Saturday, February 11, 2012
Star Wars: A New Game
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
Friday, February 10, 2012
Online Travel Agencies Declining Advantage
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
Wednesday, February 8, 2012
Mileage Award Trap to Avoid
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
Tuesday, February 7, 2012
No Smooth Sailing For the Cruise Industry
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
Monday, February 6, 2012
Flying Zombies: Airlines on The Brink
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
Saturday, February 4, 2012
Integration Time: Look Out For Major Schedule Changes
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 Schedules
2) Single platform reservations and inventory.
3) Accounting system single platform
4) Customer Service
5) Loyalty programs
6) Efficient planning of maintenance of aircraft
7) Streamlining multiple suppliers and vendors
8) Diverse and different cultures of employees
9) Re-negotiating thorny labor contracts
www.premieretravel.com
Thursday, February 2, 2012
The Decline of The Recline
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
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