Frequent Flyer Miles: Are You Using or Losing Them?

United Airlines recently announced its first quarter 2010 revenue and added an extra $64 million from expiring frequent flyer miles.  They are also forecasting an increase in total 2010 revenue of $256 million strictly due to expiring miles.  This is obviously showing a trend that more travelers are letting their frequent flyer accounts go dormant. 

Each airline has a specific policy, but typically some or all revenue from frequent flyer miles is deferred until expiration.  When expiration occurs, that worth is added back into the airline’s revenue stream.

Airlines are developing enough creative ways to make more money (e.g., baggage fees, checking bags at the airport, holiday travel surcharges, etc.).  Do we need to help them by giving them free money?

Below is a quick guide to the frequent flyer expirations of the major domestic airlines:

• No expiration–Continental
• 24 month expiration–Delta
• 18 month expiration–American, United, US Airways

Expiration occurs when there has been no account activity within the timeline stated.  There are many ways to combat mileage expiration, including:

• Purchasing (and flying on) a ticket
• Utilizing an airline credit card
• Earning miles with any of that airline’s frequent flyer partners (including air, hotel and rental car options)
• Purchasing miles from the airline
• Redeeming miles with the airline or their partners for travel, merchandise, car rentals and hotel stays

Keeping your account active–and your miles available–is relatively easy.  However, should you find you are just not traveling on an airline as much as you used to, consider donating them to a charitable organization.  A good resource for listings of charitable organizations can be found at: http://www.miledonor.com/help/information/sponsoredcharities.php

Know Your Rights When Getting Bumped!

“Attention in the gate area.  If you have flexible travel plans, we are giving out $400 vouchers … “

We’ve all experienced those announcements at one time or another and who doesn’t want a free airline ticket?  Of course, that free ticket comes at a price, such as a possible wait of many fun-filled hours to take a later flight.  Where some people can jump at the chance to be bumped, others have pressing business or personal responsibilities to get back to.

Southwest Airlines, popular for its down-to-earth boarding announcements and crew entertainment, recently was fined $200,000 for violating rules on bumping travelers off flights.  In 2009, Southwest bumped 13,113 passengers–80 percent more than the next closest carrier (it is important to note that Southwest does carry the most U.S. travelers of all airlines)

I’ve come very close to being involuntarily bumped; luckily though, my persistent wait next to the gate agent has always ended in a last-minute invitation to board the plane.

If you are in danger of being the last man standing in the gate area, keep in mind that the U.S. Department of Transportation does have regulations that they aren’t afraid to enforce:

• If substitute transportation gets you to your final destination within one hour of your original time, no compensation is needed.
• If substitute transportation gets you there between one and two hours of your original time, you receive compensation equal to your one-way fare, with a $400 maximum.
• If substitute transportation delays you by more than two hours or if other travel arrangements aren’t offered, compensation doubles, with an $800 maximum.
• You always get to keep your original ticket and use it on another flight; other compensation is essentially payment for your inconvenience.
• You have the right to insist on a check instead of a voucher for future travel.

Of course, with regulations come exceptions, so be aware:

• Each airline has a check-in deadline.  Most domestic flights require you to be at the gate 10-30 minutes before departure, but some deadlines can be an hour or longer.
• If the airline must substitute a smaller plane for the one it originally planned to use, the airline isn’t required to provide compensation. 
• Aircraft size matters: no compensation is necessary for flights with fewer than 30 seats or flights with 30-60 seats if you are bumped due to safety-related aircraft weight or balance constraints.

Additionally, airlines can decide for themselves the order in which they will bump.  Some bump the lowest fares first while others bump the last passengers to check in.

Finally, if you are considering volunteering to be bumped, some good things to keep in mind include:

• When is the next flight where you will have a confirmed seat?  The airline may try to put you on standby, possibly leaving you stranded.
• Will the airline provide other amenities while you wait such as free meals, hotel room, transfers between hotel and airport, etc.?  Don’t spend your “free” money on food or lodging while you wait.
• Ask about restrictions: How long is the voucher valid? Are there “black out” periods? Can it be used for international flights?
• Playing hard ball with an airline may be fun, but the lure of a voucher can be popular with travelers and airlines will usually go with the lowest bidder(s).

Putting the “Spirit” Back in Travel

Spirit Airlines seemingly acted as the Scrooge of airline travel with its recent announcement that it will implement fees, ranging from $20-$45, when passengers use the carry-on overhead storage space.  After poor reception from the general public and Congress, most major U.S. airlines have committed to not charge carry-on fees. 

Though nobody likes extra fees, I have found a silver lining to the Spirit plan: if you fly Spirit, you will be charged significantly less to check your bag which should pleasantly decrease the amount of travelers trying to stuff unrealistic bags into overhead storage and decongest airports and airline aisles. 

Spirit’s website notes fees of $20-$45 for carry-ons, but only $15-$25 for checked luggage.  So, it’s cheaper to check your bags and you avoid the inconvenience of lugging your bags through two, or even three or four (depending on your number of connections), airports.

