Travelfli Blog for Frequent Flyers

United Mileage Plus Just Got Friendlier

We are happy to see that United is taking a cue from other players in the frequent flyer mileage segment by adding more flexibility and options to their program. Today United introduced hotel and car rental rewards (cool), in addition to one-way and miles/cash awards (very cool). These new features will make it much easier for frequent flyers to use their miles even if they haven’t reached the golden 25,000 to redeem a roundtrip award fare.

One-Way Awards take half the amount of miles as a roundtrip ticket (12,500 base) and are available on saver and standard awards. You can only use the miles to fly on United or United Express - no flying with partners, thank you very much. You can have connections but no stopovers on one-way awards. To get around this rule, you need to book multiple one-way awards to different cities.

Miles & Money Awards allows you to purchase the additional miles you need to reach the mileage required to redeem an award. For instance, let’s say you want to fly from Denver to San Francisco. Using a saver award, it would take either 25,000 miles or 10,000 miles + $110. Same rules apply - United flights only, no partners….connections but no stopovers. Miles & Money Awards are available on some saver tickets and not on standard awards.

This is another step in the right direction as airlines continue to improve their programs so frequent flyers find them easier to use, and thus more valuable. So go use those miles! And in just a short time, we’re going to help you start UsingMiles!

Easy Ways to Donate Your Frequent Flyer Miles to Haiti

Welcome to 2010! You have probably noticed that we have been sparse in our blog posts throughout the last half of 2009, and for this we are sorry. We made a group decision that our limited resources (i.e., a bootstrapping start-up) would be better utilized building our site, working on partnerships, and launching it this quarter! However you can expect our blog posts to resume a normal schedule as we get closer to launch. Thanks for your patience.

The issue we are talking about today must be covered in our blog because it deals with saving human lives in Haiti. Many of you have frequent flyer miles that aren’t being used and perhaps never will be so we are asking you to please consider donating them to the Haiti relief. We’re happy to report that many of the top airlines and hotels are making it very easy to do so - and sometimes even throwing in an incentive to boot.

There are a ton of different options for donating points and I am going to briefly go over all of ones we have found. Click on any of the links for more information on each offer.

United Airlines is allowing Mileage Plus program members to donate any number miles to Red Cross. As of 2:30 P.M. MST today, members have donated 1,122,500 miles! Awesome.

Furthermore, the United Airlines Foundation has committed to matching up to $50,000 that is donated to the American Red Cross by UA customers and employees though its International Response Fund.

American Airlines is offering a pretty sweet kickback of 250 bonus miles frequent flyer miles for every cash donation of $50 or 500 bonus miles for donations of $100 or more to the Red Cross. (Side note - they ARE NOT offering free flights to Haiti, despite Twitter rumors).

Starwood’s Preferred Guest (SPG) program is letting customers donate miles in the form of cash to Red Cross. Here’s the breakdown:

• 4,000 points is $50 
• 8,000 points is $100 
• 12,000 points is $150 
• 6,000 points is $200

Marriott has a standard donation policy in place through the Red Cross using Marriott Rewards points. Here is their breakdown:

• 18,000 Points: $50 American Red Cross Marriott Cheque
• 33,000: $100 American Red Cross Marriott Cheque
• 60,000: $250 American Red Cross Marriott Cheque
• 180,000: $1000 American Red Cross Marriott Cheque

US Airways, Continental, Delta, Hyatt, Wydham, and many others also let members donate to a variety of charities including the Red Cross, so just go to the ‘use miles’ section of their website to find their charities and see what they’re offering.

Last but definitely not least, Spirit Airlines is actually running a giveaway that awards the first 200,000 people who donate $5 or more to Yele Haiti, UNICEF or the American Red Cross with 5,000 bonus miles - enough for a FREE flight! This is definitely the best offer I’ve seen and I commend Spirit Air for taking such an aggressive stance in their relief efforts.

********

For those of us who don’t have enough miles to donate in any program or just can’t bare to part with them (you know who you are), there is a VERY SIMPLE way to donate $10 to the Red Cross right now. Simply text ‘Haiti’ to 90999 to donate. You will receive a response to text YES to confirm your donation. It charges $10 to your phone bill automatically (pretty slick) and literally takes 10 seconds.

Business Travel is Booming in 2010! Well, Sort of…

It looks like business travel is expected to grow…a little bit…in 2010. The National Business Travel Association (NBTA) just released its 2010 Business Travel Buyers Cost Forecast which predicted a conservative increase in business travel. Seven out of ten business travel managers surveyed expect business travel to grow while about a third see spending remaining the same.

