| Issue #22 -- November 19, 1998
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Thanksgiving Travel Tips
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The Air Transport Association (ATA) is projecting that a record 18 million Americans will fly during this year's Thanksgiving travel period. Their day-by-day forecast:
1998 Thanksgiving Holiday
Traffic and Load Factor Estimates
PASSENGERS LOAD FACTOR*
(000) (%)
NOV Fri 20 1,770 75.7
Sat 21 1,750 74.7
Sun 22 1,600 68.7
Mon 23 1,560 66.7
Tues 24 1,690 72.4
Wed 25 1,510 64.6
Thur 26 1,090 47.0
Fri 27 1,410 61.1
Sat 28 1,910 81.5
Sun 29 2,090 88.8
Mon 30 1,920 81.5
DEC Tues 1 1,620 69.3
TOTAL 18,150
* Load factor = percentage of seats occupied
Remember that the load factors are averages, across all flights, so you should expect heavier loads (= fuller flights) in more popular travel markets.
To make the best of the crowded airports and full flights, the ATA offers the following tips:
>> Leave for the airport early enough to allow extra time for potential airport traffic, parking delays and longer luggage check-in and security screening lines. Arrive at the airport at least one hour before your flight is scheduled to leave; two hours for international travel.
>> Passengers must travel with a valid photo identification and keep the I.D. with them at all times.
>> Make sure that all checked and carry-on bags are properly tagged, both inside and outside, with the ticketed passenger's name, address and phone number. Free identification tags are available at airport ticket counters.
>> Always carry medicine, cash, jewelry, passports, visas, business papers and other valuables such as cameras on-board with you.
>> Prepare yourself for flight by getting a good night's sleep and eating a light meal before your trip. Drink plenty of water or fruit juices before and during flight to prevent dehydration.
>> Pay close attention to in-flight announcements about restrictions regarding the use of portable electronic devices such as personal computers and C.D. players. Cellular telephone use is prohibited during all phases of flight.
>> Passengers should be aware that any jokes regarding security issues, such as bombs, are no laughing matter and will be taken seriously. In the past arrests have been made in response to these types of comments.
>> Do not leave luggage unattended or with strangers.
>> Do not carry any item from a stranger, or any luggage or packages that someone else packed.
>> Do not pack hazardous materials, such as matches, lighters or flammable liquids in your luggage.
>> More <<
ATA's website
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Full Flights Get Fuller
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It's NOT your imagination... airline flights within the U.S. are fuller.
If current travel patterns hold for the remainder of this year, U.S. airlines will report an average load factor of 70.9% for 1998, up from 70.5% during 1997. Compare those with figures from 10 years ago, when load factors averaged 62.5%.
No wonder we're crabby!
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Southwest to Enter New Longhaul Markets
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Southwest Airlines will begin offering daily nonstop service between Austin and Los Angeles; Austin and Tampa; Kansas City and Seattle; and Kansas City and Orlando, all beginning February 5, 1999.
The new flights will be operated with newly acquired Boeing 737-700 aircraft, which make possible nonstop service on routes which previously required a stopover.
The new flights also offer customers the opportunity to fly between Tampa and Los Angeles with one stop but no change of planes in Austin, or between Orlando and Seattle with one stop but no change of planes in Kansas City.
Fares are as follows:
7-day advance Unrestricted Other Airlines
one-way/requires Full Fare Unrestricted Full
roundtrip purchase One-Way Coach One-Way
Austin/Los Angeles $142 $238 $645
Austin/Tampa $125 $209 $533
Tampa/Los Angeles $243 $399 $804
Kansas City/Seattle $214 $355 $694
Kansas City/Orlando $119 $230 $645
Orlando/Seattle $282 $399 $903
This is good news for value-conscious travelers, and a wake-up call to full-priced airlines serving these markets.
>> More <<
Southwest online
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Alaska Airlines Gives Away a Million
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Alaska Airlines is celebrating its 10th anniversary in Mexico by giving customers a chance to win one million Mileage Plan miles and thousands of other prizes.
Special "10th Anniversary in Mexico" scratch cards will be distributed on all Alaska Airlines flights between November 22 and December 22, or while supplies last. To play, participants scratch off the nine squares on the cards to reveal nine symbols. If any two symbols match, the cardholder wins the prize or discount stated in the prize block on the card.
