Travel Tips from Cook American Express' Travel Blog

Travel Tips from Cook AMEX's Travel Blog

Will Airline Prices rise?

6/19/2009 2:36:17 PM Link | | Add comment

Joe Starkeys article in the New York Times talked about how airlines are lowering capacity and had experts predicting that airline prices might rise after the cuts. So this is the best time to fly.

Joe Brancatelli says this is not true and argues that the only thing that will effect prices is demand.

"The fare increase shouldn't come as a surprise since oil prices have more than doubled since bottoming out in the mid-$30 range last fall. Besides, the $10 one-way increase isn't likely to matter much since airlines weren't selling tickets at the lower fares and, as far as I can tell, the carriers still can't raise the price of not flying. The route and capacity cuts, which have been coming in waves since last summer's oil shock and the economic collapse of the fall, is more of the same: You can't deprive a traveler of a seat when they aren't flying in the first place."

"But logic has never been the strong suit of many of my colleagues in the mainstream media. They came to the astonishing conclusion that capacity cutbacks at the airlines will lead to your paying higher prices to fly this fall. No matter that they leapt to the same bone-headed conclusion when the airlines slashed capacity earlier this year, late last year, last summer and, with vary degrees of permanence, since 9/11."

"So let me spell it out again for them and for any of you who misunderstand basic economics: The price you pay to fly has almost nothing to do with the number of airline seats that airlines choose to operate. The only thing that drives up the price of an airline ticket is demand. If you want to fly, the airlines can raise the price you pay. If you don't want to fly, or if airlines raise published fares too high, the lack of demand drives the price of travel down."

"Got that? Airlines can slash their route networks and it doesn't mean a thing to the price of tea in China or the price you pay for a seat. The only thing that drives price is demand. Whether they fly one seat or a million, the only thing that matters is what you are willing to pay for it."

"Only demand matters. And, lately, no matter how low the airlines price their seats, there is no demand. According to the government, there were about 162 million "revenue passenger enplanements" during the first three months of this year. That's down more than 10 percent--or about 19 million--compared to the first three months of 2008.

Demand down, prices down. That's how it works, folks."

Excerpts from;

SUPPLY, DEMAND AND THE AIRLINES
By Joe Brancatelli, JoeSentMe.com

Ten Secrets The Airlines Will Not Tell You

3/3/2009 2:37:19 PM Link | | Add comment

Trying to beat the airlines at their own game is like playing three-dimensional chess in your head. On any given flight, 100 passengers could all be paying different fares. It's called "yield management.” Here are some things you should know about the airlines and ticket pricing to help you beat them at their own game…

1. Good things come to those who grumble.

It’s no secret that if you complain, the airlines will try to buy you off with frequent flyer miles or a voucher for a future flight. Normally, if your beef is minor (bad food, late plane, lumpy seat, rude gate attendants, lost baggage), they will offer you 5,000 frequent flyer points without any significant inquiry.

One United passenger exploited this to the extreme. George Yen, according to UA, complained about 200 times in six months. And it seemed to be working for him. United gave him mileage compensation totaling 68,500 miles, numerous upgrades, and $5,125 in certificates.

But as Christ Elliot explains, eventually Yen’s scheme ran aground: United froze his Frequent Flyer account and wrote him to say that his complaints appeared to be directed towards securing goodwill compensation in the form of entitlements.

So, complain, get free tickets….but don’t overdo it.

2. Pay coach, fly business.
An implausible gimmick, right? Surprisingly, no. First and business class seats are available at coach prices, especially for last minute international travel. Large corporate travel agencies have deals with the airlines whereby their clients can often pay a full coach fare (pricey, but not as pricey as a regular business class ticket) and then be upgraded to business class, effectively saving thousands of dollars.

Domestically, coach tickets can be booked under codes like Y, Q, or Z, which award ticket holders automatic upgrades to first class. You can expect to save about a $1000. The Y fare for a roundtrip flight on AA from Dallas to New York is $1167…nearly $1000 less than the regular first class fare.

Internationally, AA just started allowing Y upgrades to London. Definitely keep this in mind when flying to Europe…

3. Airline’s promises of good food are just that: promises.
Sure, airlines brag about their new menus. Continental Airlines: hot gourmet sandwiches, roast beef and oven-roasted turkey with gouda cheese on marble rye bread. Delta Air Lines: smoked salmon and egg salad croissants and roast beef steak cobb sandwiches. United Airlines: sweet crab salad on fresh bok choy and citrus-cured smoked salmon.

