Premiere Travel Services

Airlines Must Explain Basis of Fuel Surcharges

2012-03-17T09:31:00.003-04:00

When the U.S. Department of Transportation (DOT) imposed new requirements on airlines and online travel agency (OTA) advertising and disclosure, one overlooked aspect was the "fuel surcharge: component of the cost of the international airline ticket. For the longest time, airlines could simply announce increases in fuel surcharges that are not part of the base fare while still advertising the base fare cost. The DOT now mandates that airlines not only disclose clearly to the public what these fuel surcharges are, but airlines must identify some reasonable baseline of that has to demonstrate a methodology of how the surcharges were calculated.It also brings back a point repeated frequently in this blog: that airlines attribute increases in fuel surcharges to rising fuel costs, but they either do not react promptly when fuel costs decline, or they simply ignore it. www.premieretravel.com

Becoming United-An Update

2012-03-09T10:24:00.003-05:00

The following is an update from United Airlines about the integration to a single platform with Continental Airlines. Continental Airline flight numbers have been removed and a procedure has been put in place to exchange, refund and issue new tickets.From United: This past weekend United migrated to a single Passenger Service System. While the majority of our migration activities were successful, we continue to work through issues as they arise. We are extremely focused on providing the most comprehensive solutions, which reduce the necessity for calls to our contact centers and expand self-service options.Out of Sync Passenger Records:During migration, some Passenger Records became “out of sync,” which means the itinerary in United’s system did not match the e-ticket in United’s system. All passenger records for travel in March have now been put back into sync, and all remaining records should be completed by the end of the week. Economy Plus Seating AssignmentsUnited currently accepts either the 11 digit or 8 character MileagePlus account numbers. This conversion process could take several hours. The United system will convert the 11 digit account number to the new 8 character account number in our system. The seat map may not display properly until the conversion is complete. For immediate Economy Plus seat assignments (where applicable).MileagePlus Account NumbersPremiere Travel highly recommends passengers update their profile with their new 8 character MileagePlus account number. Frequent flyers who did not receive an email from MileagePlus may obtain their new account number by going to united.com and entering their old 11 digit account number and password.END~For more information on premier executive travel and reservations, please contact Premiere Travel.www.premieretravel.com

Travelers' Advocate in Congress!

2012-03-06T12:29:00.001-05:00

Many travelers feel the travel experience has been deeply degraded. Long lines, surly airline and TSA employees, delays and hassles are now common expectations.The TSA is in charge of airport security throughout the U.S. and good changes are quietly under way thanks to one tough congressman.John Mica (R-FL), hails from the 7th Congressional District in Florida, and is the Chairman of the House Transportation and Infrastructure Committee. His FAA bill got recently approved, and there is a provision to reign in the TSA. Congressman Mica is not hesitant about airing his criticism about the TSA. From the "chat-downs" to the dysfunctional bloated bureaucracy that the TSA has become, Congressman Mica believes that there are much better ways to handle airport security through public-private methods, such as opting out and privatization of airport screenings.Some airports have already adopted the new model successfully, and the initiative will hopefully spread to more airports in the near future.www.premieretravel.com

United Asks For Patience

2012-03-04T22:42:00.004-05:00

After months of preparations, dry runs and dress rehearsals, the migration of the new United Airlines into a single platform did not go as smoothly as expected.Many airport kiosks across the U.S. were not functioning properly and some passengers were frustrated with delays that were to be expected in such a massive undertaking.The problems will likely persist for several more days as the new combined carrier deals with consolidating hundreds of thousands of passenger records into one system which most of its employees are not familiar with.We advise passengers traveling on United (or Continental) in the next few days to do early check-in before heading to the airport. Passengers may also experience check-in problems on the overloaded United.com website. United Premier travel members have dedicated access to deal with changes and cancellations.www.premieretravel.com

Fasten Your Seatbelts: United/Continental Countdown

2012-02-27T16:51:00.001-05:00

On March 3, 2012 at 12:01, which happens to be Saturday, United Airlines will formalize its final merger with Continental as both carriers will become "United" and move their operations to a single platform.As would be expected in such a large scale situation, many passengers may encounter issues when traveling, especially during this upcoming weekend. Because United will be switching to Continental's "Shares" system, they anticipate that the migration will cause an approximate 4-hour shutdown of all access to their reservation system.If all goes well, the system will be up and running for flights departing Saturday morning. As this is a huge undertaking, with a massive database being migrated to a different platform, passengers should expect the unexpected.Premiere Travel has notified all its potentially affected passengers of these changes and offered options for what we know. It will be difficult to predict how long this transition will take and if complications may develop, but this is yet another reason why travel management companies continue to thrive.Changes that will impact travelers include the termination of all Continental codes, flight numbers, as well as possible changes to departure and arrival times, frequent flyer merger, changing aircraft that may impact assigned seating etc...While the initial phase this weekend will be challenging, we expect good results going forward as the combined carrier will offer new improved services and will adopt best practices and innovations that will serve passengers well in the future.www.premieretravel.com

Get Ready For More Fuel Surcharges

2012-02-21T23:06:00.002-05:00

Price of crude oil and its derivative, jet fuel touched a 9-months high today. International airlines will not waste anytime hiking their "fuel surcharge" in response, and travelers will likely see higher fares on international travel. Domestic carriers do not add fuel surcharges, they simply raise their fares.It is notable that airlines who are quick to raise their fuel surcharges, do not react as quickly to lower them when the prices go down.At this level, airlines that have not at least hedged part of their fuel purchases have no choice but to raise the surcharge.Recommended Action: If you have an upcoming international trip, have your ticket done now as the surcharge increase cannot be applied retroactively. 2012 is on pace to record a double-digit fare increase over last year, plus you can count on additional ancillary fees that the airlines are standardizing. Most "desirable" seat assignments now carry some sort of fees.www.premieretravel.com

Alliances, Joint Ventures Code Sharing and Partnerships

2012-02-16T12:24:00.001-05:00

The race is on! Global alliances, joint ventures, and partnerships are mushrooming everywhere, and travelers are bewildered more than ever. Three major alliances have emerged: Star Alliance, led by United and Lufthansa and 25 other carriers-minus Spanair now.Sky Team: 15 airlines with Delta, Air France and KLMOne World: 12 airlines including American Airlines and British Airways.On the surface, the idea is a good one. These alliances provide global coverages that are too costly and impractical for individual airlines to develop on their own. They share their flight networks and facilitate the sale and marketing to achieve economies of scale.The strategies of the alliances vary widely, and some of their partnerships are only nominal. There are major "managing" airlines and others that are solely there to fill geographic gaps.There are big inconsistencies in their corporate identities and cultures punctuated by total lack of synergies that cause issues to surface. Airlines also have different reasons and goals for being part of alliances. Even joint ventures, the strongest form of partnerships will result in the "partners" competing against each other in many situations and routes. www.premieretravel.com

An Important Question Travelers Don't Often Ask

2012-02-14T11:12:00.002-05:00

If you are renting a car, you would like to know the type of vehicle and the make of it. However, most travelers do not ask what type of airplane they will be flying on, and some still don't know even when they take their seats.So why is this important? For many reasons...seat configuration will be one of the first things to consider. A 2 by 2 configuration will give every passenger either a window or an aisle, which is highly desirable. A wide-body for example, may have a 3-5-2 or 3-4-3 configuration. No, we are not talking soccer formations, it is important to know how the seating chart will look like and the chances to "score" a good seat.Here are more reasons: a turboprop is slower than a jet, so depending on the length of the flight, and given the availability of other choices, you may prefer to be on a newer jet than older props that are being phased out. The older the plane, the more likely that a maintenance issue might arise. There are also the comfort and amenity considerations. Old aircrafts are noisier and lack the audio-visual entertainment options.Airlines realize the importance of deploying the most efficient and environmentally friendly aircraft for specific routes, and the backlog orders at the major manufacturers are very healthy.www.premieretravel.com

Star Wars: A New Game

2012-02-11T22:12:00.000-05:00

Almost everywhere you go on the internet these days, you will find a "star rating" system. Merchandise, restaurants, services, hotels and resorts among other things are rated and categorized by stars.The idea is great: people who use the service or buy the product will write reviews and rate their experiences to share with other potential users. Websites like Tripadvisor has become the "go to" place when travelers are looking for accommodations and are seeking strangers' opinions about these properties. Social networks are also being used to promote and rate (likes).It did not take long for promoters and detractors to game the process. Reviews, positive or negative have turned this into a game and the process so unreliable as many establishments recruit positive reviews while competitors pile negative reviews. You will never know if the 5-star or 1-star ratings (for the same property) are reliable. The truth lies somewhere in between, and the odds of calling a coin-toss is sometimes just as good as checking the ratings from "trusted" websites.Asking friends that have been to these properties would be your best bet. If not, your trusted travel management advisor is another excellent alternative.Spread the word...www.premieretravel.com

Online Travel Agencies Declining Advantage

2012-02-10T10:28:00.002-05:00

Here's a business model undergoing a quiet change: The Online Travel Agency (OTA).Many of the giant online agencies are seeing a slowdown in their booking revenue and unique visitors.This is happening for many reasons. Airlines are no longer giving these websites any pricing breaks or advantages, so that is a significant factor that travelers are beginning to notice. Now hotels are also realizing that may be they do not need OTA's as much. Some major hotel chains have collaborated on a new website venture that is meant to compete and take back market share from OTA's. Hotels are also re-inventing the payment methods to cut on the burgeoning distribution costs.Going forward, the best OTA's will be niche players, catering to specific destinations or offering exclusive deals to specific target audiences. The days of one-size-fits-all, and all-things-to-all-people is coming to an end.www.premieretravel.com

Mileage Award Trap to Avoid

2012-02-08T07:48:00.002-05:00

Thinking of signing on with those tempting credit card offers giving you 40,000, 50,000 or 60,000 miles? Before you sign on the dotted line, you will need to know that Uncle Sam may be waiting to get his cut of the deal when you file your tax return.Citibank just sent out 1099 statements to all those who signed up for their programs. While the I.R.S. has not issued a ruling specific to the treatment of this type of award, an "opinion" letter sheds some light that Citibank is probably right.When you earn miles for travel and purchases, it is considered a rebate and is not a taxable event. However, receiving "free" miles to get a new credit card is considered an award or gift and may subject the holder to income tax. At a hefty 2.5 cents per mile, a 50,000 mile award will effectively increase your taxable income by $1250!Credit card companies will bury this detail in their lengthy fine print, which they know nobody reads. So avoid a bad surprise and consult your tax advisor before you sign up for these offers.www.premieretravel.com