In addition to one million miles in the carrier's frequent flyer program, other prizes include free trips on Alaska Airlines, Holland America cruises to Alaska, free stays at Westin Hotels, free Avis car rentals, and thousands of awards for mileage and travel discounts.
One scratch card will be distributed per passenger on Alaska Airlines flights. Participants must be 18 years old or older to receive a scratch card and be a legal U.S. or Canadian resident to claim a prize. Other restrictions apply.
You can, however, participate without taking a flight.. Game cards and official rules can be obtained by sending a self-addressed stamped envelope to: Alaska Game Request, PO Box 1277, Lynnwood, WA 98046-1277. Requests must be received by December 22, 1998. Limit is one request for a game card per envelope, per day, per person. Washington residents may omit return postage for game piece.
>> More <<
Alaska online
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Online Discounts for Hertz Rentals
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Hertz is offering special discounts for car rentals booked through the company's website.
Located in the "Special Offers" section, Hertz's "Web Deals" allow Hertz web site visitors to take advantage of a 20% savings off online reservations. The 20% savings are available to visitors who book reservations on hertz.com. The savings are off standard and leisure weekly and weekend rates and are available on economy through full-size, four-door car classes through December 15, 1998.
If you haven't visited the Hertz site lately, you'll find a variety of features to make their car rental experience as easy as possible, including a fully interactive on-line reservations system, on-line enrollment for #1 Club Gold, #1 Club Gold member profile updates, enrollment request forms for Hertz's Business Account Program, an expanded fleet section and worldwide listings of Hertz's locations and reservations numbers.
>> Caveat <<
Before committing to an online rate, it's worth a call to Hertz to confirm that the net price of the online booking (published rate minus the 20% discount) is actually lower than what's available over the phone. There continue to be discrepancies between online pricing and on-the-phone pricing.
>> More <<
Hertz
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Preview Offers Discounts, Bonus Miles
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Preview Travel has a number of special offers for travel during the holiday season, including a $99 companion fare on Delta Air Lines (as reported in last week's Crier), $100 cash back for Hawaiian vacation packages booked online, and up to 1000 free bonus miles good for frequent flyer programs on seven major airlines.
>> $99 Delta Companion Fares: Purchase a qualifying Delta Air Lines ticket on Preview Travel with a minimum value of $229 by November 30, 1998 and earn a $99 round-trip coach class companion ticket for future travel.
>> $100 Cash Back on Hawaiian Vacation Packages: Purchase a Hawaiian vacation package online with Preview Travel, with a minimum value of $1000 before December 7, 1998, and get $100 cash back in the form of MasterCard Travelers Checks.
>> Up To 1000 Bonus Frequent Flyer Miles: Book an airline ticket on Preview Travel and get 500 ClickMiles from ClickRewards, redeemable for frequent flyer miles on seven major airlines. Book an airline ticket plus car or hotel and get 1000 bonus ClickMiles. These miles are in addition to any miles available directly through airline frequent flyer programs. Reservations must be made online between November 16, 1998, and November 30, 1998.
>> More <<
Preview Travel
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Northwest-Continental Merger Imminent
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As reported in recent issues of The Crier, Northwest's plan to acquire Continental stock, and the two carriers' further plans to code share and integrate frequent flyer programs, have come under antitrust scrutiny from the Department of Justice.
Although the government has filed a civil suit challenging the merger portion of the partnership, the carriers had signaled their intention to proceed anyway. And, according to Northwest, the two carriers will be proceeding sooner rather than later. An announcement in fact could come as early as next week.
If the DOT does not order a further 60-day delay (as it is empowered to do), the frequent flyer program tie-up could begin as early as December 4.
>> More <<
o Northwest
o Continental
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The Business Traveler Profile, According to OAG
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According to results of a recent business-traveler survey, nearly nine in ten business travelers say they are bound by some form of corporate travel policy, compared with two thirds last year.
The shift shows how companies worldwide are tightening up on business travel to control costs, according to the latest OAG Business Travel Lifestyle Survey from OAG Worldwide, a supplier of travel information.
