U P F R O N T

Miles: Alive & Well
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When times are bad in the travel industry, I am deluged with worried e-mails, fretting that we're on the threshold of an industry-wide shut-down of frequent traveler programs. In fact, I began this week by reassuring several panicky subscribers that there was no good reason to think that mileage programs were in any imminent danger of extinction.

As the week wore on, it occurred to me that the "no reason to worry" response was much too weak. What I should have said was: There's every reason to expect mileage programs to be with us for the foreseeable future. The change in confidence level was occasioned by announcements from 2 leaders in the miles-and-points arena, American and American Express. Both unveiled significant program enhancements (see "Miles & Points" below), signifying their faith in and commitment to loyalty marketing.

That's not to say that there aren't reasons to sweat the future of individual programs which might be endangered by individual airline failures, or to decry the erosion of the programs' value as fees increase and policies trend toward the consumer-unfriendly.

But, battered and bruised though they may be, mileage programs are alive and well. Earn on, burn on!

M I L E S & P O I N T S

American Says: Share the Wealth (& Pay the Price)
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Through Dec. 31, 2002, AAdvantage members can transfer up to 60,000 miles to other members' accounts, and receive transfers of up to 15,000 miles into their own accounts.

The shareAAmiles program is only available online. There's a $25 fee for up to 3 transactions, plus a second fee based on the number of miles transferred: $50 to transfer 1,000 to 5,000 miles, $100 for 6,000 to 10,000 miles, and $150 for 11,000 to 15,000 miles.

Not including the $25 base fee, transfer pricing works out as follows:

So, on a per-mile basis, it costs 70% more to transfer 6,000 miles than to transfer 5,000 miles. Kind of a volume discount, in reverse.

Aside from the illogic of the pricing scheme overall, there's the question of value.

With the customary "Your mileage may vary" caveat, I'd call these prices prohibitively high. If miles can be purchased outright for 2.5 cents, it certainly makes no sense to pay 5 cents just to transfer them. And even 1 cent seems high to transfer miles that someone already paid to earn. On the upside, the ability to transfer miles is unquestionably a welcome addition to the program.

Let's hope that when American extends this offer -- as they are sure to do -- they will introduce prices that are lower and simpler. How about, e.g., a flat $50-per-transfer fee?

> More...

Earn Air Canada Elite at Destina.ca
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Members of Air Canada's Aeroplan will earn 1 elite-qualifying mile for every dollar spent on Air Canada, Jazz, Tango and ZIP tickets at Destina.ca, Air Canada's online travel agency.

Offer applies for travel booked and flown by Dec. 12.

> More...

Amex Upgrades Cards
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Henceforth, the venerable American Express Green card, and its Gold counterpart, will include Membership Rewards as a standard feature, rather than an extra-cost add-on option.

And, as has been the case for some time with the Amex-issued Delta SkyMiles card, cardholders will earn double points for every dollar charged at stand-alone supermarkets, gas stations, drugstores, home improvement stores, the U.S. Postal Service and wireless phone bills. Other charges earn the standard 1 point per dollar.

Fees for the 4 new cards are as follows: Rewards Green, $65; Preferred Rewards Green, $110; Rewards Gold, $90; Preferred Rewards Gold, $130.

The major difference between the regular and Preferred versions is the exchange rate when redeeming Membership Rewards points for airline miles. With the regular cards, 2 points convert to 1 airline mile; points earned with Preferred cards convert 1:1 for airline miles.

This puts Amex a giant step ahead of Diners Club Rewards... look for a competitive response from Diners.

> More...

From ATA: A Limited-Time Loyalty Program
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Think of the American Trans Air (ATA) Anniversary Travel Award free-flights promotion as a short-term frequent flyer program, on the model of Southwest's Rapid Rewards.

Begin by registering at ATA's website to obtain an Anniversary Travel Awards I.D. number. Thereafter, cite the I.D. number whenever making online bookings for travel between Sept. 30, 2002, and Sept. 30, 2003.

Based on the number of flights taken during the promotion period, awards are earned as follows.

Three roundtrips or 6 one-ways earn a free roundtrip companion ticket. Six roundtrips or 12 one-ways earn 1 free roundtrip ticket within the U.S. Nine roundtrips or 18 one-ways earn a free roundtrip ticket to Mexico, the Caribbean or Puerto Rico. And 12 roundtrips or 24 one-ways earn a roundtrip ticket to anywhere ATA flies, including Hawaii.

