The Verdict on Elite Upgrades

Thanks again to everyone who responded to my request 2 weeks ago for feedback on complimentary elite upgrades.

The article based on that feedback is now posted on the SmarterTravel.com website.

Comments? Alternative views?

This Week's Travel Industry Newsbites

The last of the major carriers' 2nd-quarter financial results trickled in over the past week, led by big losses from United and US Airways.

United's loss for the quarter was $1.43 billion, compared with a year-ago net loss of $247 million. The good news, such as it was: $1.39 billion of that loss was non-cash charges related to United's reorganization.

US Airways lost $63 million ($36 million when special items are excluded), compared to a $34 million profit in 2004.

Frontier lost $2.7 million, significantly better than its $6.6 million loss in the same period last year.

And Midwest lost $8.2 million, compared with $3.5 million a year ago.

Northwest and its mechanics union resumed negotiations yesterday, raising hopes that a threatened strike might be averted. But today, mechanics broke off the talks, citing the airline's refusal to bargain in good faith.

If no agreement is reached before an Aug. 19 deadline, the mechanics are free to strike.

According to an internal contingency plan obtained by a Minneapolis newspaper, Northwest plans to deploy up to 1,000 replacement workers if union mechanics walk off the job.

Other random datapoints... At least in terms of the airlines' load factors (percentage of seats filled), July was a barn-burner. For the month, AirTran's load factor was 80.8%, American's was 85.1%, America West's was 84.2%, Continental's was 83.9%, Delta's was 84.1%, Independence Air's was 79.0%, Northwest's was 87.5%, Southwest's was 80.8% (their highest ever), United's was 86.4% (best July showing for United), and US Airways' was 81.9%.

FrequentFlier Forum Topics

As always, there's plenty of activity on the FrequentFlier Forum.

In the "Airline Programs" Forum, Boston Fan alerts hungry mile mavens to a new Dining for Miles offer for Northwest WorldPerks members. JoeJanko adds that there are bonus offers from Rewards Network for members of American and Delta's programs as well. (See below for more on the American and Northwest offers. We reported last week on offers for Continental and Delta members.)

In the "Credit Card Programs" Forum, rives21 wonders whether it would be possible to purchase gift certificates using a mileage-earning credit card, then sell the gift certs at face value, effectively earning the miles for free. (The premise seems sound enough. The most obvious difficulty would be converting the gift certs back into dollars, and doing so legitimately and time-effectively.)

And much more. Questions, answers? Post them to the Forum!

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More Miles for AAdvantage Dining

Between Aug. 1 and Oct. 31, AAdvantage members will earn a 250-mile bonus for every qualified AAdvantage Dining transaction of $15 or more. There is no limit to the number of times the bonus may be earned.

Offer is only valid for AAdvantage Dining members who have already set up an online account at aa.rewardsnetwork.com.

Registration is required.

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ShareBuilder Accounts Earn Delta Miles (and an iPod)

SkyMiles members who open a new ShareBuilder account by Nov. 15 and invest for a minimum of 3 consecutive months using the Standard or Advantage investing programs will be rewarded with a free iPod shuffle. In addition, SkyMiles members will earn bonus miles -- 2,000 for regular members, 3,500 for Medallion members -- after their first investment in newly opened accounts, plus 500 miles for each quarter their accounts remain active.

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Frontier Offloads More Partners

Frontier seems to be hemorrhaging partners.

As previously reported, Dollar Rent A Car and HomeLoanCenter.com quit the program as of May 31; June 30 was the last day for The Flower Club and Payless Car Rental; and on July 31, Kimpton Boutique Hotels departed.

Midwest Airlines will be gone as of Sept. 30.

And now we hear that Alamo and National Car Rental will leave the program on Jan. 31, 2006.

Something they said...?

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Double Miles & Free Gas from Hertz

Through Dec. 31, members of 15 airline programs, 2 hotel programs, and the Amtrak program can earn double miles or points and a free tank of gas when renting a Premium (Class G) or larger car, an SUV, minivan, or a Prestige Collection vehicle at a Leisure Weekly Rate at participating airport and suburban locations in the U.S., Puerto Rico or Canada.

Full details, including required promotion codes, are on the Hertz website (link below).

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Midwest Adds 1-Ways to Award Chart

Effective Aug. 1, Midwest Miles members may book 1-way award trips for 15,000 miles. That's certainly better than the alternative: booking a roundtrip for 25,000 miles and throwing away the unused portion of the ticket.

Midwest also now allows members to add a stopover to their award itinerary, by adding 15,000 miles to the price of the ticket. Consumer benefit? Not really, since most other airlines allow an award stopover with no additional miles required.

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Dine for Bonus Northwest Miles

Between Aug. 1 and Sept. 30, WorldPerks members will earn up to 3,000 bonus miles for qualifying Dining for Miles transactions, as follows:

  Dine 2 times to earn 500 bonus miles.
  Dine 4 times to earn 1,000 bonus miles.
  Dine 6 times to earn 2,000 bonus miles.
  Dine 8 times to earn 3,000 bonus miles.

Registration is required.

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United Launches Economy Plus Access

Effective today, Mileage Plus members may purchase 1 of 3 packages which give them access to Economy Plus seating on United flights for 12 months.

(United's Economy Plus is the front-most rows in coach, which offer 3 - 5 inches more than the standard 31 inches of legroom. Until today, Economy Plus was available exclusively to travelers purchasing full-fare coach tickets, and to elite members of United's mileage program.)

Now, for an annual fee of $299, Mileage Plus members who purchase Economy Plus Access will be able to book coach seats for themselves and a traveling companion in the Economy Plus section.

For $699 a year, program members receive Economy Plus Access and a 12-month membership in United's Red Carpet Club airport lounges.

