U P F R O N T
American Skimps on Advance Notice
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During most of the time I managed frequent flyer programs, it was generally understood and accepted that a negative program change -- one that adversely affected the value of members' miles -- should always be communicated 6 months or more in advance of the change's effect date.
That rule of thumb was based on guidelines from the National Association of Attorneys General, which never had the force of law but nevertheless established an informal standard, balancing program operators' need for flexibility with consumers' rights to receive what they were promised.
So, as a real-life case in point, Midwest Express is giving Frequent Flyer members 6 months' advance notice that award levels will be increased (see "Miles & Points" below), effectively diminishing the value of their miles. Consumers may be disappointed, and marketers may question the wisdom of depriving a rather anemic program of a competitive advantage it arguably needs. But at least Midwest Express gave its members adequate time to adjust to the upcoming change.
The same cannot be said for American's (and AOL's) handling of the termination of the AOL AAdvantage Rewards program (more below). While the program has been in obvious decline for months, and there was every indication that the end was near, the timing was a shocker: The first official termination announcement was made on Mar. 21, advising members that the program would end on Mar. 31.
Ten days advance notice? What happened to the NAAG guidelines? More fundamentally, what happened to treating customers with care and respect?
At the very least, members should have been given 6 months to redeem their miles for awards available exclusively through AOL AAdvantage (AOL subscriptions, assorted merchandise, etc.). The irony is that the program has generated so little enthusiasm that it's possible no one will care enough to complain about the mishandled endgame.
[I gave American an opportunity to discuss these issues. The interview request was turned over to American's corporate communications department (strike 1), and the P.R. rep promised to call back at 9:00 a.m. the following day with answers to my questions. He didn't (strike 2). And when I called him, he was away from the office for the remainder of the week (strike 3).]
Travel Agents: Dead Men (and Women) Walkin' (cont)
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In last week's issue, we reported on the movement among U.S. airlines to stop paying base commissions to travel agents. As predicted, a majority of U.S. airlines have since lined up on the side of "no commissions." We have a new industry standard.
While I don't use travel agents, I've always found it comforting to think that there's a dependable, affordable resource for those who do need help with their travel planning. If the feedback we've received over the past week is any indication, that's a minority opinion (see "Reader Rants & Raves" below).
O N S I T E
Elite Treatment: Unfair? (continued)
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In the weeks since we first broached the thorny subject of VIP airport security lines, the feedback has continued to trickle in. We continue to post that feedback, unedited, at http://frequentflier.com/security.htm.
M I L E S & P O I N T S
"Dear AOL AAdvantage Member..."
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Here's the self-explanatory e-mail sent to AOL AAdvantage members on Mar. 21, 2002:
"Thank you for being an AOL AAdvantage Rewards program member.
"We are writing to inform you that the AOL AAdvantage Rewards Program is ending on March 31, 2002. Rest assured, your mileage balance will remain intact and your membership in the American Airlines AAdvantage program will automatically continue. There is no action required on your part to do so.
"You will continue to have access to all of the mileage earning and redemption opportunities that the AAdvantage Program offers, and coming soon AOL Subscribers will have new ways to earn rewards through the AOL FreeTime Online program launching in April 2002.
"We know you may have questions, so please review the information below -
"You can still redeem your miles on travel, merchandise and AOL Service in the AOL AAdvantage Redemption Center through March 31, 2002 at www.aolaadvantage.com."
There's a FAQ at http://aolaadvantage.com. Go to "Member Services" and then look for the "Recent Changes FAQs" link.
From Midwest Express: Program Changes
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Midwest Express has announced 3 changes to its Frequent Flyer program. Reversing the order of the MWE news release, the changes are as follows:
Most significant (and last-mentioned in the airline's news release), effective Oct. 1, 2002, award levels will increase by 5,000 miles, to 25,000 miles for a standard award, and to 20,000 miles for a companion award.
Making the best of a bad situation... you have until Sept. 30, 2002, to request awards at the existing 20,000-mile standard level and 15,000-mile companion level -- without blackout dates or Saturday-night stay requirements. Either book award travel before Sept. 30 for travel up to a year later, or request an award certificate for use within 1 year from the date of the certificate.
Secondly, effective Oct. 1, 2002, MWE will introduce "anytime"-type awards -- domestic awards with no capacity controls, offered for twice the normal miles.
And last, effective Apr. 1, 2002, blackout dates for award travel will be eliminated. As we pointed out when Northwest trumpeted this supposed benefit, "no blackout dates" doesn't necessarily mean "more award seats." In MWE's own words: "... (S)eat availability will be limited on peak travel dates and flights including seasonal markets and holidays."
Earn Double Priority Club Points, Miles for Visa Charges
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Between Apr. 1 and May 31, 2002, Priority Club members who pay for their stays with a Visa card will earn double points or miles starting with the second stay at Inter-Continental, Crowne Plaza, Holiday Inn, Holiday Inn Express or Staybridge Suites hotels in the U.S.
Participating airlines: Alaska Airlines, America West, American, British Airways, Continental, Delta, LatinPass, Northwest, United, US Airways. Register online or by calling 1-888-560-5660.
> More...
SkyMiles Bonus for Crown Room Memberships
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SkyMiles members can earn bonus miles for purchasing Crown Room memberships through Apr. 15, 2002. Regular members earn 2,500 bonus miles and elite members earn 4,000 bonus miles. In addition, all SkyMiles members will save $20 when purchasing a new Club membership.
Annual Crown Room memberships are priced as follows: $475 for non-elites; $350 for Silver Medallion members; $275 for Gold members; and free for Platinum members.
> More...
New Swiss Carrier Will Join AAdvantage
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Effective Mar. 31, AAdvantage members will be able to earn and redeem miles for travel on flights operated by SWISS, the new Swiss airline which combines the bulk of bankrupt Swissair's international services with those of regional carrier Crossair.