No Smooth Sailing For the Cruise Industry

2012-02-07T23:07:00.000-05:00

2012 has not been kind so far to the cruise industry. Images of the Costa Concordia submerged on its starboard, off the Italian Coast with at least 18 people confirmed dead was the beginning. Questions about safety and conduct of crew came into light, and cruise lines went back to the drawing board to re-evaluate their procedures.At least three U.S. based cruise ships had to be disinfected after outbreak of norovirus a.k.a. stomach virus. The cruise industry is taking a hit as a result of negative publicity of such incidents. Cruise Lines have done fairly well, but the presence of thousands of people in close proximity for 7+ days with quick turnarounds for the next cruise is bound to cause some issues. It is not possible to scrub and clean giant ships when you have an average of 10 hours between the end and the beginning of each cruise.www.premieretravel.com

Flying Zombies: Airlines on The Brink

2012-02-06T16:35:00.001-05:00

Governments in Europe who have been in the past quite generous with their flag carriers can no longer subsidize those airlines that never seem to turn the corner and are the equivalent of the money pit.The emergence of low-cost carriers in Europe was the beginning of the end for some national carriers that are bloated with inefficient methods and high labor costs.This past week saw the end of Spanair, the Catalunian Spanish carrier that ceased operations after a promised funding from Qatar Airways never materialized. Hungarian National Airline Malev followed right after (they matched Spanair) ceasing operations. Both airlines left thousands of stranded passengers in their wake.Many more airlines in Europe and other regions are on the brink, and they either must curtail operations, find new funding and partners or just go down. www.premieretravel.com

Integration Time: Look Out For Major Schedule Changes

2012-02-04T08:42:00.001-05:00

On March 3 is the "targeted" date for "Becoming United", a single platform operation that will integrate passenger service, reservations and the single license. You will no longer see "CO" "005" from that date going forward on new transactions."Inventory Suppression", code word for schedule changes, changes in flight numbers and other miscellaneous changes will not be easy as the two carriers fully merge their operations. If history is an indicator, this will be at least a cumbersome process.Ticket holders on both carriers might see changes on their flight numbers, flight codes, terminal and schedule changes. The last one is always a major concern, as we have seen that revised schedules may cause mis-connects and/or longer layovers. For a limited time, United has authorized waivers for changes and cancellations to accommodate passengers that may be impacted by this integration.The notification process by United is not full proof as these changes continue to be work in progress. Some deadlines have come and gone or have been extended. We highly recommend that you check and re-check your flight schedules until your date of departure.Airline mergers and acquisition are never easy. It involves multiple levels of integration:1) New Schedules2) Single platform reservations and inventory.3) Accounting system single platform4) Customer Service5) Loyalty programs6) Efficient planning of maintenance of aircraft7) Streamlining multiple suppliers and vendors8) Diverse and different cultures of employees9) Re-negotiating thorny labor contractswww.premieretravel.com

The Decline of The Recline

2012-02-02T07:54:00.001-05:00

Personal space on aircraft is getting more scarce. As airlines keeping devising plans to add more rows into already crowded airplanes, travelers have to cope with more personal space invasion as never before.Aside from the usual shared armrests, kids kicking the back of your seat, smaller seats and overcrowded overhead bins, the reclining seat issue has become quite a problem. With names of gadgets such as "knee defender", this sounds more like war. Several highly publicized incidents required crew intervention, including one that required a United flight to return to Washington/Dulles escorted by fighter jets!So does a passenger have a right to recline his/her seat? Yes, if the seat functions that way, but there should be some discretion/etiquette to be exercised by the reclining passenger akin to a window passenger wanting to use the lavatory: Excuse me, would you mind if I recline my seat a bit?" The mere question and courtesy extended should yield a positive response unless the traveler behind you is 6 feet tall plus. Not comfortable talking to others? By scouting your options with a simple quick glance, you can tell. Another way is to do half a recline and turn around and ask if the person behind you is okay.Some airlines have simply eliminated the reclining seats. They think this is a hassle as flight attendants can save one step of asking to "return seat to the upright position". If passengers however exercise some degree of civility and consideration, reclining seats should stay. Up next: Airlines charge fees for reclining seats!www.premieretravel.com

Delta Airlines Brilliant Tactical Move

2012-01-30T08:12:00.002-05:00

Since AMR (parent of American Airlines) filed for bankruptcy in November, rumors started swirling about more mergers and consolidation in the airline sector.Private equity Texas Pacific Group, US Airways and Delta are "studying" an acquisition of AMR once it emerges from bankruptcy proceedings as a leaner and stronger company without the back-breaking obligations of bad leases and pension obligations.While any possible merger or acquisition will take months to develop, Delta over the weekend signaled what could possibly be a brilliant move by focusing instead on acquiring US Airways.Why is this a smart move? For many reasons. An acquisition by Delta of US Airways, which will pass regulatory scrutiny, will eliminate US Airways from the AMR sweepstakes. Texas Pacific as a private equity will have to team up with an airline partner to clinch a possible deal. Problem is however, there are no (legacy) airlines left to do so. United Airlines will never be able to make a deal for its rival as they compete directly in major hubs such as Chicago, LA and the New York area, not to mention that United is an anchor in the Star Alliance while American is an anchor in the rival One World Alliance. By teaming with US Airways, Delta essentially will take itself out of the American Airlines acquisition.This potential scenario will leave American Airlines without a potential acquirer and will put the airline in a weakened position vis-a-vis behemoth giants United and a supercharged Delta.Delta will have carved a huge market share of the domestic/international market, while simultaneously boxing in American.www.premieretravel.com

Hotel Room Pricing More Complex Than Airfares

2012-01-29T10:03:00.000-05:00

Hotels have taken a page from airlines when it comes to pricing their product. We all know how confusing airfares can be to the traveling public which has led to the recently enacted rules by the DOT, now requiring airlines and online travel agencies (OTA's) to advertise the full cost of the fares.Hotel pricing however has evolved over the years, and seem to up the ante on complexity. Major hotel chains have a dizzying array of room categories, fancy names, advance purchase requirements, non-refundable rates, upgrades, amenity packages, discounts, and endless lists of promotions that would rival anything the airlines have to offer.The explosion of OTA's and online offers will yield multiple pricing options for the same room category in the same hotel, and has become very hard for the traveler to easily judge the true cost of the advertised price. For example, one site has a hotel in Paris "listed" for 229 Euros, while another has it for $249 (USD). A traveler has to use the calculator to convert the difference and figure out a potential conversion surcharge by his credit card company while still having to navigate whether or not the advertised listing includes taxes, fees and surcharges which would not be disclosed until the very end of the process.Hotel pricing is not regulated by DOT. So the potential for misleading travelers is quite high. Finally, there is the trust factor. Some of these "scraper sites" have little or no customer service and offer limited recourse for the traveler. Hotels do not like them and often relegate the traveler to the worst available rooms.A reputable travel management company can streamline this process and offer great value without the fluff. Many hotel chains offer our clients excellent value and an array of amenities that are easy to understand and are free of any (bad) surprises. Quite often, the pricing is equal or below those of OTA's.www.premieretravel.com

Not Ready For Prime Time

2012-01-26T21:36:00.000-05:00

It's January 26, 2012...airlines and travel websites are supposed to comply with new required disclosure about the fares and all mandatory ancillary fees that airlines and travel websites advertise.The Department of Transportation had already postponed implementation of this requirement twice. Airlines continued to complain that the disclosure requirements were too "complicated" and that they needed more time for a variety of reasons. DOT denied the request and stuck with the January 26 deadline.Many airline sites had technical glitches and were not in compliance of the new requirements.Spirit Airlines, always known for it's "innovation", tried to turn the tables on the DOT, saying that the government wanted to "hide" the size of the taxes by lumping that into the total price.How can something so simple be so complicated to some airlines? The DOT simply wants the traveler to be informed of the total price of an airline ticket, inclusive of all mandatory service fees and taxes.www.premieretravel.com

The Plane Truth: Legacy Airlines' Declining Market Share

2012-01-18T21:38:00.000-05:00

When American Airlines filed for bankruptcy last November, it was the last of the "legacy" carriers to do so. United, Continental, USAirways and Delta had previously filed their respective bankruptcy petitions and reorganized many years before American.Many of these legacy carriers have announced capacity cuts of up to 5%, citing weak conditions. However, domestic low cost carriers have happily and quietly beefed up their presence in key airports, adding new flights, routes and frequency. By definition, "low cost" airlines are those carriers that are non-unionized, do not support large infrastructures, and are free of legacy obligations such as unfavorable leases, labor contracts and expensive pension plans.Low-cost carriers such as Southwest, JetBlue, Virgin America, Spirit and Frontier operate more efficiently, have lower costs, and can make profit on routes and fares the legacy carriers cannot match.Low-cost carriers have made modest headway into the international routes as some of their advantages stop at the U.S. borders. But some have successfully forayed into closer international destinations such as Mexico, Canada and the Caribbean. Legacy airlines are not going away however. They still muster power by virtue of their mileage programs, joint-ventures and alliances, and will continue to maintain significant pricing power. The challenge for those airlines is to maintain the pricing equilibrium that will keep low-cost carriers at bay while trying making profit.2012 could be an interesting year as we see more airline consolidation on the horizon.www.premieretravel.com

2012 United Airlines MileagePlus Program Begins March 3, 2012

2012-01-17T16:43:00.002-05:00

We have received the following bulletin from United Airlines: MileagePlus, the loyalty program of the new United, will officially launch the 2012 program benefits on March 3, 2012. Over the coming days, MileagePlus and OnePass members will receive a merger update email directing them to log-in to a personalized preview of their 2012 status. The custom web page will contain a combination of messages that are relevant and personalized to their specific account. Messages may include: • Confirmation of 2012 Premier status as of March 3, 2012 for those who qualified based on 2011 activity• Notification that the member will receive a sticker to extend the expiration date of his/her 2011 elite status card (2011 elite members only)• Details about recalculated MileagePlus lifetime miles balances and, for members who have accounts in both programs and linked them, details regarding their combined lifetime miles balance at the start of the 2012 program• A few details about the upcoming change to eight-character alphanumeric account numbers Because we are extending the 2011 elite status and benefits until the 2012 program begins, members who had elite status in 2011 will soon receive a sticker to affix to their 2011 membership card - extending its expiration date through March 2, 2012. This sticker, once applied, will help ensure uninterrupted lounge benefits for Star Alliance Gold members traveling on partner flights, where applicable. 2011 elite members who do not receive a sticker before travel may also obtain one at any United Club location beginning January 20. Members who have qualified for 2012 Premier status can expect to receive their 2012 Premier membership kits and cards in late February. Final details about the account number transition will also be communicated at that time.For more information, log into your MileagePlus account.www.premieretravel.com

It's (AIRFARE) Jungle out There...

