Monthly Archives

Monthly Archives for August 2015.

Amtrak’s New Revenue Based Program Details Revealed – Here’s What it Will Mean

Aug 27 2015

Two weeks ago it was revealed that Amtrak would introduce a revenue-based program. The new program goes into effect January 24. Initial details are now available.

It’s a revenue-based program so there are going to be no more outsize values for redemptions. You’re going to be getting a fairly consistent redemption rate per point, which will make some awards (where ticket cost is low) cheaper and other awards (where ticket cost is high) more expensive. The best value redemptions in the program therefore go away.

Ultimately this isn’t as bad as I feared, but also removes much of the excitement and leverage from the program. It will still be strategically useful for some.

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Some Southwest Customers Will Get Free Drink Chits, Lawyers Pocket $1.6 Million (and are Unhappy!)

Aug 26 2015

Southwest Airlines has a long history with alcohol, and not simply because their long-time Chairman Herb Kelleher had a thing for Wild Turkey.

Prior to deregulation in 1978, the Civil Aeronautics Board was ‘experimenting with price competition’ and airlines were allowed to cut their Dallas – Houston fare to $13 and undercut Southwest (which as an intra-state airline wasn’t subject to the CAB’s price regulation). Southwest responded by offering two fares: a $13 matching fare, and their previous $26 fare with which they threw in a fifth of liquor (customer’s choice). Folks expensing their tickets bought the higher fare, and Southwest Airlines became the biggest liquor distributor in the state of Texas.

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