Posted by Seth on November 3, 2011 under frequent flyer, News, points | 
Continental and Amtrak have been partners for many years, offering the ability to earn OnePass miles on certain routes in the Northeast Corridor as well as the ability to move points between both programs at a 1:1 rate. There are a number of incredibly attractive awards in the Amtrak Guest Rewards program and the fungibility of points between the two programs was a great benefit for members of both. That relationship is coming to an end at the end of the year.
The move is tied to the expiry of the OnePass program as the new United Airlines moves to their new MileagePlus program. Not too much of a surprise there as the partnership is with a program that will be dying. According to Amtrak, they are trying to keep the relationship alive with the new MileagePlus, but that deal has not yet been finalized so they are warning members now of the impending change according to UnRoadWarrior.
This announcement opens as many new questions as it provides answers.
Currently there is reciprocity between the Amtrak and Continental lounge memberships. But that is ending in February and there is not yet a finalized agreement to continue it. Amtrak’s top tier elites also get the lounge benefit and there have been many issues getting it honored in the newly re-branded United Clubs.
There’s also the relationship between Continental and Virgin Atlantic. Back when they didn’t have access to Heathrow the partnership was great for Continental. Now that they do have access to Heathrow – and flights from 6 US gateways – the value of that relationship is certainly lessened. And United has never had that partnership as they had the Heathrow slots. The two carriers both had arrangements with Emirates but both killed them. There’s also Eva on the Continental side (though they’ve applied to become a Star Alliance member) and Qatar on the United side.
Lots of open questions that still need answers. Perhaps this move with Amtrak is a hint. Or not. Nothing like the joys of speculation with minimal data to support a claim.
Posted by Seth on September 24, 2011 under frequent flyer, News, points |
The proposed merger of South America’s two largest carriers, LAN and TAM, precipitated many questions. Perhaps the most significant from frequent fliers was the future of the loyalty program. LAN is a member of the oneworld alliance while TAM recently joined Star Alliance. A merged program will have to pick one of those with the decision having great significance in the South American travel market.
Thanks to the Chilean government it appears that the decision has been made and that the carrier will be remaining in oneworld.
The Chilean Tribunal de Defensa de la Libre Competencia (Court of Defense of Free Trade) handed down their approval for the two carriers to merge this week with a laundry list of conditions attached. Here are details on a few of the most significant conditions:
Numbers 1 & 4 require that LATAM give up 4 landing slots in Sao Paulo to allow another carrier to establish service on the Sao Paulo – Santiago route in order to maintain a competitive fare environment on that route. Additionally, LATAM is prohibited from dumping inventory onto that route within 15 minutes of the newly scheduled service once the new entrant has declared their interest in operating the service. Rule 13 also prohibits the new carrier from raising fares on the route versus their aggregate historical averages for one year.
Number 9 requires that LATAM not oppose any foreign carrier’s application to operate with additional freedoms on domestic Chilean routes or to provide service that would otherwise be seen as cabotage. This would effectively allow tag-on flights for long-haul carriers or regional flights within Chile for other airlines in South America. LATAM is required to endorse such requests without demanding reciprocity.
And then there is number 6:
Latam deberá renunciar, dentro de un plazo que no exceda 24 meses contados desde la fecha en que se materialice la Operación consultada, al menos a una de las dos alianzas globales en que a esa fecha participan sus partes, LAN y TAM. En ningún caso podrá pertenecer a aquélla en la que también el grupo Avianca/Taca sea miembro o asociado, o se encuentre en proceso de ingresar.
Within 24 months of realizing the merger the airline is required to resign from at least one of the two global alliances in which is currently participates. Moreover, the carrier must not be in the same alliance as Avianca/Taca, the other powerhouse merging carrier in South America. With Avianca/Taca moving rather quickly down the path of joining Star Alliance this clause leaves oneworld the only rational result.
The other options are to go independent, a tough move to make in that region, or to try for SkyTeam. But with Aerolineas Argentinas set to join SkyTeam it doesn’t seem likely that the competition courts would be too happy to see such a move. They could also try to thwart the entrance of TACA/Avianca from Star Alliance if they want to stay with the group. That would be a most interesting political move and a most unlikely one as well.
The court ruling lays out a pretty clear framework for the carriers to work within and a reasonable timeline through which the changes must be made. Unless the Brazilian government comes up with a major surprise on their conditions for the merger it looks like this one is ready to happen in early 2012 with all the details finally falling into place.