Sounds great, sure. But don’t expect anything special on domestic flights under four hours, says travel ombudsman Chris Elliot. For example, the Todd English sandwiches were only available on flights between New York and Los Angeles, San Diego, San Francisco and Seattle.

Realistically? Expect dry roasted peanuts. Eat first of bring your own food.

4. You don’t have to fly business class to fly comfortably.
Book three seats for two people and have as much space as sitting business class but at one-third of the price. Two business class seats from San Francisco to London on BA cost $6,800 + taxes, but you can buy three coach seats with more room for only $825 + taxes. Sure you won’t get the fancy meals, but you’ll be comfortable and save close to $6,000!

5. Buy upgrades at the airline’s terminal counter.

It's a dirty secret: airlines--US Airways, United, and American are desperate for money that they are selling upgrades from full coach to business class with a payment at gate of $500 or so, if the seats are available. British Airlines is reportedly selling upgrades on board the plane, if they see empty seats. They don't publicize these upgrades-- it's up to the airline.

But if you're a frequent flyer or fly on a large corporate account, many travel agencies are able to upgrade passengers from a full coach fare for free. Full coach fares are not cheap, they run from $3,000 and up, but they're a lot better than $8,000 last minute refundable business class fares.

And upgraded full coach fares are fully refundable and changeable, unlike advance purchase business class sale fares, which are non-refundable and non-changeable except at a fee.

6. Holidays are a tough time to fly, but a great time to book.
Look for special sales during holidays. BA has a habit of launching short sales during holiday periods, giving travelers a very small window to book… Typically, these fares are at least 20% lower… For example, a European trip in business class last week that was booking at $3,400, was pricing at $2,800 over the recent Valentine’s Day weekend.

7. The airlines don’t always offer you their lowest fares.
Everyone knows of Expedia.com or Kayak, but most travel sites (the big boys included) do not sell consolidator or net fare airline tickets. Even the airlines themselves don’t sell these fares. Instead, they offer them to consolidators and large corporate agencies to fill their empty seats without publicly devaluing their inventory.

Before booking, ask a savvy travel agent. This is their business. They have access to consolidator and net fares that the airlines don’t sell, especially in international business and first class. You haggle with your mechanic and your broker for better prices…why forgo angling for a better business class ticket price? They’re out there. Do a Google search for “Business Class Discounts.”

8. Buy a package deal and save thousands.

Even if you don’t need/ can’t use the entire package, sometimes booking hotel/cruise/car and airfare can be CHEAPER than booking just the airfare. Keep an eye out for tour operators advertising these ridiculously low fares and package deals, especially if you’re traveling with little advance notice. You’re most likely to see advertisements for these deals in the Sunday Travel Section.

9. Consider buying roundtrip when you fly one way.
Airlines charge exorbitant prices for one-way tickets, and it is often the case that you can get cheaper roundtrip Saturday-stay tickets. Why is this? Because chances are, you’re flying one-way for something that demands that you fly no matter the cost (school, new job, etc.), whereas roundtrip flights must be priced to entice lower priority travel. Book a roundtrip ticket. The airlines don’t like it, but chances are you won’t be pushed on your "no return". Judge Scalia did this when he hitched a complimentary ride on Cheney’s private jet to kick off a duck-hunting trip. He booked roundtrip airfare (price $218) for his return one-way flight (which was pricing at $698). There was a lot buzz in the travel industry about his choice. No matter his argument, one thing is certain: he saved money.

10. Rule 240.
Understanding your rights under Rule 240 is essential. Read This article from Aviation.com, which explains the ins and outs of Rule 240: “if an airline [can't] get you to your destination on time, it [is] required to put you on a competitor’s flight if it would get you there faster than your original airline’s next flight.” Some airlines, including Delta, “no longer make any mention of transporting passengers on other airlines in the event of a flight disruption,” so it’s always in your best interest to voice what you know to be your rights, even if they’re undisclosed.

