Decoding Avios, part 2

Posted by Seth on February 9, 2012 under frequent flyer, points, Wandering Aramean Travel Tools | 12 Comments to Read

Since the introduction of the Avios loyalty program from British Airways and Iberia there has been much gnashing of teeth, frustration and – occasionally – excitement about the redemption options that the program offers. Short-haul flights, in particular, can be a tremendous value, as can regional flights within Europe and even a few long-haul flights where a non-stop routing is available. When a connection is involved, however, the points required can span quite a range meaning that identifying the smarter connection point is more of a challenge and not something that British Airways does a very good job of publishing on their website.

Good thing I like building tools to help clarify frequent flier program data like this. Welcome to the Avios Redemption Calculator.

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Put in your preferred city pair and the tool will search connections based on published routes and the Avios award schedule and spit out various non-stop and single connection routing options and their costs.

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It is definitely interesting to see how the cost can vary by more than 100%, depending on the routing chosen.

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The tool is still somewhat a work in progress as I’ve got a few more bits I want to add to it, especially more partner carriers, but the base functionality is up and running and pretty solid in my initial testing. Give it a try and see what you can come up with.

Searching for SWUable fares on Delta and United

Posted by Seth on February 7, 2012 under frequent flyer, points, Wandering Aramean Travel Tools | 9 Comments to Read

One of the great benefits of top-tier airline elite status is the upgrade certificates the programs issue. While American Airlines offers eVIPs which are valid on all fares, Delta and United Airlines have fare limitations on theirs, making shopping for upgradable fares a bit more difficult. On top of that, comparing the fares from nearby departure points or to nearby destination points can be time consuming and annoying.

Well, it is time for the annoyance and frustration to go away. It is time for an easier search interface. It is time for another update to the Wandering Aramean Travel Tools!

The United SWUable tool has been around for a while now, though it has recently seen a number of updates to get it back online after a short hiatus due to data source issues. The Delta version of the tool is a new addition and has just come out of beta and is ready for action.

Here’s how it works:

  • Head to either the United or Delta version of the tool.
  • Zoom in on the map to find your departure city or destination airport.
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  • Or scroll down and choose from the airports or price points listed.
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  • Check out the fare data and pick the option that works for you!
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The fares listed are EXCLUSIVE of taxes and fees. This means that any YQ fuel surcharges are not included. I wish they were, but the GDS from which the data comes doesn’t have them and I cannot just make up the data so I’m publishing what I’ve got. Still better than a poke in the eye. Also, the fares are published fares, not necessarily the lowest available on your specific dates of travel. Not perfect, but a good starting point. And the CPM is point-to-point, so odds are you can do better than that with creative routings on most city pairs.

Not seeing the fare you want, but hoping that it will happen? I’ve got a system set up for that, too. Click on the "Manage My Alerts" link and you can set up email alerts for various cities and price points. Every morning after the fare data is collected the system checks the alert queue and sends out emails if the fares are available.

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There’s also fare history (more useful for the United data right now, but the Delta data is building) so you can watch trends.

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The fare history page also has the actual numbers so you can see those bits, too. And I’ve fixed the bug that’s causing the multiple daily entries the past couple weeks.

Hopefully the tool can help you better apply the SWUs you’ve earned. Happy flying!!

Easy and FREE access to Korean Air award inventory

Posted by Seth on February 4, 2012 under Flying, frequent flyer, points | 21 Comments to Read

One of the more notable stories in frequent flyer land this week was that award inventory for Korean Air is being published into the GDSes, meaning that it is publicly visible and searchable. Both Gary and Ben mentioned it earlier today and both of them also note that folks can sign up for an ExpertFlyer account to search the inventory and setup email alerts for it. I’m a big fan of ExpertFlyer and I love the access they have to a lot of otherwise private inventory and fare data, but I’m also a big fan of free access to free data, and in the case of Korean Air awards and upgrades, getting the information for free is absolutely possible.

One of my many travel-related projects is the Wandering Aramean Travel Tools website. It includes, among other things, award inventory information for a bunch of airlines. And now that the data is accessible, Korean Air is part of that collection. You can search for award or upgrade inventory for free. And there’s even an email alert function that can be set, allowing you to get a message if the award inventory opens up.

Yes, you have to register to gain access to the data, but it is free and no strings attached.

Here’s a snip of what the search page looks like:

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Not particularly pretty, but quite functional. Also of note is that sometimes the system will provide options that don’t quite get you where you’re going, but to an intermediate connecting point instead. On the above Seoul to Singapore search there are two non-stop flights (KE 641 and 643) that are both available, but there is also KE 683 to SGN, from which you might be able to pick up a connection on SkyTeam partner Vietnam Airlines, another of the carriers searchable in the tool collection. Displaying more than just the non-stop options should help folks with flexibility to better find awards that work.