Likewise, members of SWISS' Qualiflyer program will earn and redeem miles when traveling on flights operated by American. In time, SWISS will likely become a full-fledged member of the Oneworld global alliance.
There's no word yet on whether the new tie-up will be promoted with the usual new partner double-mile offer.
American Discounts Caribbean Awards
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Between Apr. 1 and June 15, 2002, AAdvantage members can travel between the continental U.S., Canada or Mexico and the Caribbean, the Bahamas or Bermuda for 5,000 fewer miles.
Claim a coach PlanAAhead award to the Caribbean for 25,000 miles or a First/Business class PlanAAhead award for 55,000 miles. Call 1-800-882-8880 and mention award code AACRB25 for the economy award or AACRB55 for the First/Business award.
Use Visa to Pay Tax Bills
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You've read about credit card options for paying federal taxes in past issues of the Crier and on the FrequentFlier.com site.
Until recently, taxpayers could charge tax payments to American Express, Discover or Mastercard, but not to Visa. Last week Visa changed its policy, making it possible to charge tax payments to your Visa card through Official Payments Corp.
Factoid from the IRS: as of mid-Mar., 20,000 credit card charges have been received, up 13% from 18,000 for the same period last year. The charges totaled more than $55 million.
> More...
Northwest Links with Air Miles
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Participants in Canada's popular Air Miles program have a new mileage-earning option: Northwest Airlines flights.
Air Miles Collectors who join WorldPerks will earn normal WorldPerks miles plus 25 Air Miles reward miles for each segment flown on Northwest, Northwest Airlink or KLM to/from Canada beginning Apr. 1, 2002.
> More...
Continental, America West Will Sever Mileage Tie-Up
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Continental and America West are disengaging, letting a number of joint marketing initiatives lapse.
Code sharing, for example, will cease on Apr. 26, 2002. And the airlines' reciprocal frequent flyer program and airport club agreements will be terminated effective Sept. 24, 2002.
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...
Three-Day European Fare Sale Starting at $308 R/T
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Spring travel from the U.S. to cities throughout Europe is on sale through Thursday, Mar. 28, from British Airways. Sale fares are valid for travel between Apr. 2 and June 15 and are only available for purchase online.
> More...
Spring Fare Sales Continue on Domestic and Int'l Travel
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Major U.S. airlines, including American, Delta, Northwest, United, and US Airways, have extended their ongoing sales on domestic and Canadian travel, which are now available for purchase through Wednesday, Apr. 10.
> More...
S W E E P S T A K E S & F R E E B I E S
Win 100,000 Miles and a Great American Vacation
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Enter Marriott Vacation Club's "All-American Adventure Sweepstakes" to win an 8 day / 7 night vacation for 4 to Orlando, Williamsburg, Branson or Palm Desert plus 100,000 AAdvantage miles. Five second-prize winners will each receive 25,000 AAdvantage Miles and Samsonite luggage. Sweepstakes ends Dec. 16, 2002.
> 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
Thumbs Down on Travel Agents
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"Sorry to say but this is a 24/7 world. I get better service via the internet than I do from my company's corporate travel agency. I stopped using them over 12 months ago. Travel Agencies should have seen this coming and figured out a way to provide value added service.
"The airlines have taken a gamble that enough people with call or book via the internet. While the internet he its quirks I have booked all of my business travel on the web this year, about 15 trips so far. At the same time I am on the phone getting my hotel and rental car. One trip takes about 10 minutes to book all told. No more time than with the travel agent. I see all of my options in front of me. It works where Travel Agencies have stopped making the difference.
"The internet creates the competition for the airlines because I can shop, buy and change my schedule 24/7."
- Doug
"I quit using travel agents five years ago when they started charging $50 for processing an airline reservation. The Internet made it possible for me to check various fares...usually similar to or even lower than that quoted by travel agents. It also enabled me to act quickly, as opposed to calling the agent and then waiting for the call to be returned. Then when it was returned, they had not read the message I left to research the requested info for a timely decision.
"For certain travel products, agents might work well, but in this era, airline reservations can be researched easily and booked quickly by the consumer. Last December, I received an email alert on a special with limited seats. I immediately booked the flight; two hours later that fare was gone. The airlines know from where their bookings are originating; therefore, there is no incentive for them to reward agents now that the bulk of airline tickets are being booked directly by the consumer."
- Jean
Award Seats... Not (cont)
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"I have flown NWA for many years now and have noticed difficulty in using miles for award seats on NWA recently using only miles when searching on the web.
"My suggestion is to call by phone and speak to rep who have on occasion found me a seat when online i could not find one. Yes, you forfeit the bonus discount of 2000 miles by booking award travel online, but at least you get a seat. Also, sometimes there is availability on Continental which you can use miles for award on them due to their alliance which was suggested by a WorldPerks rep. You can also join the nwa.com club which has promotion codes that get you an award using cash and miles when ordinarily I could not get a seat using cash and miles promotion codes available to all WorldPerks member to get a seat without the nwa.com club codes."
- William
"If airlines were to make available frequent flier seats down to the last available seat, then you would probably require 10 times the number of points/miles that you do now, as frequent flier seats cost less than the cheapest seat to buy!!!
"When the difference between the cheapest & the most expensive economy/coach seat might be ten times, then this would be the difference between f.f. seats availability now & when Bernard suggests.
"Airlines want f.f. to use seats they cannot otherwise sell. Any bureaucracy will just stuff up any programmes that exist now.
"We expect some if not all f.f. porgrammes to close within 5 years as many people are members of multiple programmes & no loyalty is created. Also, airlines close down, especially since 11SEP & points/miles disappear with them!!!"
- Michael
Until next week...
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