Saturday, July 12, 2008

So is it Frequent Flyer or Frequent Flier?

This silly digression probably took us more research time than anything else we’ve written in the last several months. (And if that isn’t a sad commentary on the quality of our journalism for those other articles, we don’t know what is.) So, the question: Which is it, Frequent Flyer or Frequent Flier?

Two well-respected FF websites take opposing views. FrequentFlier.com and FreeFrequentFlyerMiles.com both have lots of good FF information. (The “Other-Spelling-of-FrequentFlier”.com goes to a shell website that is comprised of nothing but useless ads; please don’t visit it.) Various other travel writers come down on both sides of the question. Peter Greenberg likes flier; Gary Leff and Arthur Frommer (one new-school, one old) prefer flyer. ABC News recently used both spellings in one article.

So our first stop, of course, was that wise sage of the web. We did a Google search (this generation’s idea of quality research). Frequent flier returned 1,210,000 results, and frequent flyer 3,880,000. (Frequent flyer vs. frequent flier returned 135,000 results, yet none on the first 10 pages actually addressed this topic.)

Next, we went to airline websites. Surprisingly, many do not use either word, but use words like “program” or simply refer to their particular loyalty scheme (as our Brit friends say) by name: Mileage Plus, SkyMiles, OnePass, and many others (including the wonderfully creative Mileage Plan – guess the Alaska Airlines marketing department took that week off). In general, though, we found that most airlines used flyer.

Even the major Brit airlines – bmi and British Airways – side with flyer (we’d have thought it might be “flyour”).

Conversely, our old AP Stylebook (does anyone even know what that is anymore?) came down on the side of flier, saying: “Flier is the preferred term for an aviator or a handbill. Flyer is the proper name for some trains and buses.”

Another of those seldom-used writing tools – our dictionary – has the main entry under flier, and under flyer says: “same as flier.”

So take your pick. In general, I think we’ll stick with flyer in our writing, but see nothing wrong with either spelling. What we do see wrong is that the FF programs are becoming more like the American meaning of the Brit word scheme. In UK-speak, scheme does not have negative connotations, it just means plan or program. Yet regarding airline FF programs, we sometimes think they’re reading our dictionary (there we go again) definition 1b of scheme: “a secret or underhanded plan; plot.”

May all your frequent flyer/flier plans/schemes/programs continue to bring you happiness.

Thursday, July 10, 2008

Reward Credit Cards We Actually Use

We do a lot of credit-card juggling – using one card for some things and other cards for different categories of spending. Here is a rundown of where and why we use our various cards.

  • Chase Freedom Visa – We get 3% cash back (or points) for up to $600/month in spending in our 3 “Top” categories. This usually works out to groceries, gas, and cell-phone bills. We spend enough in those categories that we have both opened separate Chase Freedom accounts, letting us get the 3% on up to $1,200/month. (After $600 spending per month, the rate drops to 1%.)
  • Chase Business Visa – This gives us 3% at hardware/building supply stores, office supply, restaurants, and gas (plus a few other categories we don’t use it for).
  • Hilton American Express – This offers the equivalent (to our way of thinking) of approximately 3-5%, valued at hotel room rates. We use this at restaurants, drugstores, and the Post Office (all offering the higher point value, as do groceries and gas, but we use other cards for those purchases). It’s also our card for car rentals (as it provides primary CDW coverage, with an optional program), as well as being our preferred everyday card.
  • Hilton Visa – This gives fewer points than the Hilton Amex, but we use it as a Visa backup if an Amex card isn’t taken and our purchase isn’t in one of the gas/grocery/etc. categories above. We figure it at a 2-3% reward level.
  • American Express FreedomPass Business card – This gives us only 1.33% (as a statement credit which can be used for travel purchases), but we use it primarily for its 3% discount on Delta and JetBlue tickets (just by purchasing with the card), 5% at Hertz, and a few others. It, too, can be used for primary CDW car-rental insurance coverage. (See our previous article.)
  • Capital One Visa – Yes, the points are lousy (1.25% or less) but it charges no foreign-exchange fees. We use this pretty much just overseas. You can now convert points to cash at 1%, so you don’t have to be locked into a travel purchase with their weird point scheme.
  • JCB card – This is new for us, and we’re still exploring its use. It only charges 1% foreign-exchange fees, but offers 1% cash back. It’s our second/backup international credit card.
  • Airline cards – We still have United, American, and USAir no-annual-fee credit cards. They only offer 1-mile-per-dollar (which – depending on ticket price or using miles for upgrades – can sometimes work out to 2% or more) when purchasing tickets on the respective airline. For some reason, we feel that maybe, just maybe, if we get in a jam we might get a little better treatment if we purchased the airline’s ticket with their credit card. Especially for cheap fares, we think the loss of “better” points from using our Hilton Amex might be worth the tradeoff.

Finally, a side note. A couple of our cards are “Signature” Visas, supposedly offering some value-added benefits (lost-luggage reimbursement, some shopping benefits), but we just can’t see enough value in them to use the Signature cards in place of other cards, unless they also have good rewards schemes.

