End of Year Mileage Runs

Posted on: November 29th, 2005 by: Gary

Joe Sharkey writes the obligatory end of year story on mileage runs, bringing the practice of last minute flights to earn airline status to a mainstream audience.

Among folks I know this is common — at the end of year when realizing you’re a few miles shy of that coveted top-tier elite card, and in some cases even throughout the year. And it isn’t just airline runs, either, but last minute dummy stays at local hotels to rack up those coveted upgrades to suites.

If you’re working on your own end of year strategy and need some assistance just drop me a note and I’m happy to help. Be sure to tell me the number of miles and segments that you have at present, how many more it take to reach your goal, where you’re based, and when you’re available to travel. Also a maximum budget would be helpful too!

Mexican Getaway

Posted on: November 29th, 2005 by: Gary

HotelChatter visits El Tamarindo and comes away impressed. It’s on my list of places to visit for a few nights to get away from the cold and burn a few Starwood points.

Foolproof logic on why you should send me money

Posted on: November 29th, 2005 by: Gary

Marginal Revolution offers a compelling reason why you should donate to support a blog:

    Efficiency says that goods with zero marginal cost should have a zero price but without prices not only is the incentive to produce diminished but so is information about what to produce. (See Coase’s 1946 classic, The Marginal Cost Controversy, JSTOR). Donations allow prices to be set at MC while at the same time providing a (noisy) signal about where true economic value lies. In particular, Tyler and I know that we can appropriate more of our marginal product from professional work than we can from blogging yet it is conceivable that our marginal product is higher in blogging. Thus, to decide how much to invest in this venture we markup donations to get an estimate of our social value and we put positive weight on social welfare in our utility function.

Umm, yeah, that’s it.

But don’t worry, I won’t subject you either to reasoning like this or a request for funds!

Double miles on international and Japanese domestic routes

Posted on: November 28th, 2005 by: Gary

ANA is offering double flight miles through March 31. Registration is required. Alas, I’m not planning to fly ANA until April — and even then on an award ticket.

I’m Profiled in Sunday’s Washington Post

Posted on: November 26th, 2005 by: Gary

The Washington Post runs a brief profile of me in the November 27th edition of their Sunday Source section. It includes basic advice on earning and burning miles.

More Media on Expedia

Posted on: November 24th, 2005 by: Gary

The LA Times is covering the Expedia / Tokyo & Osaka Hilton pricing glitch.

    What began as a simple error in the conversion of yen into U.S. dollars quickly snowballed into a public relations nightmare for Expedia.


    Expedia isn’t saying much beyond a public statement acknowledging the error. Requests for interviews with Expedia executives were declined.


    The fact that an error can be publicized and acted upon so quickly is very telling.


    “It’s really not about FlyerTalk per se,” said Randy Petersen, founder and president of FlyerTalk. “It is about the impact of the Internet as a communication tool.


    “Many industries, including travel, have been pummeled by this social media in terms of the extent that information about a value offer and even mistakes can spread,” he said.


    Travelers say much of their frustration stems from what they called Expedia’s inconsistent responses by customer service representatives. Some travelers on FlyerTalk report that they have had their reservations confirmed and reconfirmed, even though they fell outside of the parameters spelled out publicly by Expedia. A $250 voucher for future travel packages to Japan that Expedia used as a peace offering was difficult for customers actually to use, according to some on FlyerTalk.

Roundup of Holiday Shopping Mileage Bonus Offers

Posted on: November 24th, 2005 by: Gary

As most readers likely know, nearly any online purchase can earn miles provided you enter an online store via an appropriate mileage-earning portal. Andrew Cram’s comparison chart is the best place to start to determine what miles you can earn before clicking on web store. It’s incredibly extensive.

That site catalogs the standard miles on offer. However, various mileage malls sometimes offer bonus miles — especially at holiday shopping time.

This year the bonus offers seem sparse. I recall earning 10,000 bonus American Airlines miles last year for my online shopping through the AAdvantage mall. There’s nothing so exciting available this year.

