U P F R O N T
You Paid HOW MUCH for that Airline Ticket?
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Airline pricing is notoriously inscrutable. Passengers sitting in the same cabin, on the same flight, on the same day will have paid fares that could vary by a factor of 10. Depending on where they bought their tickets, when, whether they're traveling on business or vacation, their age, and so on. Although I've been assured otherwise, it's tempting to think hair color is factored into airline pricing. But maybe that's only for midday flights on the third Tuesday of alternate months.
We may be on the verge of a revolutionary change in ticket pricing. The winners: business travelers, and the companies which buy their tickets; the losers: leisure travelers flying on highly discounted advance-purchase tickets.
The business-travel community has an enormous stake in "rationalizing" ticket prices because current pricing essentially subsidizes low-priced leisure-travel tickets by charging disproportionately high prices for the unrestricted tickets favored by business travelers. As a result, there is a groundswell of pressure from corporate travel buyers to amend the pricing schema.
And the airlines, whose financial self-interest requires that they keep their highest-profit customers mollified, agree in principle that the current system -- overly complicated and unfair -- needs a fix.
If the airlines are successful in converting to a "value pricing" model -- like that introduced by American in 1992, and retracted almost immediately -- there would be fewer fare types (less complicated), and the spread between the high and low fares would decrease (fairer). The bad news is that even as the priciest business fares come down, the cheapest discount fares would rise.
Stay tuned...
Elite Treatment: Unfair? (continued)
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In the weeks since we broached the thorny subject of VIP airport security lines, the feedback has continued to pour in. We continue to post that feedback, unedited, at http://frequentflier.com/security.htm.
O N S I T E
New on the FrequentFlier Forum
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Tip-meister Ronald returned safely from his Spain/Portugal trip. Welcome back! Hal recommends a GMAC car insurance quote to earn 1,000 HHonors points. Bob asks: Can airline miles be redeemed online? And there are links to more than the usual number of travel-related contests and sweepstakes. Plus 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
From US Airways: Miles for Space Travel
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"US Airways is the world's first airline to offer mileage accrual and redemption for space travel."
Wow, how's that for bragging rights? And it's NOT sci-fi.
Dividend Miles members can earn from 5,000 miles for a shuttle launch tour package up to 250,000 miles for a "suborbital package" -- a trip aboard what is described as "the first private aircraft to take passengers to space." Cost: $98,000 per person. Flights aren't planned until 2004 - 2005, but they are taking reservations now.
On the redemption side, the launch tour is offered for 30,000 miles plus $650 in cash. And the suborbital flights can be had for an astronomical 10 million miles.
All these extraterrestrial adventures are the provided by Space Adventures, Ltd.
> More...
From Northwest: Miles for Sale
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Through the Buy and Gift Miles programs, WorldPerks members can top off their personal accounts to reach an award level, or send miles to another person as a gift. Individuals can buy in increments of 2,500, 5,000 or 7,500 miles, up to an annual maximum of 7,500 miles per account.
The software underlying these mileage-purchase transactions is from MilePoint, so it's a safe bet that the technical and security-related aspects of the system are solid.
What may not pass muster is the pricing. At $95 for 2,500 miles, you'd be paying $0.038 per mile. And at $235 for 7,500 miles, the per-mile price drops to $0.31. For context, members can purchase miles from Delta and United for $0.025 and $0.0278 respectively. So, NW's pricing is at the high end of the range.
> More...
Priority Club Adds Partners
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Priority Club Rewards has 4 new program partners: Airborne Express, NetBank, Dining by iDine, and EarthLink. Earning rates and other details are as follows.
> Airborne Express
U.S. members save 25% or more on Flight-Ready overnight shipping from Airborne Express and earn 4 Priority Club points for every $1 spent. Members also receive 1,000 bonus points with an initial purchase of Flight Ready envelopes and packs. Call 1-800-MEMBERS and mention PR code 1005, or visit http://www.membersales.com/pcr.
> NetBank
U.S. members earn 40 points per $1 on the balance in an eligible NetBank account 30 days from initial funding, up to a maximum of 10,000 points per member. Valid for new NetBank customers only.
> Priority Club Rewards Dining by iDine
U.S. members earn 15 points per $1 spent on their first visit each month to more than 7,000 participating restaurants nationwide with Priority Club Rewards Dining by iDine.
> EarthLink
U.S. and Canadian members earn 5,000 Priority Club bonus points when they sign up for a new EarthLink dial-up Internet access account. Call 1-800-EARTHLINK and mention registration code 400065217.
> More...
Delta Offers Bonus for BusinessElite Travel
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Delta is offering SkyMiles members 40,000 bonus miles for BusinessElite travel between New York (JFK) and Europe (Brussels, Nice, Paris, Frankfurt, Athens, Milan, Rome, Venice, Amsterdam, Moscow, Barcelona, Madrid, Istanbul), and 25,000 bonus miles for BusinessElite travel between JFK and the West Coast.
