Amtrak’s New Revenue Based Program Details Revealed – Here’s What it Will Mean

by Gary Leff

Aug 27 2015

Two weeks ago it was revealed that Amtrak would introduce a revenue-based program. The new program goes into effect January 24. Initial details are now available.

It’s a revenue-based program so there are going to be no more outsize values for redemptions. You’re going to be getting a fairly consistent redemption rate per point, which will make some awards (where ticket cost is low) cheaper and other awards (where ticket cost is high) more expensive. The best value redemptions in the program therefore go away.

Ultimately this isn’t as bad as I feared, but also removes much of the excitement and leverage from the program. It will still be strategically useful for some.

Continue Reading »

Some Southwest Customers Will Get Free Drink Chits, Lawyers Pocket $1.6 Million (and are Unhappy!)

by Gary Leff

Aug 26 2015

Southwest Airlines has a long history with alcohol, and not simply because their long-time Chairman Herb Kelleher had a thing for Wild Turkey.

Prior to deregulation in 1978, the Civil Aeronautics Board was ‘experimenting with price competition’ and airlines were allowed to cut their Dallas – Houston fare to $13 and undercut Southwest (which as an intra-state airline wasn’t subject to the CAB’s price regulation). Southwest responded by offering two fares: a $13 matching fare, and their previous $26 fare with which they threw in a fifth of liquor (customer’s choice). Folks expensing their tickets bought the higher fare, and Southwest Airlines became the biggest liquor distributor in the state of Texas.

Continue Reading »

The One Thing You Need to Do Every Day to Protect Your Miles

by Gary Leff

Aug 25 2015

I read someone’s story yesterday about their American AAdvantage mileage account being compromised. Someone changed the address and email address on their account, and proceeded to book Cathay Pacific first class awards for someone else using their miles. They managed to catch it before any of the flights were taken.

This can happen to anyone, in this case the person who did it clearly obtained the account password. Changing the email address meant the accountholder wouldn’t get a copy of the tickets being issued, or mileage statements showing lower account balances.

Continue Reading »