Skyteam Upgrades are Coming

Skyteam Chairman Leo van Wijk gave an interview in which he discusses mileage upgrades coming to Skyteam, presumably much along the lines offered by most Star Alliance airlines (United being a notable exception). [W]e will start a mileage upgrade program, where you can have upgrades from one carrier to the other. That will be available as of summer next year, but that requires also that we have a more coordinated fare structure. Otherwise, it’s difficult to implement. … In principle, that will be a program that will not only be available in the North Atlantic, but we will start on the North Atlantic. We will test it in the fall of this year between the U.S. and the U.K. and France first. Then we will roll it out in the course of 2009, in principle,…

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Virgin Atlantic Introduces New U.S. Co-Branded Credit Cards

For a $90 annual fee, the Virgin Atlantic Black Card — a Bank of America co-branded American Express — offers 20,000 Bonus Miles with First Purchase 50% off a companion coach award when you spend $25,000 on the card in a year 3 Miles Per Dollar on Virgin Atlantic Spend and 1.5 Miles Per Dollar on “Everyday Purchases” — I haven’t verified the categories of the latter, but presumably gas and groceries. You get one tier point per $2,500 in purchases (up to 2 per month). Since it takes 40 to earn gold and 30 to retain it, up to 24 tier points a year from a credit card is a big deal. They also advertise “additional tier points when you fly Virgin Atlantic Airways” but I’m not clear on what this means, presumably bonuses…

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Charging for Carry-on Baggage Would Be a Very Bad Idea

Reader Lisa points to the LA Times Travel Blog which asks whether airlines should charge for carry-on bags. George Hoffer, a professor of economics at Virginia Commonwealth University in Richmond, thinks the people in a hurry — that is, the ones who want to get off the plane fast and shoot out the door — would be willing to cough up some cash to carry on a bag. Time, after all, is money. “What you’re doing is catering to the person whose time is of more value,” Hoffer said. The question is, what service are you asking people to pay for that they were already receiving at a lower price than they’re willing to absorb? Is it having their bags moved from city A to city B, or is it ‘getting off the plane fast’…

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What Does the Future Hold for Hotel Loyalty Programs?

In my post yesterday about the future value of airline miles, I caveated that “the story is a little different for hotels” and naturally commenter “I would be interested in a few words about the hotel chain point/miles situation.” I guess I couldn’t get away with punting on that one! The overall analysis about an increasing number of points chasing a relatively fixed pool of hotel rooms holds true in strong economic times. And the point about a proprietary currency and the temptation for that issuer to inflate the currency without constraints holds as well. But the economic model of hotel programs differs from airlines, as does the ability for a hotel chain to adjust capacity with the same degree of fluidity as the airlines, leading to somewhat different results. There’s little question the the…

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Flyertalk / Open Skies Business Class Tickets to Paris Giveaway

Registered Flyertalk members have an opportunity to win free tickets on the inaugural Open Skies business class flight between New York and Paris, departing Thursday June 19 and returning Sunday June 22. Chances of winning are actually pretty good, since there are (20) tickets to give away and entrants must be members of Flyertalk as of the posting of the contest in order to enter. This is one pretty cool giveaway, unfortunately I’m already booked up for travel over those dates so I’m not going to be able to join in the fun. But I’d expect to be hearing a bit more of Open Skies soon…

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Outstanding Deals at the Fairmont San Francisco

It’s one of my favorite old school properties, perched atop Nob Hill. Not a mistake rate, but definitely a good deal — especially for the really pricey rooms that would otherwise be out of reach. Pulled directly from Flyertalk…. Another good Expedia 24 hour sale (Tuesday, June 10) at the SF Fairmont. This time 65% off. The first date I’m finding availability is June 15 and the last date is December 26. I’ve found availability on random date searches every month between June & December. Some dates not available, however many more that are. YMMV. Prices vary by date, however here is a sampling for July 3: Fairmont Room – $339 now $119 Fairmont Exterior – $369 now $129 Deluxe View – $409 for $143 Signature Bay View – $459 for $161 Main Bldg Suite…

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Understanding Frequent Flyer Miles as a Proprietary Currency With No Central Bank, or What Unannounced Changes to Expect From Your Favorite Frequent Flyer Program?

Recently on Flyertalk there were dueling threads in the “MilesBuzz” forum (which I moderate) about whether miles were on their way to increase or decrease in value. The latter contained the usual arguments of doom and gloom, and perhaps it was just one member’s effort to be contrarian but the thread about miles increasing in value sought to turn the usual arguments on their head. It didn’t make the claims I’ve offered in the past about the relative ease of earning miles compared to the past and the advent of alliance awards that give you access to the award inventory of airline partners allowing you to travel across the globe in ways that didn’t exist in the “good ‘ol days.” Instead, the argument was that as the price of oil goes up, capacity falls, and…

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The TSA Will Decide If You Can Fly Without ID Based On Your Attitude

The TSA has a new policy on flying without an ID. It used to be that you would be subject to secondary screening. Annoying, but no big deal. Now they’ll decide whether to let you do that based on your attitude. Beginning Saturday, June 21, 2008 passengers that willfully refuse to provide identification at security checkpoint will be denied access to the secure area of airports. This change will apply exclusively to individuals that simply refuse to provide any identification or assist transportation security officers in ascertaining their identity. This new procedure will not affect passengers that may have misplaced, lost or otherwise do not have ID but are cooperative with officers. One Mile at a Time calls it “TSA’s dumbest policy ever.” I disagree. There are plenty equally dumb things that the TSA has…

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Should I Redeem Now Before Starwood Makes Me Pay More Points?

Reader David asks The Royal Hawaiian in Honolulu is currently being renovated, and set to re-open in Jan 2009. The press release stated that it will join the Starwood Luxury Collection, which is Cat 7, correct? If I make a Jan or Feb 2009 reservation now at 12K/night, will they make me pay more points later, or cancel my reservation? David wants to know if this hotel is going to require a whole lot more Starwood points to redeem for a free night once it re-opens. Bottom-line, while the property may go up in points if they expect substantially higher room rates, I’d be very surprised if it turned out to be “Category 7,” the highest redemption level Starwood offers. Luxury Collection is the ‘brand’ (like Sheraton, Westin, etc) used to identify a chain of…

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