Here are the bonus offerings I’ve seen so far:


  • American is offering double miles shopping at the AAdvantage Online mile and paying with Mastercard. In addition you get 1000 miles when spending $500 or more at the maill on an American Airlines Mastercard. The promo is limited to 25 merchants. Registration is required and offer expires December 31.


  • Delta is offering double, triple, quadruple, and quintuple miles as a small handful of merchants plus 100 bonus miles for shopping at a few stores. Offer expires December 31.


  • Northwest is offering 1000 bonus miles when you spend $350 or more at the Northwest mall by December 31. Registration is required.


  • Alaska’s offer is similar to Delta’s, with bonus miles at a handful of merchants and 100 bonus miles at a small number as well. Offer expires December 31.


  • Sensing a theme, United is offering bonus miles at a handful of merchants and 100 bonus miles at a small number as well. Offer expires December 31.


  • Marriott is offering 1000 bonus points when you spend $150 in a single purchase by December 31. There’s also an offer for Marriott elites that allows you to earn up to 5000 bonus points for shopping mall spend.

Inside Flyer ran a cover story in December, 2003 on earning miles for online shopping that’s still worth checking out if you don’t regularly earn miles for all your online purchases.

Massive Devaluation at Capital One

Posted on: November 24th, 2005 by: Gary

I’m quoted in KARE-11 TV Minneapolis’ story on the devaluation of Capital One miles.

Readers of this blog already know to stay away from Capital One, which basically offers a rebate card where the rebate is limited to spending on travel, so it’s less appealing than a traditional cashback card.

And as I’ve mentioned before, with miles you can earn from a variety of sources but with a credit card’s proprietary program you only earn through credit card spend — which means it’s tougher to earn enough points for a free ticket.

Now the Capital One program has massively increased the number of points required for many awards, and it’s no longer ever possible to do better than 1% return on spending.

Since it’s mass market TV, the story doesn’t get into the reasons behind the changes (although it does make hay of Capital One’s refusal to comment for the story). The reporter relayed his conversation with Randy Petersen, however. It’s a secondhand discussion of Randy’s argument, so apologize if I’m not passing it along accurately, but if the average cardholder is spending about $4,000 to $6,000 a year then the Capital One program is just starting to get a substantial number of cardholders with enough points for redemption. Just as a cluster of customers are getting close to rewards the goal post is getting moved to stave off huge redemption costs. It’s like Charlie Brown and the football.

Don’t get duped again. Runaway from Capital One. Run fast. Run far.

New Free Electronics Offers

Posted on: November 23rd, 2005 by: Gary

I’ve written several times in the past about Gratis Networks, now known as FreePay, which offers free electronics for completing their marketing offers and referring friends. In some very real sense it’s a pyramind scheme, but it pays off.

Gratis Internet was listed as Inc. magazine’s #18 fastest growing company in the U.S.

I just noticed that there are three new offers I hadn’t seen before:

For the record I’ve completed all of the offers other than these three news ones and the free Xbox offer. I’ve received everything, too.

When you signup for the PS3 offer takes, the site takes you through a few screens of ‘optional’ surveys. Just select no on every question, these don’t help you get your item.

All the sites work as follows: you complete an offer from one of their marketing partners, and then you refer friends who have to complete marketing offers as well.

My favorite current offer is a free trial from eFax. It doesn’t cost anything and you can even cancel via online chat (which means you can log the chat and have written proof of cancellation).

New Book Introducing Mileage Programs

Posted on: November 22nd, 2005 by: Gary

Randy Petersen’s new book is out, I’ll be ordering a copy. It’s supposed to be a great introduction to frequent flyer programs, so readers just getting started down the road of miles and points may find it useful. I’ll be sure to write up a review once it arrives.

Randy has an interesting blog entry on the process of writing the book.

Best Ever American Airlines Mastercard Offer

Posted on: November 19th, 2005 by: Gary

Via Fre Frequent Flyer Miles, American and Citibank are offering their co-branded Mastercard with 20,000 bonus miles for first purchase and fee waived the first year.

FlyI to Become a Born-Again Virgin?

