U P F R O N T
This Week, Readers Show Their Ghoulish Side
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As regular Crier readers know, in most issues we include selected reader feedback in the "Rants & Raves" section. The quantity varies, according to the prevailing mood in the travel community, breaking news, space availability, and the alignment of the stars.
Occasionally, the feedback wave reaches tsunami proportions, forcing us to make tough editorial decisions in pursuit of the proper balance of quantity, quality and relevance.
Tsunami season is upon us.
I'm sitting on so much print-worthy feedback -- informed, articulate input from road warriors with a personal stake in the future of the travel industry -- that it would be an affront to the Gods of Interactivity, and a disservice to you, to let it go unpublished.
And it IS Halloween week.
Let the howling begin...
H O W L I N G O N H A L L O W E E N
Hertz' New Mileage Surcharge: More Trick than Treat
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[We begin with a raft of notes on the subject of Hertz' new frequent flyer surcharge. Two issues ago, we reported, negatively, on the new fee, imposed for rentals on and after Oct. 1. And last week, a Hertz rep fired back a justification for the new charges. The discussion continues...]
"FrequentFlier.com is great! I must take exception to the statement of Mr. Richard Broome, Vice President Corporate Affairs, The Hertz Corporation. In the last month, over a period of three weeks in a row, I rented a vehicle (each one with the Hertz Neverlost System) for a week each in Salt Lake City, Las Vegas, and Ft. Lauderdale from the airport locations of Hertz, and specifically requested that points be credited to my Delta Frequent Flier account. I was NOT told a single time by anyone about any surcharge. I only learned about the surcharge from the "FrequentFlier Crier". I called Hertz and made an advance reservation each time, yet Mr. Broome stated to you, "If a customer calls Hertz to make a reservation, or books a reservation at Hertz.com, he or she will receive very direct, clear disclosure about the existence and the amount of the surcharge, if electing frequent flyer awards.
"In my case, Mr. Broome's statement was totally false."
- Greg
"Richard Broome, Vice President Corporate Affairs for The Hertz Corporation was feeding you and all your readers, which include me, a blatant misrepresentation of the truth. The last time I used Hertz, no one said anything to me about a surcharge - it just appeared on the bill."
- Mike
"Tim, please don't let Richard Broome get away with his slick response.
"Comparing frequent flyer fees to Neverlost is comparing apples and oranges. He should be comparing ff fees to other MARKETING costs.
"Because they purchase ff miles to give (or should I say sell) to their customers, they get advertising at no additional cost on the airlines' web sites. This is a marketing expense, as are TV commercials, USA Today ads, and their website. Do they impose a surcharge for people who rent after seeing a TV spot or a USA Today ad? Do they impose a surcharge to recover the cost of the Hertz.com website on customers who use the website? No they don't, they "spread these costs among all customers".
"In the past I've rented from Hertz a couple or three times per year. Obviously they won't miss me, but I will not rent from them again because they are targeting me to pay their marketing costs."
- Joe
"I, for one, will no longer be among the 1/3 customers who choose frequent flyer award with Hertz. My business will go elsewhere."
- Shane
"I comment only because I think fair is fair and, if those who do right don't get credit, those who do wrong will get a free ride.
"My experience with Hertz for the past several years has been this: At the time of a telephone reservation they ALWAYS tick off all the extra charges and taxes and discounts (boring) and they ALWAYS tell me the estimated total cost of rental (very important). That is, they tell me the amount that I can eventually expect to see on my credit card statement. These estimates have always been correct within a dollar.
"On a slight down note, when I'm using a special coupon offer or the like, the discount sometimes does not show up when the total first appears on the waistband computer terminals used by the Hertz people in the parking lot, the ones who check in the cars. (I think this is because they sometimes have to see the coupon before applying the discount.) HOWEVER, since I know the total I'm supposed to pay, I always can recognize the discrepancy immediately and, almost always, get the correct amount fixed right there on the lot. On rare occasions have I been required to go to the inside counter to get my coupon discount, but I always get it.
