Monthly Archives

Monthly Archives for May 2016.

American Eliminates Telephone Booking Fees for Awards

May 02 2016

American has eliminated telephone booking fees for award tickets.

These were already waived for Executive Platinum members and for customers booking awards that couldn’t be booked at AA.com. A year ago American started waiving telephone booking fees for awards you couldn’t book online, following US Airways practice. At the same time they increased their telephone booking fee from $25 to $30 for domestic itineraries and $35 to $40 for international ones.

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Delta Kills Competition, Atlanta Agrees Not to Build Second Airport

May 02 2016

Atlanta is the busiest airport in the world. In part the volume of passengers at Atlanta Hartsfield-Jackson is because, unlike other major metropolitan areas — New York, San Francisco, Miami, Los Angeles, Chicago, Dallas, Houston — the Atlanta area doesn’t have a second (or third) airport.

There’s been plans for a second airport since the 1970s when the city acquired about 10,000 acres in Paulding County (40 miles from the city) to build one. But Delta has been fighting tooth and nail against the facility — and finally drove a nail into its coffin.

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Expedia’s CEO Gets a $95 Million Payday — But is the Travel Booking Giant About to Fall?

expedia dancers
May 01 2016

Think it’s lucrative to get fired as United’s CEO?

Staying on is even better if you’re Expedia’s CEO – in place since 2004 – who got $94.6 million in 2015 including “2.7 million stock options valued at $83.6 million that vest over five-and-a-half years”

40% of the options though require boosting the company’s stock price nearly 50% over the next 4.5 years. That’s actually modest growth, but while conventional wisdom paints the consolidating online booking industry as a success engine it’s actually incredibly vulnerable.

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REVEALED: How Much Hilton Reimburses Hotels When You Book Awards

May 01 2016

A new Chinese 6% VAT tax on hotel stays went into effect today. Hilton’s website now reflects the VAT, as it should. However their award searches are showing not just the number of points for the award but also this new VAT based on the payment Hilton HHonors makes to the hotel.

This is an error, of course, since Hilton HHonors awards include tax. But it tells us a lot of the economics of the program.

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Here’s How a Man Stole Millions of American AAdvantage Miles — and How You Can Protect Yourself

robber being caught red handed
May 01 2016

An Iranian student in South Florida named Milad Avazdavani has been charged for “hacking into the AAdvantage accounts of high-mileage customers and siphoning off enough points to charge trips and cars worth more than $260,000.”

In each case the AAdvantage accountholder’s email address was changed and transactions were made from a computer at the same IP address. Changing email address is a flag for potential fraudulent activity made soon thereafter when redemptions are being made in the name of someone other than the accountholder. When a single IP address is linked to name changes and third party redemptions across a number of accounts that’s a pretty good giveaway.

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