Issue #33  --  February 25, 1999

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Curtis Carlson Dead at 84
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Minnesota entrepreneur Curtis L. Carlson, Founder and Chairman of Carlson Companies, has died in a Twin Cities area hospital. He was 84.

Carlson Companies is an international leader in providing hospitality, travel and marketing services and solutions to corporate clients and consumers. The company operates in more than 140 countries, and its brands employ 160,000 people worldwide and generated more than $22 billion in systemwide revenues in 1998.

Mr. Carlson purchased the Radisson Hotel in downtown Minneapolis in 1962 and turned it into an international brand, which currently includes more than 375 properties. Other well-recognized Carlson Companies brands and services include Regent International Hotels, Country Inns & Suites By Carlson, Radisson Seven Seas Cruises, T.G.I. Friday's restaurants, Carlson Leisure Group (leisure travel) and Carlson Marketing Group, the largest relationship marketing company in the world.

Mr. Carlson also was instrumental in establishing a global partnership with Accor of Paris, which combined the business travel interests of both companies under the name Carlson Wagonlit Travel, the first truly global company in the industry with international management. In 1998, Carlson Companies announced plans to merge its United Kingdom leisure travel operations with Thomas Cook's leisure travel and financial services business. The partnership will create one of the largest leisure travel companies in the world.

The company's hospitality operating group, Carlson Hospitality Worldwide, added 98 new hotels and 76 new restaurants in 1998. On the heels of its 1998 acquisition of S & H Citadel, one of the nation's largest performance improvement firms, Carlson Marketing Group recently was named relationship marketing agency of record for six new national and international accounts.

In addition to his business prowess, Mr. Carlson was a noted philanthropist. Among other charitable efforts, he was a pioneer and charter member of the "Five Percent Club" -- now called the Minnesota Keystone Club -- which includes top Minneapolis-St. Paul area corporations that donate five percent of their earnings to non-profit organizations.

R.I.P.

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American Offers Apology Fares
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In a move widely expected by industry analysts, American Airlines is mounting a fare sale in order to win back business lost during the recent pilot sickout.

In what American is dubbing "SAAve On World Travel" fares, the airline is offering discounted fares throughout its route system with domestic discounts up to 35 percent and international discounts up to 45 percent off every day mid-week excursion fares.

American's special fares are on sale through March 5. The travel period on domestic and Canadian routes goes through May 27. Travel to Europe is good through March 31, to Japan through April 28, and to Mexico, the Caribbean, Central and South America through April 30.

Domestic specials require a 14-day advance purchase. International specials require an advance purchase of three or seven days, depending on the market. All fares are non-refundable with varying minimum stay requirements.

Some examples of American's "SAAve on World Travel" domestic and Canadian fares: (Examples are round trip off peak (Tuesday, Wednesday, Saturday). Other days are slightly higher, based on distance of trip.)

    Dallas/Fort Worth-Chicago            $272

    Chicago-New York                     $244

    Los Angeles-Philadelphia             $388

    New York-Orlando                     $272

    Miami-Dallas/Fort Worth              $334

    New York-Toronto                     $180

    San Jose, Calif.-Dallas/Fort Worth   $350

    Boston-Chicago                       $264

    San Francisco-Boston                 $348

    Dallas/Fort Worth-Vancouver          $448

    Dallas/Fort Worth-Nashville          $254

    Chicago-Raleigh/Durham               $220

Examples of American's "SAAve on World Travel" international fares. Examples are round trip, but do not include international taxes, fees, or security charges. Consult American, your travel agent or AA.com for travel dates, minimum stay requirements and other restrictions.

    Dallas/Fort Worth-London             $302

    Miami-Paris                          $243

    Denver-Milan                         $468

    Los Angeles-London                   $351

    Seattle-Tokyo                        $673

    Chicago-Tokyo                        $763

    Dallas/Fort Worth-Osaka              $763

    Boston-San Jose, Costa Rica          $441

    New York-Lima                        $569

    Chicago-Caracas                      $464

    Washington, D.C.-Santiago            $787

    Dallas/Fort Worth-Mexico City        $311

    Los Angeles-Guadalajara              $346

    Miami-Mexico City                    $341

    Boston-San Juan                      $286

    Dallas/Fort Worth-Santo Domingo      $487

    Miami-Kingston                       $233

    Los Angeles-Montego Bay              $388

    Washington, D.C.-Antigua             $444

    New York-San Juan                    $286

    Chicago-St. Croix                    $534

    New York-St. Maarten                 $390

>> More <<
American online

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Delta Puts SkyMiles on Sale
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You may recall that late last year, "just in time for Christmas," Delta was selling SkyMiles for use as personal gifts. The SkyGifts program must have been popular, and profitable for Delta, since it's being revived.