Promotion is valid on Delta flights with J- and D-class BusinessElite tickets. You must register for the promotion, purchase tickets and travel between Mar. 8 and May 15, 2002. Register at http://delta.com/jfk or call 1-800-558-3358 and enter promo code 2035.
Up to 150,000 Points from Marriott Vacation Club
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Purchase a Marriott Vacation Club timeshare by Apr. 4, 2002, to earn up to 150,000 Marriott Rewards points.
Marriott Vacation properties are available in over 52 resorts and 29 destinations worldwide.
> More...
Earn Double United Miles for LAX-SFO Flights
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Purchase and fly a qualifying Los Angeles - San Francisco roundtrip between Apr. 15 and June 15, 2002 to earn double Mileage Plus miles. This offer may be earned up to 3 times during the promotion period. Valid on nonstop itineraries only.
Register at http://offers.mileageplus.com/MPN422.
Summit Hotels Offers Double Airline Miles
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Earn double airline miles in selected programs for stays at participating Summit hotels.
Double miles are offered in the following programs: Virgin Atlantic flying club through Apr. 30, Alitalia MilleMiglia through May 31, JAL Mileage Bank through June 30, KLM Flying Dutchman through May 31, Air France Frequence through June 30.
> 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...
North American, Caribbean, and European Travel on Sale
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US Airways has announced a domestic and international fare sale, with savings on travel within the U.S. and to cities in Canada, the Caribbean, and Europe. Travel is valid through June 7. Book tickets by Monday, Mar. 18.
> More...
Cross-Country Flights Through June From $258 R/T
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America West, American, and United are offering Web-only savings on spring travel within the continental U.S., including cross-country flights starting at $258 roundtrip. Purchase tickets online only, at least 14 days before departure, and no later than Wednesday, Mar. 20.
> More...
S W E E P S T A K E S & F R E E B I E
Six Continents' "Million Points a Day" Giveaway
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To celebrate the re-launch of Priority Club Rewards, Six Continents Hotels is giving away 1 million points each day between Mar. 15 and Apr. 30, 2002.
Priority Club members residing in the U.S. and Canada (excluding Quebec) can enter online by providing their e-mail address and updating their preferences.
> More...
[Other travel-related sweepstakes and giveaways are online here.]
R E A D E R R A N T S & R A V E S
Award Seats, Not! (cont)
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"I just want to say that I have significant trouble booking award travel to Europe online (which of course I tried to do first given the 3000 mile per ticket discount!) and had to resort to calling the Platinum reservation line. They also had trouble, but they made it happen. I think something is wrong with the underlying database... the computer needs an operator override to do the right thing. (I ordered tickets from PDX, SFO, ICT, and RDU and had the same experience with them all, so I have to believe it's not an isolated problem). Perhaps the issue is involved with having a second carrier take part of the trip (all involved KLM, one involved Alaska, and one involved an Airlink).
"However for domestic NWA-only tickets I have had not trouble. It was nice to get domestic tickets for only 17500 miles (given the online booking bonus offer)."
- Tony
"I would like to comment on the attitude of the airlines and some of their uninformed customers regarding the availability of "free seats" Unlike the early days of the frequent flyer programs, most miles that people are trying to redeem for "free flights" have been purchased by credit card companies and other businesses as rewards for your business. How the airlines can get away with the way they limit available seats is shameful. The government has let them get away with this and a host of other practices that are anti-consumer. No other business could get away with the things that they get away with! When Congress was threatening to impose a "Bill of Rights" law a year or so ago, they quickly got it killed with promises to make meaningful changes. Things have not changed, in fact they have gotten worse! We, as frequent flyers, should band together to force the changes through legislation. They in effect have a monopoly and act accordingly! I would like to hear from other frequent flyer members to hear their thoughts. Perhaps a class action lawsuit might be the way to get changes. Why don't you spearhead it?"
- Bernard
"This is in response to David in the rants and raves section stating: "Flyers need to remember that these seats are free and you must normally expect some inconvenience, not the best schedule, etc."
"When I'm travelling on miles, the last thing on my mind is that they, either the miles or the seats, are free.
"Quite the contrary, I think of all of the money I have spent with the airlines themselves and their partners. To get free tickets, you spend alot. The reward isn't free. We should demand at every turn better service for the miles we've earned, with more opportunities and fewer restrictions.
"If this doesn't make sense, look at it this way: Is the money that you get back from Discover or other credit cards your money or theirs?
"I think the airlines stay in business because of frequent fliers, not the other way around."
- Cole
Star Alliance Awards
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"Members of frequent fliers programs for airlines that belong to the Star Alliance may rejoice. A new chart allows travel from North America to and between most of Western Europe countries for 60,000 points only. According to this new chart, it is now possible to book a flight from North America to use "Europe 1" destinations deserved by United or Air Canada (London, Paris, Frankfurt) as gateways to a multitude of other cities where Star Alliance partners such as SAS, Lufthansa, BMI or Austrian Airlines fly without requesting an additional ticket that would cost anything between 15,000 to 35,000 points. I'm going right now... before they change their minds!"
- Jean-Francois
Until next week...
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