2012-01-16T10:07:00.000-05:00

The Department of Transportation (DOT) is about to implement the equivalent of the "truth serum" to advertised airfares effective January 26. Despite objections from airlines who wanted to delay the effective date, DOT will require advertised fares to include all taxes, fees and surcharges. You are unlikely to see a $9 fare that used to be advertised by Spirit Airlines that came with a plethora of fees and required an "annual membership".Will the new rules solve the fare confusion? Yes and no...Yes, because many of the deceptive practices of advertising, such as an ultra low-cost fare with fine prints and lots of ifs and buts,surcharges, fuel surcharges, taxes and fees that could turn a $99 fare to London to over $700 will be gone.No, because the algorithms of search engines will then be re-calibrated to come up with itineraries that don't make sense that provide "lowest fares" but are designed to attract web traffic to certain websites. For example, the search may yield the lowest fares between origin and destination that have more than one long layover stop, may require overnight stay at a hotel, or sending the traveler through a circus-like route to his/her destination. It might be on carriers that don't actually operate the routes. These tactics are bound to make the search for low fares ever more complicated and you have to carefully weigh all the costs and the time elapsed for flights before you make an informed decision. The jungle rule will apply even more after the DOT starts enforcement.www.premieretravel.com

Air Travel: Things That Don't Make Sense

2012-01-13T20:37:00.001-05:00

Travelers must endure a lot these days. Crazy airfare rules is only the beginning, then you have the endless fees, long lines, poor service and yes things that you wonder why they do, but nobody has clear answers for.We have become so accustomed to just obeying and following, no questions asked.For example, the 3 ounce rule of liquids and gels in the TSA lines. Many passengers had to ditch or lose 3.5 or 4 ounces of whatever it is they might be carrying. TSA has never explained why a deodorant above 3 ounces might represent a security threat.Then we have to put our smart phones down and off to pay attention to the flight attendants demonstrating how to engage and disengage the highly complex gadgets called "seat belts",or to turn off anything that "has an on/off button" so they do not "interfere" with airplane electronics! Hundreds of passengers have been kicked off flights for refusing to comply or for complying too slowly with the directives of the crew to turn their gadgets off. The craziness here is that if these gadgets are dangerous, what about the tens of thousands of people in the terminal or at gates that are within few feet of the aircraft that are still using their gadgets, shouldn't they also be told to power down their on/off switch for every aircraft taxiing, landing or taking off? And with so many people who "forget" to do so, will airlines start deploying sensors to detect these offenders and charge them another fee?Words with friends anyone?www.premieretravel.com

"Non-Stop" Flights Take On a Whole New Meaning

2012-01-12T18:22:00.001-05:00

To quote the late comedian George Carlin: "Would you really want to get on a non-stop flight" (SIC)?? So of course, he was going on to say that all flights have to stop...A case in point: United/Continental "non-stop" flights on the westbound transatlantic 757's. Many of those "non-stops" had to stop for refueling in off the beaten path airports such as Gander and Goose Bay. The must-stop flights to refuel were necessary according to United as they ran into serious headwinds and their fuel tanks did not have enough to sustain potential delays at destination points in the U.S.www.premieretravel.com

Traveler-Protection Measures Postponed (Again)

2012-01-09T07:36:00.002-05:00

The U.S. Department of Transportation (DOT)once again kicked the can down the road on the start of Notice of Proposed Rulemaking (NPRM) which requires the airlines to disclose clearly the breakdown of ancillary service fees that have become a huge source of revenue for airlines.The August 10, 2012 new date is bound to be postponed again as this is an election year after all.The airlines got exactly what they had hoped for and then some. The delay amounts to to a "Confusion Fee" for the traveler. Travel Management Companies (TMC's) and travelers have no viable means to compare actual costs of travel even though all the necessary disclosure components are available.DOT can make a difference, even though this is an election year. Travelers must be given full disclosure of what their trips actually cost. Ancillary fees should be clearly disclosed.www.premieretravel.com

New Acronym For Your Travel Experience: BDO

2012-01-05T22:49:00.000-05:00

Many travelers have become quite familiar with so many acronyms, a crucial necessity to abbreviate all these mundane governmental departments and compartments within the departments.So please welcome the latest addition, courtesy of the TSA, a division of DHS: BDO!What is BDO you might ask?According the the TSA, it stands for Behavior Detection Officer. The TSA website goes on to explain the role of the "BDO":The Behavior Detection Officer (BDO) program utilizes non-intrusive behavior observation and analysis techniques to identify potentially high-risk passengers. BDOs are designed to detect individuals exhibiting behaviors that indicate they may be a threat to aviation and/or transportation security. The program is a derivative of other successful behavioral analysis programs that have been employed by law enforcement and security personnel both in the U.S. and around the world.TSA's BDO-trained security officers are screening travelers for involuntary physical and physiological reactions that people exhibit in response to a fear of being discovered. TSA recognizes that an individual exhibiting some of these behaviors does not automatically mean a person has terrorist or criminal intent. BDOs do, however, help our security officers focus appropriate resources on determining if an individual presents a higher risk or if his/her behavior has a non-threatening origin. Individuals exhibiting specific observable behaviors may be referred for additional screening at the checkpoint to include a handwanding, limited pat down and physical inspection of one's carry-on baggage. Referrals are based on specific observed behaviors only, not on one's appearance, race, ethnicity or religion.BDOs add an element of unpredictability to the security screening process that is easy for passengers to navigate but difficult for terrorists to manipulate. It serves as an important additional layer of security in the airport environment, requires no additional specialized screening equipment, can easily be deployed to other modes of transportation and presents yet one more challenge the terrorists need to overcome in attempt to defeat our security system.BDOs are currently operating at approximately 161 airports nationwide.www.premieretravel.com

2012: A Fee Odyssey

2012-01-04T16:54:00.001-05:00

2012 is barely 4 days old, but we do have a new airline fee to report as Delta did not waste any time in imposing a new $6 fee to help cover a "Carbon Dioxide Emissions" cost imposed by the European Union. Airlines flying into and out of Europe must purchase credits to offset the emissions impact of their aircraft that is in excess of their allowance.Many other airlines are considering their options, but we do predict that many airlines will "match" Delta's move.www.premieretravel.com

2012 New Airline Rules on Horizon

2012-01-03T07:15:00.001-05:00

January of this month will mark some important changes in the way airlines and travel sellers display and advertise their fares.Effective January 26, airlines must disclose and include all taxes and fees in their advertised fares. You will not see "London for as low as $199..." anymore. The new Department of Transportation (DOT) rule is actually a double-edged sword. The full disclosure will make it plain and clear for instance that on international flights, the airport authorities, government, fuel surcharges and security fees add up to amounts that are far higher than the actual "base fare" that the airlines keep.Domestically, the total fare includes 20% of taxes and fees.Some airlines have legitimately complained that the full breakdown of taxes, service and ancillary fees are so many that the "fare ladder", where a ticket breakdown appears, does not have enough room to include up to 16 different taxes and user fees imposed by a variety of authorities and will actually create more confusion especially when tickets are exchanged.Additional rules on deck this month prevents airlines from retroactively increase ticket prices post-purchase. It also allows passengers to hold reservations without payment for 24 hours from time of booking.www.premieretravel.com

Lower Euro, Stronger Dollar Makes Europe More Affordable

2011-12-30T13:13:00.002-05:00

Going into the low travel season of January to mid-March, U.S. travelers will benefit from a favorable exchange rates between the Euro and the dollar as well as seasonal lower pricing on air travel, hotel and other travel related services.It is a relatively good value compared to prior years when the Euro hovered between $1.33 to $1.60. With talks of austerity and recession, travel providers are getting more realistic about pricing, and deals are abound during the low season. Many fares are so low that the taxes and fees amount to triple the base fare. Premiere Travel will be featuring many new booking tools in 2012 designed to take advantage of special pricing opportunities and packages.www.premieretravel.com

On-time Arrivals "Improving"

2011-12-25T22:50:00.000-05:00

You see the headlines in how well airlines are doing in their on-time arrivals, which happens to be one of the performance measurements by the U.S. Department of Transportation (USDOT).What many passengers don't know is that airlines build a generous margin of safety to insure a high probability of on-time arrivals. For example, a flight from Reagan National Airport to New York LaGuardia takes about 38-45 minutes of wheels-up to wheels-down, but yet the schedule shows 1 hour and 21 minutes for that flight. In this case, the airline built in a margin of safety of 41 minutes for a 40-minute flight. So even if the flight is 30 minutes late in take-off, the airline can boast an "on-time" arrival as the plane is taxiing to the gate with 10 minutes to spare.Sometimes things don't work out so well. Planes arriving well before their "scheduled" arrival may find themselves stopping short of the gate due to the fact that a departing plane has not left the gate that the arriving plane is supposed to occupy. Weather delays and congestion may also mean that a plane may circle around and queue for landing at busy airports such as Chicago O'Hare and New York LaGuardia.Airlines do post the "probability" factor, usually on a scale of 1-10 for the "timeliness" of their flights. The higher the number, the more likely the flight will be on time.www.premieretravel.com

Advance Seat Assignments Will Be More Difficult in 2012

2011-12-23T21:51:00.000-05:00

In continuing the trend of commoditizing every aspect of the flying experience, desirable seats will be harder to score in 2012 and will cost more.

Airlines are holding back on a larger inventory of seats for their premium mileage members and making travelers pay for exit row, extra legroom, and even standard aisle seats towards the front of the plane.

