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Revenue-Based Programs Aren’t King, They’re a Cop Out

Mar 22 2017

Jay Sorenson has an interesting new report (.pdf) declaring ‘revenue is now king’ that revenue-based programs are the new ‘it’ in loyalty. The piece begins by citing all sorts of reasons why revenue matters to a company, which is of course both true and unenlightening.

While mileage alone doesn’t incentivize loyalty, the goal of a marketing program isn’t to ‘reward customers who spend the most’ it’s to move the needle on incremental business .

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The Electronics Ban Is a Stupid (or Evil Genius) Way to Address a Possibly Real Problem

Mar 22 2017

I have absolutely no doubt that there’s intelligence surrounding attempts to hide explosive devices inside electronics. There has been specific intelligence on this before. That’s why at times we’ve had to turn on electronic devices, and It’s certainly conceivable that the technical know how could have advanced to the point that a real working laptop could be used to hide nefarious objects.

Developing a threat in this way wouldn’t be easy, and aspiring to do this is very different than actually developing the capability, but it’s a claim we simply cannot disprove no matter how much the intelligence community has given reason not to trust its pronouncements.

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Air Canada CEO: Expect an Aeroplan Devaluation in 2020

Mar 16 2017

Air Canada’s frequent flyer program Aeroplan was spun off into a separate public company in 2005. As a separate company, the frequent flyer program makes arms-length transactions with the airline and has a very extensive contract allowing it to buy a minimum number of seats and other benefits.

Air Canada expects to negotiate more favorable terms for the airline compared to the current contract which expires in 2020.

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Marriott Introduces United Gold Status for Top Elites: Signaling Direction of Airline Partnerships?

outside marriott hotel
Mar 13 2017

Starwood and Delta launched a major partnership four years ago. Crossover Rewards offered reciprocal points-earning and a modest degree of status recognition.

Delta had been talking with Marriott about a deal, but my recollection from the time is that Marriott balked over price. Delta simply wanted too much to do the deal. However Marriott launched a partnership with United months after Delta and Starwood went public.

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Travel Hacking and the Law Of One Price

first class
Mar 12 2017

I was talking with Yana about Virgin Atlantic’s amazing ANA awards — seriously, roundtrip in one of the world’s better first class products for 110,000 miles between the US and Tokyo — and I was outlining all of the hoops you have to jump through.

Yana’s response to that whole discussion was perfect and just 5 words: the Law of One Price.

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The Simple Reason for an About Face: Why Delta and Korean Are About to Form a Joint Venture

Mar 09 2017

In 2013 Delta eliminated SkyMiles elite qualifying miles earning when traveling on their SkyTeam partner Korean Air.

Scuttlebutt at the time was that this was Delta playing hardball with Korean — the Seoul-based carrier wouldn’t do a joint venture with Delta, at least on Delta’s terms, so they weren’t going to incentivize their customers to fly Korean Air.

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The US Government Just Sent a New Worldwide Travel Security Caution

Mar 05 2017

I’ve always found US government travel warnings to be overly cautious. I have no problem transiting the Istanbul airport, booking an award on Turkish Airlines (just hope your seat opponent doesn’t whisper to a flight attendant that you’re a Gulenist).

Since I’m willing to go places like this, it seems worth highlighting a counterpoint. The government doesn’t say ‘don’t go to Mexico’ just that there are some Bad Hombres™ there.

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