U P F R O N T
Take a Survey, Change the World
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Juline is back, and she needs more data for her Purdue PhD research on inflight dining (oxymoron?). The survey is online at http://courses.unt.edu/jclay/ and it only takes a minute to complete.
Why bother? Consider the following scenario...
Our intrepid PhD candidate gets her doctorate (on the strength of the research completed with YOUR help) and joins the Department of Transportation. There her talent is obvious to all. She quickly rises through the gray ranks to become Airline Food Czar, and mandates that all U.S. airlines must serve Prime beef and Alaska salmon, prepared to order, complemented by premium liquors, fine wines and fresh-squeezed juices. We all eat happily ever after.
It COULD happen!!!
O N S I T E
FrequentFlier Forum Topics
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As always, there's plenty of activity on the Forum...
Crystal started a thread on the effect of appearance (dress, accessories, gender, race) on one's chances of getting an upgrade. Aaron wants to convert Mypoints into airline miles. Jonathon is looking for access to Star Alliance airport lounges. Jean thinks the Qualiflyer grouping is a goner. And Ronald has more mileage and points suggestions than there are hours in the day.
Do you have questions? Do you have answers? Post them to the Forum!
>> More - The FrequentFlier Forum
M I L E S & P O I N T S
AA Clarifies TWA Mileage Policies, Procedures
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As part of its official bid for TWA's assets, submitted on Wed. to a bankruptcy court, American disclosed details of its plan for integrating Aviators miles into the AAdvantage program.
If American is the successful bidder (as seems increasingly likely), "It is anticipated that TWA would give Aviators members six months notice before ending the Aviators program. Aviators members would then receive full credit for unused mileage balances in their Aviators portfolio when the Aviators program ends."
"During that transition period, Aviators members would be able to continue earning and redeeming miles as they do today. At the end of the notification period, Aviators members would receive a bonus mileage posting in their new or existing AAdvantage account equal to the unused ending mileage balance in their Aviators portfolio."
Greenpoints Delists Delta from Partner Roster
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Those with a yen for airline miles will be disappointed with the latest move by one of the higher profile rewards programs, Greenpoints. In the company's own words:
"Our records indicate that your S&H greenpoints Wish List includes Delta Airlines Frequent Flyer Mileage Certificate (Item #S5023). Because you are a valued member of S&H greenpoints, we wanted to make sure you know that, effective March 5th, 2001 our Delta Airlines Frequent Flyer Mileage Certificate will be discontinued."
For context, Greenpoints originally gave members 3 mileage options when it came time to redeem their points--Alaska, American or Delta. American miles were taken off the awards list last year, leaving Alaska and Delta. And as of March 5, only Alaska miles will remain. While a Greenpoints representative promised that there are no plans to drop Alaska, I was unable to find any reference to Alaska miles on the Greenpoints.com website. In any case, miles clearly no longer play an important part in the Greenpoints scheme.
In place of miles, Greenpoints is promoting its new (as of Jan. 15) Travel Rewards option, which allows members to redeem points and cash for travel.
While I have heard cries of anguish from some readers, it's worth bearing in mind that not all loyalty programs are frequent-travel programs. According to the folks at Greenpoints, their average member is 34 years of age, female, with 2 kids. That's more likely to be the profile of a frequent buyer than a frequent flyer. And there's a place in an intelligent shopper's strategy for an effective rebate of 1 - 3%.
If you have a Greenpoints account and were planning to redeem for SkyMiles, do keep that Mar. 5 deadline in mind.
SkyMiles Adds "New" Miles-for-Loans Partner
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What SkyMiles members loseth with Greenpoints, they gaineth with LendingTree. Here's the story...
Online realty services company and SkyMiles partner Homespace.com was recently acquired by LendingTree. LendingTree has elected to continue the relationship, and even to expand it. And to promote the fact, LendingTree is sponsoring a 1-million-mile sweepstakes drawing.