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Posted by Seth on September 21, 2011 under frequent flyer, News, points |
United Airlines announced a number of details regarding their 2012 Mileage Plus program rules today on both MilePoint and FlyerTalk. The announcement puts to an end much of the speculation about the future of the loyalty program for the world’s largest airline. The news is, unsurprisingly, a mixed bag. There are plenty of winners and losers with the upcoming changes. On the whole the changes appear to be a net positive (they certainly are for me) though there will be plenty of upset customers, too.
Qualification Tiers
The qualification tiers are pretty much staying the same, though some of the names are changing. The "Premier" tag from the legacy United is sticking around as are the metallic tier levels from the legacy Continental. The 1K and Global Services names survive as well. Qualification will be based on Premium Qualifying Miles or Points and the qualification levels are 25/50/75/100K PQMs or 30/60/90/120 PQPs. These numbers are consistent with previous announcements from the company. Global Services remains invite-only for the most part (more on that below).
Also of note is that qualifying for status will now require actually flying on United or Copa metal. Only four segments are required which isn’t particularly burdensome.
The benefits for each tier are changing a bit, especially on the award miles earning front. Most notable are the changes to the bonus miles earnt for being elite. Gold and Platinum elites will now earn 50% and 75% bonus miles respectively, down from the 100% they currently earn. This is a definite downgrade for those customers. At the same time the number of bonus miles accrued for buying a premium fare is going up. At the top end a full F fare on a 3-cabin aircraft will now net a 150% bonus on award miles; that’s way better than the current 50% bonus.
Upgrades
Complimentary upgrades are mostly following the legacy Continental pattern with pretty much every route that is not marketed as a premium product being eligible for free upgrades. Additionally the regional upgrades will be valid on all flights between Hawaii and the Mainland US, making the legacy CO wide-body service eligible while it is not currently. The exclusion of Guam – Honolulu is a surprising one from this list given the aircraft configuration but other than that the list is quite favorable for all customers.
The legacy Continental policy for "instant upgrades" will continue on full-fare economy tickets. Y fares will book into F for all elites with no capacity controls. B fares for all elites will book into a capacity-limited upgrade bucket. M fares for 1Ks will also book into the capacity-limited bucket. I’m a big fan of this policy balancing the value of long-term and immediate value to the company though I know some others disagree.
Companion upgrades will be implemented as a combination of the best of both programs going forward. A companion in the same reservation as an elite customer will be eligible at the same tier level as the elite, akin to the current United policy. The benefit will also apply to the Y/B/M-Up Instant upgrades described above. Finally, a companion that is not in the same reservation as an elite can be added to the upgrade list at the airport, keeping the legacy Continental approach to the benefit live.
Another significant change is in the access to Economy plus seating. The new program will restrict advance access to those seats to Gold elites and higher. A definite loss for the lowest elite tier on this one, though the Silvers will still have access once the flight opens for check-in.
Lifetime Status
Perhaps the most significant changes are coming with the lifetime status recognition program. The policies from Continental and United were quite different historically and aligning them was the subject of much consternation and debate amongst travelers. It looks like the company hit a home run on this one. Going forward the qualification for this status will be based on actual miles flown on United metal. Going into 2012, however, the existing lifetime mileage balances between the two programs will be combined. Even better, legacy United customers will have their existing actual miles balances upgraded to their lifetime EQM balances. That’s a HUGE win for those customers.
The benefit levels will mostly match those of the legacy United program, with Gold at 1MM, Platinum at 2MM, 1K at 3MM and Global Services at 4MM. Yup, Global Services now has a published qualification level. Additionally, the legacy Continental benefit of a spouse/partner getting the same status as the lifetime elite will survive. These changes make the new lifetime status program arguably the most compelling in the industry.
The rest
At the top end the benefits package remains pretty impressive. Platinum and 1K elites will receive a reimbursement for the Global Entry application fee and no charges for award bookings inside 21 days, award changes or award redeposits. Gold elites and higher get free same-day changes to tickets, 3×70# checked baggage and they’re keeping Star Alliance Gold status.
Silver elites are the biggest losers coming out of these changes (they lose a free bag, too) which isn’t all that surprising given the size of that customer pool. A credit card will likely get you the same benefits as Premier Silver status with a lower cash outlay. At the top end the benefits are top notch, particularly in the lifetime status benefits.
I can certainly see where there are winners and losers in the new scheme. I’m mostly just happy I’m in the former category.
Posted by Seth on September 20, 2011 under Flying, News |
Every now and then I find myself wondering if there isn’t a better way to get access to some nugget of data related to travel. More often than not I’m disappointed to find out that the answer is generally that the tools aren’t available. When I can, I try to change that. Welcome to my latest effort: The Round-the-World Fare Comparison Tool.