The study also looked at average travel expenditures for airfare, hotel, and car rental and predicted changes in 2010. Average airfares in 2009 were $299 (I feel like I was on the high end of that average, but oh well) and are forecast to grow by 3% next year.

Hotel rates per night averaged at $136 this year and are expected to drop up to -9% next year. Car rentals sat at an average of $46 this year and will also drop by -1 to -3% in 2010.

The decline in two major travel categories will help businesses rationalize increasing their corporate travel, and thus is predicted to result in an increase in travel expenditures.

TRIVIA QUESTION OF THE DAY (who am I fooling? This is the first one I’ve ever asked.)

QUESTION: What is the most profitable US Airline?

ANSWER: Allegiant Air (who?)

Allegiant Air just announced their 27th CONSECUTIVE profitable quarter (for those non-mathematicians, that equals 6.75 years). Why Allegiant, you ask? Allegiant Air doesn’t consider itself a mere ‘airline.’ In fact, it calls itself “Allegiant Travel Co.” because it has identified and seized the opportunity to push ancillary products and services out to customers. In fact, Allegiant makes, on average, $32.36 over the cost of each ticket from a variety of fees as well as hotel room sales, car rentals, and other extras. Bravo, bravo. Now if I could just figure out who these guys are…

Jet (Blue) Around in September for $599

Jet Blue announced a pretty crazy deal that will allow you to JET around to over 50 destinations on an unlimited All-You-Can-Jet flying pass for $599. The dates of use are from September 8^th to October 8^th and you have to be a member of TrueBlue to get the pass.

Bravo to my friends at Jet Blue for coming up with a promotion that is truly unique. It makes sense as well because travel is always down between Labor Day and Thanksgiving as families finish up summer travel and hunker down until the holidays.

This also provides TrueBlue members with an awesome way to rack up substantial points in the program over the month of September, particularly useful because this fall Jet Blue is totally revamping their program to make it way more user–friendly and flexible.

There are a few details to consider before you throw down the cash and start figuring out how to take a leave of absence in September:

• You must buy it by August 21^st
• You can’t buy it online (Whaaa?) Yep, go ahead and pick up the phone and dial (800) 538-2583 and hit Prompt 4 to be fast-tracked to an agent
• There are a limited number of passes available (Jet Blue isn’t releasing how many) so act quickly if you want one
• Taxes and fees are included for domestic flights (nice touch) and you can change plans without fees anytime before three days of departure
• There are no blackout dates – if a seat is open, you get it
• There are no max number of pass holders per flight. So you might be sitting there with a bunch of other fly-happy travelers that are going somehere just because they can.

Overall, I think this is a pretty killer deal and I seriously considered using the money I set aside for a ski pass to go jetting for a month. Then I remembered I’m starting a travel company so I don’t have the money or time to travel. Bummer.

That being said, my major concern is whether or not I would actually be able to get seats at the times I want to go to the places I want to see. I guess it’s not quite like flying standby because they book you on a flight, but if the excitement in the Twitterdom is any measurement of the perceived popularity of this promo, my luck would have it that EVERYBODY IN THE WORLD buys this pass and then we all dual it out for a limited number of seats in September…

I digress. Depending on how smart Jet Blue is going to be about the number of passes they sell versus the load capacity on their flights, it could be a pretty affordable way to have a very interesting September…and set yourself up with enough points to redeem them next year for free flights.

P.S. If you haven’t done it already, follow Jet Blue’s “Cheeps” and United’s “Twares” on Twitter. I know, it sounds like I am speaking in tongue. But really they are just cute names for deeeply discounted fares available only to their Twitter followers.

P.S.S. Southwest lost the bid to acquire Frontier in bankruptcy court yesterday. Their bid of $170M didn’t cut the mustard because the carrier wouldn’t drop the requirement that its pilots and Frontier’s work out an integration before the deal closed. Republic bought Frontier for almost $108.8M. If you are wondering how I feel about this, go here.

Southwest, Please Buy Frontier!

Southwest announced Friday their intention to bid on acquiring Frontier in an aggressive move that would make huge inroads in its attempt to become a formidable competitor in the Denver market. Although some analysts say that Frontier has made things ‘miserable’ for Southwest in Denver, I happen to think they HAVE started making a dent in Frontier’s business. Case in point: me. I have always been a loyal Frontier frequent flyer but recently I started changing my behavior in response to Southwest’s low airfares, FUNNY flight attendants, and shameless wall-to-wall advertising all over DEN. In fact, I flew Southwest this weekend from Denver to Chicago and enjoyed every minute of it. Two years ago it wouldn’t have even dawned on me to search for Southwest airfare flying out of Denver.

