|
UP FRONT..........................................................
The Slow, Painful Death of Free
...............................
Mileage programs have always been a balancing act, keeping the airlines tightly stretched between the twin poles of fear and greed.
The point of equilibrium has shifted over time, for and against consumers' best interests, as industry profits have ebbed and flowed.
On the greed side, it's all too easy for the airlines to leverage consumers' devotion to mileage programs, increasing revenue by ratcheting up fees, and decreasing costs by reducing award availability.
The fear: devaluing the programs to such an extent that consumers' loyalty is lost, leading to the loss of significant revenue from the sale of miles to program partners (credit card issuers, hoteliers, etc.) who will redeploy their budgets to marketing programs with more ability to drive consumer behavior. In other words, there's a real danger of killing the goose that lays the golden egg.
Blithely casting fear to the wind, Northwest and United this week took giant steps down the path of greed, proclaiming that they will begin charging members of their mileage programs $5 and $15 respectively for award tickets issued through their service centers (details in "Miles & Points" below).
For background, Air Canada set the precedent on July 1, 2003, when it began imposing a CDN $25 service fee for award tickets booked by phone through the carrier's call center. AC had originally planned to extend the fee to online award bookings as well, beginning in 2004, but backed off under pressure from irate Aeroplan members.
Members of the WorldPerks and Mileage Plus programs will find no comfort in precedents. Nor should they. While the dollar amounts of the fees are modest -- at least in Northwest's case -- the new policy is a thumb-in-the-eye of proven customers.
And in the long term, it amounts to another body blow to programs which, to their constituents, have already begun looking pretty punch drunk.
Save the goose!
ON SITE...........................................................
FrequentFlier Forum Topics
..........................
As always, there's plenty of activity on the FrequentFlier Forum.
DPSCC wonders: "How can I find out how many miles I should be awarded in a flight between Miami (MIA) and Chicago O'Hare (ORD) for example? I'm trying to do my math, to see if I'm close to the 25K mark, but can't find the info anywhere..."
Mrcheaps submits: "Stay just two separate times between September 1st and December 31st at any Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, or MainStay Suites hotel in the U.S., and you'll earn enough points for a free hotel night..." (See "Miles & Points" below.)
Greggor36 worries: "Can we transfer our Dividend Miles to some other airline or program so we at least can get something (flier miles, hotel stay, etc.) rather than have a bankruptcy take it all away?"
And much more... Questions, answers? Post them to the Forum!
-> More: http://frequentflier.com/forums/index.php
MILES & POINTS....................................................
ATA Adds Elite
..............
ATA's Travel Awards program now features an elite tier for members earning 15,000 points in a 12-month period. Travel Awards uses a point system, awarding 500 points for a roundtrip coach flight, with a 500-point bonus for roundtrips booked at ata.com. So it would take 15 roundtrips, all booked online, to reach elite.
The elite benefits package includes dedicated check-in lines, priority security clearance (where available), priority boarding, special front-of-the-plane seating.
ATA will be introducing business class seating over the coming months, so the program enhancement is consistent with a new focus on business travel.
-> More: http://ata.com
Choice Bonuses for Fall Stays
.............................
Between Sept. 1 and Dec. 31, members of Choice Hotels' Choice Privileges program will earn a 5,000-point bonus for every 2 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 (300 instead of 150) and triple Southwest Rapid Rewards credits (1.5 rather than .5).
-> More: http://choicehotels.com
Millenium Hotels Is New Frontier Partner
........................................
Frontier EarlyReturns members will earn 500 miles for eligible stays at any of the 15 U.S. Millenium hotels. As a launch promotion, earnings are doubled to 1,000 miles per stay through Dec. 31.
Separately, Frontier reports that on June 22, the 3-year-old EarlyReturns program enrolled its 1 millionth member.
-> More: http://frontierairlines.com/specials/ff_promotions.asp#millennium
Marriott Offers Free 4th Night in Caribbean, L. America
.......................................................
Marriott Rewards members who book eligible 3-night stays at participating Marriott and Renaissance hotels in the Caribbean and Latin America between Sept. 1 and Nov. 30 will earn a free 4th night and complimentary upgrade.
Use promotion code M11, or call 1-800-228-9290 and ask for rate code MAWX.
-> More: (Caribbean): http://marriott.com/rewards/mesOffer.mi?marrOfferId=41187
-> More: (L. America): http://marriott.com/rewards/mesOffer.mi?marrOfferId=41188
Northwest Imposes Fees for Award Tickets
........................................
Beginning this Friday, Aug. 27, Northwest will charge $5 for each domestic ticket issued through Northwest reservations offices in the U.S., $10 for each domestic ticket issued through Northwest's airport locations in the U.S. and Canada, and $3.75/$7.50 for 1-way/roundtrip tickets issued through the CRSs (computer reservations systems) used by travel agents to book trips.
Yes, the fees apply to WorldPerks award tickets for domestic travel.
Unlike United's initiative, which specifically targets mileage-program participants, Northwest's move spreads the pain among all most consumer groups and distributors.
-> More: http://nwa.com/corpinfo/newsc/2004/pr082420041482.html
United Imposes Fees for Award Tickets
.....................................
The headline was a grabber: "United Award Travel for as few as 15,000 miles."
That turns out to be a limited-time offer (see next story). The real news -- which, arguably, permanently and materially degrades the program's value -- is the upcoming fee for award tickets:
"Please note that effective October 15, 2004, Mileage Plus award tickets, including Star Alliance and other Mileage Plus airline partner awards issued through United Reservations or by any other United ticketing location, will be assessed a $15 handling fee per ticket at time of ticketing. The handling fee does not apply to upgrade awards or any awards booked online at united.com. In addition, United will increase its fee from $75 to $100 for making changes to award tickets."