Coach award inventory is not currently available in the system and first class isn’t available to partners, but otherwise the data should be accurate for redemptions.

Give the tools a try and let me know what you think.

The IRS moves to hit frequent flier miles

Posted by Seth on January 31, 2012 under frequent flyer, News, points | 16 Comments to Read

Citibank caused quite a stir a week ago when they started sending out 1099s to folks who had received large quantities of bonus miles for opening accounts. Needless to say, there was quite the uproar, with various opinions being shared, ranging from Congress to bloggers. Well, a week has passed and the IRS have finally clarified its position. Sortof. Things are still not incredibly clear, though it is readily apparent that the IRS sees some miles as taxable and not at a particularly favorable rate.

Michelle Elridge, an IRS spokeswoman is quoted in that LA Times column as offering up three very specific bits of information about points and their taxability:

When frequent-flier miles are provided as a premium for opening a financial account, it can be a taxable situation subject to reporting under current law.

This part is pretty clear, though not necessarily what most folks want to hear. It suggests that Citi was correct to be sending out the 1099s and reporting the tax liability. The particularly interesting bit is the use of the term "financial account." Not only would this apply to bank accounts, but it could also be reasonably interpreted to apply to credit card and investment accounts as well. After all, those are financial accounts and the points are provided as a premium for opening the account. Not particularly good news for folks who are accustomed to churning CCs and Fidelity/Ameritrade accounts for the huge sign-up bonuses.

As for taxing "regular" levels of mileage earning on CC spend or the actual flying, that’s still safe. The IRS continues to see that as a rebate and not income, so no tax liability there.

A common analogy is buying a $500 television at a retail store and receiving a $50 manufacturer’s rebate. It’s not income, just a deemed reduction of the cost of the television.

The most complicated (and oft-debated) part of the debate might be the valuation of the miles. Many insist that the liability should be the fraction of a cent that the banks pay to buy the points from the airlines. The banks disagree, reporting the value at the full retail price as reported by the airlines. And the IRS is somewhere in the middle.

Under the income tax law the amount of income to the taxpayer is the value of the property received, not the cost that the business paid to acquire the property.

The real gray area there is "value of the property received" which is, by the nature of the property in this case, variable. And it could even be argued that the recipient actually never receives property since the T&Cs of the programs say that the points are the property of the programs. There are others who have explained how to dispute the value reported on the 1099s.

Whatever the approach consumers take, it is clear that the IRS sees these sign-up bonuses as a very different beast from the regular spend earning. And the use of the term "financial account" is very open-ended. The CC churn boondoggle may be coming to an end sooner than we all hoped.

Airline marketing gone stupid

Posted by Seth on January 24, 2012 under points | 14 Comments to Read

Here’s the thing about marketing – it only works when you’re actually able to effectively convince someone that they need to buy what you’re selling. And one of the first steps in that process should be to actually understand what you’re selling and how much it costs. Apparently the folks sending emails at OnePass missed that memo this week, at least if the email I just received is any indication.

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It is amazing, really, that 255,712 miles might only just be enough points to make it to select cities in Asia. They don’t even mention which cabin of service, but that is actually enough for two business class tickets to anywhere in Asia. I guess if you "select" all cities served by Star Alliance of them that still counts as "select cities" in their world?? Oh, and it is also more than enough for a trip to Australia or New Zealand, unless I’m flying up front at the rule-buster levels; no need to actually buy more.

It is crap like this that gives marketing a bad name.

A few first in the JetBlue/Hawaiian partnership

Posted by Seth on January 23, 2012 under frequent flyer, News, points | 2 Comments to Read

The partnership with Hawaiian Airlines marks a number of firsts for JetBlue. While all the details are still not yet available there is enough information in the press release about the partnership to identify these developments, all of which seem to be quite positive.

For starters, Hawaiian will be, subject to government approval, adding their code to some JetBlue flights. None of the previously established interline agreements have included such a marketing offer. This is not particularly significant from an operational perspective but for pricing reasons this should allow fares to be sold that are not necessarily additive via the connecting city. That’s a big step for JetBlue and a great benefit for the customers in terms of pricing.

