Issue #51  --  July 22, 1999

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Postcards: Fixed!
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Last week, I apologized for the glitch which rendered the postcard function on FrequentFlier.com virtually useless. Unfortunately, I gave the wrong URL for the "new and improved" page. So, my apologies a second time. And herewith, below, the correct URL. Finally.

(Misquoting your own URL isn't quite as bad as forgetting your own name... but it's close.)

Thanks to Jim for the heads-up.

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Send a digital postcard.

<< M I L E S >>

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Miles for Trivia @ Continental
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Continental Airlines is celebrating its 65th anniversary with a trivia sweepstakes on its website. Among the prizes: OnePass miles.

Every day from now until August 13, visitors to the website who answer a trivia question are entered into a daily drawing to receive free tickets and OnePass
bonus miles. All participants, even those who do not get picked in the daily drawing, will be automatically entered into the grand prize drawing for a Continental Airlines Vacations package to Hawaii.

As for the historical aspect of all this, Continental traces its roots to Varney Speed Lines, which began flying from El Paso, Texas, to Pueblo, Colo., in July 1934.

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Continental

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Buy, Sell Points from Amex
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Beginning July 1, members of the American Express Membership Rewards program can buy and sell points.

>> Points for Sale
Cardmembers may purchase points in 1,000-point increments for $25 per 1,000 points, which will be billed on the cardmember's Card Account. Cardmembers may buy up to a maximum of 20,000 points per calendar month. A cardmember may purchase points only for the cardmember's own Program account. Points may not be purchased except in connection with a cardmember's conversion of points to a participating Frequent Customer Program or redemption of points for a Reward. Corporate cardmembers, other than Small Business Corporate cardmembers, with only the Corporate Card enrolled in the Program, may not purchase points. Points purchased are subject to all other Program terms and conditions applicable to points generally, including those concerning point forfeiture.

>> Redeem Points for Cash
Cardmembers may also redeem in increments of 20,000 points for $100 in cash, up to $300 in cash (60,000 points) per calendar year. Payment of the cash will be made by a credit to the cardmember's Card Account. Credits will not be made to a cardmember's Corporate Card account. Corporate cardmembers, other than Small Business Corporate cardmembers, with only the Corporate Card enrolled in the Program, may not redeem points for cash.

Interesting business model: sell something for $0.025, and then offer to buy that same something for $0.005. That's a 5-to-1 "markup" between the buy and sell prices. Kind of makes you wonder what a mile is actually worth, doesn't it?

Although the value proposition is dubious, there is considerable utility value here, especially in the points-for-sale offering. While it would be ludicrous to buy enough miles for a frequent flyer award ticket (25,000 miles at $0.025 = $625), it might well make good economic sense to buy just enough miles to bring your airline mileage account up to 25,000 miles, especially if those airline miles were in danger of expiring.

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American Express

<< S T E A L S & D E A L S >>

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Companion Fare Sale at ATA
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ATA launched a Fall Companion Fare Sale for travelers who purchase their tickets between July 19 and August 2, 1999. The special one-way companion fares, starting as low as $59 for off-peak travel days, are available in all of ATA's continental U.S. markets and Puerto Rico for travel between August 16 and November 17, 1999.

Travelers purchase one ticket at ATA's one-way, off-peak fare, and receive another one-way ticket for the same flight for $59. On peak travel days, the one-way companion fare is $79.

>> Terms & Conditions
Fares do not include a $2.25 federal excise tax that will be imposed on each flight segment of your journey. A flight segment is defined as a takeoff and a landing. Fall Sale fares are valid for travel 8/16-11/17/99, and must be purchased by 8/2/99. Fares generally not available for purchase within seven days prior to travel and during high-volume travel periods. Companion fares are valid only with the purchase of an ATA selected, one-way fare, must be purchased at the same time and for the same flight. Sale fares cannot be combined with any other discount offer or fare. ATA Connection service via Chicago Express also available to selected cities. Photo ID required for flight check-in. Fares quoted are one-way for off-peak travel days, will be higher during peak travel times, and are non-refundable. Seats are limited and may not be available on all flights and dates. Not all destinations served on a daily basis. Fares are subject to change without notice. Fuel surcharge of up to $5 included in fares. Return fuel surcharges may be up to $5 higher. Airport facility charge of up to $12 per round trip may apply. Additional government fees of up to $24 may apply on round trips outside the continental U.S.

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ATA online

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Delta Discounts Midwest
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Travelers between five Midwest states and cities throughout the United States can enjoy savings by purchasing tickets on Delta Air Lines' web site.