According to Spirit Chief Operating Officer Ken McKenzie, its new fee structure ”will reduce the number of carry-on bags, which will improve inflight safety and efficiency by speeding up the boarding and deplaning process.”  Hopefully people on Spirit will decide to check their bags as the logistics of this new procedure leaves my head spinning.   How long will it take a traveler to find his reserved bin?  What if someone else takes his reserved spot?  How many people will try to ”sneak” large carry-ons on board without paying for them?

One other note of interest … did you know that Spirit was the first airline to charge for checking bags in 2007?  Most carriers then followed suit, implementing the same structure by 2008.  There is a lot of controversy right now, but how long will it take some airlines to change their mind?

The airline industry is ever-evolving as they try to increase their profit margins, just like any good business does.  It will be interesting to see where we go from here!

Planning Ahead Reaps Large Benefits

As we’ve documented here recently, airlines are claiming their expanding ”unbundled” fee structures are in place to benefit us travelers.  Whatever your thoughts may be on that, it is becoming more important than ever to plan ahead as much as possible.  I know that is often easier said than done when it comes to business travel.

It has been common knowledge for years to book three weeks or more in advance to obtain the greatest possible savings.  Going beyond that simple rule of thumb, airlines are now rewarding the planners among us with a variety of “discounted” fees.

• Check Your Bags Online: Many people are printing their boarding passes online–or even saving the pass to their mobile phone–so checking your bags online is often convenient, as well as a cost-saver.  A number of airlines have jumped on the bandwagon to charge $5 more for checking bags at the airport.  Of the major U.S. carriers, only American does not give an online discount.  As a side note, currently only two carriers allow complimentary checked luggage: Southwest (two bags) and JetBlue (one bag).
• Consider Alternate Holiday Travel Dates: It should come as no surprise that traveling around holidays usually carry heftier ticket prices.  What may surprise you is that some airlines are also incorporating surcharges of as much as $20 on peak days.  What you think may be a lower holiday fare may not turn out to be when all is said and done.  Airlines are also expanding these surcharges to include holidays outside of the peak times of Thanksgiving and Christmas, such as spring break and Memorial Day.
• Pack Less: This tidbit needs no explanation!  Most airlines are charging more and more for checked bags, with one airline making big news in our blog–and across the news outlets–by charging for carry-ons.  I know I have done away with my “back-up outfits” and extra pairs of shoes to travel as lean as possible

In addition to planning ahead, this also encourages discussion around modifying your current travel policy to either prohibit certain behaviors or reward travelers who keep extra costs to a minimum.

You May Want to Skip That Extra Glass of Water

If you’re a frequent traveler, you may have joked about it over the water cooler—airlines going so far as to charge for using the restroom in-flight.  That joke may be coming closer to reality with the announcement that Ryanair, Europe’s largest airline, is working with Boeing on a coin-operated door release system for flights less than an hour in duration.

This comes soon after Spirit Airlines became the first airline in the U.S.—perhaps the world—to charge fliers for carry-on luggage stored in overhead bins.  This news comes as part of Spirit’s complicated new fee and fare structure to promote its “$9 Fare Club.”  By paying an annual fee of $39.95, Spirit’s website says members can receive fares as low as a penny … and starting August 1, 2010, will receive lower costs for utilizing overhead storage bins.  Find out additional information here.

These increasing ancillary fees makes it critical to partner with a travel management partner who will negotiate strategically on your behalf.  Achieved concessions often include complimentary memberships into frequent flyer and fare clubs or total elimination of those dreaded ”nickel-and-dime” costs.

Elite Status Offers a Lot More Than Comfort

As we move further into the 21^st century, the words “nickel and dime” are becoming synonymous with traveling.  What’s the best way to combat it?  Become Elite members of frequent traveler programs.

Airlines and hotels are always tweaking their Elite offerings to stay ahead of the competition.  What’s new?

Hotel Internet Utilization

The newest trend is to offer complimentary Internet usage to a brand’s most loyal customers.  Marriott just announced their Platinum (75 nights) and Gold (50 nights) members will no longer be charged for Internet at top-tier hotels—JW Marriott, Marriott and Renaissance (lower tier offerings, such as Courtyard, already give complimentary access to everyone).

Even better?  Fairmont already offers complimentary Internet to all members of its President’s Club—all you do is enroll; no stay or night minimums to achieve.

Other brands who have begun to offer complimentary Internet to Elite Club members are Hyatt (five stays or 15 nights), Hilton (16 stays or 36 nights) and Starwood (25 stays or 50 nights).

Internet is a seemingly nominal fee that, when all is said and done, can account for annual costs of $8,000 or more (average ATM client utilizing 615 room nights/year x $13.00 average daily internet cost).

Airline Standby

American announced last month only elite members of AAdvantage (as well as first/business class travelers and military members) can standby at no charge.  Non-elite coach travelers will be charged $50 for same day standby.  With American implementing this policy, currently United is the only major domestic player to still allow same day standby at no charge to all travelers.

Rain, Rain Go Away

The New York Times had an interesting article about the challenges that come with weather delays, especially now that airlines are still cutting capacity in some areas.