Travelers may be disappointed when they pull up the seat map only to find middle or undesirable seats even when they are booking far in advance.

Premiere Travel implements an automated program that works around the clock in search of better seating for our travelers if and when they become available.

www.premieretravel.com

Best Airline Mileage Credit Cards

2011-12-21T16:59:00.000-05:00

Many airlines are aggressively marketing their versions of major credit card programs that offer a variety of benefits to the traveler.

Before you sign on the dotted line, please consider the following in determining the best program for you:

1) Will you likely fly that airline a few times in the upcoming year?
2) What are the benefits promised and are they relevant to your needs?

Adding 50,000 bonus miles is a big plus that may enrich your mileage balance allowing you to take advantage of free flights and upgrades. 50,000 miles is the usual requirement for two domestic tickets, so that's definitely a good start. Some airlines will double your miles when you use the card for certain purchases and allow you and companions free checked baggage as well as Club Passes and priority boarding.

United Airlines Mileage Plus Explorer and Delta SkyMiles cards are the very best right now. The first year membership fee is waived ($95), and you are likely to recoup the cost of the membership the second year even if you use your card for one flight.

www.premieretravel.com

The New Normal: Sub-Par Airline Service

2011-12-19T23:22:00.000-05:00

Flight Attendants moving up and down the aisles with big open trash bags calling out "trash...trash..." is an example of what today's travelers hear on domestic flights.

Surly service at the gate and on board have become quite common particularly on domestic flights.

The past was a glorious time to fly...china settings, real silverware, hot meals on board, full carts of free beverage, and basics like magazines, pillows and blankets were a minimum standard.

The first class cabin, a true past luxury on domestic flights has become a much hyped up offering full of "upgraded" passengers with high status. Airlines have created a sport in scoring an upgrade as passengers compete furiously for limited number of seats. Cold sandwiches and drinks in plastic cups await the lucky ones.

There is no avoiding to this new normal. Airlines through their alliances, joint ventures and code shares have carved out the map and created a false sense of competition that exists in only a handful of markets where the legacies compete with the upstarts.

The new normal is here to stay, at least for the forseeable future.

www.premieretravel.com

Delta Makes a Strong Pitch to Latin America

2011-12-12T23:33:00.000-05:00

Delta Airline' tactical move to buy a small percentage of Brazilian carrier Gol revealed the strategy of Delta to gain a stronger presence in Latin America.

Gol is the second largest Brazilian carrier with a strong domestic network and newer fleet of aircraft that is growing at a double-digit pace. Delta's move was intended to keep Gol away from joining another alliance, namely, American's One World. It allows both carriers to market and code-share each other's flights.

Overall, Delta's move is very positive for travelers as the Atlanta gateway will be more relevant to a wider network of South American gateways.

www.premieretravel.com

Why Baggage Fee Disclosure Is So Complicated

2011-12-08T12:18:00.000-05:00

Airlines and associations representing their interests are urging the U.S. Transportation Department (DOT) to postpone the January 24, 2012 implementation requirement of baggage fee disclosure.

After already agreeing twice to delay implementation, airlines now need at least an additional year.

In an ominous note that has a tinge of a threat the International Air Transport Association (IATA), Air Transport Association, Regional Airline Association and Air Carrier Association of America in their joint filing said:

“If an extension is not granted, carriers would be forced to adopt error-prone makeshift procedures that would substantially delay passenger check-in, create long lines at airports [and] substantially reduce the availability of automated self-service check-in, including the fast-growing popular remote check-in systems.... Proceeding with the Jan. 24 implementation date also will increase the risk of delayed or lost bags, the associations say, and increase the likelihood that carriers will create “confusion and disenchantment” by applying the wrong carrier’s baggage fees."

So what's the point of deadlines? January 24, 2012 is the date that the airlines themselves had requested after two extensions had already been granted.

www.premieretravel.com

Rude and Aggressive Flight Attendants

2011-12-06T21:55:00.000-05:00

Alec Baldwin was passing time sitting in his seat on a flight at a gate and not going anywhere, playing "Words with friends", when apparently a flight attendant "reamed" him to put away his smart phone. His swift lack of cooperation necessitated removing him from the flight.

Some flight attendants on domestic flights have gotten into the "rhythm" of doing their jobs methodically and harshly. They are overworked, underpaid and unhappy, and they have no hesitation in letting you know it.

If you don't turn off your smart phone, bring your seat to upright position or follow their directions, their voices will remind you of your fourth grade teacher chastising you.

Foreign carriers compete harder for your business, and their flight attendants who are better trained, treated and paid show the travelers the respect, service and smiles that have become so rare in the cattle car conditions on domestic routes.

www.premieretravel.com

The "Sweet Spot"...When Is the Best Time To Book Air Travel

2011-12-02T14:57:00.001-05:00

The question is repeatedly asked: What's the "sweet spot" to book air travel to get the best fares, availability, most desirable seats, etc...

The short answer is: It depends!

Not being big on answering question with questions, we will lay it out:

Factors that are considered to answer:

1) What is the origin and destination?
2) What is the season (high/low or shoulder?
3) Is it a high demand resort or business destination?
4) International or domestic?
5) Is it a competitive route?
6) Direct or Connections flight(s)?

The common misconception with travelers is that the earlier you book, the cheaper the fare...not true. For example, booking 10 months in advance may not get you the lowest fare as airlines believe that they have a lot of time to sell the seat.

For international travel 3 weeks-3 months would normally yield a lower fare.
Domestic tickets are more subjective to a variety of airline algorithms that vary due to all above factors...

www.premieretravel.com

American Airlines Files For Bankruptcy

2011-11-29T10:06:00.000-05:00

AMR, parent company of American Airlines, filed for bankruptcy protection Tuesday morning in New York. American was the only legacy carrier not to have filed bankruptcy in the last couple of decades.

The heavy load debt, pension obligations, unfavorable leases, and labor contracts have taken their toll on the thrid largest carrier in the U.S.

Travelers should not see any changes however. American will continue to operate, and all mileage benefits will continue to accrue and will be honored.

American's necessary move will mean a leaner and smaller carrier in 2012.

www.premieretravel.com

Avoid London Heathrow on November 30

2011-11-28T14:07:00.000-05:00

Airlines have cancelled or reduced flights into and out of London Heathrow Airport due to a nationwide strike that airport employees will be participating in.

Immigration employees are expected to take part and delays of up to 12 hours to get in or out of Heathrow.

In the latest dispute, workers oppose government demands that they work longer before receiving a pension, contribute more money each month and accept a pension calculated using their average career salary, rather than their final salary.

www.premieretravel.com

Should Airlines Charge Fees For Carry-Ons?

2011-11-20T19:24:00.001-05:00

Travelers by now know that airlines have found a cash cow, charging fees for checked-in luggage. While policies vary, airlines charge about $25 for the first checked-in bag, with exceptions such as Southwest.

Passengers not only find the fee unfair, but also inconvenient. The wait for checking in bags and receiving them at destination makes it a double whammy. Savvy travelers try to cram as much as they can into carry-ons, which are free (except at Spirit).

The unintended consequence of baggage fees has created many problems:
* Longer security lines due to larger carry-ons and more
bulkier items passing through the security gauntlets.

* Longer boarding process where passengers occupy aisles
longer hunting and jockeying for overhead bins.

* Mad scramble to board first just to get better chance to
stow luggage overhead.

The solution may be simple. While this may sound counter intuitive, airlines should go back to check bags free and charge for luggage carry-ons. Boarding process will be a snap, departures/arrivals are more timely, and security lines will move faster.

www.premieretravel.com

Link Your United Mileage Plus With Continental One Pass

2011-11-18T18:00:00.000-05:00

United Airlines has released the details of the new 2012 MileagePlus Program.
Those who qualify for "Premier" status in the 2012 program will receive membership information, including new cards, late in the first quarter of 2012.

Complete information can be found at: mileageplusmergerupdates.com or onepassmergerupdates.com

To link your accounts, go to united.com/linkmyaccounts

www.premieretravel.com

Expedited Screenings: Keep Your Shoes and Hat On!

2011-11-11T09:28:00.000-05:00

A pilot test program by the TSA has been successful, and many major airports will have that option for travelers that pass the "trusted traveler" criteria.

It is expected that this program will be introduced in key major airports in the first quarter of 2012.

www.premieretravel.com

When Comparing Fares, Look At The Fine Print

2011-11-07T10:35:00.001-05:00

There are hundreds, perhaps thousands of fare search engines and airline websites that purportedly gives the searcher the "lowest fare". Savvy travelers know to look beyond the headline fare and tally up all obvious and not so obvious add-ons to come to the final price.

Many website of airlines and search engines advertise "teaser fare" such as Washington-London at $199*.....The asterisk is where things start getting interesting. In this case, the asterisk means, limited seating, mid-week departure, non-refundable, non-changeable, minimum and maximum stay, excluding taxes, fees, surcharges and ancillary fees. Do expect that once you add all these, the price will exceed $800. False advertising? May be...

Even business travelers now are raising eyebrows about certain surprise fees that they encounter. For example, after shelling almost $10,000 for a British Airways business class seat, passengers are surprised by a $120 fee for a seat assignment, each way, for an additional $240 on a round-trip fare.

At Premiere Travel, we streamline the process for our clients through an honest Fare Compare and inform them of the final pricing without all the gimmicks.

www.premieretravel.com

Travelers Are The Most Taxed People on Earth

2011-11-01T16:42:00.000-04:00

Travelers don't vote in their destinations. Politicians and providers therefore can pick on travelers for ever burgeoning number of taxes and user fees that seem to see no end.

A case in point is a round-trip ticket to London from Washington...Here's the fare breakdown exactly as you will see it on the ticket:
02DEC DEPARTURE DATE-----LAST DAY TO PURCHASE 02NOV/2359
BASE FARE TAXES TOTAL
1- USD240.00 564.10XT USD804.10ADT
XT 362.00YQ 32.60US 5.50YC 7.00XY
5.00XA 2.50AY 96.00GB 49.00UB
4.50XF
240.00 564.10 804.10TTL
ADT-01 LLWNC13S
WAS UA LON120.00LLWNC13S UA WAS120.00LLWNC13S NUC240.00
END ROE1.00 XFIAD4.5
NONREF/0VALUAFTDPT/CHGFEE

You will see that the BASE FARE is $240.00 and the final price of the ticket (even without agency fees) to be $804.10.
In this case the taxes and user fees amount to a 235% of the value of the ticket.