Customers who purchase tickets on the web site from July 19 through July 25, 1999, which have at least a three-day advance purchase requirement will receive up to 10 percent discounts off fares for travel between any city in the United States and cities in Illinois, Indiana, Ohio, Missouri and Michigan (Chicago, Cincinnati, Cleveland, Columbus, Dayton, Detroit, Grand Rapids, Indianapolis, Kansas City, St. Louis and South Bend). Delta said it can offer these special savings to its online customers booking on the web site due to the low costs associated with this distribution channel.

In addition to the savings on fares, Delta also offers SkyMiles members who purchase travel through the Delta web site 1,000 bonus miles for each round-trip ticket purchased and flown by December 31,1999 (500 miles for one- way travel).

>> Terms & Conditions
Fares do not include a $2 federal excise tax which will be imposed on each flight segment of your itinerary. A flight segment is defined as a takeoff and a landing. Restrictions: Fares may not be available on all flights or in all markets. Discount applies only on any fare that has an advance purchase requirement of 3 days or greater. Travel is valid between any U.S. city and Illinois, Indiana, Ohio, Missouri and Michigan. Fares are valid in the Economy cabin on Delta/Delta Express flights only. Fare restrictions, including refund or penalty restrictions, are per rule of fare purchased. Discounts do not apply to cities which are solely served by Delta Connection Carriers. Fares do not include Passenger Facility Charge(s) of up to $12. Discount level applies to fare net of all taxes and fees. Purchase Requirements: Fares must be purchased via Delta's Web Site only. Tickets must be purchased at time of reservation. Discounts are valid for travel any time or per rule of fare purchased. Discount applies for tickets purchased between 07/19/99 and 07/25/99. Discount does not apply to previously purchased tickets. Min. Stay: applicable fare. Max Stay: applicable fare. Fares are subject to change without notice. Other restrictions may apply.

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Delta

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Special United Vacations Pricing for E-Bookings
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United Vacations is offering travelers the opportunity to save between $25 and $75 per person for travel Sept. 1-Nov. 30, 1999. The savings is valid for air-inclusive vacation purchases made via the Internet to select domestic and international destinations and is in addition to the 1,000 United Airlines Mileage Plus bonus miles awarded for online bookings. All vacations must be purchased between Aug. 1-Sept. 15, 1999 to qualify for the savings.

$75 Per Person Savings

A $75 per person savings is available on vacations to Hawaii, Hong Kong and Europe. Vacations need to include air transportation and at least five-nights hotel accommodations to qualify for the discount (four-nights hotel required in Europe).

$50 Per Person Savings

Vacations to Orlando, Los Angeles, San Francisco and San Diego qualify for a $50 per person discount on air-inclusive vacations of three-nights hotel accommodations or more.

$25 Per Person Savings

Travelers interested in vacationing in Las Vegas and Reno will receive a $25 savings per person for purchases made online. A minimum of two-nights hotel accommodations, air inclusive, is required for the discount to apply.

Purchase United Vacations online at www.unitedvacations.com and earn 1,000 United Airlines Mileage Plus(r) bonus miles. United Vacations is a member of the USTOA $1 Million Consumer Protection Plan and its America, Hawaii, Europe and Orient programs are operated by The Mark Travel Corporation in Milwaukee.

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United Vacations Online

<< I N D U S T R Y N E W S >>

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What We'd Like to See More Of
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I was a guest "expert" on David Horowitz's radio show, which this week addressed our favorite subject, frequent flyer programs. Also weighing in were Randy Petersen, of InsideFlyer magazine and the Frequent Flyer Guidebook (both of which are highly recommended), and United Airlines' manager of marketing programs, Jim Davidovitch.

Nothing new or noteworthy about Randy and I blathering on about frequent flyer programs. What made this media event memorable was the presence of Jim: a real, live airline representative putting it on the line, answering questions in real time from a sometimes-hostile public.

Jim did admirably, in case you were wondering. What I hope he's done as well is set a precedent. A little more discussion between consumers and program operators would go a long way toward establishing common ground. It might even solve some problems.

We've extended an invitation to Jim to join us here or on the website, time and format to be determined. Hopefully representatives from other programs will take note and follow suit.

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2nd-Quarter Airline Profits Set Records
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Many U.S. airlines are reporting their second quarter (April - June) financial results this week. The trend continues, with improved year-over-year results in most cases. In fact, for several airlines this was their best quarter ever.

