I was recently engaged as an expert witness for a federal criminal trial. It’s a fascinating story that I plan to tell. But in order to explain how a program member got embroiled in what was seen as a conflict of interest, how this person came to be at odds with her employer, and how the federal government got involved we need to start at the beginning. And that’s that loyalty programs are all about creating an incentive for individuals to choose their product over another — whether the choice comes at the best price, or in the case of purchases using an employer’s money whether or not the individual is acting in the best interests of their employer.
About Gary Leff
Never Accept a Room That’s Unacceptable
I checked into Mandalay Bay in Las Vegas yesterday. Quickly up to my room and there was a strong smell of chlorine. Back down to the check-in desk. Now, it was noon (so not yet check-in time). The hotel was full. They had no rooms to offer. I could have waited for a room, something was going to open up and they were still cleaning rooms. That would certainly have been a reasonable solution if they didn’t have a room to give me initially. But they gave me a room, it just wasn’t one that was habitable. So I thought it was reasonable for them to find me a solution right away. Some of the Las Vegas hotels are mega-properties, and certainly Mandalay Bay is one of them since it’s a complex that also includes…
A New Signup Bonus for the Fidelity Investment Rewards 2% Rebate Amex
I’m liking the new Citi Double Cash product as the best cash rebate card but the Fidelity Investment Rewards American Express currently has a $50 signup bonus. I favor points over cash back. But I also recognized that if I’m doing any un-bonused spend, I’m effectively buying points at 2 cents apiece, since I could otherwise be earning two cents per dollar spent. I don’t want to do that with most points currencies. So as I’ve long said, a cash rebate like this may be the best option for spending that isn’t going to earn a bonus on a points and miles credit card. Now, Bank of America can get you a 2.625% rebate but only if you put $100,000 on deposit with BofA. For most, though, that’s going to be a bit out of…
San Diego is Cracking Down on Cab Drivers Who Smell
The San Diego airport is requiring cab drivers not to smell bad. And the cab drivers are livid. For years, inspectors with the San Diego Regional Airport Authority have run down their checklist for each cabbie — proof of insurance, functioning windshield wipers, adequate tire treads, good brakes. Drivers are graded pass, fail or needs fixing. Anyone who flunks the smell test is told to change before picking up another customer. The cab drivers say it’s racism and unfair. And indeed, cab drivers do tend to be immigrants. A 2013 survey of 331 drivers by San Diego State University and Center on Policy Initiatives found 94 percent were immigrants and 65 percent were from East Africa. Here’s the thing. Smell can be subjective. But smell can also be bad and if there’s an issue, and…
Earning Miles with Debit Cards That Have No PINs, Gaming Argentina’s Currency, and Drinking from a Plastic Bag
News and notes from around the interweb: PIN-less debit transactions. Use your phone to create postcards and then outsource mailing of them American Airlines is apparently limiting ticket sales in Argentina, because Argentina is limiting the amount of foreign currency which can be taken out of the country (they can’t get the money from ticket sales back home). Already Venezuela is holding onto American Airlines cash (and cash of other airlines). Argentina thinks American should keep selling tickets anyway, and scapegoats American Airlines for an attack on their currency. Because those evil speculators who want their money in exchange for services are the economic problem Argentina faces. A lounge that serves drinks in plastic bags. Have you ever gone to the airport on the wrong day? first class on Spirit Airlines has legroom than some…
Airline Meals Now Offered for Home Delivery!
You can get airline meals delivered to your home — premium cabin meals from LSG Skychefs. “I wish I could eat what they serve on the plane all the time” Said no one, ever. But Air Food One thinks there is a business is distributing excess airline meals. The marginal cost is low, they will go bad (eventually) if unused. And surely someone will think the food is worth the $12 or $13 cost. Unfortunately it appears that I’m outside of their delivery area (they’re currently only serving Germany), because if I had my choice of airline meals I think I’d love to order at home the American Airlines beef enchiladas (Not..! Though anything but the stuffed shells, I suppose). You can join the 40,000+ people who see these deals and analysis every day —…
How to Get Your Hotel Stays for Free Using a Best Rate Guarantee Claim
Mommy Points yesterday has a post summarizing hotel ‘best rate guarantee’ policies. The idea is that each hotel chain wants to convince you to book directly through them. That’s because booking through a third party website like Expedia or Orbitz is expensive for them, commissions can exceed 20%. One strategy is to only offer credit towards elite status when you book directly (most chains, although they general exempt certain non-direct booking outlets) and another is to only offer benefits and points accrual when you book direct. Hyatt and Marriott will at least recognize your status if you don’t book directly, even though you cannot earn credit towards elite status under their rules if you don’t. The best rate guarantee is a marketing technique to convince you that you’ll get the best rate through the hotel’s…
The Very Strange Idea of the Frequent Flyer Weekend
Walking into a Westin lobby last night — Thursday — I was confronted with this projected onto the floor. To a frequent flyer business traveler this makes all the sense in the world. Thursday is done. The work week is, for all intents and purposes, done. If you’re walking into the Westin lobby you weren’t one of the lucky ones that got to catch a flight home Thursday night. Maybe your engagement took you through to the end of the business day and it was too late to make it to the airport and get back home to your base. There aren’t as many late evening flights as there used to be, especially late evening flights that will still connect if you aren’t headed to a major hub. But either way you probably aren’t at…
Does Boeing’s Pet Export-Import Bank Matter?
Pizza in Motion is happy to see some movement extending the Export-Import bank’s charter, even temporarily. I don’t think Ex-Im should go away. I say this narrowly from the perspective of someone who’s a Boeing supporter. Here’s a video my employer put out a month ago to explain Ex-Im winners and losers. The Export-Import Bank backs $37 billion worth of exports, which amounts to 1.6% of the U.S.’ $2.28 trillion in exports. The bank states that $12 billion of that (0.54% of total US exports) is justified based on foreign competition. The Export-Import bank itself claims to support 200,000 – 300,000 jobs each year out of ~ 10 million export-related jobs in the U.S. Now, the Export-Import bank is small as far as federal programs go. CBO projects $2 billion in losses over the coming…
How’s the American Airlines Merger Doing?
American Airlines CEO Doug Parker gave good marks for merger progress so far with plenty of work to do. He cited progress implementing “the world’s largest code-sharing arrangement” between American and US Airways; US Airways joining oneworld and the transatlantic joint venture ith British Airways, Iberia, and Finnair; and re-banking the Miami hub to make for more attractive flight connections. They’ve co-located facilities for the two airlines at 80 airports are “are negotiating for new contracts covering workers from both carriers.” (I’m not sure how it’s an accomplishment already to be negotiating as opposed to, say, ‘have negotiated’). The airlines are profitable, though there are certainly some gaps in the operation like weakness in South America that American has bet heavily on. I’d paint a slightly different picture.