The other major first is that the deal will permit not only accrual of points in both programs – on all flights, unlike the limited partnership with American Airlines – but it will also permit redemption on all flights:

Hawaiian and JetBlue have reached a preliminary agreement to allow members of each carrier’s frequent flyer program to earn and redeem loyalty points or miles for travel on either carrier. Under this agreement JetBlue’s TrueBlue members will soon be able to accrue points on any Hawaiian-operated flight, while HawaiianMiles members will be able to earn miles on any JetBlue-operated flights. Similarly, frequent fliers will be able to redeem their points or miles for travel on either carrier’s network, bringing new, much-requested destinations to each program’s loyal members.

The details on earning and redemption rates are scarce at this point. And the two programs are quite different, with Hawaiian operating a more traditional model (points earnt by distance flown; redemption calculated by zones) while both earning and redemption rates in the JetBlue TrueBlue program are more tightly tied to the fare on the flight. Obviously there will need to be some reconciliation between these two schemes along the way.

The arrangement also marks the first time that a JetBlue partner will operate from the JetBlue terminal at JFK airport. There is at least one gate in T5 which can support the Airbus A330 aircraft that Hawaiian will be flying in to New York City, though it remains to be seen what the impact is on the waiting areas with a 294-passenger aircraft using the space; the JetBlue A320s max out at 150 passengers.

Still a number of questions to be answered, but lots of positive developments so far.

Related Posts:

JetBlue, Hawaiian team up for JFK service

Posted by Seth on January 23, 2012 under frequent flyer, News, points | 6 Comments to Read

Hawaiian Airlines and JetBlue will announce today a partnership for both travel and their frequent flyer programs. The deal comes on the heels of the recent announcement of new service by Hawaiian Airlines with the upcoming launch of non-stop service between New York’s JFK and Honolulu. While the Hawaiian service doesn’t start up until June, the deal will start sooner, with the carriers routing passengers via Los Angeles for one stop service on interline itineraries.

JetBlue has been steadily growing their roster of interline partners but one one of those – American Airlines – has any form of points reciprocity set up. This deal will include at least some reciprocity on the frequent flyer side. Full details are yet to come, but it is nice to see benefits in both the flight and loyalty programs coming to fruition.

More details to come as they are made available…

United/Continental drops Virgin Atlantic partnership

Posted by Seth on January 18, 2012 under frequent flyer, News, points | 6 Comments to Read

The frequent flyer partnership between United AirlinesContinental subsidiary and Virgin Atlantic is being terminated as of February 13, 2012. This date is the last for mileage earning or redemption ticket issuance on the partner, with award redemptions valid for one year from that date, assuming they are issued. This isn’t a particularly surprising move, though it is a bit of a downgrade in terms of the MileagePlus program.

The Continental/Virgin relationship made a lot of sense when it was originally launched. Continental had a minimal amount of traffic into London at all and none into Heathrow due to the Bermuda II restrictions. It allowed Continental to market flights into Heathrow under their own code and to sell onward connections using Heathrow as a transit point. Since the establishment of the Open Skies agreement between the US and the EU, however, Continental has had access to Heathrow and has steadily increased flights there. Add in the merger with United and there are only a few cities now where Virgin had nonstop service ex-LHR that the combined United doesn’t and those are less significant today.

The end of the partnership is rather unfortunate on the redemption side of the frequent flyer program in particular as Virgin has often had decent award availability, especially in their Upper Class business class product and especially close to the travel date. I’ve taken advantage of that a couple times and, though I’m not a huge fan of the product, it is still an option being lost which is unfortunate.

Also unfortunate is the timing of the announcement. The company provided barely 4 weeks’ notice of the change, one that they have likely known about for some time. It is a shame that the changes to partners and earning rates are trickling out so slowly as part of the merger process.

Earn TrueBlue points for flying on South African

Posted by Seth on January 10, 2012 under frequent flyer, points | 3 Comments to Read

JetBlue and interline partner South African Airways have come up with a rather interesting promotion for earning points in the TrueBlue program this month. They’re letting passengers double dip on points earnings for a limited time, netting 10,000 TrueBlue points in addition to the regular points the route would earn on South African. The rules are reasonably simple: Book by 20 January and travel by 31 March. Fill out the web form after the trip and you should score the TrueBlue points.

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There is also a contest to win two "free" tickets to South Africa, but I’m not as convinced of the value there. There are blackout dates, which is fine, but the winner is responsible for all fuel surcharges on the winning, which is pretty crappy, especially considering that they are still "subject to seat availability" as well.

I wouldn’t go out of my way to book a trip just for the TrueBlue points, but if you’re buying and flying inside the promo dates anyways there’s definitely nothing wrong with 10,000 free TrueBlue points.

See http://flysaausa.com/jetblue/ for all the fine print.