Posted on: November 17th, 2005 by: Gary

Via Tripso Daily, Sir Richard Branson’s Virgin Group appears to be interested in acquiring bankrupt Independence Air as a means toward launching its Virgin America airline.

Personally I don’t see this happening, both because I’m skeptical of most Branson efforts. A fabulous entrepreneur, there’s usually more buzz than substance when Branson rumors circulate. The rules on foreign ownership of US airlines are moving towards relaxation, but any changes are unlikely to be in effect in time for an Independence bid. And the Virgin America project has simply demonstrated a greater propensity for inaction than reality over the last couple of years.

Still, the piece carried some news about how the Independence bankruptcy auction will work:

    It said it would auction itself to the highest bidder. Interested parties must register with the court by 1 December and submit formal offers by 16 December.

Catholic Co-Branding

Posted on: November 17th, 2005 by: Gary

Colloquy reports on a Taiwanese bank which is offering a credit card co-branded with the Catholic church.

There’s something truly surreal about it.

    Taiwanese card issuer The Chinese Bank has introduced a new affinity card in conjunction with the Chinese Regional Bishops’ Conference, according to the Taipei Times newspaper.


    The newspaper reported that the bank will issue 100,000 cards, to be called the True Happiness Affinity Card, with maximum credit limits of NT$10 million ($297,397 USD).


    One-quarter of one percent of a customer’s spend will be paid to the bishops’ conference for charity work.


    “This credit card is not only for Catholics or those who believe in Jesus,” Chen Kun-chen, secretary general of the bishops’ conference, was quoted as saying.


    “Everybody can help to spread love regardless of their religion.”

$0 to Acapulco

Posted on: November 16th, 2005 by: Gary

FareAlert is reporting on a $0 + tax American Airlines fare to Acapulco, valid from just a few cities. (They mention Albuquerque, Atlanta, Indianapolis, Little Rock, Milwaukee, Minneapolis/St. Paul, and Oklahoma City. More may be discovered.)

Flyertalk.com discussion is here.

USA Today followup on the Expedia Rate Glitch Story

Posted on: November 15th, 2005 by: Gary

Megg Mueller Schulte has an excellent followup on the Expedia rate glitch at the Hiltons in Tokyo and Osaka.

She repeats the Expedia line about honoring rates booked in November and packages, and that they’re offering $250 package coupons to others whose reservations will be cancelled. But then goes on to explain that apparently (I can confirm this) Expedia is honoring reservations for folks who confirmed the rate after their booking.

    There also seems to be some confusion over some reservations still being honored if the people contacted Expedia more than once. Reader Derek Meyer wrote to me that “From my readings on FlyerTalk, and correspondence with other people who also booked this rate, it seems that Expedia is honoring the reservations of people who called or emailed into Expedia to ‘re-confirm’ Expedia’s confirmation email after booking. These customers are now being told their rates are being honored, while the rest of us — those who assume that a confirmation email with booking ID, Itinerary number, and hotel confirmation number — who did not confirm are now being unilaterally canceled.”


    I contacted Expedia to find out what the discrepancies were, and how it was handling them, but as of this writing hadn’t heard back.

She repeats an important question asked by her readers:

    Will Expedia forgive a mistake a customer makes, or return all funds paid if a customer needs to cancel a reservation within a week of making it, which is about how long it took Expedia to notify customers their reservations were cancelled? Brian Karimzad summed it up like this in his e-mail: ” Expedia says that it made a mistake, and 4 days later has decided to cancel my reservation. Does that mean the next time I make a ‘mistake’booking a non-refundable fare, Expedia will refund my money if I catch it 4 days later? Somehow I doubt it, and will not be booking with them in the future.”

More importantly, how do you know when an Expedia booking is really confirmed? If it’s a great rate, is it subject to unilateral cancellation? What’s too good of a rate?

Free the First Year Amex Business Platinum

Posted on: November 15th, 2005 by: Gary

American Express is offering their Business Platinum card free the first year. Make sure to print the terms and conditions of the offer which put the fee waiver in writing. The usual annual fee is $300.

