Tuesday, December 17, 2013

The Frequent Flyer Trap

Back in the day, earning and redeeming frequent flyer points was a straight forward thing.  No games, no gimmicks and an easy to understand set of goals.  Fast forward to 2013 and next year and a monster has been created.  Airlines, hotels, car rentals, credit card companies and even florists have jumped in on the mileage lure.  Almost anyone that carries plastic is suddenly eligible for mileage awards.  Status became the next big thing as airlines created the tiers that separated the masses.  Hundreds of billions of miles are being accumulated and hoarded.

Now that the masses are in, airlines quietly move the goal posts every year.  2014 promises to be one that miles are significantly devalued.  With reduced capacity and more limited seats, mileage redemptions keep getting more difficult with many far more restrictions and multitude of fees.  It takes more miles to fly anywhere.  To achieve status, airlines will be measuring the dollars you spend doing so rather than the miles you fly.  While some of these changes are necessary, airlines might be killing the goose that lays the golden egg.  More consumers are realizing that loyalty comes with cost and that the reward may not be worth the price.  We might be reaching a tipping point if the airlines continue to demand more and offer less. www.premieretravel.com

Tuesday, December 10, 2013

Predictable: USAirways Leaving Star Alliance

 
After sealing the merger between USAirways and American Airlines on Monday, USAirways announced that it will be leaving the Star Alliance effective March 31, 2014.  For travelers, this means that they will no longer be able to book USAirways flights as United code share or vice versa.  Flight schedules will no longer show availability and passengers can continue to accumulate and  redeem their mileage through that date.

It is only the beginning for the new American Airlines which will have to integrate two different cultures and philosophies.  www.premieretravel.com