Alaska Airlines CEO sent an email to Virgin America employees about what they can expect as Alaska acquires Virgin America. I reproduce the full email below.
Brad Tilden shares that frontline employees likely won’t see cutbacks, and that there’s more opportunities with growth. He commits to share information as they know it. And that’s the best they can do, while recognizing the anxiety that employees feel.
Here’s the merger timeline that was shared with employees:
Delta is pricing business class awards to Europe over the summer for less than usual pricing. They haven’t announced a sale that I’m aware of.
Since Delta has run award sales before I’m assuming this is intentional, just announced. But without an announcement we also don’t know how long it will last. So book your summer SkyMiles Europe award travel now!
I just received the strangest offer from Starwood Preferred Guest. I’m offered double elite qualifying credit ‘between April 1 and June 30’. There are three strange things about it.
I guess this means I need to think about whether I want to be a Starwood Preferred Guest Platinum 75 member (24 hour check-in subject to availability, an extra Starpoint per dollar) or 100 night member (Ambassador status) for 2017. And despite the Marriott acquisition, SPG will remain a separate program in 2017.
Delta says their basic economy fares generated $20 million in incremental revenue during the first quarter.
On the one hand, it’s not that much in the context of $5.5 billion in domestic revenue for the quarter (so far these fares are only in domestic markets). If true, of course, since domestic revenue was up only 1.4% basic economy would account for the entire increase in year-over-year first quarter revenue. However, the figure is likely to be grossly exaggerated based on faulty assumptions.
Last week was United Airlines’ 90th birthday. Today is American Airlines’ 90th. Happy Birthday American Airlines.
American dates itself to 1926 and Robertson Aircraft Corporation, whose chief pilot was Charles Lindbergh. A number of small airlines such as Southern Air Transport, Southern Air Fast Express (‘SAFE”.. get it?), Universal Aviation and Colonial Air Transport were incorporated as American Airways in 1930, and then American Airlines in 1934.
In some ways, though I fly the airline most, I cannot figure them out.
Virgin Australia has New York – Sydney for $675 in August and September.
There’s a 10 day minimum stay (meaning you can return 10 days from the day you leave, not the day you arrive). Miles can be credited to Delta or Virgin America but will not earn full miles flown with either. You earn 20% redeemable miles with Virgin America but 50% redeemable miles (100% elite qualifying miles) with Delta.
About 8 years ago airlines started charging for checked bags that they used to transport as part of a ticket.
In addition to whatever incremental revenue they may earn from doing so, they discovered a huge incentive in tax arbitrage: the more money they move out of “the ticket” (which is subject to a 7.5% excise tax) and into “ancillary revenue” (which is not subject to this tax) the better off they are financially. Roughly speaking each of the largest US airlines is pocketing $50 million a year in tax savings by charging you for checked bags.
Earlier today I wrote that Hyatt changed their best rate guarantee to require you to book the lowest rate, including prepaid rates before submitting a guarantee claim.
They’re still going to require you to make a reservation before submitting a claim. But it turns out that isn’t Hyatt’s intention to require that the reservation you make is always the lowest-price non-refundable booking in order for them to honor their Best Rate Gaurantee despite how a change in the language of their Best Rate Guarantee terms appeared.
In fact Hyatt will be updating their terms to clarify that you do not need to book the lowest rate in order to be eligible for a best rate guarantee — only that you have to book the same type of reservation you’re trying to guarantee against.
Acquiring new credit card customers has become expensive for banks, with escalating signup bonuses. 50,000 or even 100,000 point offers are more expensive than the 15,000 points that were common 15 years ago. That only makes sense for banks if customers will spend a good amount of money on their card products over a long period of time, or rack up large fees (while paying off their balances).
Citibank just tweaked their rules about who they’ll give a bonus to. American Express will only give one bonus per card product in a customer’s lifetime.
Hotel chains want you to book directly through them because it costs them less to make a reservation themselves than it does to pay a commission to Expedia or other online travel sites (or travel agents).
A dozen years ago hotel chains started to focus on driving their most frequent consumers to their websites by limiting points-earning to reservations made directly, limiting elite stay-earning, and in some cases even limiting points.
But for both a chain’s best customers and for infrequent guests, they also had to make consumers believe they’d be able to get the best deal by booking direct.
Only they don’t actually ‘promise’ the best rates. All they do is promise a process by which if a customer discovers, under certain circumstances, that they aren’t getting the best price that they might be able to have the better price matched or beaten and might be able to get some compensation as well that varies by chain.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