(The key difference between this and the commercial version, SkyRewards, is that the minimum SkyRewards purchase is $1200. SkyGifts can be purchased at much lower minimums.)

SkyGifts are vouchers worth 500 SkyMiles each. Your friends can add these miles to the miles already in their current SkyMiles accounts. For example, with SkyGift vouchers you can help them reach 25,000 miles, enough for a round-trip Coach Class Award Ticket anywhere Delta flies within or between the 48 contiguous United States including Alaska and Canada. Give SkyGifts to friends and family members you'd like to see more often ... or help them enjoy a well-earned vacation.

To order SkyGift vouchers, call 1-800-616-0077. The minimum purchase is $100 (ten 500-mile vouchers), plus applicable tax, and there's no limit to the number of miles you can give. You can charge your order with any major credit card. SkyGifts are available through May 31, 1999.

A 7.5 percent Federal Excise tax applies to all orders. SkyMiles number is needed when ordering. Once SkyGift vouchers are returned to Delta, allow six to eight weeks for the SkyMiles account to be updated. SkyGift vouchers are non-refundable.

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Delta

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United Miles for Castle Stays
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Effective immediately, United Airlines' Mileage Plus members can earn miles by booking with Relais & Chateaux -- Mileage Plus' new hotel partner. Mileage Plus members can now earn 500 miles per qualifying stay at any of Relais & Chateaux's 415 castles, manors, mills and estates in 40 countries around the world.

Relais & Chateaux is a collection of high-end, independently owned hotels. To make a reservation at one of Relais & Chateaux's properties, Mileage Plus members must make their reservation by calling Relais & Chateaux central reservations (8 a.m. to 8 p.m. Eastern Standard Time) at 800-735-2478. In order to earn full mileage credit, members must give their Mileage Plus account number at the time they make their reservation.

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Continental Rolls Out Miles-for-Debits Card
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Chase Manhattan Bank and Continental Airlines are launching the first co-branded debit card. The new Chase/Continental Banking Card is the only co-branded debit card to offer consumers the opportunity to earn frequent flyer miles by using the card to make purchases. The card is being offered to consumers nationwide.

Chase's branch network and customer base in the metropolitan tri-state area (NY, NJ and CT) and in Texas mirror two of Continental's largest markets. And a significant number of Continental OnePass frequent flyer members already have a relationship with Chase, giving the card an immediate relevance to those customers. In March 1998, Chase and Continental launched a co-branded credit card, which also offers cardmembers the opportunity to earn frequent flyer miles on Continental Airlines.

Chase will support the launch of the Chase/Continental Banking Card with a multi-million dollar advertising and marketing campaign, including television and print advertising, and a physical presence in Chase branches and Continental airport terminals. Consumers can obtain the card at any Chase branch, or may call 1-800-CHASE24.

The Chase/Continental Banking Card will offer one Continental OnePass mile for every two dollars spent on purchases. New debit card customers will earn bonus miles upon sign-up, and additional bonus miles each year upon renewal of the card, which has a $30 annual fee.

Used as an alternative to cash or writing checks, purchases made with the Chase/ Continental Banking Card are automatically deducted from customers' Chase checking accounts. All purchases are itemized on checking account statements to make tracking and reconciling expenses easier. A summary of all miles earned is also reflected on monthly checking account statements, as well as on periodic Continental OnePass statements.

>> More <<
Continental online

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America West: Not for Sale
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America West "has terminated consideration of expressions of interest in the acquisition of the airline." Translation: they're not for sale.