Air Travel Fees, Bumps and Hassles

10/1/2008 10:05:59 AM Link | | Add comment

By Peter Greenberg, Forbestraveler.com

And just when you thought it couldn't get worse;

Within the next few weeks, airlines in the U.S. will be cutting their domestic capacity by up to 16 percent across the board. Southwest Airlines will cut 200 flights from its winter schedule this fall. In September, Jet Blue ended on the following routes: Boston to San Francisco, Boston to San José, New York to Ontario, Washington to Burbank, Washington to Las Vegas, and Washington to San Diego.

This means that major airlines will be parking (i.e., taking out of service) planes. Continental will park nearly 70 planes, American will retire more than 80 and United could park more than 120. Midwest is cutting one third of its fleet, and Frontier—currently operating under bankruptcy—is removing 17 percent of its capacity.

The best advice is basic common sense: Book as early as possible. And since your odds of getting bumped off a flight have increased, get to the airport early if you really need to get somewhere.

Try to book the very first flight of the morning. Reason being: There's a good chance that the aircraft assigned to your flight—as well as your flight crew—overnighted at your airport the night before. You therefore stand a better chance that the flight won't be delayed, or get stuck waiting for a crew.

Buy travel packages whenever possible. Tour operators often block space on flights that may not show as available on other websites or through the airlines themselves.

Hyper-Inflation of Frequent Flyer Miles; It's Zimbabwe!

8/12/2008 12:01:15 PM Link | | Add comment

Cashing in your frequent-flier miles? Get ready to spend some cash.

New booking fees on tickets bought with miles are among a barrage of surcharges and cutbacks hitting frequent-flier programs in the next few weeks. Pinched by high oil prices, airlines are also increasing the number of miles required for flights and cutting back on program benefits.

Today, US Airways Group Inc. will stop giving bonus miles to elite frequent fliers. It will also start charging between $25 and $50, depending on the destination, for booking award tickets.

On Aug. 15, Delta Air Lines Inc. will add a fuel surcharge to award tickets -- $25 for U.S. and Canada and $50 for other destinations -- and on Sept. 15, Northwest Airlines Corp. will add a fuel surcharge of $25 to $100 to WorldPerks tickets issued in North America.

Several airlines have recently introduced or increased fees for booking or changing award tickets on the phone, booking a leg on a partner airline or redepositing unused miles from a canceled ticket. AMR Corp.'s American Airlines has added a $5 online booking fee and will increase the number of miles needed to buy certain award tickets as of Oct. 1.

On Friday, Continental Airlines announced the company will no longer allow frequent-flier members to buy the last seat available on certain flights "where demand is high" after Sept. 3, though the restriction won't apply to elite fliers. On Aug. 17, the airline will increase fees for booking award tickets close to the date of travel.

The moves have some fliers questioning the value of miles programs, says Joe Brancatelli, editor of travel Web site JoeSentMe.com. "Inflating the currency and then having less product to buy and charging you fees to do it -- it's hyper-inflation," he says. "It's Zimbabwe."

US Airways' decision to end bonus-miles privileges for elite members was the "final straw" for Michael Dukart, who had amassed over a million miles with the carrier earlier this year. When the airline announced it would stop awarding bonus miles to elite members of its Dividend Miles program, Mr. Dukart, who lives in Wilmington, Del., decided to start flying United Airlines instead, even though the airport closest to him is a US Airways hub.

A broad consumer protest has emerged on Savedividendmiles.com, a Web site put up two weeks ago by Randy Petersen, the frequent-flier specialist who runs the popular travel forum Flyertalk.com. A petition on the Web site asking US Airways to bring back bonus miles has been signed by 1,570 people.

Mr. Dukart says he signed the petition and is trying to "burn through" his miles so he can make a clean break from the airline. On Monday, he left for South Africa with his wife, using first-class seats bought with miles.

Scott Kirby, president of US Airways, says, "I wish it wasn't the kind of decision we felt we had to make," but the changes and fees "are necessary realities of $125-a-barrel oil." US Airways polled frequent fliers and found that "overwhelmingly" they value a free upgrade to first class more than bonus miles. Mr. Kirby says the airline has received complaints from consumers, but not more than it received after announcing other changes, like charging for food. "Changes are hard," says Mr. Kirby.

Surcharges Soar
Some of the carriers' latest moves:
• US Airways will charge for booking award tickets and will stop giving elite fliers bonus miles.
• Delta and Northwest will add fuel surcharges to many award tickets.
• American has added a $5 online booking fee and will increase the number of miles needed for certain award tickets.