The tool holds nearly 13,000 data points for fare pricing from 197 different airports around the world (one per country for most countries). There are nearly 100 different fare types in the system, including not only RTW fares but also some regional options like Circle Asia, Circle Pacific and Circle Japan options.
That’s a whole lot of data that needs to be managed and filtered. I certainly won’t go so far to claim it is perfect yet – the site is very much in beta right now – but there are options to sort by point of origin, fare type and cabin of travel available right now and more in the works.
Currently there are six different airlines being used as data points for the fares, two each from the three global alliances. In nearly every case the fares match but there are enough quirks and variances that I’m keeping all the data in there and available. The fares do not include taxes, fuel surcharges or aircraft-specific fees but the goal of the tool is to facilitate comparing prices between alliances or to figure out the best place to start a trip rather than get to final pricing.
Here’s what it looks like if you choose a specific origin country/airport:
The different cabins are color-coded so you can quickly see the different types of fares available to you.
Want to search by fare product. Here are the nearly 100 available to you:
Pick one and you’ll get a clickable, color-coded map:
The green icons represent the cheapest 20% of the markets for that specific fare while the red are the most expensive 20%.
I’m still working on options for other ways to "slice and dice" the data. Got a suggestion or an idea of a view that would be useful? Leave a comment and I’ll see what I can do.
In the mean time, give the tool a whirl and let me know what you think. And check out some of the other tools while you’re on the site. You might be surprised at how useful they can be.
Posted by Seth on September 17, 2011 under Flying, frequent flyer, points |
There are lots of different ways to maximize the value of award redemptions. Some folks look only at the cash value of the ticket were it purchased directly. Others look at the cabin of travel. Or the total distance covered. Or the number of points required.
I’ve used all of those metrics at one point or another, but my most recent redemption doesn’t hit on any of them. The goal of this particular redemption was to maximize the number of cities I could visit on a single one-way redemption. Officially the rules say a one-way award can have only a starting point and an ending point. I’ll be visiting four different cities on my current schedule.
I’m taking full advantage of the fact that a connection on an international itinerary is defined as anything less than 24 hours in the same city. Combine that with the relatively short travel distances in Europe and it turns out that there are a lot of ways to hop scotch across the continent without paying all that much extra. Here’s what my trip looks like:
Flying from Stockholm to Istanbul is a hair under 1400 miles; my routing is 1855. Not all that much longer in total travel distance but I’ll be spreading my travel out over 4 days rather than just a few hours. Stops are currently scheduled in Berlin (20 hours), Ljubljana (22), Skopje (23) and Istanbul (destination). Only one of the hops requires a connection – 30 minutes in Munich. I also get to fly some fun aircraft types and a new (to me) airline, along with new airports and countries. Not too shabby for only 12,500 points plus about $100 in taxes.
Building the award was surprisingly easy. I started by looking at flight timetables and route networks for the various Star Alliance carriers in Europe. The goal was to find mid-day flights that would allow me to get between cities while there was still a bit of daylight but also to be able to wake up each morning at a reasonable hour rather than silly early. Avoiding the early morning flights also makes it easier to actually keep the 23ish hour connections alive as the earlier flights make it harder and harder to stack the flights.
Once I had a framework for the trip I searched out the award inventory directly using ANA‘s website. Every single flight I wanted had award inventory available. With the specific flights in hand I called the reservations line at Continental. I fed the flights to the agent one at a time and when she pressed the magic "go" button it priced correctly automatically. No need to go through manual pricing or anything else for this one; we were both quite surprised at that. But it is booked and confirmed.
Now I just need to get my flight to Stockholm and home from Istanbul booked. But that should be easy, right??
Tags: ANA, award, Berlin, Continental, EuroHopping, frequent flyer, Istanbul, Ljubljana, Lufthansa, Munich, points, Skopje, Star Alliance, Stockholm, Turkish Air
Posted by Seth on August 18, 2011 under Review, Trip Reports |
The Thai Airways lounges in Bangkok have been oft regaled. Their first class passengers, particularly, are well spoilt with hour-long massages and excellent dining options. Alas, my trip was only departing in business class so I was relegated to the lesser service. I know that the first class treatment must be nicer but the business class option was pretty darn impressive.
Check-in was handled well, with the added bonus of having seats at the check-in counters rather than having to stand while dealing with bag tags and seat assignments. I would have been happier if they tagged my bags all the way through to my final destination rather than just to Johannesburg, but that ended up not making a difference as I had to claim and drop the bags again anyways after clearing customs. And the private security and immigration facilities just for premium passengers was terrific, not in the least because I was the only one in line as I passed through.
