Apr 15 2016

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.

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Apr 15 2016

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.

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Apr 15 2016

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.

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Apr 15 2016

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.

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Apr 14 2016

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.

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Apr 14 2016

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.

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Apr 14 2016

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.

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Apr 14 2016

The Onion: “Man Prowling At Airport Gate Ready To Pounce Like Jungle Cat At First Sign Of Boarding”

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Apr 14 2016

A year and a half ago I wrote about the Hyatt Regency Crystal City improperly charging me for a bottle of water. It’s a tiny matter the scheme of things, but if everyone ignored small charges, it would create a very strong incentive for hotels to purposely tack on charges like that, small enough that no one bothers, but at $3++ per room night actually meaningful. All guests would be worse off.

And I stay at enough hotels (around 150 room nights last year) that those $3 overcharges start to add up. Hotels never seem to leave off charges from my bill. Mistakes always seem to be in the hotel’s favor.

So always check your folio. But that’s not enough. You have to watch your credit card statement too.

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Apr 14 2016

A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.

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