Am I the only person who loves the zeros?

Posted by Seth on January 2, 2012 under frequent flyer, points | Read the First Comment

It is an annual tradition. At the stroke of midnight (though the time zone varies) frequent flyer accounts reset the counter on elite status. Records of the travel from the previous twelve months is wiped out, leaving accounts looking something like this:

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Zeros everywhere. Blank progress bars. An empty travel record. And many folks seem to lament the situation, sad that the big numbers from the previous year are gone.

But not me.

I’m a bit perverse in that way, I suppose, but I love the zeros. I love seeing an empty slate and having a full twelve months of fun in which to plan and, more importantly, to travel, again trying to drive the numbers higher. Without that reset to zero there is a lack of motivation, of urgency, of excitement for the new travel year in many ways.

Yeah, I’ve got a lot of zeros on my accounts, but it won’t stay that way for long. I wouldn’t have it any other way.

My travel year in review: 2011

Posted by Seth on December 31, 2011 under frequent flyer, points, Trip Reports | 11 Comments to Read

As 2011 comes to a close it is time once again to look back at all the crazy I’ve managed to experience in such a short period of time. This was once again a banner year for me, with plenty of new experiences. It also had a number of repeats, however, and those were mostly good, too. And so, without further ado, some of the highlights of my 2011 travel numbers.

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It was a personal best for me in terms of total miles flown at 217,781. That is more than eight times around the globe (though I only did that as an actual trip once) or 87% of the way to the moon. The miles were spread across 103 segments for an average of over 2100 miles/flight; apparently this was the year of long-haul for me. That said, I also managed to grab some really short flights, like a 93 mile hop from Carlsbad, CA to Los Angeles. Awesome views of sunrise on that one.

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It was also the year of one million actual flight miles. I actually know there are many more from other trips as a kid that I cannot properly document so I’m not counting them, but I definitely became a millionaire this year.

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Of the 104 segments there were 54 routes I had previously not flown. There were also 54 in coach. That’s right, more than half the flights (though only 47% of the total miles flown) were in coach. It isn’t always champagne and caviar for me, though there is plenty of that, too. Oh, and only 5 of those segments were work-related, making up less than 1% of the total mileage flown. Only 19 of the flights were on regional planes of fewer than 90 seats.

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Speaking of airplanes, I flew on 33 different aircraft types, including 7 I had not previously flown on. I finally got to fly on an A380 (though I had been on one a few times prior) and I got to fly the 787 in its first week of commercial service. I also got the A345 and A342, a Dash8-100 and an E35, completing my collection of all the Embraer RJs. That’s something of an ignominious accomplishment, but there it is.

I flew on 17 different carriers, of which 5 were new to me. SriLankan, AirOne, South African, ANA, Austrian and Alaska Airlines were the new ones and all but AirOne were quite pleasant.

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As for where I traveled, there weren’t as many new countries for me this year – only 7 – as last. Austria, South Africa, Mauritius, China, Brazil, Argentina and Sri Lanka are the new entries in that collection, bringing my total number over 50. I managed to enter a foreign country 20 times through the year, plus all the returns to the USA. No wonder I needed extra pages in my passport. Again. Two of the trips had 3 countries in them; I’ll best that mark early in 2012 with a six-crossing week in January.

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Perhaps the most surprising number to me, however, was the total spend I had in consular fees. I paid for new pages for my passport and for my wife. There were also the visas required for India, China, Brazil and Argentina (though I ended up getting out of that last one). Overall I spent nearly $1,000 on consular fees alone. No regrets there at all, but the numbers can add up in a hurry.

I didn’t count how many nights were in hotels or on airplanes (something to add to my list next year, I suppose) but my best guess count based on my TripIt records is nearly 100 nights spent not at home.

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There was a trip derailed by an earthquake (I ended up in Guam/Hong Kong instead of Tokyo) and then two more trips later in the year to Tokyo to make up for it. I had an airline try to charge me more while at the gate and I managed to take a VDB in a foreign language. I got to drive a jet bridge, load baggage, make boarding announcements and walk a plane out on pushback (all appropriately supervised, of course).

I got to join three different couples in celebrating their weddings all over the world and narrowly missed out on crashing a couple more wedding parties here in India towards the end. I got to relive a bit of history with TWA and a ride in a helicopter over the tip of South Africa.

I saw penguins, went diving in the Pacific and pet an elephant in India. There were also giraffes, cheetahs and antelopes. Plenty of wild in my life.

Indeed, it was a good year, maybe even a great year. And 2012 shows no signs of that letting up. Happy new year to all; may your upgrades clear and your flights on time.