Thai operates a bunch of lounges at Suvarnabhumi Airport covering First and Business Class passengers as well as Star Alliance Gold elite members. But they reserve access to the largest lounge for only premium cabin passengers. The services were, in my experience, nearly identical at the main lounge as in the others. Most notable was the presence of a duty free shop inside the biz lounge. And the dedicated lounge was much larger. None of the lounges were particularly crowded while I was there, but I attribute that mostly to my off-peak departure time (6pm) more than anything else. I can imagine that the *G lounges would get quite crowded at peak departure times.
All of the lounges offered up plenty of beverage options as well as various snack foods, ranging from soup to steamed buns to shumai to noodles. I’m drooling again just remembering them.
All the talk I’d previously heard about the first class departures spa and massages neglected to mention that business class passengers also get a complimentary treatment. No, it isn’t an hour long nor a full body work over, but you do get a choice of four half hour treatments. I didn’t realize this until I’d already spent an hour – and most of my preflight lounge time – sitting in the dedicated business class passenger lounge. Whoopsie. Fortunately there was just enough time for me to get my shoulder and neck massage prior to the flight. But shame on me for not doing the research I should have.
Following my massage it was time to meander out to the gate area – about 15 minutes away – and prepare for the flight itself. Thanks to the quality of the pre-flight pampering I was afforded in the lounge and the spa I wasn’t too worried about the in-flight experience.
I’ve been in the Lufthansa First Class Terminal and their dedicated First Class Lounges. I’ve been in the Virgin Atlantic Upper Class lounge. And I’ve been in any number of lounges operated by other carriers for elites and business class passengers. Putting aside the cool factor of the drive from the FCT to the airplane, I’m not sure that much out there beats the quality of the pre-flight pampering that Thai offers is pretty impressive. In the heat of the moment, relaxing following my massage with a glass of tea, I was convinced that it was the best ever. I’ve backed down from that a bit, mostly because the dining options that Lufthansa offers for the FCL/FCT are better by far than the business options that Thai has.
But I could quite reasonably argue that the Thai product is the best Business Class option I’ve experienced. Up against Virgin’s flagship Clubhouse in London‘s Heathrow I’d say that Thai does a quite respectable job. Less crowded, easier access to the spa treatments and better tasting food, if not quite the same variety. No waitress service but the open self-service bar didn’t suck.
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Tags: Bangkok, elite status, London, Lounge, Lufthansa, Photos, RTW2011, Star Alliance, Thai Air, Trip Report, Virgin Atlantic
Posted by Seth on August 1, 2011 under News |
Star Alliance and Air India announced yesterday that the long-pending integration of the airline into the world’s largest global alliance has been suspended. This is the latest in a series of delays announced regarding the carrier’s intention to join the group.
Star Alliance CEO, Jaan Albrecht said: "With the collective decision to put the integration efforts on hold today we aim to contribute to Air India’s flexibility to concentrate on its ongoing strategic reorientation. In this process our member carriers will continue to provide assistance to Air India wherever required."
It was just a couple months ago that the carrier stated they felt ready to finally join the alliance. Apparently that was all bluff, however. Given the financial turmoil the carrier is currently in the midst of it is not particularly surprising that this move came about.
The real question now for the alliance is what happens in India. Kingfisher has already committed to the oneworld alliance. There had been additional rumors of Jet Airways joining with Star Alliance but that was apparently on hold until Air India could get things figured out. With this latest suspension of the Air India efforts could that open up the opportunity for Jet to make a move?
The air travel market in India is huge and growing rapidly. Getting partners in that market is a very important move for these alliances. Sadly, it seems that Star Alliance latched on to the wrong initial partner and is now paying the price for that decision.
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Posted by Seth on June 1, 2011 under News |
Air India has been in the news a fair amount the past couple weeks, doing their best to test the theory that any publicity is good publicity. It is hard to tell which way that will play out for them at this point, but they’re definitely trying it would seem.
Shining Star (Alliance)
First up was their announcement that they’re finally ready to join Star Alliance. The initial invitation to join the alliance was extended in 2007, a long, long time in the world of airline alliances. Alas, the company struggled with IT issues and other integration problems and has seen their proposed join date postponed time and again. But as of May 2011 they believe they’ve finally got all the pieces in place to make that the leap into the alliance.
There is still no specific date set for the airline to join up and it is not entirely clear that the IT issues that are supposedly resolved were the only stumbling block. But this development certainly bodes well for the airline eventually actually making it into the alliance. Is that good for passengers? Sure. More options is always better. And this will certainly open up a significant number of smaller destinations within India for both earning and redemption. But that doesn’t mean I’ll be going out of my way to fly with them any time soon.
