Monthly Archives

Monthly Archives for January 2019.

Did the Passenger Who Forced a Flight Attendant Help in the Bathroom Buy ANOTHER EVA Air Ticket?

man raising hand on plane
Jan 30 2019

A week ago the world learned about one of the worst airline passengers any of us has ever come across, a man who flies to Asia and consistently asks for help in the bathroom — help that he may not actually have needed.

He’s been blacklisted by the airline but media reports suggest he’s managed to circumvent the ban and buy himself another ticket on the airline. I’m skeptical.

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Getting Non-Compliant Hotels to Honor Program Benefits: the Latest Victory

Jan 29 2019

Hotel loyalty programs face a unique challenge that airlines don’t. Airlines set the rules and provide the product directly. Hotels have to get properties which are often owned and even managed separately to comply, with benefits like upgrades delivered consistently by individual employees at a front desk perhaps thousands of miles away. They rely on individual hotels and even employees to comply.

As a result it can be like playing whack-a-mole with individual properties. And with hotels around the world, members may be experiencing things on the ground that programs don’t know about. Or if they see an issue raised in passing it may not resonate with all of the issues they’re facing.

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Hyatt Openng 40 West Coast Hotels Over Next Two Years

japanese style room
Jan 29 2019

Hyatt announced today that they would open 40 hotels on the US West Coast by 2021. They’re really just describing the current pipeline and there are a few things to note. We know about several of these properties already.

This significant growth in Hyatt’s footprint, however they’re stretching to get to their 40 and limited service is the name of the game.

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Airline Downgraded John Kasich – But He Wouldn’t Leave First Class

kasich
Jan 28 2019

Earlier in the month Alaska Airlines needed to bump a passenger from first class on a New York JFK to San Francisco flight for a pilot traveling to a duty assignment. The passenger they downgraded to economy was John Kasich, who just finished serving 8 years as Governor of Ohio and who sought the Republican nomination for President in 2016.

Only Governor Kasich didn’t leave the first class cabin, he sat down in another passenger’s seat instead.

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Why Banks Will Keep Paying Big Credit Card Rewards (Until the Economics of Cards Change)

credit cards
Jan 28 2019

Recently the Wall Street Journal wrote about banks trying to control rapidly spiraling rewards costs. I didn’t take seriously the idea that banks would cut back on rewards to consumers to do this because they are offering rich rewards for a reason: they need to do so to attract consumers which earn them a piece of every transaction (plus annual fees, and interest when they don’t pay off their bills).

Josh Barro though takes on the broader claim about banks backing off of big rewards in New York magazine.

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My Credit Card Predictions for 2019 and Beyond

What 2018 Taught Us What to Expect in 2019 The Future of Credit Card Rewards There’s a reasonable risk of recession some time in 2019. The Federal Reserve has been raising interest rates. Together that means higher cost of capital for banks and greater repayment risk on the credit they extend. As a result I see approval standards for premium rewards cards tightening. Initial cardmember bonuses remain crucial to attracting customers and demonstrating to them that the card has value quickly, in order to encourage moving a new card top of wallet. The fact that Barclays wasn’t successful with Arrival Premier moving consumers to a model of rewarding them after they’ve proven their value to the bank means that issuers can’t move away from big up front rewards. I continue to be impressed by how…

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Delta’s New Color Coded Boarding is Live, Internal Memo Admits They’re Trying to Upsell You

Jan 28 2019

When Delta announced a new boarding process last month I gave it only a minor note since there’s very little actual change despite the hype about colors, simplicity and a better experience.

In an internal memo to employees Delta explains the strategy of their new boarding process — including making it clear to customers what they’re buying when they spend more.

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