1K and Global Services members will not be assessed the handling fee.
Burying the bad news at the bottom of a good-news/bad-news announcement? For shame, United!
-> More: http://united.com/page/article/0,6722,50987,00.html
United Discounts Short-Haul Awards
..................................
Matching a similar move by American, United will lower the mileage requirements for award trips of less than 750 miles each way between Sept. 1 and Dec. 31.
Coach-class Saver awards on United, United Express and Ted flights will be discounted from 25,000 miles to 15,000 miles, and first- or business-class Saver awards will be reduced from 40,000 to 30,000 miles.
Discounted awards must be booked online at united.com.
-> More: http://united.com
STEALS & DEALS....................................................
Deal Alert from SmarterLiving.com
.................................
1) Three-Day Sale on Southwest from $39
Southwest is offering systemwide sale fares starting at $39 1-way. Travel is valid from Aug. 31, 2004, through Jan. 14, 2005, and destinations include Chicago, Los Angeles, New Orleans, and more. Fares may be combined for roundtrip travel.
Book tickets at least 7 days in advance, and by Thursday, Aug. 26.
-> More: http://www.smarterliving.com/air/deal.php?id=7170
2) Labor Day Sale Fares on American from $78
American has announced Labor Day sale fares starting at $78 roundtrip for domestic travel. Departures are valid on Sept. 1, 2, or after noon on Sept. 4, and returns are valid on Sept. 4, 5, or before noon on Sept. 6. Destinations include Chicago, Minneapolis, San Francisco, and more.
Book tickets at least 3 days in advance. American has not listed a booking deadline, so these fares could disappear at any time.
-> More: http://www.smarterliving.com/air/deal.php?id=7150
SWEEPS & FREEBIES.................................................
Fairmont's "You Deserve a Promotion" Sweepstakes
................................................
Between Sept. 1 and Dec. 31, all newly enrolled members of the Fairmont President's Club will be entered into a sweepstakes to win 1 of 100 upgrades per month to Premier status. (Premier status includes 2room upgrades, 2 $50 dining certificates, 1 complimentary night on a 3-night stay, complimentary spa access, bonus airline miles per stay.)
Follow the link below to enroll.
-> More: http://www.fairmont.com/fpc/premiergiveaway/
READER RANTS & RAVES..............................................
Feedback from the Frontlines of Travel
......................................
"I sold some miles, or tried to, to a company called Executive Travel Service in Dallas. I took some steps to check them out, but apparently not sufficiently, because after I booked a round trip to Hong Kong on American for one of their customers, they didn't pay me. Have you had similar reports about this company, or any others like it? Do you have an article on this subject on your site somewhere?" (P.B.)
[Editor's Note - I don't know anything about the company in question, which is evidently a so-called coupon-broker.
Generally, however, we categorically warn against buying and selling frequent flyer awards, whether through brokers or directly. That's very simply because such transactions are strictly prohibited by the airlines' programs. Whether we agree with that policy or not, it's a fact of life. And any business based on breaking an industry-standard rule is suspect from the get-go.]
.........../
"I was collecting AAdvantage miles through AT&T Long Distance but when I received their letter informing me of their change to mileage for bills of $50 or greater, I pulled the plug immediately and switched to Sprint to top off my HawaiianMiles account.
"In regards to mileage redemption I have tried twice to redeem miles on short notice only to be told there were no seats available. The programs in question were Alaska and American. It seems the old rule of booking award trip as far ahead as possible holds true because I was able to redeem miles for a trip to Asia 12 months down the road." (Jason)
.........../
"Just wanted to let you know that the e-Rewards program is once again allowing you to trade in your points for AA miles. 500 miles for $25.00 (Their form of points, not actual cash) and 1250 for $50.00. www.E-rewards.com ." (Marlys)
.........../
"My husband and I have a Northwest WorldPerks Credit card that we both use, yet only he gets credit for the miles. His recent mileage summaries dated May 2004 said he had 88,483 "current available" miles enough for us both to upgrade on a flight to Amsterdam next April (although the date we wanted had no upgrades available already!). When we tried to upgrade on July 9th they said he had only 79952 miles--48 short. Not only had 8483 miles disappeared, they wouldn't let him purchase my upgrade, nor would they let him purchase three legs of the round trip and me one leg although I had 42,498 miles as of the same date. They forced us to transfer 5000 miles from my account to his at a cost of $75.
"I have written customer service requesting an explanation of the missing miles and the pettiness of disallowing an upgrade for a trip 8 months in the future over 48 miles. We have been using Northwest yearly for four years. As of yet I have had no response. Is there an airline with a better policy? We are only interested in upgrades, not free flights." (Marcie)
.........../
"I recently tried to standby for an earlier flight with Delta and encountered the $25 fee to standby on the same day. I declined and when I was waiting for my scheduled flight they were asking for volunteers to take a later flight for a $200 voucher! If I can do the math, to collect a $25 fee they were willing to give me a $200 voucher...this is stupid!
"Are there any figures showing which airlines pay the most in vouchers? I would love to cross-reference those numbers with airlines that charge you to standby - want to guess what we may find? I continue to take my business elsewhere than Delta because they are so unfriendly to customers. Good luck in reorganization, Delta (this is the same airline whose employees once bought them an airplane when they were well-managed!)." (Bill from Florida)
.........../
If you have a rant or a rave, e-mail us at rants@frequentflier.com.
Until next week...
|
