You, too, can own an airplane
Frequent Flyer Miles as Debt in Need of Devaluation
Jul
26
2005
Tim Harford asks what would be the best way for frequent flyer program to devalue their currency? Last year I explained why a devaluation is inevitable, and why that doesn’t mean you should stop collecting miles. The simplistic version of the problem is too many miles chasing too few seats. Problems have been exascerbated the last couple of years as airlines pulled down capacity. Now, with flights running especially full, getting a nominally free seat can be tough. Award redemption (at least at the usual mileage pricing) is predicated on giving away only those seats that are likely to go unsold. That pot of inventory isn’t growing, but mileages balances are. Given the need for devaluation, how should airlines do it? The first option Harford gives is rejected, but not strongly enough: Airlines could simply…
Faster Free Nights Returns
Jul
26
2005
Probably the best hotel promo around, Hyatt’s Faster Free Nights, will return from September 1 through November 30. The offer as usual is a free night after every two eligible stays paid for with a Mastercard. Registration for the promo will begin August 15.
To boldy go…
Jul
26
2005
Boldly going where another travel site has gone before, SideStep has brought on Patrick Stewart as its spokesman. In the online travel world, one of the biggest battles for new customers has come down to this: Captain Kirk vs. Captain Picard. Patrick Stewart, who played Captain Picard on “Star Trek: The Next Generation,” is the new company spokesman for travel search engine SideStep. That’s a direct challenge to rival Priceline.com, whose ads have long featured William Shatner, Captain Kirk on the original “Star Trek.” (Via Tripso Daily.)
How did American make money in the second quarter?
Jul
26
2005
Now that American Airlines announced a profit for the second quarter, there are lots of stories trying to figure out how they did it. One piece contends that they managed to cut costs by listening to ideas from their employees. (Naturally the piece cites no evidence whatsoever that American did this any more than any other airline.) Still, there are some interesting stories about cost savings. For example,Two American Airlines mechanics didn’t like having to toss out $200 drill bits once they got dull. So they rigged up some old machine parts – a vacuum-cleaner belt and a motor from a science project – and built “Thumping Ralph.” It’s essentially a drill-bit sharpener that allows them to get more use out of each bit. The savings, according to the company: as much as $300,000 a…
Junk fees
Jul
25
2005
We all have certain fees that travel providers charge which drive us up the wall, usually because they offer an explanation that’s especially absurd. I’m usually bothered by award ‘expedite fees’, a charge that some airlines impose for issuing an electornic award ticket within a certain number of days of travel. I’m similarly bothered by hotel resort fees (just include it in your room rate!) and charges for ticketing at the airport when that’s the only option available, such as issuing an open-jaw award on United for someone with a different last name (since it can’t be done online and if it isn’t, it must be signed for in person). Perhaps the most offensive, albeit small, fee I’ve heard of was recently reported at Flyertalk.com. Apparently American Airlines is now charging $3 to e-mail a…
A pillow to rest on
Jul
24
2005
Probably the best marketing bang for the buck in hotel history was Westin’s introduction of the Heavenly Bed. Travelers came to trust the brand to provide them with a good night’s sleep. A more recent trend in hotels is paying attention not just to the best but to the pillow in particular. The trend started at the Benjamin hotel in New York and has spread, there’s now a recognition that people sleep differently and different types of pillows can enhance or detract from a night’s sleep. The New York Times piece on the subject could have been made really useful with an added discussion on what pillows best match which sleep habits, a subject about which I know little. I understand the entire bed effect, and while I like the Westin Heavenly Bed I find…
No outside food or drink
Jul
24
2005
bmi has introduced its buy-on-board menu and it contains this frustrating statement: Only food and drinks purchased from the cabin crew may be consumed on board. I’m not sure how or whether this will be enforced, but it’s a striking policy. US domestic carriers offering buy-on-board haven’t adopted similar policies… yet.
Dishonesty at GlobalPass
Jul
24
2005
InsideFlyer interviews the President of GlobalPass who tries to explain the gutting of their program. The most offensive piece has been taking existing mileage holders and requiring them to earn additional points in order to use miles already in their accounts. The new program offers points for booking travel through their portal, which may even be more expensive than competitors, and then for each new point earned one can use an existing point.The explanation is that the program needs frequency from their members, people got too good a deal in the past, and the old model of awards they promised wasn’t good for the company so they shouldn’t have to live up to those promises.Not at all surprising, but also a good reminder that this has never been a trustworthy program. GlobalPass is not a…
A new wrinkle in the debate over daylight savings
Jul
23
2005
Airlines oppose the move to extend daylight savings time to March and November because if the rest of the world doesn’t go along the timing of their flights will be out of sync with limited landing slots in foreign airports. One estimate I’ve seen is that this will cost US airlines more than $170 million per year, though I presume the figure is somewhat self-serving and likely lower in reality. Perhaps the cost argument isn’t the only place to focus. Tyler Cowen asks whether daylight savings time is dangerous, because the moving the clock forward is equivalent to imposing a mild case of jetlag on the whole country. Some data suggests that automobile accidents go up after the change to clocks, although the data is far from conclusive (Tyler observes a lack of data on…