Earning miles the old-fashioned way with LendingTree works as follows--
- Mortgage - Earn 1,250 SkyMiles for every $10,000 borrowed
- Real Estate - Earn 3,300 SkyMiles for every $10,000 in home sale and/or purchase amount
- Home Equity - Earn 1,250 SkyMiles for every $10,000 borrowed
- Auto Loan - Earn 1,250 SkyMiles for every $10,000 borrowed
To enter the sweepstakes, go to http://www.lendingtree.com/delta/ and complete the online entry form. There's no purchase necessary, but YOU MUST HAVE BEEN AN ENROLLED SKYMILES MEMBER AS OF FEB. 1, 2001, to participate. Only U.S. residents at least 18 years of age are eligible. Last date to enter: May 30, 2001.
AAdvantage Lowers Mile Requirement for Upgrades
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American has decreased the number of miles required for domestic 1-class upgrades as follows:
Miles Required
Ticket type for Upgrade Award Code
1-way full-fare 5,000 5B
Roundtrip full-fare 10,000 10GG
1-way discount 15,000 15KK
Upgrades are for travel within and between the Continental U.S., Alaska and Canada.
Hertz Doubles Miles, Points
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Hertz customers who book online using promotion code 919575 can earn double miles or points in their choice of 12 airline programs, 2 hotel programs or Hertz #1 Awards. Participating airline and hotel programs--
> Airlines
Alaska, Aloha, American, Continental, Delta, Frontier, Hawaiian, Midwest Express, Northwest, TWA, United, US Airways
> Hotels
Priority Club Worldwide, Marriott Rewards
The offer applies to all qualifying rentals at participating locations in the U.S. and Canada through June 30.
> More: Hertz
CO Discounts Award Travel, Drops Czech Airline
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Continental is discounting by 50% award travel to selected destinations between Mar. 1 and May 31, 2001. Examples:
Destination Normal Miles "Sale" Miles
Hong Kong 50,000 25,000
Frankfurt, Dusseldorf 40,000 20,000
Bermuda, St. Maarten,
Antigua, Aquadilla,
Grand Cayman 35,000 17,500
Rio, Sao Paulo,
Belo Horizonte 35,000 17,500
Leon, Veracruz,
Aquascalientes, Saltillo 35,000 17,500
Managua, Nicaragua 35,000 17,500
Effective Mar. 25, CSA Czech Airlines will no longer participate in OnePass. Members may continue to earn miles on CSA flights through Mar. 24, 2001, and to request CSA award tickets through Mar. 10, 2001, for travel completed before Mar. 24 next year. (CSA jumped ship and is now a partner in Delta's program.)
> More: Continental
Midwest Express Has Take-a-Friend Sale
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Midwest Express Frequent Flyer members can take a friend with them on their next trip for 10,000 miles.
Reduced companion-ticket offer applies when purchasing a seat in S class, through May 20. Make reservations at 800-452-2022 using promotion code YXC01. The companion offer is not valid for Phoenix or Florida flights.
At Safeway, Buy 5 to Earn 50
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Mileage Plus members who have signed up with the GroceryMiles program will earn 50 bonus miles for every 5 Safeway SELECT items purchased at participating stores. The bonus offer is in effect until Mar. 27, 2001.
If you're not a GroceryMiles member, there's an enrollment bonus in place until Mar. 27. Sign up (by calling 1-800-645-4502 or at participating markets) and purchase $250 worth of goods before Mar. 27 to earn 250 Mileage Plus miles -- double the normal 125 miles for $250 in eligible purchases.
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 on Domestic and International Travel
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American Airlines has announced a sale on domestic and international travel to destinations in North, Central, and South America and Europe for departures through May 19.
For more details, go here.
Three Airlines Offer Mexico Deals
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American has released sale fares to Mexico, with round-trip fares starting at $179. Also, America West has extended its sale to/from 10 cities in Mexico, and Delta is offering two different sales to a total of seven cities.
For more details, go here.
I N D U S T R Y N E W S B I T E S
The TWA Saga (Continued)
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On Wed., interested parties submitted bids to the bankruptcy court for TWA's assets. The only surprise... there were no surprises.
