The LA Times is covering the Expedia / Tokyo & Osaka Hilton pricing glitch. What began as a simple error in the conversion of yen into U.S. dollars quickly snowballed into a public relations nightmare for Expedia. … Expedia isn’t saying much beyond a public statement acknowledging the error. Requests for interviews with Expedia executives were declined. The fact that an error can be publicized and acted upon so quickly is very telling. “It’s really not about FlyerTalk per se,” said Randy Petersen, founder and president of FlyerTalk. “It is about the impact of the Internet as a communication tool. “Many industries, including travel, have been pummeled by this social media in terms of the extent that information about a value offer and even mistakes can spread,” he said. … Travelers say much of their…
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Roundup of Holiday Shopping Mileage Bonus Offers
As most readers likely know, nearly any online purchase can earn miles provided you enter an online store via an appropriate mileage-earning portal. Andrew Cram’s comparison chart is the best place to start to determine what miles you can earn before clicking on web store. It’s incredibly extensive. That site catalogs the standard miles on offer. However, various mileage malls sometimes offer bonus miles — especially at holiday shopping time. This year the bonus offers seem sparse. I recall earning 10,000 bonus American Airlines miles last year for my online shopping through the AAdvantage mall. There’s nothing so exciting available this year. Here are the bonus offerings I’ve seen so far: American is offering double miles shopping at the AAdvantage Online mile and paying with Mastercard. In addition you get 1000 miles when spending $500…
Massive Devaluation at Capital One
I’m quoted in KARE-11 TV Minneapolis’ story on the devaluation of Capital One miles. Readers of this blog already know to stay away from Capital One, which basically offers a rebate card where the rebate is limited to spending on travel, so it’s less appealing than a traditional cashback card. And as I’ve mentioned before, with miles you can earn from a variety of sources but with a credit card’s proprietary program you only earn through credit card spend — which means it’s tougher to earn enough points for a free ticket. Now the Capital One program has massively increased the number of points required for many awards, and it’s no longer ever possible to do better than 1% return on spending. Since it’s mass market TV, the story doesn’t get into the reasons behind…
New Book Introducing Mileage Programs
Randy Petersen’s new book is out, I’ll be ordering a copy. It’s supposed to be a great introduction to frequent flyer programs, so readers just getting started down the road of miles and points may find it useful. I’ll be sure to write up a review once it arrives. Randy has an interesting blog entry on the process of writing the book.
FlyI to Become a Born-Again Virgin?
Via Tripso Daily, Sir Richard Branson’s Virgin Group appears to be interested in acquiring bankrupt Independence Air as a means toward launching its Virgin America airline. Personally I don’t see this happening, both because I’m skeptical of most Branson efforts. A fabulous entrepreneur, there’s usually more buzz than substance when Branson rumors circulate. The rules on foreign ownership of US airlines are moving towards relaxation, but any changes are unlikely to be in effect in time for an Independence bid. And the Virgin America project has simply demonstrated a greater propensity for inaction than reality over the last couple of years. Still, the piece carried some news about how the Independence bankruptcy auction will work: It said it would auction itself to the highest bidder. Interested parties must register with the court by 1 December…
Catholic Co-Branding
Colloquy reports on a Taiwanese bank which is offering a credit card co-branded with the Catholic church. There’s something truly surreal about it. Taiwanese card issuer The Chinese Bank has introduced a new affinity card in conjunction with the Chinese Regional Bishops’ Conference, according to the Taipei Times newspaper. The newspaper reported that the bank will issue 100,000 cards, to be called the True Happiness Affinity Card, with maximum credit limits of NT$10 million ($297,397 USD). One-quarter of one percent of a customer’s spend will be paid to the bishops’ conference for charity work. “This credit card is not only for Catholics or those who believe in Jesus,” Chen Kun-chen, secretary general of the bishops’ conference, was quoted as saying. “Everybody can help to spread love regardless of their religion.”
$0 to Acapulco
FareAlert is reporting on a $0 + tax American Airlines fare to Acapulco, valid from just a few cities. (They mention Albuquerque, Atlanta, Indianapolis, Little Rock, Milwaukee, Minneapolis/St. Paul, and Oklahoma City. More may be discovered.) Flyertalk.com discussion is here.
USA Today followup on the Expedia Rate Glitch Story
Megg Mueller Schulte has an excellent followup on the Expedia rate glitch at the Hiltons in Tokyo and Osaka. She repeats the Expedia line about honoring rates booked in November and packages, and that they’re offering $250 package coupons to others whose reservations will be cancelled. But then goes on to explain that apparently (I can confirm this) Expedia is honoring reservations for folks who confirmed the rate after their booking. There also seems to be some confusion over some reservations still being honored if the people contacted Expedia more than once. Reader Derek Meyer wrote to me that “From my readings on FlyerTalk, and correspondence with other people who also booked this rate, it seems that Expedia is honoring the reservations of people who called or emailed into Expedia to ‘re-confirm’ Expedia’s confirmation email…
Expedia lies
Reuters has posted a story on the Tokyo and Osaka Hilton rate glitch where rooms at those two properties were bookable on Expedia for $2 and $3. Expedia first told customers that it would honor the rate. Then it told USA Today that it would only honor the rate for bookings in November. Now it explains Expedia said on Friday that Hilton would honour some of these bookings and that other customers would get a $250 coupon for a package trip to Japan. The company also said it notified some customers offering to confirm the original booking at the correct price or cancel the booking with a full refund. Apparently the bookings that it is honoring are those for customers who specifically reconfirmed with Expedia that the rate was valid and who were told that…
Independence Air’s Woes
Over at Marginal Revolution I discussed the economics of regional jets and why Independence Air was doomed to fail. And then just a few days later it did fail, or at least it filed for chapter 11 bankruptcy. When Atlantic Coast Airlines announced they were planning to re-start as a standalone carrier, did anyone think they were really serious (a low-fare carrier flying RJs a la Midway in its second incarnation, based at Dulles)? It was just supposed to be a bargaining tactic with United over fly-for-hire rates that somehow spun wildly out of control. They’re planning to sell off their assets, holding an auction for the next sixty days. They have 21 parties so far potentially interested, signing confidentiality agreeements which allows the parties to get a closer look at the company’s books. Sixty…
