U P F R O N T
A Detour on the Return to Normalcy
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Last week, as our small gesture of sticking a thumb in the eye of terrorism, we published a fairly normal issue. There was a week's worth of mileage news to report, and that's what we did.
In the intervening week, there's been a virtual blackout on mileage offers by travel suppliers, so our "return to normal" strategy has been derailed. What we can, should and will focus on this week is 2 issues raised by the Sept. 11th disaster: 1) options for contributing toward the relief efforts currently underway, and 2) the short- and long-term effects on the business and experience of travel.
Y O U C A N H E L P
Act on Your Charitable Instincts
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We encourage our readers to give free reign to their generosity.
Personally, I have made a cash contribution to the Red Cross, and plan to donate miles as well, when it becomes clearer where the various programs are deploying donations and whether they will be matching contributions (see below).
For those who wish to contribute -- be it money, time, blood or otherwise -- but don't know which organizations to support, here are 3 websites which will help you choose and contact a suitable charitable group:
- http://www.disasterrelief.org/
- http://www.helping.org/
- http://www.libertyunites.org/
Miles-for-Relief Options
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While it is to be expected (or hoped, at least) that all U.S. airline and hotel programs will make adjustments in their frequent-travel programs to allow members to donate miles and points specifically to relief-focused organizations, that hasn't happened yet. Here's where things currently stand--
> Six Continents Hotels
Members of Six Continents' Priority Club Worldwide can donate Priority Club points in increments of 2,500 for a $10 cash donation to the American Red Cross. Priority Club Worldwide will match each point donation.
Members may donate points to the American Red Cross by calling the Priority Club Worldwide Service Center at 1-800-447-3418 (reference code NB199).
> Starwood Hotels
Starwood has pledged a donation of at least $1 million to The September 11th Fund and set up an employee donation program as well.
Members of Starwood's Preferred Guest program can donate their points to the September 11th Fund as well. For now, call 1-888-625-4988 to make donations. Members will be able to make online donations within the next several days at http://www.spg.com.
> Delta
Delta itself has donated 8 million miles -- 2 million each to American Red Cross, CARE, United Way of America and United Way International to immediately assist in relief efforts. Through Delta's SkyWish program, SkyMiles members may donate a minimum of 5,000 miles to these same organizations.
Donations can be made via e-mail at delta.bids@delta.com, by calling 1-800-325-3999, via fax at 404-773-1945, or at any Crown Room.
> Northwest
From an e-mail sent to WorldPerks members: "If you wish to donate miles (not tax-deductible) to the American Red Cross, please call Northwest AirCares at 1-800-327-2881 for details. To make a tax-deductible fiscal contribution, please contact the American Red Cross directly at 1-800-HELP-NOW."
> United
According to United: "Those who wish to donate miles to the relief efforts can donate miles to either the American Red Cross or the September 11th Fund of the United Way of Greater New York. Members interested in donating miles should call Mileage Plus Customer Service at 1-800-421-4655." The United website will be updated to reflect these options in the next few days.
> Carnival Cruise Lines
Carnival Cruise Lines will donate $50 for each stateroom sold over the next 30 days to the American Red Cross to aid in relief efforts associated with the recent terrorist attacks in New York and Washington.
Carnival expects the $50 per cabin donation to generate approximately $1.5 million for the American Red Cross. More.
Make Your Miles Count
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If, like most frequent travelers, you have miles and points in multiple programs, the best approach may be to wait until more travel suppliers have implemented miles-for-relief programs, and then donate miles to those programs a) which support those charities which you feel are the most deserving, and b) which match or otherwise add value over and above the miles you donate.
T R A V E L , C H A N G E D F O R E V E R
Travel Industry: On the Ropes
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The effects of last week's tragedy will reverberate throughout the travel industry for years to come. Consider...
The debt ratings for U.S. airlines have been downgraded by both Moody's and Standard & Poor's. That means airlines will have a tough time borrowing money to keep themselves financially afloat during the next few months.
Most major airlines have announced plans to cut back operations by 20%. Tens of thousands of layoffs have already been announced, and the total could reach 100,000 or more.
Midway has already shut down, as has Australia's second largest carrier, Ansett.
The industry-wide loss for the year is now expected to approach $10 billion, the largest loss in the history of U.S. commercial aviation. Factor in losses by hotels, rental car companies, aircraft manufacturers and other travel-linked businesses and the negative numbers increase alarmingly.
The potential liability faced by American and United resulting from their aircraft being used in the WTC and Pentagon attacks could be enough to drive either airline into financial ruin.
WITHOUT A SUBSTANTIAL GOVERNMENT BAILOUT (CURRENTLY BEING DEBATED IN CONGRESS), THERE WILL BE A RASH OF AIRLINE BANKRUPTCIES. AND ULTIMATELY, THE INDUSTRY WILL SHRINK, LEAVING TRAVELERS WITH FEWER CHOICES, HIGHER PRICES AND LOWER SERVICE LEVELS.
A Buyer's Bonanza (Short Term Only)
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In the short term, the supply of airline seats will far outstrip the demand for them, creating an ironic, temporary silver lining for consumers. The do-or-die pressure to attract passengers will be a positive in 2 ways--
> Price Discounting
In the coming weeks, expect all airlines to aggressively cut fares in an attempt to jump-start air travel.
> Frequent Flyer Promotions
Related to the above, the airlines (and hotels) will shift their frequent-travel programs into overdrive, rolling out a variety of mileage-related initiatives.
- Bonus miles. Empty seats? Traditionally, airlines have dangled frequent flyer miles in front of reticent customers. They'll do it in this case, and probably in a big way.
- Award sales. As we have already seen during the past few months of weak airline traffic, empty seats also represent an opportunity to offer award tickets at discounted mileage levels. The airlines can burn off some of their mileage liability without displacing revenue passengers. And it makes for happy customers.
- Elite qualification. Expect the airlines to assist program members in meeting elite qualification thresholds. That could take the form of lowering the thresholds, or counting miles not normally used to compute elite status (e.g., from non-airline partners).
O N S I T E
New on the FrequentFlier Forum
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As was the case everywhere, the Forum was filled with discussions related to the terrorist attack on America. How to donate miles and money... first-hand stories of near escape... checks on the safety of Forum members in the affected areas. And more...
In the midst of fear and mourning, the sense of community on the Forum has been heartening.
> More...
S T E A L S & D E A L S
Continued next week...
S I T E 2 S E E
We Are Not Alone
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The Sept. 11th terrorist attack and subsequent media coverage left me wondering what we as Americans had done to arouse such hatred in others. And it left me feeling isolated from the world beyond America's shores.
The site we're recommending this week is a single web page, photos and captions, documenting the world's reaction to the attack on the U.S. The message: the thoughts and prayers of many citizens, of many countries, are with us.
> More...
Until next week...
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