The bidders were, as expected: American (whose plan has been summarized in past issues of The Crier, and includes wholesale conversion of Aviators miles into AAdvantage miles); Jet Acquisitions (a group whose members and plan remain publicly undeclared even at this late date); and Galileo (the computer reservation system owned jointly by TWA, Northwest and Delta whose $220 million bid is solely for TWA's 26% stake in Worldspan). After all the legal saber-rattling, Continental declined to bid.
In reviewing the offers, the court will apply a "best for the most" criterion, evaluating the competing plans' effects on employees, consumers, stockholders and creditors. The consensus is that American will prevail over Jet Acquisitions, and that Galileo's bid for Worldspan will also succeed. The judge will rule on Mar. 9.
Can You Say 'Disintermediation'?
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You won't find 'disintermediation' in your office copy of Webster's. But it's a very real commercial and economic force even if lexicographers haven't noticed the trend or come across the term. It's the process of squeezing out, eliminating, as much of the distribution network as possible while still delivering the product or service to the consumer.
In the travel industry, disintermediation (DM for short) is what the airlines are doing to the travel agents. While agents effectively extend the airlines' own sales and ticketing operations, the commissions they charge to sell and issue tickets represent a huge cost to the airlines.
No matter what they say publicly, all airlines really want one thing: All customers buying all tickets on the airlines' own websites. That results in reduced customer service costs, ticketing costs, and postage costs. And no travel agency commissions (another cost). Costs are minimized, profits maximized.
It's a dangerous game, for at least 2 reasons. First, airlines must work with travel agencies at the same time they're trying to DM them out of existence. Mission: diplomacy. And secondly, there's always the danger that a rogue airline will break ranks with the agent-killers, reverse the trend and offer agents more lucrative commissions to gain their favor and increase sales.
This week, Northwest and KLM took a giant step down the DM path which, if matched by other airlines, will significantly accelerate the DM process. Here's the official announcement:
"Northwest Airlines and KLM Royal Dutch Airlines announced today that effective March 1 they will eliminate commissions on US/Canada point of sale travel booked through the Internet. Prior to today's announcement, Northwest paid Internet sites a commission of 5 percent (capped at $10) for each ticket."
Travelocity responded the only way it could: "Travelocity.com Inc. today announced that it will charge a $10 service fee on all Northwest and KLM tickets, effective March 1, 2001. This move comes after Northwest and KLM eliminated the commissions paid to all online travel agents."
Stay tuned...
R E A D E R R A N T S & R A V E S
Chase Travel Rewards
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[Editor's note - We receive a substantial number of questions regarding bank-issued cards with independent travel rewards programs, e.g. Capital One's MilesOne card or the Chase Travel Rewards card mentioned below. We thought Glenn's observations would be of interest.]
"One other thing about the Chase Travel Rewards program, which many people do not realize, is that they also earn a flat $50 commission per ticket issued. For me, I recently redeemed 25,000 points for a ticket that would have cost $556 had I booked directly through American Airlines.
"When I called up Chase to redeem the ticket, they charged $606, which meant I had to pay $106 out of my pocket. (My Platinum card, contrary to what your website suggests -- using the Gold card as an example--charges a $25 annual fee.)
"Since I've had the card for two years, I effectively paid $100 in fees (2 years at $25/yr plus the $50 commission) to redeem my flight reward. The extra kicker was that originally I was going to buy two tickets through their (Chase) travel desk, so that my friend and I could travel together. But when I realized the $50 part, I had my friend book directly through AA to get the $556 price. Had I not done this, Chase would have received $100 in commissions, $50 in yearly fees, and $25,000 in spending for their $500 redemption.
"The only positive side of the story is that for the dates/times/destination, AAdvantage inventory was completely sold out, and I never would have been able to redeem soley 25,000 frequency flier miles on AA to get an award ticket. It would have taken a 40,000 mile redemption. I guess, in essence, I paid $206 ($106 over $500, plus the $100 in fees) to save that incremental 15,000 miles. Not really sure if it was worth it."
- Glenn
Until next week...
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