The fees and benefit cuts come at a time when frequent fliers are already upset about a problematic imbalance -- a lot of miles and not many seats available for award tickets. Airlines make a large profit from selling miles to "partners" such as credit cards and hotels. Partner deals have gone up significantly over the years, but award seats haven't.

Delta issued 25% more miles in 2007 than in 2004, says Jeff Robertson, managing director of Delta's SkyMiles program, but the number of available seats on its planes didn't increase. Recent capacity cuts have made the imbalance worse, because airlines are maintaining the same percentage of awards seats on fewer flights.

Still, some airlines are taking measures to make their frequent-flier programs more attractive. Earlier this year, both Northwest and Delta introduced new options that allow fliers to buy tickets with a combination of cash and miles, so small increments of miles could be redeemed. In April, the two companies announced they intend to merge.

Delta recently announced it would replace its awards program in September with a three-tiered system that's similar to American Airlines' program. Instead of offering domestic tickets for either 25,000 or 50,000 miles -- with many more tickets available for 50,000 miles -- the airline will offer about 50% of its total seat inventory for 40,000 miles, while maintaining the same amount of seats in the 25,000-mile tier. The rest of the seats will be in the 60,000-mile tier.

In addition, the airline will again allow frequent fliers to book the last seat available on flights -- a benefit denied to frequent fliers last winter. Such seats will go to those willing to pay a hefty mileage price. "This new structure will attract more new customers, benefit current customers and help differentiate Delta from other carriers," says Mr. Robertson.

In November, Alaska Airlines will add more award levels, in an effort to make it easier to use miles. The airline already offers a cash-and-miles award ticket.

Discount carrier AirTran Holdings Inc. added a program in March that lets passengers pay for extra miles to reach the level needed to get an award ticket. Before, fliers could buy award tickets only with miles.

Airlines "are trying to stay competitive and be a little more innovative," says Rick Seaney, chief executive of the travel Web site FareCompare.com. "Fuel and luggage surcharges have been bad press. They are trying to tweak some things to mitigate that."

But some of the new award-travel systems have drawbacks. Under Delta's new three-tier structure, award travel is more expensive in some cases. A premium-class seat to Europe used to cost between 90,000 and 250,000 miles and will now cost between 100,000 miles and 350,000 miles. The top price now guarantees the last seat on a flight, unlike before.

Northwest's cash-and-miles offer, PerkChoice, includes a clause that has rubbed at least one customer the wrong way: If you need to cancel the ticket, you don't get the cash part of the purchase back. Jackie Engelhart bought three airline tickets to Calgary, Alberta, earlier this year, three days after the soft launch of PerkChoice. After her eight-year-old daughter spent several months fighting colds, flu and asthma, Ms. Engelhart decided to cancel the trip, assuming the cash part of her tickets would be treated like most canceled Northwest tickets -- as credit with the Eagan, Minn.-based airline.
Instead she had to pay a $50-per-ticket fee to put the miles back onto to her account and couldn't get any credit for the cash.
Northwest says that it hasn't had many complaints about the rule and that the terms of PerkChoice "are given when a customer books a ticket," and "must be agreed to before the customer is allowed to complete the purchase." But like other aspects of the relatively new program, the rule "could be changed," says a company spokesperson.

Regardless, Ms. Engelhart says she won't book a PerkChoice ticket again. "Not flying Northwest cost us more than $1,000," she says.

Nothing Beats A Real Agent

7/21/2008 9:55:22 AM Link | | Add comment

Most agents have:

1. Knowledge of various forms of transportation to the suggested destination; knowledge about the destination and knowledge about the carrier / tour op;

2. Most on-line systems aren't bonded or offer financial security other than those offered by a credit card company;

3. What travel agent has long pages of terms and conditions? These are only necessary when a business seeks to escape, or minimize, liability;

4. On-line bookers are useless at booking multi-segment flights. I always test them with a Quebec City or Winnipeg start point and a destination of Phnom Penh, Cambodia or Vientiane, Laos. I bet none will offer either optimal routing (avoiding the USA) or the cheapest flights;

5. A real live travel agent can offer many services, either unavailable or only with hassles from on-line hustlers, before, during and after a journey. Although I use my hand / cell phone for booking domestic / regional flights, I always use a real live agent, in Canada which is on the opposite side of the world from where I live, and have done for 30+ years, because I know a quick e-mail will get any problems sorted out by the time I hot my e-mail at my next airport;

6. Many on-line ticket sellers scrape the dregs of seats so they can fill every seat, for hidden financial benefits from the carriers, whereas a travel agent gets better seating.