For a Car rental example, we have selected a typical weekend rental:
Rental Time Charge $41.38
APT CONC RECOV FEE (11.11%)$4.72
Customer Facility Charge ($3.50 per day) $7.00
Energy Recovery Fee ($0.55 per day) $1.10
STATE TAX (9%) $5.44
VEHICLE LICENSE FEE ($1.00 per day)$2.00
Vehicle Rental Tax (10%) $4.25
Total Estimated Mandatory Charges (USD)$65.89

Relatively speaking, a car rental taxes and fees are considered bargain at a tax/fees percentage of 59.2% of the overall cost.

We will spare you the nauseating hotel bill which is infested with a creative array of all types of taxes and fees imaginable.

Chicago has recently adopted an increase in their already high hotel taxes, and the infuriating part of it is the explanation: "To keep pace with New York" (sic)

www.premieretravel.com

Airlines Circling Around Credit Card Fees

2011-10-27T11:49:00.000-04:00

Just as you thought airlines have run out of things to impose fees on, some airlines are quietly testing and implementing "targeted" fees on credit card charges.

For example, Lufthansa has started charging a credit card "surcharge fee" on tickets sold in some European cities this past summer. The credit card fee is tucked away among the dizzying array of taxes, fees, security and fuel surcharges. Tickets fare ladders and fare calculations are now so crowded with these fees and taxes to the point that the traveler, their corporation are quite confused.

Now the word is that Lufthansa will start collecting those credit card fees from sales generated anywhere, including the U.S. effective November 2, 2011.

The credit card form of payment has become such an important staple in paying for airline tickets, cruises and other travel services. This should be the opening salvo, which other airlines will surely be eagerly observing, and then likely matching.

www.premieretravel.com

Best Uses of Your Frequent Flyer Miles

2011-10-26T21:53:00.000-04:00

Up to 30% of frequent flyer miles expire unused every year. Passenger toil hard and many purchase habits are now structured around mileage awards and credits.

Somehow however, after all the good planning, miles do expire and go to the " Mileage Black hole".

Here are the steps to take to preserve your miles and put them into good use:

1) Keep track of your miles and their expiration dates.
2) Use wisely! A 25,000 mile redemption for a transatlantic flight upgrade to business class is an excellent bang for the miles. Spending 50,000 on a $200 trip is not.
3) Look for saver deals. Airlines may discount redemption to certain routes to as few as 15,000.
4) Look for Code share partners to redeem on and claim mileage on.
5) Use mileage for hotel stays, car rental, cruises and other travel related services.
6) Redeem miles for friends and family
7) Know the rules: Airlines count on members not to "read the fine print". The more you know, the better.
8) There are many frequent flyer websites with great ideas and postings about how successful "redeemers" do it.

www.premieretravel.com

Capacity Cuts Creating New Opportunities for Discount Carriers

2011-10-17T17:34:00.000-04:00

Legacy airlines have announced further capacity cuts to keep fares high and airplanes full. This strategy which has worked so far, might backfire in 2012 if the economy improves.

Discount carriers like Southwest, Spirit, JetBlue and Frontier are expnading routes and beefing flights while the legacy carriers are retreating.

Discount carriers enjoy a cost advantage over legacy carriers in many categories, including newer more efficient planes, non-unionized workforce and lower debt. It all boils down to cost per passenger per mile.

www.premieretravel.com

Our New Enhanced "PREMIERE" Hotel Program

2011-10-12T18:01:00.000-04:00

We have added more value to our "Premiere Hotel" program . Many hotels within our program offer benefits such as:

Early Check-in/Late Check-out
automatic Upgrades
Block Space Availability
Free High Speed Internet
Breakfast Included
Welcome Amenities

These "Premiere Perks" vary by hotels and cities, so ask your travel advisor for hotel recommendations that offer preferred corporate discount rates with benefits.

Premiere Travel clients always receive great value.

www.premieretravel.com

"Special" Frequent Flyer Status Not So Special Anymore

2011-10-10T22:21:00.000-04:00

Frequent business flyers who have achieved high "Gold", "Platinum", "Premier" and other "special" designations are beginning to see a noticeable dilution in the benefits they receive from their airlines.

Upgrades are much more difficult to score, Club lounges are ever more crowded with fewer amenities, award redemptions for desired flights are almost non-existent or will cost a fortune of miles.

Reasons for all this are simple. Airlines are now viewing those programs as profit centers and not rewards for loyalty that most flyers think they are. Flyers are also competing with non-flyers as you can earn frequent flyer miles on every purchase through credit and debit cards. These non-flyers are competing for scarce awards and seats. Airlines mergers, code shares, alliances and joint ventures add even more mileage credits that are bound to be redeemed.

In the meantime, airlines are cutting capacity, and reducing the number of premium seats to add more luxuries like sleeper business cabins. Seats dedicated for mileage awards are also getting very difficult to find particularly to sunny destinations.

On a recent flight, an airline called priority boarding for their top mileage earners, and no less than 20 flyers lined up to board. We are likely to reach a tipping point where travelers will start questioning the value of some of those benefits. Unless you are in the top tier, you are likely to see a continuous dilution of these benefits.

www.premieretravel.com

2011 Flight Cancellations-A New Record

2011-10-02T20:30:00.000-04:00

Domestic airlines are on pace to record the worst year of flight cancellations since 2001.

By the end of the third quarter of 2011, more than 104,000 flights have been scrubbed. This represents an almost 2.5% of all flights scheduled.

Reasons vary. Beside the normal menu of weather related situations which have been eventful this year, and "mechanicals" are new tarmac delay rules that prohibit airlines from delays over 3 hours on the tarmac. Airlines opt to cancel flights than risk huge penalties amounting to thousands per passenger.

Booking flights online is simple enough and straight-forward for point to point itineraries. Relying on a reputable travel management company to be there for you when you encounter complications is a must for business and mission critical clients.

www.premieretravel.com

Premiere Travel Value Added Services

2011-09-30T17:40:00.000-04:00

Airlines continue to "tweak" their frequent flyer programs, deleteing benefits, merging programs, increasing requirements, adding blackouts, increasing fees and co-pays, sprinkling many "ifs and buts" and moving targets for upgrades.

It takes knowledge and understanding of what is offered. Many of our clients have expressed interest in having Premiere Travel navigate these complexities on their behalf.

We are conducting a fee based pilot program for a limited time to assist our clients in claiming mileage awards, upgrades and maximizing the usage of their idle miles.
For details, please contact us at support@premieretravel.com

www.premieretravel.com

The Dream is Finally a Reality- Boeing Delivers First Dreamliner

2011-09-26T14:18:00.000-04:00

After numerous delays and cost overruns, a ceremony on Monday will end up in the delivery of the first Drealiner 787 jet to All Nippon Airways.

www.premieretravel.com

The New United/Continental MileagePlus Program

2011-09-21T11:35:00.000-04:00

United Continental Holdings Introduces 2012 MileagePlus Loyalty Program

United Continental today announced the details of its MileagePlus loyalty program for 2012, including new benefits and services for United's and Continental's most-frequent flyers, more options for members to redeem their miles and additional recognition for customers who purchase tickets in premium cabins or at premium economy fare classes.

"With MileagePlus, we are building the world's most-rewarding loyalty program and reaching another important milestone in the merger of United and Continental," said Jeff Foland, United executive vice president and president of Mileage Plus Holdings, LLC. "We will provide a wide range of benefits to our most-loyal and most-valuable members, while offering new redemption opportunities for all of our members."

MileagePlus Premier Levels and Benefits

In 2012, MileagePlus will offer four levels of Premier member status:

•Premier Silver: 25,000 Premier qualifying miles (PQM) or 30 Premier qualifying segments (PQS)
•Premier Gold: 50,000 PQM or 60 PQS
•Premier Platinum: 75,000 PQM or 90 PQS
•Premier 1K: 100,000 PQM or 120 PQS

United will continue to offer Global Services recognition to select members by invitation.

Premier benefits include:

•Upgrades: United will offer an expansive suite of upgrade products, including Global Premier Upgrades, Regional Premier Upgrades and Complimentary Premier Upgrades. United is expanding Complimentary Premier Upgrades to include eligible intra-Asia flights in addition to most flights within North America. Premier members traveling on certain full-fare economy-class tickets will also be eligible for an instant upgrade when available at the time of ticketing.
•Premier Access, checked-baggage allowance and Economy Plus® seating: Premier members will have access to Premier Access airport services, a complimentary standard checked-baggage allowance and extra-legroom Economy Plus seating, among other benefits. Premier Silver members and Star Alliance Silver members will be able to check one bag weighing up to 50 pounds with no fee, and Premier Silver customers will be able to confirm Economy Plus seating at time of check-in. Premier members at all other status levels will be able to check three bags weighing up to 70 pounds with no fee, and will be able to confirm Economy Plus seating, when available, at the time of ticketing.
•Premier bonus award miles: United will offer Premier members bonus miles of up to 100 percent on paid tickets.
•Flexible award redemption: Premier-level frequent flyers may continue to book United Standard Awards, even when redeeming miles for the last available seat on the flight, a benefit United is reserving for Premiers and customers who have the United MileagePlus Explorer Card or an eligible Chase-issued OnePass credit card.
•Additional credit card benefits: Beginning in 2012, Premier members who have the United MileagePlus Explorer Card or an eligible Chase-issued OnePass credit card will also qualify for Complimentary Premier Upgrades on eligible economy-class reward tickets.

Additional Benefits for Premium Cabin and Premium Economy-Fare Customers

United is introducing greater rewards to customers who purchase tickets in premium cabins or at premium economy fare classes. Travelers will earn up to 250 percent of the actual miles flown as award miles when they book first-class tickets, up to 175 percent for business-class tickets and 125 percent for full-fare economy-class tickets.

New Lifetime Benefits Program

United is launching a new Million Miler program with benefits drawn from the existing MileagePlus and OnePass programs, including the very popular spousal benefit. Starting in 2012, United will determine each member's lifetime earnings based on the member's elite qualification miles earned in MileagePlus and OnePass since joining the programs, and will pool miles for members with accounts in both programs. After this one-time adjustment, United will determine future lifetime earnings based on actual flight miles.