And for $749, members get Economy Plus Access bundled with Premier Fast Track, which awards Premier elite status after 15,000 miles or 15 segments flown on United or Ted during the subscription period (versus the normal 25,000 miles or 30 segments).

Mileage Plus members who purchase any of the above packages by Sept. 15 will earn 5,000 bonus miles.

The verdict
For non-elites whose travel plans include several United flights, access to the extended legroom is arguably well worth paying for. And if they travel with a companion, the deal is even sweeter.

But for current elites -- United's best customers -- this can only be a negative. Competition for limited Economy Plus seats will intensify. And lowering the bar for elite qualification inevitably leads to more card-carrying elites, which increases demand for elite benefits, including Economy Plus seats.

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United Offers 5% Discount on united.com

Through Sept. 1, Mileage Plus members will receive a 5%-off e-Certificate with the purchase of a qualifying roundtrip flight at united.com.

The certificate can be redeemed for a discount on United, United Express and Ted flights through June 30, 2006.

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US Air Bonuses for Europe Flights

Through Oct. 29, Dividend Miles members will earn up to 15,000 bonus miles for roundtrip flights to Amsterdam, Dublin, Glasgow, London, Manchester, Munich or Shannon.

Earn 15,000 miles for business class (C, D and Z fare classes), 10,000 miles for full coach (Y or B fare classes) and 5,000 miles for discounted coach (H, K, M, N, Q, V and W fare classes).

Registration is required.

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Deal Alert from SmarterTravel.com

1) Bermuda Fares on US Airways from $298

Travelers on both coasts can take advantage of US Airways' Bermuda sale. Prices start at $298 roundtrip for travel through early December.

Travel is valid Mondays through Thursdays through Dec. 12. Book tickets at least 3 days in advance, and by Aug. 10. Fares require a 3-night or Saturday-night stay (whichever comes first), and the maximum stay is 30 days.

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2) U.S. and Canada Fares on American from $78

In response to the domestic portion of United's worldwide sale, American has announced fares for travel within the U.S. (including Hawaii) and Canada with similar travel dates. Prices start at $78 roundtrip, and destinations include Honolulu, Miami, and Montreal.

Travel on most routes is valid Mondays through Thursdays through Nov. 17. Travel to/from Hawaii is valid Tuesdays through Thursdays. Travel to/from Canada is valid Tuesdays through Thursdays through Dec. 15. American has not listed a booking deadline.

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Win 150,000 Miles from United

Enter United's "10 Million Mile" sweepstakes by Aug. 31 for a chance to win 150,000 Mileage Plus miles (10 winners) or 25,000 miles (340 winners).

Entrants must reside in a "participating Safeway Inc. Division," as defined in the sweepstakes terms and conditions.

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[Visit http://frequentflier.com/sweeps.htm for more travel sweepstakes.]

Feedback from the Frontlines of Travel

[In response to last week's note from Bob C. regarding a cancelled Northwest flight, which resulted in a missed Aer Lingus flight to Ireland, which ruined a 20th wedding anniversary celebration...]

"First, all sympathies to Bob and his family for the losses of the people who were originally scheduled to go to Ireland, but died first. That alone would have made it a sad occasion in the midst of celebration.

"As to airlines. Whether it is Northwest, or some others (but not Southwest, so far as I can see), there is a great risk in not gathering everyone together in Chicago at least a day ahead. Even Alaska Airlines (highly regarded for years) has a delay/failure rate currently of something like 42%!

"So, to Bob. Best wishes for 20 years of marriage, and get the celebrants all together a couple of days ahead of time. If you miss a flight then, at least you can hoist one together in the airport bar!" [Ed N. - Portland, OR]

"Love frequentflier information-just great!

"Can you answer the following question (I remember Continental Airlines program did this w/Hilton Hotel)?

"Why doesn't United Airlines Mileage Plus promote a transfer/redemption of Airline miles for Partner Hotel points (e.g., Hilton Hotel or Marriott Hotel)? I understand the opposite is true-that is Hotel points for Airline miles?

"You would think United would welcome doing this to not have to accommodate fliers and rid points off their books. Thanks loads for the answer." [Apollo]

[Editor's Note - This is a straightforward "follow the money" situation. While it's true that United (as well as other carriers) is having trouble meeting requests for award tickets, and seemingly needs alternative awards to address members' demand, the costs to add hotel points or room nights to their award catalogs would be prohibitive. Bear in mind that because awards are distressed inventory, the real cost to an airline of a domestic award ticket is less than $15 -- the cost of a bag of peanuts, a soft drink, some extra jet fuel, and incidentals. Alternative awards are wildly expensive by comparison, and don't fit neatly into the programs' overall value proposition.]

"I have a rant regarding Avis. I rented a car from them in May and upon my return home my watch was missing. I presumed it was in my missing briefcase but once that was returned from a client, no watch. I then contacted Avis and they informed me that they had indeed recovered my watch but because I didn't call them within two weeks they give it to the person who recovered it. The agent I spoke with said he would ask the person if they would give it back to me.

"It's his now? I guess so. Finders keepers losers weepers.

"It was the Omega my boss gave me for my twenty years service.

"I think this is theft and plan to make a claim to my car insurance company. [Chris B. - Seattle, WA]

"Not sure if this is the sort of thing you are interested in but thought your readers might find it useful. My personal website has a number of comparison tables including a huge one for earning airline miles/hotel & reward points/cashback etc. through online shopping.

"The frequent flyer section is http://www.andrewcram.com/frequentflyer.html

"This is my personal site but is hosted under a business plan so number of users accessing etc shouldn't be a problem." [Andrew C.]

[Editor's Note - Thanks, Andrew. We're interested in anything on (or off) the Web that will help our readers understand and get the most out of loyalty programs.]

Until next week...