The key benefit is lounge access with Delta, Northwest, and Continental (you must be flying the carrier on the day of travel and can only use the lounge of the carrier you’re flying). Ancillary benefits include Gold status with Starwood and Preferred Select status with Avis.

I don’t usually recommend this card (though I have one myself). With a free the first year offer, however, it is a way to get lounge access for a year…

UPDATE November 16: Amex has pulled the no fee component of the offer already.

Expedia lies

Posted on: November 12th, 2005 by: Gary

Reuters has posted a story on the Tokyo and Osaka Hilton rate glitch where rooms at those two properties were bookable on Expedia for $2 and $3.

Expedia first told customers that it would honor the rate. Then it told USA Today that it would only honor the rate for bookings in November. Now it explains

    Expedia said on Friday that Hilton would honour some of these bookings and that other customers would get a $250 coupon for a package trip to Japan.


    The company also said it notified some customers offering to confirm the original booking at the correct price or cancel the booking with a full refund.

Apparently the bookings that it is honoring are those for customers who specifically reconfirmed with Expedia that the rate was valid and who were told that it was. If you have an email with a case number from Expedia saying they’d stand behind the rate, they will. If you called Expedia and a case number was generated, no go. In general, no case number then no hotel stay at the mistake rate.

Fortunately, I confirmed with Expedia three separate times — all in writing — that my resevation would be honored. They tell me that it will be.

Of course, Expedia’s website clearly says that reconfirming isn’t necessary…

The piece that’s absurd is Expedia’s explanation for why they aren’t honoring the rate across the board:

    Expedia said one reason it was cancelling the bookings was to prevent people from reselling the cheap bookings to travelers at higher prices.
This is silly for two reasons. First, Expedia immediate said that the reservations would be nonchangeable, including name changes. That’s a policy they’re applying to reservations being honored. So sales wouldn’t be possible. Second, while there was one eBay listing it was promptly removed. Reselling was simply not an option.

Independence Air’s Woes

Posted on: November 9th, 2005 by: Gary

Over at Marginal Revolution I discussed the economics of regional jets and why Independence Air was doomed to fail. And then just a few days later it did fail, or at least it filed for chapter 11 bankruptcy.


When Atlantic Coast Airlines announced they were planning to re-start as a standalone carrier, did anyone think they were really serious (a low-fare carrier flying RJs a la Midway in its second incarnation, based at Dulles)? It was just supposed to be a bargaining tactic with United over fly-for-hire rates that somehow spun wildly out of control.


They’re planning to sell off their assets, holding an auction for the next sixty days. They have 21 parties so far potentially interested, signing confidentiality agreeements which allows the parties to get a closer look at the company’s books. Sixty days is an aggressive sell-off schedule, but I wonder whether their unrestricted cash levels will permit more than that (and whether the bankruptcy judge would allow them to tap cash past that point).

Update on $3 Hilton Tokyo rooms

Posted on: November 9th, 2005 by: Gary

While guest-blogging at Marginal Revolution I posted about a rate glitch at Expedia where the Hilton Tokyo and Hilton Osaka were selling rooms for about $3 a night.

I personally booked a week next year at the Tokyo property in an Executive-level room.

Expedia charged my card in full for the stay and confirmed over email that in spite of the rate error that they were going to honor the booking. Indeed, one member of Flyertalk.com has already successfully checked in at this rate. However, USA Today covered the rate glitch and quoted an Expedia spokesman as saying

    “If a booking was made for the month of November, Hilton will honor the reservation at the quoted price. But if a booking was made for December or beyond, it will be cancelled – unless it is part of a package, which Expedia.com will honor.”

My booking was for 2006, so I emailed Expedia with the link to this story and received back assurance that my booking would be honored.

I’m surprised that Expedia didn’t just honor the rate across the board and tout itself for doing so — “Expedia special rates really are special — it pays to always check Expedia before booking!”

Developing…

Starwood’s Online Booking Bonus is Back… for 11 days

Posted on: November 7th, 2005 by: Gary

Starwood is offering 500 bonus points for reservations booked online between November 7 and November 18 (with travel complete by March 31, 2006).

Fully combinable with the current triple points promo as well…

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