Customers who earn one million miles after the one-time adjustment will earn lifetime Premier Gold status for themselves and a spouse or significant other. Customers who earn two million miles will attain Premier Platinum status, those who earn three million miles will attain Premier 1K status, and customers who earn four million miles will attain Global Services status.

New MileagePlus Auctions Site

United will launch MileagePlus Auctions in January, enabling customers to use miles to bid on sports tickets, cultural events and once-in-a-lifetime experiences. United will provide more details later this year.

MileagePlus Auto-Enrollment in the First Quarter of 2012

In June, United announced the OnePass program will end on Dec. 31, 2011. In the first quarter of 2012, United will automatically enroll OnePass members in MileagePlus and deposit into those MileagePlus accounts award miles equal to their OnePass award miles balance.

www.premieretravel.com

Ready Or Not, Here They Come: $400+ Baggage Fees

2011-09-20T08:13:00.000-04:00

Some airlines have started charging extra fees on second or third bags checked in for international flights. A 70-pound extra bag in coach will likely set the passenger back by about $400 or more depending on weight.

Airlines claim this will basically cover their costs. In other words, those airlines have been taking losses all these years covering the costs of extra luggage on these long haul international flights and they are just about ready to close that gap.

www.premieretravel.com

The Law of Unintended Consequences-Flight Cancellations

2011-09-14T18:22:00.000-04:00

When the U.S. Department of Transportation implemented new rules for tarmac delays, airlines reacted by increasing the likelihood and probability of cancelling flights than risking huge penalties for delays over 3 hours.

The Government Accountability Office (GAO) put the probabilities of flight cancellations at 24% higher due to the new rules in effect that were intended to protect travelers from long delays.

Given the state of airspace restrictions, congestion, flight controls, bad weather and other factors, it has become increasingly likely that flights may sit in delay modes then cancelled altogether.

With too few seats available, the margin for error is too small to accommodate passengers on other flights as airlines continue to pare down available seats.

www.premieretravel.com

2012: A Shrinking Capacity

2011-09-13T21:49:00.000-04:00

Many airlines have announced that they intend to make yet additional cuts in capacity in 2012 on top of the reductions already made in 2011.

Delta Airlines which has cut overall capacity by about 2% in 2011 intends to lob an additional 2-3% in 2012. Most of the reductions will be on domestic routes and will eliminate flights to/from smaller unprofitable routes that airlines used to receive subsidies for.

Travel in the Middle East and Asia are expected to grow modestly as wealthier airlines will continue to upgrade their fleets and services to meet growing demand in the Asia Pacific and emerging market regions.

www.premieretravel.com

Confusion Air: Multiple Airlines Codesharing One Flight

2011-09-08T16:32:00.000-04:00

When the concept of "codesharing" came about in 1989, the idea was simple: two airlines would partner together to sell seats on a flight, whereby the "partners" are responsible for their passengers.

Nothing is simple anymore. The idea evolved into alliances and joint ventures, and a single flight operated by one airline could actually be sold by several airlines, each showing its own airline code and flight number.

Thousands of passengers every day go to the wrong terminal or attempt to check in at "their" airline, only to find out that the operating carrier is a different airline altogether, with different terminal, colors, crew, boarding and baggage policies etc...

To add to the confusion, frequent flyer mileage may be higher, lower or the same depending on the arrangement of the codeshare and the type of partnership the airlines have. When problems happen in route, it becomes confusing who to go to for help.

Travelers should always ask (online web portals may not tell you) who the actual operating airline is, who's rules apply and what the restrictions are.

The "Fly America Act" comes to mind when government funded travel stipulates the use of a "U.S. flag carrier", and a traveler finds himself/herself on a foreign flag carrier.

Your travel consultant at Premiere Travel will help you navigate all these nuances and complexities that may not seem to be too obvious.

www.premieretravel.com

Irene Aftermath: Repositioning Aircraft and Crews

2011-08-28T14:40:00.000-04:00

The biggest challenges facing the restoration of normal flight operations are the repositioning of aircraft and crew, and accommodating tens of thousands of travelers that were affected.

Washington area airports will recover more quickly than New York and Boston Airports. It will be at least till Tuesday before things return to normal.

We continue to advise travelers to check the status of their flights before they head to airports.

www.premieretravel.com

Tips for Re-scheduling Your Flights

2011-08-26T16:22:00.000-04:00

As Hurricane Irene approaches the East Coast, airlines are issuing bulletins on their websites advising about cancellations and re-booking policies.

Passengers have to take into account the "terms and conditions" the airlines are allowing "free" changes. Most carriers for example mandate that you begin your affected trip no later than September 4, 2011. There are many problems with such conditions: They include:
A) The purpose of the trip is lost (i.e. attending a wedding or a an event)
B) With so many passengers making changes and flights heavily booked due to reduction of capacity, it is unlikely you will find seats even if you flexible.

Best thing to do would be to wait for the airline to cancel the flight and this would activate Rule 240, a regulation era rule that says the airline has to accommodate you on the next available flight or connections acceptable to you, or fully refund your fare.

www.premieretravel.com

Hurricane Irene Update

2011-08-26T10:31:00.000-04:00

The National Weather Service latest hurricane tracking shows a wide swath of affected areas on the east coast that will be impacted by the projected path of Hurricane Irene.

Please check the status of your flights, particularly Saturday and Sunday with your airline or at www.premieretravel.com

Due to very heavy call volume anticipated, airlines' response time as well as all 24-hour emergency services may experience long delays. Please use the emergency numbers only for emergencies. Flight status can be checked on our website or with the airline. Many of our agents will be on stand-by to assist our travelers the best we can.

www.premieretravel.com

Airports Operations Resume After Earthquake Disruption

2011-08-23T18:29:00.000-04:00

August 23, 2011 (6pm update): Airline operations resumed mid-afternoon but delays and some cancellations will linger through the evening. Favorable weather conditions will help operations get back to normal.

However, Hurricane Irene is expected to show up later in the week and airlines have already started to issue one-time waivers for passengers that may be affected.

Please check your flight status at www.premieretravel.com

www.premieretravel.com

Earthquake Disrupts Mid-Atlantic Travel

2011-08-23T14:47:00.000-04:00

a 5.9 magnitude earthquake originating in Mineral, Virginia has caused air traffic to halt at DC airports, Philadelphia and New York Airports where control towers had to be evacuated.

This is a fluid situation with significant disruption expected to reverberate throughout the afternoon.

Runways and tower controls will be inspected prior to resumption of services. Incoming and outgoing flights will be delayed while this mess is being sorted.

www.premieretravel.com

Another Trial Balloon-Airlines Contemplate Surcharges on Credit Card Use

2011-08-17T17:22:00.000-04:00

A Major airline in Europe has started imposing a "surcharge" for using credit cards to pay for airline tickets in six markets, dubbed as a trial.

While it is quite understandable that airlines want to reduce costs, this could potentially be a game changer.

Companies and individual travelers have become accustomed to paying for travel by credit card and receiving points, rebates and benefits.

Travel Management Companies are also happy not to extend billing and wait for payments. It is the airlines that are the actual merchants in the vast majority of the cases, and it is the airlines that pay the merchant discount fees to the credit card companies. With major airlines doing billions a year in sales, it is easy to calculate what a 1% to 2% saving would do to the bottom line. But this will likely run into a firestorm of opposition and most likely incur the wrath (and the strong lobby) of the banks and credit card companies that benefit from the merchant fees.

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U.S. Aviation Tax Reinstated

2011-08-08T10:59:00.001-04:00

The U.S. Congress has reached an agreement to temporarily extend full funding for the Federal Aviation Administration (FAA) through September 16 and as a result, the FAA authority to collect federal aviation taxes will be reinstated.

For tickets sold beginning 12:01am on Monday August 8 the following taxes will apply:
• The 7.5% tax generally applicable to domestic transportation (as well the 7.5% tax on amounts received from the sale of "frequent flyer miles".)
• The $3.70 domestic segment tax.
• The $16.30 international arrival/departure tax.
• The $8.20 departure tax for flights between Alaska/Hawaii and the mainland US.

The I.R.S. has also put an end to the speculation about tax refunds for travelers who may have paid taxes and traveled while FAA's mandate had expired, stating "there will be no refund".

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Congress Goes Home , Airlines Continue to Pocket Windfall

2011-08-03T07:46:00.000-04:00

As the bleary-eyed Congress members head home after passing the debt ceiling legislation, airlines will continue enjoying the benefits of the partial FAA shutdown in which no domestic taxes on air tickets are being collected and the airlines have eagerly stepped in to mop up the difference in airfare through stealth fare hikes that offset any tax savings for travelers.

While estimates vary, airlines may wind up pocketing a windfall of at least $1.3 billion before Congress decides to reinstate the tax collection.

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Airlines Announce More Capacity Cuts

2011-07-27T10:31:00.000-04:00

Major airlines are further reducing capacity and raising fares again to offset fuel costs which seem to be here to stay.

Higher fares, more user and ancillary fees, and fuel surcharges will probably add another 5-10% to the average airline fare for the balance of 2011.

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The Tax Mess On Airline Tickets

2011-07-26T17:11:00.000-04:00

Due to inaction by the U.S. Congress, the Federal Aviation Administration (FAA) reauthorization bill was not passed. As a result, the FAA began experiencing a partial shutdown at midnight on Friday, July 22, 2011.

As a result of this "inaction", airlines, while you were sleeping, immediately implemented fare increases to offset any potential savings for travelers.

Business Travel Coalition and Travel Management Companies (TMC's) are raising the issue that travelers who are traveling during the shutdown may be due tax refunds for taxes already paid when they purchased their tickets for travel prior to July 22.

Premiere Travel will be keeping track of these taxes paid by our clients in the event that a determination is made that refunds are due, and will file any necessary paperwork and claims on their behalf.

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Airlines Rush To Raise Fares As Taxes Expire

2011-07-23T17:59:00.000-04:00

Not wasting one moment, American and USAirways among others, raised their fares to offset the expected savings that travelers should realize when Congress failed to pass legislation to keep the FAA running.

At 12:01 on July 23, airlines were not required to collect taxes, and so to avoid "confusion" and "inconvenience", some airlines raised their fares effectively wiping out any break for the traveler.