"The point is, however, this: Hertz does state the grand total at the time of making the reservation (in my experience) and it has never charged me more than that amount, as long as I have returned the car at the expected time. I am personally very glad for this practice of Hertz, because I have heard some horror stories with other rental companies."
- John
[If you are NOT up to speed on the new fees -- and for that matter, the old fees -- see our coverage at http://frequentflier.com/ffc-101602.htm.]
Take That, Travel-Tech Weenies
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"My "Rant and Rave" has to do with travel websites that don't work.
"I travel extensively (about 150 nights/year in hotels, 75-100 airline round trips/year) and find these sites terribly irritating. I am a Hertz #1 Club Gold member and have never been able to book a car on their website (I always have to call the 800# or use Expedia, which usually gives me a less expensive option than Hertz!).
"I cannot get an e-ticket on American Airlines, the airline that claims to have invented e-tickets! When I call and complain, they can never give me a reason why and it never gets fixed. If you haven't flown an airline or stayed in a hotel chain in awhile, you can't set up an online profile if you moved more than a year ago (they send everything to your old address). Security is the excuse this time (surely if I know enough about myself, they should be able to let me change my address online, but no deal - you have to call and wait for a customer service rep).
"The internet should be saving time and money, but doesn't when the tech weenies make all the decisions and create inconveniences for the paying customer!"
- Bill
AAdvantage Rate Hike: Sleazy
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[We reported last week, without comment, on American's plan to increase mileage levels for selected awards, beginning May 1, 2003.]
"Do you think you might be being too easy on American in this case, and on the industry in general?
"Surely raising award thresholds is not the same as raising the price of a good or service offered for cash, for two reasons:
"1. Award miles are in effect a deferred rebate or discount. Every time the price of air tickets goes up, the price of accruing miles goes up too. So there's no 'inflation justification' for raising the award thresholds -- doing so is really a double hit for miles account holders.
"2. Any traveler who bought air travel in the past did so on the basis of a mutual understanding between them and the airline of what a mile was worth: in effect, what the discount/rebate would be. So by what right does an airline change the discount/rebate on transactions that have **already**taken**place**? It's exactly the same as my selling you a can of paint, say, for ten dollars, promising you a rebate of fifty cents in a year's time, then reneging when you come to collect and saying your rebate will only be forty cents.
"If the airlines can change the rules after the bargain is struck, why can't I? What's to stop me saying, after I've bought a ticket and traveled on it, "sorry, I changed my mind -- I know I agreed to pay a thousand dollars but now I'm only going to pay nine hundred dollars. Give me a hundred dollars."
"The reason the airlines can get away with moving the goalposts like this, but you and I can't, is that they are big, oligopolistic corporations and because (I guess) somewhere in the fine print to which we assent when we participate in mileage programs, there's a provision allowing them to change the terms "at their sole discretion" or some similar legalese.
"But that doesn't make it any less sleazy."
- Angus
Performance: What Matters
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[In response to our report last week on the airlines' worrisome 3rd-quarter financial results...]
"Quick note on the 3rd QTR earnings... I personally think that it is not appropriate to quote earnings/losses including special items, as you have, as most of those items do not have a cash impact. I believe that CO had a positive operating earnings, which speaks volumes about them. At the same time, much of AA's ~$500 MM special items charge was related to aircraft and goodwill write downs, none of which impacts cash. For your average reader, I would suspect the numbers would be more meaningful without the one-time costs."
- Glenn
[We report the "big picture" earnings numbers, which admittedly sometimes obscure good or bad news at the operating level. On the other hand, focusing on cash flow, as Glenn suggests, just as surely obscures the big picture. As a non-financial publication, I think our broader focus is appropriate. But we'll bear Glenn's point in mind when the time comes to report on 4th-quarter results.]
Until next week, when we'll resume our normal format...
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