The survey's findings, polled from more than 3,000 of the most frequent travelers from nine countries across America, Europe and the Asia-Pacific region, identify their habits, and probes the growth -- and limitations -- of the Internet. The findings reveal that:
-- Despite its glamorous image, international business travel is not for the young. Only one in ten of very frequent business travelers is under 35; the average age is 47. Today's business traveler tends to be male, married and a senior manager in a small company;
-- Business travelers are making the most of their trips -- with longer durations, involving more nights away in hotels (45 nights a year on average), although the actual number of trips has fallen slightly this year to 20 from an average of 21 in 1997. Travel agents remain a powerful influence in planning and booking these trips, but travelers expect that their influence could wane, in the future;
-- Despite the alluring image of the global corporation, small sites are doing the international business, traveling their way out of the threat of global recession. Nearly two-thirds of all business travelers work at a company site with fewer than 100 staff, and only three in ten are in manufacturing;
-- Nearly half of international business travelers either drive or take a taxi to the airport, and relatively few use public transportation. Inside the airport, travelers head for the VIP lounge and the free bar, while in the hotel, they want to watch satellite-cable TV;
-- One in five travelers have had carry-on items refused at check-in within the past 12 months -- and four in ten would change their airline if carry-on luggage rules became too strict; and,
-- Changing flight plans while on the road is a fact of life -- 96% of travelers have done so.
The more business executives travel, the less they rely on travel agents for flights; and the more they rely on independent printed guides, the more highly they rate them. Among business travelers making up to 10 trips a year, 17% use guides and 63% use travel agents. But among those making more than 30 trips a year, those using guides goes up to 31% and the number using travel agents down to 57%. A quarter of all business travelers use printed guides to book flights and 15% use them to book hotels.
More laptops are taken on trips than ever before -- six out of ten travelers will use them during a flight, and 97% in the hotel. Three-quarters of business travelers with laptops had an Internet connection and more than half used this facility while away.
Cultural traits again shine through. The Brits are best at rebelling against company travel policies, the French are comparatively nonchalant about safety and punctuality, and the Germans punish themselves with the longest time away. The Italians get upset if challenged on their amount of carry-on luggage, while Americans play computer games on their laptops. The Australians love the VIP lounge, and the Japanese are fond of good luck charms. The Singaporeans hit room service hard, while Hong Kong travelers head for the chauffeur-driven limo.
And, all travelers like their frequent flyer membership, with the momentum of recent years maintained at a very high level. The international business traveler still belongs to just over three programs on average, while employers have dug their claws deeper into control of this area. Nearly nine in ten of the most frequent business travelers are now bound by some form of corporate travel policy.
This year's survey probed deeper into the use of the Internet, to establish the use of this medium, and predict its progress. About two-thirds of all travelers surveyed have access to the Internet and one third have used it to get travel information. But fewer have used it to book flights (10%), hotels (13%) or rental cars (just 6%), indicating that there is still a leap of faith to be made between browsing and booking on-line.
NOTE: The OAG Business Travel Lifestyle Survey 1998 represents the views of more than 3,000 business travelers from the UK, France, Germany, Italy, the United States, Japan, Hong Kong, Singapore and Australia.
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Commission Cuts Rile Travel Agents
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Travel agents -- reeling from a series of airline commission cuts -- now face deep reductions in what they believed was their one remaining bright spot in air travel earnings, international commissions.
Predictably, they are reacting strongly to a string of announcements--precipitated by United--that will place a cap on agents' international air ticket revenues.
According to Travel Weekly, an industry trade publication, travel agents were angered and disappointed by the airlines' moves to cap agents' commissions on international travel at $50 one way and $100 roundtrip, effective immediately. This means that agents will lose income on every roundtrip ticket priced at more than $1,250 and every one-way ticket costing more than $625.
In a heated response, some travel agents have gone so far as to suggest that the airlines are mounting a concerted campaign to drive travel agents out of business. This is simply ridiculous. What the airlines are doing is squeezing the distribution system--where travel agents have traditionally accounted for 85% of ticket transactions--in order to reduce the cost of sales and increase profits. Commissions are the industry's third-biggest cost, after labor and fuel.
While the agents' complaints may be hysterical, the airlines' claim to be "cutting costs" (with the implied corollary that prices will fall) is disingenuous. The commission cap comes amid price increases and record profits, and the airlines are clearly chasing more of a good thing.
How will this affect you?
>> The trend toward travel agent service charges (begun when airlines capped commissions on domestic tickets in 1995) will accelerate. If you assume that ticket prices will remain stable, your overall cost of travel will therefore increase, if you continue using a travel agent to manage your travel.