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Delta to Tighten Grip on LaGuardia and USAirways on Reagan National

2011-07-21T17:41:00.000-04:00

The U.S. Department of Transportation rubber-stamped a deal between Delta and USAirways allowing carriers to swap slots at Reagan National and New York LaGuardia Airports.

With minimal adjustments, Delta will control half the slot pairs at LaGuardia and USAirways will tighten its hold at National.

Both airports are ultra-congested and the only opportunities for growth is through slot swaps by airlines.

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Better Disclosure of Airline Fees on Horizon

2011-07-17T22:12:00.000-04:00

The U.S. Department of Transportation will require airlines to break down and disclose the revenue they derive from ancillary fees and report 14 additional categories that are currently tucked away under one large category.

Very soon, your airline ticket breakdown may resemble the sticker price of an automobile.

By disclosing these fees, which include the sale of items such as beverages, meals, pillows and blankets, airlines may be required to collect/pay federal excise taxes of 7.5% on some of these services resulting in more complications.

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Airlines Not Doing Well in this Customer Survey

2011-07-12T10:30:00.000-04:00

The Atlantic Survey published recently for the "19 most hated companies in America" was not too kind to domestic airlines. Four carriers made it all the way to the "Top 10" portion of the list of 19.

Excessive fees, delays, poor customer service were the main reasons airlines competed with banks, cable and phone companies for this undesirable designation.

To see the survey, please click on the link below:
http://www.theatlantic.com/business/archive/2011/07/the-19-most-hated-companies-in-america/241344/

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The Future of Travel Distribution

2011-07-08T11:29:00.000-04:00

As the second half of 2011 is under way, many important changes are already under way in how travel information, content and distribution will be shaping up in the near future.

The Travel Management Company (TMC) channel has lagged in keeping up with the technological advances. Global Distribution Systems (GDS) that agencies have relied on for so long, have not adapted to the changes in the airline distribution model and how content is offered.

It was only a matter of time before the latest innovations in information technology would offer some exciting opportunities that would revolutionaize travel as we know it today.

Organizations such as Openaxisgroup.org, with key membership and support from many major airlines is already out promoting the XML based electronic messaging structure for airline system connectivity worldwide.

American Airlines is the first carrier that is spearheading the movement to this great exciting technology with their "Direct Connect" that will transform the travel distribution ways for a better and more efficient future.

For corporate clients, it would be a welcome change in integrating all services and ancillary fees under one easily understood and clear format. It would represent a "one stop shop" geared to serve the specific needs of travelers.

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OnePass Program of Continental to Merge with Mileage Plus of United

2011-06-30T11:59:00.000-04:00

United/Continental is forging ahead with merging their schedules and programs toward the final end of being one single carrier by the first quarter of 2012.

Continental's OnePass members will be rolled into the Mileage Plus of United and members will hold on to their respective statuses.

The result will be a large number of "elite" status travelers, but overall a better program for all.

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Over Taxing Travel

2011-06-27T11:45:00.000-04:00

Travelers are getting over-taxed.

Here's why:
The U.S. Department of Transportation charges an excise tax of 7.5% of the airfare plus $3.70 per segment. That makes the average domestic ticket carry about 10% in taxes and "user fees". But what happens when the passenger cancels the trip and does not use the ticket for future travel?

The Department of Transportation imposes the tax for the "sale" of air transportation, not for the transportation itself. Airlines act as the tax collectors supposedly transferring collected taxes to the government. Interestingly, the Department of Transportation gives airlines the leeway if they choose to refund tickets to also refund the taxes, putting a hole in the theory that taxes are collected for the sale and not for transport.

Similarly, airport aurorities supposedly get to keep "user fees" even if the passenger did not use the facilities.

Moving to international travel, it becomes even more pronounced. Airlines will not refund the "fuel surcharge" even if they did not transport the passenger. It is tantamount to paying a cab fare surcharge when no service or transportation was rendered.

Bottom line, taxes, user fees and surcharges may be refunded if the airlines want to.

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The New Normal in Air Travel: More Fees

2011-06-22T11:44:00.000-04:00

We have now seen how creative airlines can be when it comes to concocting fees of all sorts for what used to be free not so long ago.

Every month, passengers are greeted with an ever increasing array of ancillary fees that are generating billions of dollars in revenue for the airlines. The golden goose is here and the milking process is in full swing.

Expect that this trend not just to continue, but to be further "enhanced". From TSA fastlanes to priority boarding and everything in between, passengers should expect to pay a higher percentage of their travel costs for fees that are still difficult to account for.

Taking this to a new horizon, programs are being rolled out so travelers can purchase "memberships" that require annual fees to prepay for a year's worth of certain ancillary services such as extra leg room seating or luggage.

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Airline Branded Credit Cards Increase Amenities and Benefits

2011-06-15T10:27:00.000-04:00

Major credit cards have been aggressively promoting airline branded credit cards touting all kinds of privileges and benefits for those who apply.

Your "pre-approved" solicitation comes beautifully packaged and will bear names that evoke luxury such as "Gold", "Platinum", "sapphire" etc... and adorned with your favorite airline logo, promising sign-up mileage bonus of 25,000 to 50,000 miles.

The aggressive promotions will promise many things including checking bags for free for up to 9 passengers on the same itinerary to lounge passes and yes...more bonus miles and discounts for vacations and cruises.

While some of these benefits are worthwhile, especially families that travel together.
(One trip for family of four will result in $200 baggage saving), you may have consider other factors to get the biggest bang for the buck. For example if your status is high in your frequent flyer program, you may already be receiving all the promised benefits.

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So Why Use a Travel Management Company When You Can Do It Online?

2011-06-12T19:38:00.000-04:00

The airlines and the plethora of online websites would like you to think that you can do everything online (on their websites of course) and pay little or no fees.

While this may be true for the simple domestic trips involving point to point, the theory does not hold up well in today's world of travel complexities.

Consider things like weather disruptions that cause delays or cancellations, industrial actions, civil uprisings, earthquakes, volcanic ash and travel warnings, and you will need an advocate on your side looking for your best interests. Anticipating problems, expecting the unexpected are the core values of a good travel management company. Websites and robots will not call you to warn you of potential disruptions to your travel and will not have alternatives for you. Changing online bookings are so difficult that many travelers once affected, realize the value of the special relationships that they can have with a professional that knows your personal preferences and can get you there and back safely.

The State Department has a new registration program called Smart Travel Enrollment Program (STEP). This enhanced program which requires registration on the part of the traveler, will enable embassies and consulates abroad to know your whereabouts in the event of emergencies and evacuations and can get in touch with you or your designated contacts. It is highly recommended for travelers visiting destinations that are considered high risk and have travel warnings and advisories.

For more details about the program, please click on the link below:
https://travelregistration.state.gov/ibrs/ui/

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Discount Vs. Legacy Airlines

2011-06-07T12:47:00.000-04:00

Passengers have become accustomed to receiving lower fares when they ask for Southwest Airlines, Jet Blue and Air Tran. However recently, the legacy airlines, United, Delta, American and others have closed the gap.

The advantages that "low cost" carriers had in the past are vanishing. For one thing, their fleets are now aging, their maintenance is higher, and they have the same efficiency as the legacy carriers. All airlines have to cough up the dough at the gas pump as jet fuel prices have surged. In the past, Southwest Airlines have deftly played the hedging game to near perfection, but nowadays it is more of a level playing field.

Labor costs are trending to about the same, although Southwest still has the advantage.

Legacy carriers have also done a skilfull job in leveraging their presence worldwide through joint ventures, alliances and code shares.

IATA has just lowered guidance for airlines profitability in 2011 mainly due to fuel costs. Ancillary fees, the new cash cow for airlines are expected to generate a higher percentage of airline revenue going forward.

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Ancillary Fees Tab 2010: $22 Billion and counting

2011-06-01T07:01:00.000-04:00

Airlines worldwide are ringing up ever staggering amounts of money from all those pesky ancillary fees. The Wall Street Journal reported on a study out Tuesday that tabbed airline revenue from add-on fees jumped to nearly $22 billion dollars last year. That's up 38 percent from a year earlier.

Ancillary fees have become a godsend to airlines. It is the oxygen in their tanks that keep them afloat. Airlines will continue to find creative ways to come up with new fees. For example, fast line security, a TSA function, is now another fee producer for airlines. To go to a shorter security line reserved for "Premium Passengers", you will have to cough up $19. Ancillary fees and how they are disclosed have become a solution looking for a problem.

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Volcanic Ash-Part 2

2011-05-24T12:51:00.000-04:00

A plume of volcanic ash from Iceland's Grimsvotn volcano is causing anxiety in some parts of the U.K.

More than 500 flights had been impacted on Tuesday, and many others had to be diverted to avoid the affected area. Most of the delays are slight, as new paths are being charted.

The good news is that the volcano has lost the steam, and having learned from the gross over-reaction when most of European airspace was shut down last year, the impact of this one so far appears to be contained.

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Expiring Miles-Problems Redeeming Mileage Awards

2011-05-20T17:03:00.001-04:00

Feeling like being chased by that gigantic red tape ball as in Southwest Airlines commercial? You're not alone....

Millions of "loyalty program" members don't receive the appreciation when the time comes to redeem their mileage that they worked so hard to accrue.
If lucky enough to find seats, they are greeted with lots of "ifs and buts" along with a slew of fees for the "free" tickets. Changes carry fees and penalties, making some free tickets quite costly.

Premiere Travel can assist in helping clients in managing their frequent flyer programs by offering redemption opportunities beyond travel and limiting the expiration of mileage awards.

Each year 30% of mileage balances expire. That is trillions of miles each year. Value added promotions, donations to charities, and merchandise are some of the opportunities missed by members. The award system is designed not to work in your favor.

For more information of how Premiere Travel can assist you in managing your mileage awards, please send us an email to:
support@premieretravel.com

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Airlines Expect An Increase in International Summer Travel

2011-05-16T10:29:00.000-04:00

Higher fuel surcharges and fares do not seem to be deterring Americans' appetite for international travel. Airlines are predicting an increase in the number of passengers traveling from the U.S. abroad.

Advance booking indications are healthy and combined with 1% lower capacity, travelers should expect to see fuller planes and higher fares this summer.