Sources say Southwest has filed its intent to bid at least $113.6 million for Frontier, which may start a bidding war with Republic Airways Holdings, a parent company of several regional carriers that has already placed a bid on the airline.

The auction will take place on August 11, and if Southwest wins it will likely be able to hire all of the 5,000 employees currently working at Frontier. I am sure Frontier’s EarlyReturns frequent flyer program will be rolled into Southwest’s Rapid Rewards, which would be way cool. I am really hoping this deal goes through — because if we have to say bye bye to Frontier, Southwest is the best airline to have in the Colorado market.

United Throws a Bone to Frequent Flyers

We got this email yesterday. Whoopie!!! It looks like United is truly providing some value to frequent flyers. Historically last-minute award bookers (like me) were fined a hefty $75 fee if they booked award travel 7-20 days prior to travel. The fees jumped up to $100 for award travel booked six days or less. Obviously United is hoping to fill those last-minute (EXPENSIVE) seats with revenue customers but it looks like they are easing up a bit and recognizing that keeping frequent flyers happy will make them more money at the end of the day anyway.

Effective July 30, 2009, the fee will be eliminated.

Top Five Silly Airline Cost-Cutting Measures

Many travelers think the airlines have stooped to new lows over the past year as they relentlessly announce one cost-cutting measure after the next to counteract an ailing economy and raising gas costs (again). But honestly, nobody ever gives the airlines due credit for the creativity and courage that goes into developing and announcing their money-saving ideas. Some of these gems are so incredibly imaginative and dimwitted witty, you almost feel like they deserve a medal. So I’ve taken it upon myself to designate awards to the top five silly cost cutting measures the airlines have enacted over the years. In descending order of fantasticness:

1. First Runner Up: Slow It Down
   1. Airlines started putting on the brakes several years ago to save on fuel. Now this actually isn’t as crazy as it first sounded (which is why it only gets runner up) but it did seem a bit ludicrous at first. I mean, we are PAYING the airlines good money to perform a service that gets us from point A to point B quickly, and they are lallygagging in their execution to save a couple of bucks. The truth behind this measure is that it actually saves them a boatload of cash. United Airlines estimates savings to be around $20 million a year just by slowing their aircraft down a bit. Jet blue adds a mere two minutes to each flight, saving $13.6 million per year.
2. Second Runner Up: Fat Up-charge
   • United took the plunge in implementing a fat tax policy back in April when they announced that passengers who could not fit into their seats, buckle their belts (with an extender), or put down their armrests would be charged for an additional seat. Now, Ryanair is considering implementing an excess weight fee for obese customers in response to an outcry of support (over 30,000 people are in favor of the tax) when they posed the question on their website. I listed this in the runner up category because while it seems a bit unnecessary and cruel, it’s also cruel to the person sitting next to you when you are literally pouring over into their seat with excess folds of skin. Sitting in an airline is cramped as it is even with normal size people. An overweight person seriously throws the scales off (in more ways than one) and pretty much guarantees that all involved parties will have a miserable flying experience.
3. Bronze Medal: Standing-Room Only
   • Spring Airlines, our friendly airline out of China, figures it can cut 20% of their costs while allowing room for 40% more passengers if they sell standing-room only tickets to passengers. The plan literally calls for passengers to be offered a sort of stool to perch on with a seat belt around their waste. If it’s not making sense to you, try this explanation on for size: The president of Spring Airlines compared the experience to “catching a bus, with no seat, no luggage consignment, no food, no water.” Wow.
4. Silver Medal: Pay to Pee
   • Another Ryanair idea – and not a big surprise since this airline is notorious for being cheap and cutting corners mercilessly and with a certain amount of glee.  It was reported earlier this year that RyanAir’s CEO, Michael O’Leary is considering charging passengers for using the toilet while flying, by installing a coin slot on the doors of the airline’s lavatories. Nothing tangible has come into play following this announcement and a spokesperson for the airline grudgingly admitted that O’Leary might have just been “taking the p*ss” with his comment. I still think it deserves a second place medal just because O’Leary had the guts to suggest it.
5. Gold Medal: Hold the Olives
   • First place goes to American Airlines for the brilliant, yet simple cost cutting measure they implemented back in 1987. The airline was able to save $70,000 in 1987 by eliminating just one olive from each salad served in first class. ONE OLIVE. Heck, I don’t even like olives. Now these are the types of changes that I think airlines need to start considering again. Nobody is going to notice a missing olive on their salad, but everybody is going to go nuts if they have to pay to check a freaking bag. I hereby award American Airlines first place in creativity, execution, the ability to save money without upsetting passengers, and the ability to think outside the box. Unfortunately this happened 22 years ago. Let’s bring some of those smart folks back again and get the creative juices flowing in this struggling industry. Where did they all go? Google?