Black Hole
Speaking of opening up more, smaller destinations in India, this past week that was actually a bit of a problem for the carrier. It seems that a number of flights were cancelled when the airline was unable to acquire fuel for its aircraft. The fuel issues, isolated at a few airports in the southern part of the country, were apparently caused by the airline’s failure to pay its bills for previous fuel deliveries. Apparently the state-owned fuel companies are refusing to extend credit to the carrier for said purchases.
Moreover, the response from an airline spokesman who refused to be named is a bit disconcerting.
This problem is being resolved. We expect to pay for our fuel and also to obtain some assistance from the aviation ministry.
The first part of the quote certainly makes sense but the second part – expecting assistance from the government – is certainly worrisome if you’re expecting the company to still be operating in the near future. If they’re talking about needing government support then that would suggest they cannot survive on their own. That’s a very precarious position to be in. Certainly the 10-day pilot strike earlier in the month didn’t help the situation either.
So which is it, Shining Star or Black Hole?
The optimist in me wants to believe that they can turn things around and actually start to make money. Maybe being a part of the global alliance will push things in that direction and get them the interline traffic they need for that to happen. But given the current competition they face both inside their borders and on the international stage it doesn’t seem particularly likely.
Posted by Seth on April 5, 2011 under frequent flyer, News, points |
Given today’s announcement that American Airlines and Expedia have reached a deal putting AA’s inventory back online I figured it was finally time to finish up this post I’ve been working on related to direct versus indirect distribution for airlines and travel agents.
There has been a lot of noise recently on this topic. Most visible has been the tiff between American Airlines and some of the bigger names in online travel agents. But they aren’t the only carrier fighting this fight. Even when the airlines agree to new distribution agreements with the Global Distribution Systems ("GDS") operators there can be fallout based on the associated press releases. There’s a pretty large industry group, Open AXIS Group, that represents a number of the the airlines in this battle. They happened to be having their annual conference last month and their twitter account was pushing the associated propaganda out. I happened to engage with them, disputing some of their blanket claims. After a couple rounds back and forth we took the discussion off-line, eventually resulting in me having a conversation with Jim Young, the Executive Director of the organization. The call was quick but quite informative. I’m still not completely convinced of their claims, but there are some possible upsides worth at least considering.
In the past dozen or so years the balance of airfare sales has shifted dramatically towards the airline selling direct to consumers. What used to be a relatively small portion of tickets sold is now up around half. That’s a huge shift. And the travel agents that used to be selling those other seats are feeling the pinch. They no longer get commissions on most air tickets so there are pain points there. At the same time, the cost to the airlines of providing all the data out to the GDSes is high and is prone to errors in data entry and other problems. Another pain point.
But most significant is that the GDSes have essentially commoditized the travel industry. Whether this is good or bad probably depends on your point of view but it is certainly an indisputable fact.
With the recent, rapidly developing trend of breaking out services that were traditionally included as part of the airfare into ancillary fees the booking process has become significantly more complex. It is not possible to easily compare the total costs for a trip across multiple carriers now; the GDS doesn’t know that I have elite status in Star Alliance and not in SkyTeam, for example, so it doesn’t know which of those extra fees I’ll be paying. It also doesn’t know what those fees are because the GDS systems were built in an era before such things existed and getting them integrated into those legacy systems is a tremendous battle. The new systems that Open AXIS is promoting solve those problems.
Read more of this article »
Posted by Seth on March 13, 2011 under frequent flyer, News |
Both halves of the new United, Continental and United Airlines, have had frequent flyer partnerships with Emirates for some time now. The level of the relationship has varied over the years, but there was something there. Not any more.
When Continental joined Star Alliance they announced that the few flights that used to be eligible to earn elite qualifying miles would no longer do so, making earning only for award (RDM) miles. A few months later they announced that the partnership would end completely in March 2011.
United had permitted earning of RDMs only on Emirates flights but also had permitted redemptions into Emirates’ first class cabin; Continental only permitted business class redemption. The United redemptions were on a separate chart which made them a bit pricier to redeem but they were there. Now they are gone.
According to a post by Lucky the United partnership ends on May 28, 2011. That’s not even 60 days away. The deadline is for both bookings AND travel benefits.
Not a lot of notice for the partner to disappear, though also not much of a surprise given the way the relationship has played out and the way the new United’s route map looks. And they do still have Qatar Airways as a partner, at least for now, giving them some coverage in the region.
