View from the Wing Archives.
American, United and Southwest all offered the same $523 Chicago–Denver fare, reviving suspicions of price-fixing. Identical fares occur about half the time: ATPCO and near-instant competitor monitoring let airlines match prices without an illegal agreement—though carriers have sometimes tried to cross that line.
A Hilton employee says their hotel created fake occupied rooms before night audit to push occupancy over the threshold where Hilton Honors reimburses more for award stays. The alleged scheme may sound like inside-baseball accounting, but it matters to members: inflated reimbursement costs ultimately make free nights more expensive in points.
Airfares are up 27% year-over-year even as jet fuel prices are falling, and airline CEOs say they want to keep fares high. But prices do not move directly with fuel: airlines cut capacity when fuel rises, and fares fall only after schedules are rebuilt — usually with a lag of several months.
More than 50 Marriott hotel owners, representing 1,000 hotels, say Bonvoy award nights do not reimburse them enough, even as Marriott’s credit card and loyalty revenue grows. If owners win more money for free-night stays, Bonvoy members may ultimately pay through higher award prices and weaker point value.
Former Delta President Glen Hauenstein explains how Delta turned first class from an upgrade giveaway into a profit center, why low-cost carriers struggle to go premium, and how Delta will address its own product slipping.
American Airlines CEO Robert Isom says the airline has caught up at selling first class upgrades instead of giving them away. That may be good merchandising, but it guts the core value of elite status: if American will sell the seat for $40, the customer spending tens of thousands chasing upgrades is being told exactly where they stand.
Marriott elite upgrades are supposed to be a loyalty benefit. But hotels are increasingly turning better rooms and suites into auctions, asking even top-tier members to bid for upgrades they expected to receive free — and warning that dozens of other guests may already be competing for the same rooms.
United CEO Scott Kirby keeps insisting airfares should rise, and that airlines are too timid to charge what passengers will pay. But after years of predictions that have not panned out, the flaw in his theory is simple: airlines hate empty seats, and supply and demand still set fares no matter how badly CEOs want prices higher.
British Airways already angered elite members by moving to a revenue-based status program that makes qualification much harder. Then it told some customers they had been renewed after all — only to reverse course, downgrade them anyway, and offer nothing for the mistake.
American Airlines CEO Robert Isom used an internal employee meeting to lay out a real shift in priorities. After years of chasing lower costs and more seats, American is now telling employees the way out is revenue: better customer experience, more premium demand, network growth, and a stronger AAdvantage program.
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 »
