So while the proximate impact is on travel agents, in effect the airlines have raised fares for consumers who choose to buy through agencies.

Next, as many as a third of the 30,000 U.S. travel agencies might not survive the transition to a no-commission environment. That translates into lost jobs and, for consumers, fewer options.

Lastly, and perhaps most important, there will be less consumer advocacy in the travel space. To be sure, the old system was structurally compromised. On the one hand, agents were dependent for the bulk of their revenue on airline commissions; on the other hand, agents were expected to give consumers unbiased advice regarding those same airlines. A clear conflict of interest. But in practice, most agents did in fact act in the best interests of their customers.

Stay tuned...

O N S I T E

Elite Treatment: Unfair? (continued)
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In the weeks since we first broached the thorny subject of VIP airport security lines (see http://frequentflier.com/ffc-022702.htm), the feedback has continued to trickle in. We continue to post that feedback, unedited, at http://frequentflier.com/security.htm.

New on the FrequentFlier Forum
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Among the recent Forum posts, the following from Dean seemed to sum up the aspirations of many: "I'm trying to get an additional 70,000 OnePass miles so I can get 2 roundtrip First Class Hawaii tickets for my Honeymoon in June. Anyone know an easy way to accumulate a lot of miles in a short period with Continental?." C'mon folks, Dean needs your help!

Do you have mileage-related questions, answers, anecdotes? Post them (and read others') on the FrequentFlier Forum.

M I L E S & P O I N T S

Northwest Offers Spring Travel for "Cash & Miles"
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U.S. WorldPerks members can combine cash and miles for tickets through Apr. 30, for travel from Apr. 1 through June 6, 2002.

For roundtrip travel within the contiguous 48 U.S. states and to Canada, combinations range from 5,000 miles plus $159 to 10,000 miles plus $189, depending on flight distance. Sample cash-and-mile "prices":

The 500-mile online award-booking discount is combinable with Cash & Miles offers when travel is booked at http://www.nwa.com.

> More...

Transfer OnePass Miles with MilePass
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Through May 31, 2002, OnePass members can transfer miles to other OnePass accounts for a service charge of $5 per 500 OnePass miles. There's a minimum of 2,500 miles per transfer and no limit to the number of miles that can be transferred.

For some reason, you can transfer miles to only 1 account, although you can receive miles from 5 accounts. Once completed, transfers are nonreversible.

To transfer miles between OnePass accounts, call 1-800-554-5522.

Elite Status for Sale at Priority Club
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We reported on the enhancements to Six Continents Hotels' Priority Club in issue 188 (http://frequentflier.com/ffc-030602.htm). Also new from Priority Club: the program is selling Gold status for $50.

Gold members receive a 10% bonus on earned points for hotel stays, priority check-in on guaranteed reservations, and access to a dedicated customer service center number.

Normally, Gold status is awarded after staying a minimum of 15 nights and earning at least 20,000 points during a calendar year.

> More...

Best Western Enhances Program
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Best Western International has added 2 new features to its Gold Crown Club International program: global room night awards, and elite member levels.

The new Global Free Room Night award allows members to earn a free room night at any Best Western hotel in Asia, Australia, Europe, Central America, North America and South America, starting at 800 points.

The program now has 2 elite tiers, Platinum and Diamond, earned at 15 and 30 nights respectively. Platinum members receive a 10% point bonus for qualified stays and Diamond members receive a 15% bonus.

> More...

Earn Triple US Airways Miles for San Juan Flights
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Through Apr. 15, 2002, Dividend Miles members can earn triple miles when flying on US Airways or US Airways Express to/from San Juan.

Register prior to departure by calling 1-800-872-4738 and entering promotion code 8203.

S T E A L S & D E A L S

Deal Alert from SmarterLiving.com
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This week's hot deals from SmarterLiving.com...

Fly for $118 R/T on Southwest and Bring a Friend for Free
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Southwest Airlines has announced a "Friends Fly Free" promotion that includes systemwide companion fares for travel through August. Flights for two passengers on the same itinerary start at $118 round-trip, or $59 per person. Purchase tickets at least 3 days before departure and no later than Monday, Apr. 8.

> More...

Grand Cayman on Sale for $334 R/T and Aruba for $374 R/T
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Delta Air Lines has released Web-only sale fares from select U.S. cities to Aruba and Grand Cayman for travel through May 31. Purchase tickets online only and by Tuesday, Apr. 2.

> More...

S W E E P S T A K E S & F R E E B I E S

Win "The Best Seats in New York" from Continental
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To enter Continental Airlines' "Best Seats" sweeps, fill out the online form (link below) by June 10, 2002, and cross your fingers.

The grand prize: 4 first-class tickets, 6 nights' hotel, and 2 seats at Carnegie Hall, Lincoln Center, New York Philharmonic, a Broadway show, New York Knicks, New York Yankees and the New York Marathon. There are also 10 second and 25 third prize packages.

Sweepstakes is open to legal residents of the Continental U.S., 18 years of age and older. One entry per person. Winners will be chosen in a random drawing on June 17.

> More...

[Other travel-related sweepstakes and giveaways are online here.]

R E A D E R R A N T S & R A V E S

Star Alliance Awards - CLARIFICATION
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In last week's Crier, Jean-Francois waxed rhapsodic about the newly unified award structure adopted by the Star Alliance airlines' programs.

United contacted us -- with a healthy appreciation of the irony of the situation -- to set the record straight. While 10 Star carriers have indeed adopted the same award chart, originally championed by United, United itself will not be ready to follow its own advice until some time this summer.

The change is worth waiting for. Mileage Plus members will be able to choose among multiple airlines for an award trip to Europe, for example, all at 50,000 miles, instead of the current hodgepodge of different mileage requirements for different carriers. And you'll be able to create an award trip using 2 airlines.

Int'l Business Class Fares
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"On the subject of U.S. business travellers being treated unfairly. I would be interested in seeing your newsletter address the following topic:

"Most airlines charge a dramatic premium to business class travellers originating in the U.S., travelling to Europe. For example, a business class round-trip ticket from New York to Frankfurt prices at approximately $5,500 on Delta's web site. The reverse itinerary (Frankfurt to New York round trip) is approximately $3,500 on the same web site. This formula is repeated over-and-over for most major European destinations. Why is this?"

- David

[Editor's note - It would take a credentialled pricing expert cross-trained in abnormal psychology to do this question justice. A big part of the answer, I think, is simply supply and demand: the markets in question will bear those disparate prices, and Delta charges them accordingly.]

The N.Y. to Washington, DC Flight
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"With this new heightened security, they're telling you that can't get up to go to the bathroom while you're on the airplane. The flight is about 45 mins. gate to gate.

"I think this is the most absurd thing I ever heard of in my life. Some people have medical problems. They can't help themselves. This new restriction is going to create a health hazard to everybody. The airlines are going to lose more business because of this and it would serve them right. If I have to go anywhere from 150 to 300 miles, I will use some other form of transportation."

- JAB

Until next week...