Last night I spent an hour on the phone listening to Delta’s take on their frequent flyer program changes. Their spin on the media coverage is that they’re happy with the messaging — the stories aren’t all positive, but that their core message is getting out (“business travelers benefit”). I don’t think that message is entirely correct. You have to average paying 20 cents per mile in airfare just to break even in miles earned across the entire year. And 20 cents is a lot (remember that the minimum average revenue to earn elite status is just 10 cents per mile — $2500 spending for 25,000 mile status, etc). Since business travelers are also leisure travelers that’s a pretty high average fare, and business travelers won’t benefit until their average is above that. What’s more…
Monthly Archives
Monthly Archives for February 2014.
American Airlines Reduces the Value of its ‘Choice’ Fare Bundles With New Variable Pricing and Benefit Changes
Pizza in Motion breaks the news on changes to American Airlines airfare benefits. American Airlines introduced a set of fare options in December 2012, a modestly higher fixed fare price for a set of value-added benefits, that you could purchase at time of ticketing — through American’s own channels, and also they hoped through third parties as well. However the details of American’s fare bundles were updated on February 25. What the lower tier bundle offers has been cut back, and pricing has changed. These options no longer represent the value they once did. Choice Essential fares used to include at a fixed $68 price point: No change fees (avoid the $200 charge when making a ticket change) Free checked bag Priority boarding (“Group 1”) Choice essential prices have changed and no longer waives change…
Starwood Made a Mistake, Admits It, Fixes It — Hotels Must Offer Double Occupancy Award Rooms
On Saturday I raised some alarms over Starwood apparently allowing a handful of hotels in Europe — such as the Pulitzer in Amsterdam and Hotel Des Indes, The Hague — to make rooms available for standard points redemption that fit only a single person — and charging more points if you wanted to have two people stay at the hotel. The Starwood Preferred Guest terms and conditions say that award rooms are “for single or double occupancy rooms” but SPG representatives had explained that these hotels were unique, and that they were complying with Starwood’s rules because they only have to offer redemptions for single rooms or for double rooms, and they were offering single rooms. I called that a pretty tortured reading of the rules of the program and suggested that the better approach…
Several Chase Cards Becoming Chip + PIN Later This Year
Chase announced at its investor conference earlier in the week that they’ll be switching their ‘chip and signature’ cards to ‘chip and PIN’ later this yaar. Most US cards have only a magnetic strip on the back. That’s where card information can be found and read. In much of the rest of the world, cards have an ‘EMV chip’ with encrypted information. It’s much more difficult to steal data from. (And a magnetic strip is easier to reproduce, too.) In addition, some cards with chips require consumers to enter a PIN to validate a transaction instead of signing their name. A PIN number is harder to guess than a signature is to forge. So cards requiring a PIN (“chip and pin”) are considered more secure than those merely requiring a signature (“chip and signature”). Chase…
Silvercar May Be Expanding Soon to 3 New Airports
Rumor has it that Silvercar will be expanding to Phoenix, Seattle, and Denver by the end of the second quarter of the year. Silvercar is the new rental outfit that offers only Audis, and ‘includes everything’ – GPS, wireless internet, SiriusXM radio, and even toll tracking (you pay only the actual cost of tolls you use) and refueling at market rate (you don’t refill the tank and you’re charged the actual cost of gas plus $5). It’s a great experience overall, a premium experience, so can be priced accordingly. But I find many airport midweek rentals from the major agencies to be just as expensive and Silvercar is offering a better value proposition for many, certainly for all but the top-tier rental car elites (though they don’t offer miles). I made my first Silvercar rental…
Seven New Thoughts on How Bad Delta’s Changes Are And What You Can Do About Them
I’ve had a day to digest Delta’s changes, and crystallize my thoughts as I’ve talked to a variety of television, radio, and print journalists about the revenue-based changes that Delta is making to its frequent flyer program. I shared the guts of those changes yesterday, but having given them further thought I think I have a bit of a clearer take. We don’t know yet just how bad they are, because Delta won’t release full details. But they certainly aren’t good for the vast majority of flyers — even business travelers whose tickets cost an average of 20 cents per mile or less. (And even those paying more could still wind up coming out far behind when we see the scope of changes Delta makes to their new five tier award chart to be unveiled…
What the Envy-Inducing Stories About Fabulous First Class Air Travel Miss: the Trend is Really Away from First Class, and Towards Business Instead
The AP’s Scott Mayerowitz offers the mainstream public a look into the offerings in international first class. Airlines certainly offer premium passengers rarified experiences such as tarmac transfers to the plane, gourmet meals onboard and on the ground, top wines, and space — personal space in their seat and general separation from the masses. Although this last is a bit of a mischaracterization, I think — it’s less about avoiding the ‘sort of people who travel coach’ and more about avoiding lots of people which brings with it stress. Yet some of the most cherished new international first-class perks have nothing to do with meals, drinks or seats. Global airlines are increasingly rewarding wealthy fliers with something more intangible: physical distance between them and everyone else. The idea is to provide an exclusive experience —…
Ferrying a Plane to Afghanistan, Radio Clip About Delta Frequent Flyer Upheaval, and Big Changes at Qantas (Bits ‘n Pieces for February 27, 2014)
News and notes from around the interweb: A fantastic story of a pilot hired to ferry a plane from Arizona to Afghanistan. Supersonic Jet Throws Traditional Design Out the Window (HT: Rob R.) My comments last night on WTOP Radio about Delta’s frequent flyer program changes Yesterday I outlined Qantas’ troubles. Lucky outlines their plan which amounts to shedding older aircraft, delaying purchase of aircraft and laying off staff. We’ll see the end to 747s with first class (there are only 6 left). They’re eliminating international service from Perth, shifting widebodies away from most domestic service, and re-timing some flights for better aircraft utilization. This should help a little bit on the cost side but there’s nothing here to increase revenue, no fundamental shifts in business despite losing AU$250 million over six months. You can…
The World Is Really Paying Attention to Delta’s Revenue-Based Changes (And Read On to See My ‘Outrage Face’)
I appeared on ABC’s World News Tonight talking Delta’s planned shift on January 1 to a revenue-based frequent flyer program. A major evening newscast, time is short, I explained the changes early in the segment and then came back at the end and explained that they’re risky — that other airlines will wait and watch, and how consumers respond will offer some direction to Delta’s competitors. Now, I get pretty darned impassioned when anyone puts my miles in jeopardy… I had a little more time to talk ‘winners and losers’ on WTOP Radio tonight in my home market of Washington, DC. I spoke to a print journalist today, and put together a piece for Conde’ Nast as well. I’m not sure I remember the last frequent flyer program change (as opposed to ‘air travel issue’)…
40,000 Mile Signup Bonus for No Fee the First Year LifeMiles Visa
Avianca LifeMiles has a co-branded Visa offered by U.S. Bank here in the States. Usually the signup bonus is just 20,000 miles. But there’s a new offer with a 40,000 mile signup bonus. It’s also a $0 annual fee the first year. As with recent posts about the statement credit Citi Hilton Reserve Card and the Fidelity 2% card, this card does not offer referral credit to me (only the card with the smaller bonus does). Though LifeMiles has a history of tweaking their award chart pricing without notice, they remain one of the best programs in Star Alliance and thus most useful programs in the world given one-way awards at half the cost of roundtrip, a still reasonable award chart, and no fuel surcharges. Their call center customer service can be a challenge, they…
