With airline profits up, competition heats up on more than just schedule and price. Airlines are focusing more, or at least promoting more, their investment in soft product areas including wine.
It’s an expensive game, and one which US airlines are likely to lose — not just against foreign rivals, but also when judged against their own goals. Here’s why I believe the reality won’t match the rhetoric, and that there are far more fruitful areas for their to focus on.
When you’re traveling outside the United States, it’s always worth checking local airfare. Don’t just assume the fares you see on Orbitz or other US-based online travel websites are the cheapest available. Fares sold in U.S. may be higher, the cheapest fares may only be available in-country. For that you need to book on a website whose “point of sale” is local. Rapid Travel Chai shows you the difference for travel on Vietnam Airlines. He searched for travel on the Vietnam Airlines website – and so issued locally in Vietnam – and found that fares were less than one-fifth the price he was seeing on US booking sites. The US sites were showing ‘full fare’, all that was available to them. The simple solution is to book on an airline’s own website. But using local…
IHG is going to start expiring their points. At the same time they say they’re introducing new benefits, but aren’t telling us what those are. We should trust them.
Yet they’re sneaking in that they will be changing the award categories of ~ 10% of their hotels. They won’t tell us which ones.
This program has a history of making changes without notice. I walk through some of those, and remind what their boss stated publicly about no-notice changes. Hopefully all he needs is a reminder.
Scott Mayerowitz writes about the proliferation of brands across the lodging industry.
“The world’s 10 largest hotel chains now offer a combined 113 brands at various price points, 31 of which didn’t exist a decade ago.”
Too many brands leads to consumer confusion, and makes it more difficult to understand what each one’s basic idea is. Do hotel chains proliferate brands in order to sign more properties, but while undermining their core business? With lifestyle brands the range, and more new brands coming online every few months, can consumers even keep up — and know which loyalty program to credit their stays to?
Copa wouldn’t seem like the most important airline to most US-based frequent flyers. But they’re a lot more important than you think, in several ways. Copa used to be majority-owned by Continental Airlines, and Copa took on a variant of the Continental logo and joined the old Onepass frequent flyer program. Continental started selling their investment in 2005, and the airline is independent now, but they’re pretty well integrated with United. Even now that they’re launching their own frequent flyer program there’s reciprocal upgrade benefits between the two airlines. And of course Copa is a member of the Star Alliance. Their brand new frequent flyer program which is about to launch is making a statement — and they’re calling out United and Delta while they do it. They’ve just e-mailed out this missive: Russ Hinckley…
News and notes from around the interweb: American flight attendants publish an open apology to Nicole Kidman disassociating themselves with the broadside on the actress (meant as an attack on Etihad, in support of US airlines’ complaints about subsidies) put forward by their union. American Express no longer reports new cards to credit bureaus as though they have been open as long as your oldest Amex card. Minor point, but adding new American Express cards no longer increases your average account age, which is a small portion of your overall credit score. Many – though far from all – American Express cardholders have a sync offer in their account for $20 off $20 at Amazon. Log into American Express and check if you can claim the offer. All Silvercar rentals are $49 for the rest…
Last night Southwest teased the announcement of new seats. And as I expected they’ve gone with B/E Aerospace. The seats were unveiled at the Aircraft Interiors Expo in Hamburg and beginning mid- next year they’ll be featured on new Southwest 737-800 deliveries. Key features: Adjustable headrest ‘Widest’ 737 seat in the market (based on cabin width, Airbus aircraft generally have wider seats than Boeings) ‘Enhanced’ cushion comfort (it’s not the barely-padded slimline!) ‘Sleek’ cover design in ‘eLeather’ (this new term frightens me) The B/E seats are certainly capable of more than Southwest is doing with them, sadly. However for customers things could be a lot worse!
Citi Prestige card – in addition to a new big 50,000 point signup bonus, $250 airline fee credit, American lounge access, and triple and double points-earning categories – comes with a variety of included benefits.
One of those is free golf rounds, which appears to be better and more useful than I would have expected. There are courses nationwide and even worldwide that you can reserve, up to three times per year.
Don’t think those enhanced pat downs are excuses for the TSA to get their jollies? At Denver they were.
Southwest tweeted a tease about a big announcement tomorrow, and it looks like new seats. Reading between the lines, though, there appears to be more to the announcement.
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 »