Award requests will be accepted between Dec. 1, 2002, and Nov. 1, 2003, and award travel must be completed by Nov. 30, 2004.

> More...

Delta Extends Shuttle Guarantee, Bonus
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Delta has extended its Shuttle offers, and added a new one as well.

SkyMiles members will continue to earn triple base miles or Shuttle flights, good toward elite status, through Dec. 31, 2002. The "20 Minutes or 20,000 Miles" commitment has also been extended, guaranteeing that Shuttle customers can get to the gate in 20 or fewer minutes, or they'll be compensated with 20,000 SkyMiles.

And for the first time, if a Delta Shuttle flight pushes back from the gate more than 5 minutes behind schedule, SkyMiles members will be awarded 1,500 miles, also good toward elite status.

> More...

Delta Adds Hotel Partner, SRS-WORLDHOTELS
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SkyMiles members can now earn 500 miles for qualifying stays at SRS-WORLDHOTELS properties.

To promote the tie-up, through Apr. 30, 2003, members will earn an additional 500 miles for 1- or 2-night stays, 1,000 miles for 3- or 4-night stays, or 4,500 miles for 5-night or longer stays.

> More or 1-800-223-5652

La Quinta Redesigns Frequent-Stay Program
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La Quinta has relaunched a pumped-up version of its La Quinta Returns program.

The newly revamped program features elite tiers, with enhanced benefits for frequent guests, plus express check-in, late check-out and Internet account access.

On the award side, members can now redeem points for airline miles in the programs of American, Continental and Delta, as well as for hotel stays and gift certificates.

> More or 1-800-642-4258

United Doubles Miles on 129 West Coast Routes
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Through Oct. 31, Mileage Plus members will earn double miles when flying qualifying roundtrips on 129 West Coast routes.

Offer may be earned a maximum of 3 times on qualifying fares in first (F) and economy (Y, B, M, H, Q or V). Register online here.

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...

Cross-country fares from $198 R/T, and $38 to/from California
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Southwest has renewed its systemwide fare sale with some of the best rates we've seen for fall and winter travel. Coast-to-coast fares are on sale for under $200 roundtrip, and travel on selected routes to/from California starts as low as $38. For most fares, book tickets at least 14 days before departure and by Thursday, Oct. 24.

> More...

Four airlines match systemwide fare sale from $50 R/T
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ATA is celebrating its 30th anniversary with a new sale that features travel to/from Chicago (Midway) and other airports in the Midwestern U.S., with fares starting at $50 roundtrip. In addition, you can fly cross-country for under $200, and save on fares to/from Hawaii, Mexico, and the Caribbean. Travel is permitted between Oct. 15, 2002, and Feb. 12, 2003. For the lowest fares, book tickets online and by Oct. 14; tickets purchased off-line will be $10 higher per roundtrip.

> More...

R E A D E R R A N T S & R A V E S

This Week's E-mail Bag
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"American Airlines continues to shortchange its best customers. Recent observations:

"Platinum service is handled by less trained experts. Service is no better than contacting a typical ticket counter agent.

"Tickets are no longer valid after the date of departure. You miss your flight, the next day you start all over and your ticket is worthless.

"ORD-ATL first class, 1-1/2 hour flight: served a bag of peanuts."

- Rich

"When Milespree.com launched it's site, they promised a free flight with 25,000 miles. You receive the miles by clicking on partner sites. As the Miles started to build, they would say only "x" amount of miles needed toward your free flight. I noticed that they recently changed their Policy. Only 7500 "click & earn" miles will apply toward the free Flight. That obviously sets me and countless others way back. I wrote them (twice - before I received a definite answer). They said.... "it was Uneconomical for us to allow more than that number of miles to be Redeemed towards a free ticket". Why should those loyal to the program be targeted? Shouldn't it just affect the those who joined since the Adjustment?"

- John

S W E E P S T A K E S & F R E E B I E S

Win a Golf Vacation from US Airways
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The prize: a trip for 2 to a Jim Flick Premier Golf School at Pebble Beach, including first-class air, hotel and rental car.

To enter, join US Airways Golf and fly on a qualifying US Airways fare (F, A, J, C, Y, B, or U) between now and Dec. 31.

Once registered, US Airways Golf members will earn 1 sweepstakes entry for each roundtrip taken in North America, and 2 entries for each roundtrip to Europe.

> More...

[Other travel-related sweepstakes and giveaways are online here.]

Until next week...