    Airline       Q2 Earnings*      Record?
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    Alaska Air        $42              Yes
    American         $268               No
    America West      $42              Yes
    Comair            $43              Yes
    Continental      $137               No
    Delta            $364              Yes
    Northwest        $120               No
    Southwest        $158              Yes
    TWA              ($6)               No
    United           $349               No
    US Airways       $317              Yes
                 * millions

This is good news for management and shareholders. Ironically, it's the backdrop against which the passenger rights movement continues to fester, in spite of a neat side-step by the airlines which forestalled, at least for now, legislative action. Because complaints, like profits, are at record levels (up 86.6% according to the DOT).

<< O N L I N E T R A V E L >>

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United + Buy.com = BuyTravel.com
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United Airlines and Buy.com, a leading Internet retailer and E-commerce website, jointly announced today that they have signed a strategic agreement to create a comprehensive online travel store. The new site, BuyTravel.com, will sell travel on all major airlines, as well as hotels, car rentals and cruises via the World Wide Web. In addition to its full-service offerings, BuyTravel.com will feature United Airlines' E-Fares, deeply discounted fares that are currently not widely available from other third party websites. Under the terms of the agreement, BuyTravel.com will operate as a separate company, owned jointly by both United Airlines and Buy.com. BuyTravel.com is scheduled to launch later this year.

BuyTravel.com will offer consumers all the benefits of a full-service online travel agency from the convenience of their desktop. United Airlines' E-Fares will provide customers, who are flexible with their travel plans, with a convenient cost-saving alternative to booking airline flights. By using the new BuyTravel.com site, customers will be able to easily and safely purchase a variety of tickets ranging from leisure getaways to business trips utilizing the proven e-commerce technology of both United Airlines and Buy.com.

BuyTravel.com will be a featured store within the Buy.com website that currently sells computers, software, books, videos, games, music and surplus products at guaranteed low prices.

A bit of friendly advice to United (under the heading "Due Diligence")... Go to http://www.resellerratings.com/vendone.cgi?Buycomp-Buy.com. This is Reseller Ratings.com, a website which publishes ratings of online computer merchants based on customers' feedback. Buycomp (the computer component of the Buy.com suite of sites) gets a rating of 3.7 out of 7 (translation: yuk). Which begs the question: Is BuyTravel.com a customer service problem waiting to happen...?

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o Buy.com
o United
o Reseller Ratings

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Priceline.com Will Offer Continental Tickets
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Priceline.com reports that Continental Airlines joined its leisure airline ticket service.

Priceline.com asks customers online to name their own price for goods and then matches them with sellers.

Priceline.com reports strong growth recently across all its product offerings, which include automotive and home finance in addition to air travel. About 852,000 new customers used priceline.com in the second quarter, bringing to 2.0 million the number of unique customers to use one of the company's products since its inception 15 months ago, it said.

The deal with Continental, the nation's sixth largest airline, is expected to boost its domestic seat inventory by more than 20 percent. The airline gets the right to buy priceline.com stock at a future date at a set price, an option offered to other airlines in similar deals.

Almost half of all the empty seats flown by major U.S. carriers now will be available to priceline.com customers on a name-your-price basis, it said. The majority of the major U.S. full-service airlines now participate in the program.

Delta Air Lines, Trans World Airlines, Northwest Airlines and America West also have partnerships with Priceline.

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Priceline.com

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Online Customer Service Moves Forward
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Uniglobe.com Inc. this week announced it will implement the first fully integrated customer contact center for online travel shoppers at its operations center in Seattle.

Uniglobe.com will use Lucent Technologies' CentreVu Internet Solutions to enable customers to communicate in real time using the text chat function on the Uniglobe.com Web site as well as integrate customer e-mail, voice mail, telephone and fax messages. What this means is that a customer will have access to customer service while online, rather than having to call customer service after logging off the Internet.

While this is a step in the right direction, it is the next step which is better still. With the standardization of VOIP (voice over the Internet protocol) and faster access to the web, the day is coming when you will be able to surf a company's website while discussing your questions and concerns with a customer-service rep, with both the data and voice transmissions carried simultaneously over the Internet. This should be the goal of any company that takes the Internet and customer service seriously.

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Uniglobe

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

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Making the Most of ATT
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Hello,

This email is in reference to your article about ATT's loyalty program, in your July 15 issue.

By linking ATT to your Starwood Preferred account, you can earn 1 point for every dollar you spent using ATT services. This can help you bypass the expiration date of 3-years, since Starwood points do not expire.

Down part, you will be limited to their hotels, but you will have an option to transfer your points to many airlines, and if you transfer 20,000 they give you 5,000 more, plus The Gap, Banana Republic and many more.

Sincerely,

Genaro

[Thanks, Genaro.]

Until next week...