The terse announcement from America West continued:

    "In discharging its fiduciary obligation to shareholders, and after careful review of the highly conditioned expressions of interest and of antitrust, regulatory and employee issues, the board of directors unanimously concluded that America West's shareholders, employees and the communities we operate in will be better served by a growing, profitable and independent company," said Bill Franke, chairman and chief executive officer. "As we have stated on numerous occasions, we believe we have significant strategic opportunities. We have positioned the airline with a low cost structure, a flexible fleet plan, a strong balance sheet, growing hubs and committed employees. We are confident about the Company's future as an independent airline."

United, which had acknowledged having an interest in buying America West, issued its own statement expressing disappointment in America West's decision.

Putting aside the admittedly sticky issues of anti-competitive consolidation and the integration of two very differently compensated workforces, one wonders how much a part corporate ego (America West's, that is) played in the breakdown. The understanding was that United's primary interest was in acquiring America West's aircraft... not their brand, management or employees. You've heard of unfriendly acquisitions... this would have been an unflattering acquisition.

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Preview Travel Turns One Million
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Preview Travel, an online travel service, recently processed its one-millionth travel transaction since launching its online reservations service in May of 1996.

Preview Travel has grown gross bookings from $20.3 million in 1996 to gross bookings of $200.1 million in 1998. The number of registered subscribers has increased from 700,000 at the end of 1996 to 6.4 million at the end of 1998. Forrester Research, an independent research firm, predicts that online leisure travel bookings will grow from $3.1 billion in 1998 to over $29 billion by 2003.

    The One-Millionth Transaction
    Preview Travel's one-millionth transaction was the purchase of an airline ticket by Jennifer Larkin of Baton Rouge, LA. "The first time I used Preview Travel was just to check airfares, but now I purchase my travel on the site," said Larkin. "Preview Travel is easy to navigate, I can use it any time of the day or night, and it has all the information I need." Jennifer will receive a $1,000 vacation package certificate in recognition of her purchase.

    About Preview Travel
    Preview Travel, Inc. is a leading provider of branded online travel services for leisure and small business travelers. It offers one-stop shopping for airline tickets, vacation packages, car rentals, hotels and cruises, as well as integrated access to travel information, merchandise, news and resources. Preview Travel has more than 6 million registered subscribers and reported gross bookings of $200.1 million in 1998. Preview Travel is one of the Top 50 Most Visited Web Properties according to Media Metrix (Dec. '98) and was ranked the Number One Online Travel Service by Gomez Advisors (Spring '99). The company operates its own award-winning Web site at www.previewtravel.com and the primary travel service on America Online at AOL keyword: previewtravel. In addition, Preview Travel provides the primary travel services on AOL.com, Excite, Lycos, Snap and USA Today.

>> More <<
Web site

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View Sabre Bookings Online
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The Sabre Group has introduced Online Trip Review, a new feature of the Sabre computer reservations system that allows travelers to access their travel itineraries from anywhere in the world through the company's corporate Web site (www.sabre.com). Consumers who book through any Sabre distribution channel -- a travel agency; Travelocity.com, the company's online travel planning Internet site; or Sabre Business Travel Solutions, a travel purchasing system for corporations -- can now review their travel arrangements on the Internet.

After a reservation is confirmed in the Sabre system, a traveler can log on at www.sabre.com, click the Online Trip Review button, then input a reservation number and last name to view air, car and hotel reservations. Online Trip Review also provides access to valuable travel-related information such as weather reports and detailed driving maps.

Travel information is accessible immediately after reservations are confirmed and remain in the system until 24 hours after travel is completed. The itinerary is housed securely within the Sabre system and can only be viewed by the traveler through this service.

Online Trip Review is a value-added convenience for travel agents who can now equip their customers with up-to-the-minute trip information. Travel agents also can boost their productivity by printing fewer hard copies of travel itineraries.

>> More <<
Sabre

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AA.com Does the Numbers
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The American Airlines web site, at www.AA.com, continues to build on its successful redesign with outstanding results and a growing list of accolades. More than one million members of American's AAdvantage Travel Awards Program logged on to the site within five months following the redesign -- a figure that represents more than 10% of active AAdvantage members and includes over 25% of the program's top-tier (Gold, Platinum or Executive Platinum) members. Traffic to AA.com currently tops one million site visits each week, with daily numbers in excess of 300,000 visitors on peak days. While American does not disclose specific online sales figures, year-over-year booked revenue has increased threefold.