7, No on-line system will hold a clients travel requests for days or weeks whilst it checks out many carrier / routing options as a real live travel agent can. They operate in real-time which is not always the most optimal way of purchasing travel.

Guidebooks are dated when they hit the bookstands, particularly the one owned by the BBC.

Real live travel agents have so many ways to better the on-line majors.

Jon Hewson
ManagingPartner-Special Projects, VirtuallyThere.ca
11 July 2008, 22:11:37 GMT

From Travelmole.com

Urgent BA Sale !!! Purchase by 7/6

7/3/2008 11:12:58 AM Link | | Add comment

BRITISH AIRWAYS IS HAVING AN INDEPENDENCE DAY SALE!

FLY TO LONDON

FROM

New York (JFK and Newark), Boston, Philadelphia, Atlanta, Baltimore OR Washington DC

FOR just $1776* round–trip plus taxes!!

That's an unheard of $888* each way, when you travel through December 31, 2008.

DON'T DELAY! YOU MUST PURCHASE BY JULY 6TH!

To price an itinerary,
.

WE HAVE MANY OTHER DESTINATION CITIES WITH LOW QUOTES! JUST ASK!

BOOK WITH US AND ASK ABOUT YOUR ANNUAL AMERICAN EXPRESS CARD MEMBER REWARD

ON THIS BOOKING!

CALL NOW! 800-435-8776

*Terms and conditions of BA July 2nd-6th Sale

Redesigned Club World is being rolled out across our fleet and is currently only available from JFK, Chicago, Washington DC, Los Angeles, Miami, Phoenix, Seattle and San Francisco.
If you book through a British Airways call centre, you will be charged an additional $20 per ticket for processing.
$1776 price shown is round–trip including fuel, based on select 21–day advance purchase, midweek (Sunday - Wednesday) Club World business class fare from New York (JFK and Newark), Boston, Philadelphia, Atlanta, Baltimore or Washington DC to London for travel through December 31, 2008 on British Airways only.
$888 price shown is each way including fuel, based on round–trip, select 21–day advance purchase midweek (Sunday - Wednesday) Club World (business class) fare from New York (JFK and Newark), Boston, Philadelphia, Atlanta, Baltimore or Washington DC to London for travel through December 31, 2008 on British Airways only.
Price may vary for other travel dates, from other departure cities and to other destinations.
Valid for new bookings only made during the promotional period July 2 – 6, 2008 only.
Offer valid for travel July 23 – December 31, 2008 only.
All fares are subject to government approval and do not include government fees and taxes of approximately $265 plus a $2.50 September 11th Security Fee.
Minimum stay Saturday night. Maximum stay 11 months.
Weekend (Thursday - Saturday) surcharge of $30 applies each way
Prices advertised are subject to availability.
Free room upgrade is valid for new bookings only made during the promotional period July 2 – 6, 2008 when purchasing a transatlantic flight originating in the US in our Club World business class cabin for travel July 23 – December 31, 2008 only.
Free room upgrade is only available at selected London hotels and room types. You must book the upgraded room type, which will reflect the free upgrade in its prices.
Offer subject to availability.
Other significant restrictions apply.

All prices are subject to availability in qualifying inventory. There may be restrictions regarding changes and cancellations.
Important! These offers may be time-sensitive. All promotions/pricing are subject to availability at the time of booking.
Fares are seasonal, subject to change and do not include taxes or fuel charges. The prices on this page are approximate due to extremely frequent fare changes. Please call for current fares.

BA vs Virgin

6/26/2008 11:32:27 AM Link | | Add comment

Dear Monty,
Everything was ok, Maggie's on her return home as we speak. Overall, I think that BA is quite a bit better than American, vastly better than Virgin, but the bottom line is that all commercial flights are really the pits. Too bad the Concorde is history! I will call you the next time we need you, as you delivered everything as promised. Good job!
With best regards,
Gary

Archives
June 2009	March 2009
October 2008	August 2008
July 2008	June 2008
May 2008