Though spring is nearing and the chance of snowstorms are decreasing, Mother Nature can still create havoc with winds, thunderstorms, tornadoes, etc.   Keep the following in mind if you’re fearing, or experiencing, a major delay or cancellation:

Preparing

• Be Proactive–Keep an eye on the weather and consider rebooking prior to your departure date.  Airlines can be lenient to avoid logistical nightmares during a weather event.  Check out your airline’s website for options.  A quick look at Delta’s website today gave this notice for certain flights:

•  Think about Travel Insurance–Airlines typically refund your ticket cost if a reasonable alternative can’t be found; however, hotels and pre-paid tour packages may not.  Travel insurance can help you recoup some, if not all, of those lost costs.  This is also a good safety net, in the unfortunate situation of a medical emergency incurred by you or a family member.

In Transit

• Call 24/7 Travel Agent–If you booked through Advantage Travel, you will never receive a voice-mail.  An agent will outline all your options, including which airlines have given out weather waiver codes.
• Hit the Net–If you have a wireless-enabled device, or can call someone with access to the internet, avoid waiting on hold by rebooking online.
• Be Aggressive–You’re at the gate when your flight gets cancelled.  You automatically call to be rebooked and are thrilled to find they’ve automatically rebooked you … until you find out your new flight is seven hours from now.  That scenario happened to me just last month even though there were two earlier flight options.  I asked about an earlier flight and they immediately switched it.  Additionally, all airlines have call center supervisors on duty for a reason.  If you feel you are being treated unfairly, ask to speak to him or her.
• Look at Other Airlines or Modes of Transportation–If your airline can’t find a reasonable alternative, ask to be refunded and look at other airlines, trains, car rentals, buses, etc.

Being lucky is a big part of stress-free traveling, but being savvy about your options can make your weather encounters a little easier.

Northwest and Delta Merger Update — Frequent Flyer Programs

Northwest and Delta continue to become closer to one airline as Northwest’s WorldPerks has officially merged into Delta’s SkyMiles.  All customers should have received their new 10-digit Delta SkyMiles numbers.

Highlights of the loyalty integration process include:

• SkyMiles is now the sole loyalty program for both Delta and Northwest.
• All former WorldPerks members are now SkyMiles members.
• All WorldPerks Elite qualification and redeemable miles and Elite and Million Air statuses will be automatically transferred into the SkyMiles account.
• No action is needed for existing bookings that include a WorldPerks account number—members will automatically receive mileage credit.

Please visit delta.com/what2expect for more information.

It is Advantage Travel Management’s top priority that our customers receive proper frequent flyer mileage credit.  Please update your travel profile by deleting your Northwest frequent flyer number and entering in your new Delta SkyMiles number online via Cliqbook powered by Concur.  If you do not have access to Cliqbook or need assistance locating your new SkyMiles number, please contact our agents.

Key Learnings from Commonwealth Business Travel Group Meeting

Colleen Hagg, Senior Vice President, Corporate Travel Operations, attended the recent CBTG (Commonwealth Business Travel Group) Meeting in Miami and engaged in many beneficial discussions.  Key highlights included:

- GDS Versus Non-GDS Bookings – Costs increasing and shifting

- Corporate Transactions Increasing - Over the past three quarters to year

- Many Corporate Travel Programs Still Unmanaged – Value of consolidated travel now higher than ever

- Fraud and Fake Shoppers on Rise – ARC presented on the latest in combatting fraud and providing additional assistance

- Generational Differences – Managing all age groups to provide optimal employee productivity

Keep Yourself Healthy As You Travel

Advantage Travel Management understands there are appropriate concerns around the H1N1 flu virus and we want to keep you informed as you continue to travel.

Traveler safety is our top priority and we encourage you to take common-sense precautions while traveling to help prevent the spread of H1N1 flu and other viruses.  Some of these include:

- Consider getting both the H1N1 and seasonal flu vaccines

- Cover your nose and mouth when coughing or sneezing with a tissue or the upper part of your sleeve, not merely your hands

- Frequently wash your hands with soap and water; if soap and water are not available, use an alcohol-based hand sanitizer containing at least 60% alcohol

- Consider seeing a travel medicine specialist or a doctor familiar with travel medicine at least 4–6 weeks before any international departures

- Pack a travel health kit that contains basic first aid and medical supplies

In addition to precautions you can take, the travel industry is taking measures, such as the ones listed below, to prevent further transmission of the H1N1 virus.

- Major hotel brands are implementing additional cleaning processes, such as cleaning and disinfecting commonly used items (TV remotes, phones, etc.) and commonly touched areas (elevator buttons, fitness equipment, etc.).

- Airplanes are utilizing high-quality air filtration systems similar to those used in hospitals

- Cruise ships and airports are making hand sanitizer readily available

We closely monitor the U.S. Department of State, the Centers for Disease Control and Prevention (CDC) and the World Health Organization’s (WHO) websites for regular updates.  Advantage Travel Management sends out travel alerts as often as necessary to communicate pertinent information gleaned from these sites.

- US Department of State – www.state.gov

- CDC – www.cdc.gov

- WHO – www.who.int

Again, we at Advantage Travel Management, encourage you to travel.  Keeping informed and taking precautions, such as the ones listed above will help you stay healthy!  Safe Travels!