>> If, in order to circumvent the increased agent fees, you begin booking directly with the airlines, your costs will also increase, because you will lose the savings that travel agents' expertise can deliver.
>> If you're a travel agent, retool.
>> If you're an investor, hold onto those airline stocks.
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Cathay Pacific Promotes New Service with Bonus Miles
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Cathay Pacific has introduced a special AAdvantage bonus miles offer for first and business class travelers to Hong Kong on its new San Francisco service starting December 1, 1998.
All business class and first class passengers traveling roundtrip from San Francisco to Hong Kong onboard Cathay Pacific's new daily, nonstop flight between December 1, 1998 and March 31, 1999, inclusive, can earn an additional 25,000 AAdvantage miles. Passengers traveling one-way can earn 10,000 bonus miles.
These bonus miles are on top of traditional mileage accruals. Business class passengers already earn 125 percent of miles flown and first class passengers earn 150 percent of miles flown. And, since Cathay Pacific is an elite qualifying partner airline, flying one roundtrip to Hong Kong brings AAdvantage members more than halfway to AAdvantage Gold status.
>> More <<
Cathay Pacific online
Passengers must pre-register for the bonus miles before flying by calling AAdvantage Dial-in toll-free at 1-800-882-8880. The promotion code for this offer is C-X-S-F-O (29736).
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American to Acquire Reno Air
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In order to enhance its overall airline network and strengthen its presence in the Western United States, American Airlines, a subsidiary of AMR Corporation (NYSE: AMR), said today it has signed a definitive merger agreement with Reno Air (Nasdaq: RENO) to acquire Reno Air for a total cash consideration of $124 million.
The merger agreement provides for a cash tender offer which would commence no later than Wednesday, Nov. 25, 1998 to acquire all of the outstanding common shares of Reno Air at $7.75 per share. In addition, American will also tender for any and all of Reno's outstanding 9% Series A Cumulative Convertible Exchangeable Preferred Stock at $27.50 per share.
The board of directors of Reno Air has recommended that stockholders tender their shares pursuant to the offer. The parties hope to close the transaction in the first quarter of 1999.
American, which has had a marketing partnership with Reno Air since 1993, said there is virtually no overlap on the routes served by the two carriers.
>> More <<
American
Reno
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New @ FrequentFlier.com
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The latest addition to FrequentFlier.com is a polling script, which lets you vote on a variety of travel-related questions, and immediately view the results.
We went live with four polls on November 15:
++ Best U.S./Canadian frequent flyer program
++ Best hotel chain
++ Factors influencing choice of airline
++ The Northwest-Continental merger: pro or con
Using Internet technology, we can mount these polls in response to current events, and you can see the results in real time... no waiting for the "prize ceremony" typically attending the release of survey results.
>> More <<
Cast YOUR Vote
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Miscellany
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A Las Vegas woman won the world's largest slot jackpot Sunday night when she hit a Megabucks jackpot worth $27,582,539 at the Palace Station Hotel & Casino in Las Vegas. This jackpot eclipses the former world record jackpot amount of $14,014,995, hit on a Super Megabucks machine September 19 at Harrah's Reno.
The winner, a retired international flight attendant in her mid-60s, requested anonymity, but answered questions at a news conference while concealed behind a screen. She said she had a feeling the huge jackpot was going to hit at the Palace Station. She'd been playing for about an hour and had "invested" $240 when she lined up the three winning symbols.
"The machine that I played on occasionally was open; every other one was occupied," the winner recalled. "I sat down at the machine and after playing the first $100, I put another $100 in the machine. Then I put in another $100 and won after playing $240.
"I was more worried about the woman sitting next to me," she added. "When she saw that I had won, she got up and ran and left all of her money in the machine's coin tray."
This is not the first time the new Megabucks winner has been lucky. About a month ago, on the same day her husband retired, she won a Wheel of Fortune MegaJackpot worth more than $680,000. The winner, a 25-year Las Vegas resident, has been playing at the Palace Station since it was known as the Bingo Palace. She said she plans to share her winnings with her three children and one grandchild, all of whom live in Las Vegas.
"Certainly we will do some travel and see some places we have always wanted to see, but there is no way we can decide everything we will do at this point," said the lucky winner. "We will handle the money intelligently and enjoy it with our family. We don't really want anything to change."
Something to dream about while you're earning those miles, one at a time.
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