Recession Drives More Mileage Redemptions

Just as we predicted, the recession is heightening activity in frequent flyer programs as travelers try to find ways to save money on trips instead of forgoing travel altogether. In fact, according to a study released by Deloitte, nearly two-thirds of the respondents (64%) are taking a summer vacation this year, although half of them are going to cut down spending due to economic concerns.

One very obvious way to do this is to start cashing in miles and points in return for award fares and free room stays. Airlines and hoteliers are seeing substantial boosts in award redemptions as travelers increasingly trade them in for family trips and weekend getaways in lieu of expensive international forays. United Airlines reported a 12% increase in 2008 over the previous year, and I would suspect the difference to be even greater in 2009.

Business travelers in particular collect hundreds of thousands of miles/points on company-sponsored trips and don’t have the time or motivation to use miles effectively in a good economy. But now as companies cut travel benefits and money becomes tight, business traveles are taking the time to become re-engaged with their programs, particularly on the hotel side (which tends to be underutilized in favor of airlines).

For instance, Intercontinental Hotel Group has seen a 15% increase in Priority Club redemptions in the first quarter of 2009 compared to last year. Best Western has experienced even more extravagant growth in their redemptions, which are up 30% year over year thus far in 2009. Dorothy Dowling, the senior vice president, attributes the economic meltdown as part of the reason for this increase.

“We’ve never seen this kind of redemption activity in the past. Consumers today want a vacation. They want to do it closer to home to save on expenses. They’re looking at harnessing every way they can to make that vacation happen.”

I Want to go to Cuba

I ran across a pretty interesting Orbitz initiative yesterday that I totally support and would like to share with our readers. In response to Barack Obama’s administrative decision to lift travel and communication restrictions for Cuban-Americans who want to see their families or send money to the island, Orbitz recently launched “OpenCuba.org” to encourage Americans to petition for the right to TRAVEL to Cuba.

To provide a brief background, U.S. policy has held an embargo against Cuba since 1962 when Kennedy increased restrictions originally imposed by the Eisenhower administration to ban almost all trade with Cuba. A year later Americans were banned from traveling into Cuba and the embargo has more or less been upheld by every President thereafter.

From early on in their administration, the Obama posse demonstrated a different approach to foreign relations and a willingness to open lines of communication with rogue dictators and communist regimes. This remarkable change of behavior represents what I consider to be the biggest opportunity in 50 years for us to fight for our rights as American citizens to travel to Cuba. Orbitz has taken this idea to the next level by creating a petition that will get sent to Obama, Biden, and the House of Representatives.

Please Sign it today and pass the word along if you believe in the cause…and would like to experience a street market in Old Havana, the colonial elegance of Cienfuegos, the Carnival in Trinidad, or the beautiful beaches in Varadero.

Suprisingly, tourism is Cuba’s second largest source of foreign income, behind nickel production. Canada makes up 35% of all foreign visitors, followed by Britain, Italy, Spain, Germany and Russia.

C’mon fellow travelers, let’s work on getting the United States added to that list!

Frequent Flyer Promo For Coloradans!

As a native Coloradan, I feel lucky to have grown up in such a beautiful state and I continue to experience all that it has to offer on a daily basis. Well, now I can add one more thing to the list: double frequent flyer miles to (and from) Colorado!

Frontier yesterday launched “Frontier’s Colorado Club” to celebrate our state (and their hub). Frequent flyers earn 1,000 bonus miles when they refer someone who joins the club and flies to Colorado, and anyone earns double miles when they fly TO Colorado (Aspen, Colorado Springs, Denver, Durango, or Grand Junction).

United, as expected, quickly rolled out a similar promotion that includes the ability for frequent flyers to earn bonus miles to and FROM Colorado to any other destination. This is obviously the more attractive deal for Colorado residents since we do most of our flying outbound, so it’s unfortunate that Frontier couldn’t match the attractiveness of United’s promo. At the same time, kudos to Frontier for dreaming up the Colorado-focused promo in the first place!

The Frontier and United offers have identical terms: book before June 30, 2009 and complete your travel by September 30, 2009.

How’s that for a Rocky Mountain hiiiiigh?!