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Southwest completes Air Tran Acquisition

2011-05-13T12:50:00.000-04:00

While travelers in Atlanta will not see the ubiquitous colors of the Southwest 737's anytime soon, the airline sealed the deal to buy Air Tran, the second largest carrier in the Atlanta market with over 200 flights a day.

Southwest plans to keep Air Tran as a separate carrier at least through the end of the year and may be longer.

Delta said it "welcomed" the opportunity to compete with Southwest on its home turf.

Air Tran's network complements Southwest's as it adds markets not served or under-served by Southwest. It remains to be seen what strategy Southwest has as the two airlines have different business models. Primarily, in addition to the difference in baggage fee policy, Southwest does not assign seats while Air Tran does.

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Delta Plans 4% Capacity Reduction

2011-05-06T12:44:00.000-04:00

Delta Airlines, stung by the high cost of fuel announced capacity cuts of about 4% of its schedule after the summer high season.

It also offered early retirements and buyouts to some of its employees. Among other measures, Delta is retiring many of its fuel inefficient airplanes, downsizing some and replacing them with smaller but more efficient equipment.

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Fuel Surcharge Reversal?

2011-05-05T12:05:00.000-04:00

Price of crude oil and jet fuel has gone through a "mini crash" in the past few days. Prices have gone down about 10% in less than a week.

So what are the airlines going to do now? Historically, airlines have shrugged off declines in fuel costs, but are always very quick to react when the prices go up.

At the moment, no carrier is rushing to mark down their "fuel surcharge" which has reached a record $424 for a round-trip transatlantic ticket.

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Global Travel Alert Issued

2011-05-02T07:33:00.000-04:00

The US State Department has issued a global travel alert to all US citizens following the death of al-Qaeda leader Osama bin Laden, warning of 'enhanced potential' for anti-American violence.

The US also put its embassies on alert, warning Americans of reprisal attacks.

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Mileage Redemption Harder to Redeem

2011-05-01T19:53:00.000-04:00

With airlines downsizing aircraft and selling more seats, frequent flyer members are having a hard time redeeming their mileage awards.

Seats assigned for frequent flyer redemptions are being reduced or outright eliminated. On popular routes, travelers find it impossible to redeem their miles no matter how flexible they are.

If they do find seats, they are greeted with a slew of fees to redeem their "free awards".

The game has changed so much over the years with millions of new members raking in big miles even when they don't fly. Signing up for a new credit card will make the applicant eligible immediately for a domestic ticket. Purchases of any product or service are eligible to receive mileage credits.
The result is the worst of both worlds: way too many people competing for more scarce seats.

At some point, loyalty will be on the line if airlines cannot deliver opportunities for redemption.

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The Theory Of Relativity: Fuel Surcharges Then and Now

2011-04-28T12:08:00.000-04:00

Back in 2008, when prices of oil and jet fuel soared to an all-time high, airlines scrambled to increase their "fuel surcharge" for international flights. At that time, the peak price of oil was $146.

The surcharges back in 2008 pale compared to the surcharges of 2011 which are now averaging $420 per ticket for European flights. Relative to today's oil price of about $112 for WTI crude, the airlines' surcharge is a whopping 50% higher than it was in 2008. Fuel surcharge has become another tool for airlines and it does not often show up in fare comparisons.

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St. Louis Lambert Limps Back

2011-04-24T21:41:00.000-04:00

St. Louis Airport operated at near 70% capacity on Sunday after a devastating tornado made a direct hit causing substantial damage to facilities around the airport.

It is expected that most flights would operate z normal schedule by mid-week. Passengers would be well advised to check the status of their flights for delays and cancellations.

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Rare win for Travelers-Airlines Must Pay Up for Bumped Passengers

2011-04-20T11:41:00.000-04:00

Airline passengers will see increased compensation for denied boarding from oversold flights. Additional consumer-friendly measures will also be implemented this summer.

Scheduled to be unveiled Wednesday, the rules drafted by the U.S. Department of Transportation also mandate an end to hidden fees tacked on to ticket prices and expand other passenger protections. Carriers must pay if they lose a suitcase after charging passengers checked-baggage fees.

Among the more consumer-friendly provisions, customers who reserve a flight at least one week before departure will be able to lock in the quoted airfare without payment for at least 24 hours after the reservation is made. They also can cancel a reservation within at least 24 hours without incurring a penalty.

Distribution Wars: More to Come

2011-04-13T21:48:00.000-04:00

Battle lines are forming that could decide the way airline tickets, services and ancillary fees are distributed in the future.

The key players, aside from the airlines, are the Global Distribution Systems (GDS), Online travel companies, and travel management companies. All are jokeying for position to shape the future of travel distribution.

Multi-billion dollars of revenues are at stake, and one thing is for sure, changes are coming.

American Airlines has just filed legal action against Orbitz and parent Travelport alleging that Travelport and Orbitz have worked together and with others to exclude competition and maintain Travelport’s “monopoly power".

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Feeling Lucky? Google Travel!

2011-04-09T20:53:00.000-04:00

The Justice Department gave the greenlight to Google to acquire ITA Software, the travel search engine, for $700 million dollars.

But regulators imposed a host of restrictions on Google, saying the deal as initially proposed would have violated antitrust law by giving the world's leading search engine "the means and incentive ... to foreclose or disadvantage" its rivals, such as Orbitz, Expedia, Kayak and Microsoft's Bing. Those companies use ITA's software to power their airfare travel searches.

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Airlines Try To Raise Fares for the 10TH Time in 2011

2011-04-08T11:48:00.000-04:00

In baseball analogy, airlines are batting .600...
That's because they made 10 attempts in 2011, including one this week, to raise fares. The increase held up 6 times because all the carriers that need to match did.

Four times however, there were key airlines that were not quite ready, and when this happens, carriers that implemented fare increases, roll them back for fear of market share loss.

With the price of jet fuel going exponentially higher, and airlines not having the correct hedging strategies, the costs are increasing dramatically, and passengers are feeling the sting of the high fuel surcharges and fare increases.

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Air Fatigue: Today's Flying Experience

2011-04-03T16:08:00.001-04:00

Road warriors, or should we say air warriors are experiencing some fatigue and outright irritation at things that have compounded to make the flying experience difficult, even for the battle hardened.

Here's some of the "irritants":

1) Longer lines at security
2) Intrusive, inconsistent and ever changing variations of security "requirements"
3) Overcrowded "VIP" lounges
4) Too many "high status" travelers competing for fewer upgrades
5) Less legroom and personal space
6) Nickeling and diming for every conceivable service
7) Delays delays delays
8) Completely full flights
9) Less and less choices

Add high fares and taxes to the mix and it becomes easy to realize that while travelers have learned to expect to pay more for less, they are approaching the point where they are fed up.

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Fare Increases and Ancillary Fees Taking a Toll on Travel Demand

2011-03-25T17:04:00.000-04:00

Travelers are getting accustomed to paying an ever increasing number of ancillary fees that airlines keep dreaming of.

With the big increase in fuel costs, airlines did not waste any time in implementing seven fare increases in 2011 alone. Fuel surcharges have also moved up for international travel.

Airlines have also responded by cutting capacity further by an average of 1.5% of the available seats in 2011. Many discounted fares have been quietly removed from inventory.

While flights might appear to be jam-packed, let us not forget that the reduction in the number of flights and the downsizing of aircraft is giving the false appearance that things are going well for the airlines.

However, the sky rocketing fares are finally catching up with the cost conscious travelers and many are beginning to push back. Some fares to destinations with little or no competition are at historic highs.

Some airlines will probably log losses for the current quarter as many have been unable to hedge for their fuel costs which account for 35-40% of their total operating costs.

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Major Fuel Fire Disrupts Miami International Airport

2011-03-24T09:17:00.000-04:00

March 24-A major fuel fire erupted at Miami International Airport overnight. While the runways are far from the fire, the loss of some fueling operations will cause delays to flights leaving Miami on Thursday.

American Airlines, with a major hub in Miami will likely experience most of the disruption.

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Who's On First? Reagan National Control Tower Went Silent...

2011-03-24T07:29:00.000-04:00

The control tower at Reagan National Airport went silent Wednesday, forcing the crews of two planes carrying 165 passengers total to land without any help. The two planes were communicating with controllers at a separate facility in the region that doesn’t handle landings, but the pilots of both planes had to take matters into their own hands. The incident is the second time in two years the control tower at Reagan National has gone silent for a period of time.

An investigation into the incident is underway, but there is still no version, what caused the silence from the tower. Shortly after the incident, U.S. Secretary of Transportation Ray LaHood ordered inspection of all airports in the country. He also ordered to have two, instead of a one, traffic controllers on duty at the control tower of the Reagan National Airport between midnight and 6 a.m.

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District Of Columbia Sues Online Booking Agencies

2011-03-23T13:03:00.000-04:00

Attorneys for the District of Columbia filed a lawsuit Tuesday against online travel companies including Expedia, Orbitz, Travelocity and Priceline, alleging the companies owe the city millions of dollars per year in sales tax that they aren't paying.

The lawsuit in Superior Court in Washington is similar to more than 40 others pending around the country, and cities have met with mixed success in cases already decided by courts. The District's lawyers, like their counterparts elsewhere, contend the companies charge customers hotel tax on the full price of a room but only return tax to the city based on the wholesale rate the company paid.
(Associated Press)

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Boeing blames Japan Earthquake For Another Dreamliner Delay

2011-03-18T10:31:00.001-04:00

Boeing said that it was assessing the impact of the Japanese earthquake disaster on aircraft production, warning of a potential supplies crunch if disruptions continued for several weeks.

The Chicago-based aerospace giant relies on Japanese companies for 35% of the content of the much-delayed 787 Dreamliner.

Factory disruptions may affect availability of key components for the Dreamliner.

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Tokyo Narita and Haneda Re-open for Some Outbound Flights

2011-03-11T10:24:00.000-05:00

Both Airports have re-opened for limited outbound flights.

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Airlines Scramble to Cancel Flights to/from Japan

2011-03-11T07:15:00.000-05:00

Commercial air service to/from Japan have been halted due to the massive earthquake that hit Northeast Japan this morning. Aftershocks and tsunami warnings may affect a much wider area potentially affecting travel not just in Japan, but in the rest of east Asia.

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