In addition, American's Net SAAver Fares e-mail list, the first and largest service of its kind, has reached over 2.1 million subscribers. Net SAAaver subscribers receive e-mail messages each week about last-minute low airfares for U.S. and international travel.

Even before the redesign, AA.com was rated the most popular airline site on the Internet. Post-launch, the site held onto that standing to become the web's top-ranked airline site for all of 1998, and is recognized as one of the largest e-commerce sites as well.

AA.com has received numerous accolades, including the distinction of being the only airline site selected for PC Magazine's newly published list of "The 100 Top Web Sites" for 1998. In addition to a recent Outstanding Web Site Award from the Web Marketing Association, AA.com has been ranked number one among airline sites in the Wall Street Journal's online edition and appeared on InformationWeek magazine's list of the top 100 intranets/extranets.

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AA.com

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ANA Flying High-graphics Aircraft
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There's been altogether too little attention paid to the exterior of aircraft. (Which may not be a bad thing. For all the attention that's been paid to interiors, there's been no increase in legroom or other comfort-related factors. If anything, the opposite...)

So, while it may not directly affect your travel experience, it's refreshing to see airlines devoting resources to the "paint job." There was PSA's "Smile" graphic, for example (which today would likely be a frown or snarl). More recently, Southwest touted their Shamu-design B737. And a few, but precious few, others.

The latest contribution comes from Japan's All Nippon Airways. They've painted several B767's and B747's with characters from the Pokemon video game and cartoon series. And, to insure complete immersion in the Pokemon experience, flight attendants on the themed aircraft will wear aprons with Pokemon-inspired designs.

>> More <<
There's a full story and photograph on the FrequentFlier.com site here:

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Spain: $297 Roundtrip
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Spanair expanded its system in Spain when it began nonstop service from Madrid to three new cities --Alicante, Vigo and Oviedo -- on February 21. This is the first of several route expansions planned by Spanair this year to blanket Spain.

A new $297 roundtrip airfare from Washington Dulles International to 10 cities in Spain is in effect through April 30, 1999. Spanish destinations include the three new cities plus Madrid, Barcelona, Bilbao, Santiago, Malaga, Palma de Mallorca and Mahon. To fly on Spanair to the Canary Islands is $369 round-trip. Stopover is permitted for an additional $50. These fares are nonrefundable and require a Saturday night stayover. The return flight can be 90 days later, making April departures from Dulles, July returns from Spain.

Operated with MD83s, Spanair will fly three daily roundtrips between Madrid and each of the new destinations -- Alicante, Vigo and Oviedo. Spanair operates the only nonstop service between Washington Dulles International Airport and Madrid's Barajas Airport five days a week with Boeing 767-300 aircraft.

If I lived in Washington, I'd be heading to Spain for the weekend at those prices.

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For reservations contact a travel agent or Spanair at 888-545-5757.

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Free 5-Minute Inflight Calls
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What started as holiday fanfare in December is now an ongoing perk for inflight callers. AT&T is extending its offer of a free five-minute inflight phone call to passengers flying Alaska, American, Canadian, Northwest and Southwest airlines.

By dialing *FREE (*3733 toll-free) from any AT&T inflight phone, passengers will connect to an AT&T Customer Care representative and be asked to answer a couple of travel-related questions and provide a calling or credit card number. AT&T will credit one five-minute call to the card. The call can be made immediately or anytime up to six months from the day the call is awarded.

If the call exceeds five minutes, passengers' credit or calling cards will be charged the regular per-minute rate beginning with the sixth minute. This promotion is only available to customers who have not yet benefited from it. Calls are valid in North America only. International calls are excluded. Regular rates will apply for all other calls including voice and data. The promotion is subject to change or cancellation without notice.

For full instructions on how to place a call, receive a call, send a fax; or for information on rates, charges, terms, conditions or restrictions, access www.attws.com. From the plane, customers can call AT&T Customer Care by dialing *611 (toll free) or see passenger instructions in the inflight magazine.

>> More <<
Web site

Until next week...