U P F R O N T

More Frequent-Flyer Fees
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We reported last month on the new security surcharges (up to $10 per roundtrip) which most airlines began passing on to consumers beginning Feb. 1, 2002. The surcharge, if you hadn't heard, applies to frequent-flyer award tickets as well as to revenue tickets.

As we opined then: Free ain't what it used to be.

Another setback, in what could turn out to be the death of "free" from a thousand cuts, is Diners' imposition of a "handling fee" when converting Club Rewards points into airline miles. Specifically, cardholders will be charged $0.95 for every 2,000 points exchanged for miles. The charge can either be added to the member's next card statement, or paid off in Club Rewards points (190 points deducted for every $0.95 in fees).

While the fee is officially a pass-along of the federal 7.5% excise tax, which Diners must pay to the airlines when it purchases their miles, Diners' EVP brand marketing Mark Small allowed that the current recession was also to blame. In better economic times, Diners was able to "creatively absorb those costs" -- including the excise tax, which went into effect in Oct. 1999 -- without unduly squeezing margins. But with the slump in travel-related credit card use, profits were pressured and something in the revenue-cost equation had to give.

As consumers, naturally we bristle when fees are imposed where none existed previously. And as intelligent consumers, we should reconsider the value of any product or service when the cost or deliverables change.

Even factoring in the new fees, Diners Club Rewards remains a robust, feature-rich program. And unlike American Express Membership Rewards -- its primary competitor for the hearts and minds of frequent travelers and expense-account diners -- Club Rewards does not charge an annual fee for the privilege of earning points. So we still rate it a "buy."

No doubt other programs will be emboldened by Diners' move and hop on the surcharge bandwagon. While Club Rewards passes muster, we remain wary of fee creep. And so should you.

O N S I T E

New on the FrequentFlier Forum
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Akdonna is going high-tech and (finally) getting a cellphone. And (s)he wants to go high-mileage as well, earning as many miles as possible. Ronald plans to convert dollars to euros, and (surprise) wants to earn miles for the conversion. Fethcem has details of a new Starwood promotion. And much more...

Do you have mileage-related questions, answers, anecdotes?
Post them (and read others') on the FrequentFlier Forum.

M I L E S & P O I N T S

E-Statements Earn Extra Credit at Southwest
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Southwest is offering Rapid Rewards members up to 2 Rapid Rewards credits for choosing to view their account statement online rather than receiving a paper copy in the mail. For each quarter you view your account activity at southwest.com, your account will be credited with 0.5 credits, up to 2 credits over 4 quarters.

If you are already signed up for online statements, you will still earn the bonus as long as you continue viewing your statements online.

In order to receive the maximum of 2 credits, you must opt to receive online statements by Dec. 31, 2002.

> More...

Wyndham Stays Earn 1,000 Airline Miles
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Members of Wyndham's ByRequest program can earn 1,000 American, Delta or United miles for every stay at a participating Wyndham Hotel or Resort.

Offer is in effect through May 31, 2002, for American miles, and through June 30, 2002, for Delta and United miles.

> More...

National Offers 50% Mileage Booking Bonus
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Members of National Airlines' frequent flyer program, National Comps, can now receive a 50% Point bonus for all bookings made at National's website. Previously, frequent flyers received a 25% online booking bonus.

The National Comps program awards 1 point for every $10 spent on National Airlines tickets and National Airlines Vacations air-and-hotel packages. Each Comps Point is the equivalent of $1 when redeemed for National Airlines and National Airlines Vacations products.

> More...

Caribbean Vacations, 10,000 AAdvantage Miles
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Book an American Airlines Vacation in the Caribbean between now and Mar. 31, 2002, and travel between Apr. 15 and Nov. 15, 2002, to earn 10,000 AAdvantage bonus miles.

> More...

S T E A L S & D E A L S

Deal Alert from SmarterLiving.com
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This week's hot deals from SmarterLiving.com...

Spring Savings to Europe, the Caribbean, and Latin America
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Delta, US Airways, and American are offering international sale fares to destinations in Europe, the Caribbean, and Latin America. Most fares are valid for departures in Apr., except for travel to/from the Caribbean on US Airways, which is available from now through May 19, and travel to/from Europe on American, which is valid from now through Apr. 24.

> More...

Mediterranean Destinations on Sale From $280 R/T
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Time is running out on Delta's fare sale to destinations in Western Europe and the Mediterranean, including Athens, Istanbul, and Venice. Purchase tickets online only and by Friday, Feb. 22.

> More...

S W E E P S T A K E S & F R E E B I E S

Gotta Love Virgin's "Lovin' London" Sweepstakes
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How 'bout a sweepstakes which rewards the winner with dinner with Sir Richard Branson, top dog at Virgin Atlantic? (And, yes, the prize includes roundtrip air to London and hotel accommodations as well.)

Arf!

To enter the Lovin' London sweepstakes, register (link below) and answer the trivia question. You must register by Apr. 29, 2002, to be eligible for the grand prize.

Prizes: 1 grand prize - 2 Upper Class tickets to London on Virgin from New York (JFK or Newark), Los Angeles, San Francisco, Las Vegas, Washington D.C., Boston, Miami, or Orlando; 6 nights hotel in London; airport transfer; lunch or dinner with Sir Richard Branson, founder and chairman of Virgin Atlantic Airways. And up to 40 first prizes - roundtrip economy class tickets to London on Virgin Atlantic from any Virgin U.S. gateway.

Open to residents of the contiguous 48 United States, and District of Columbia, 18 years of age or older at the time of registration.

> More...

[Other travel-related sweepstakes and giveaways are online at http://frequentflier.com/sweeps.htm.]

Until next week...