So that’s it. A lot of cards to juggle, but we do everything we can to maximize our rewards for the spending we’re going to do anyway. This may not be the best for you, but we wanted to share our little card insanity.

Tuesday, July 08, 2008

Airline Pricing Idiocy: A Model for Other Businesses?

Two travel news sources we regularly read, Joe Sharkey At Large and Aviation Insight & Perspectives, are frequently railing against the “follow-the-herd-without-the-real-facts” media and/or academic reports about the travel industry that are usually written by folks with little or no (it often seems) travel or business experience.

In the July 7, 2008 Wall St. Journal is an article titled “What E-Tailers Can Learn From Airline Pricing.” The short answer should be a resounding “Nothing,” but the five (yes, five) academic authors suggest internet retailers adopt demand-management pricing strategies.

We’ve done marketing and business consulting for a variety of businesses both large and small, and can’t imagine giving a client advice to adopt the worst pricing/business model we’ve ever encountered – the airlines’ model.

We know travel a little, we know airline operations even less, and we know marketing and customer behavior pretty well. That said, everything we ever encounter (from a consumer’s standpoint) about airline pricing boils down to this: The airlines are saying to us, 1) our product (an airline ticket) has so little real value that we can jack around with the price until you can’t see straight; 2) we’re doing everything we can to game our pricing, so you, Mr. & Mrs. Consumer, might as well try to game us right back; 3) we think we’re building your customer loyalty with “elite” levels and frequent-flyer miles, while actually we’re devaluing our own currency and annoying our best customers in the process; 4) our business model is so flawed that even we don’t really know what anything costs, so we’ll pull prices out of the sand and hope for the best and see what works; 5) my competitor next door sells widgets for xx dollars, so even if we did try to differentiate ourselves with a better product, you, Mr. & Mrs. Consumer, aren’t smart enough to see the difference so we’ll price our product at xx dollars also, and then complain about losing money because we didn’t know how to run our business.

This just makes us tired and we want to jump in the car and drive somewhere, even with gas at $5 per gallon.

Saturday, July 05, 2008

U.S. Cell Phones for International Visitors

Since we frequently offer travel tips for international visitors, we thought we’d pass along this article on TravelTechTalk. It offers the best information we’ve ever seen about U.S. cell phone (mobile) pre-paid plans and phones.

Tuesday, July 01, 2008

Worst Airline Website Award

We’ve suggested before that you shouldn’t base your air travel plans solely on an airline’s frequent flyer program (unless you’re a true frequent flyer). Only you can decide what’s important – price, schedules, comfort, etc. Likewise, you probably shouldn’t base your choices solely on your web experience. But in today’s travel world, if you have trouble even booking your flights, you might decide to turn elsewhere. Thus, our very personal opinions of airline websites (mostly U.S., but including a couple of international carriers).

There is no competition for bad website – USAir wins hands down. The site is slow, glitchy, pages only half load, and it’s overall just dreadful. They only show selective code-share flights, and especially bad is the frequent flyer section (Dividend Miles). Delta comes in a close second, with frequent time-outs to its pages loading and other flaws. (Let’s hope if Delta and Northwest do merge, they adopt Northwest’s website, and not Delta’s.) Even bmi’s confusing site is better. If you can’t do it well (as do Alaska, American, United, for example) why bother doing it? Just try to redeem miles on the USAir website – fat chance. This all seems especially egregious in these days of extra booking fees for using phone agents, for redeeming awards, and other fees-upon-fees.

Of the airlines we’ve flown over the past couple of years (including American, United, Alaska, Kenya, Air France/KLM, British Airways, Delta, easyJet, Southwest, Continental, Northwest, USAir, Qantas) – and airline websites we’ve used (a lot more than just the airlines we’ve flown) – even the marginal British Airways and Delta sites don’t come close to the flaws of USAir’s. Do we sound frustrated?

We spent much of our career in marketing, stressing customer service in all aspects of a business. We started at the ad agency (Leland Oliver Co.) where Jay Chiat got his start (and where his shadow still loomed large). Customer service is the same as marketing – the only difference is that marketing is directed at new customers and customer service is directed to existing customers. In our view, USAir falls down in both aspects.

“I think technology advertising will have to stop addressing how products are made and concentrate more on what a product will do for the consumer.” – Jay Chiat

Monday, June 30, 2008

Fall Airline Capacity Cuts

There’s a great graphic on the USA Today website showing state-by-state airline capacity cuts (announced so far) for October 2008 (over the previous year).

Saturday, June 28, 2008

The Future of Air Travel: Yes, Still Another Opinion

The news is always dire regarding today’s airline environment.

There’s another fascinating article about the near-future prospects of the U.S. airline industry on the Christian Science Monitor website, which includes this quote from former American Airlines chairman Robert Crandall.

“Unless something is done to move toward some kind of fix, we’re going to see every one of our major airlines in bankruptcy.”

Friday, June 27, 2008

Good, Bad, Indifferent Frequent Flyer Credit Card Advice

There is a lot of good advice, mediocre advice, and bad advice out there about credit-card frequent-flyer miles. Take everything you read (our blog included) with a BIG grain of salt, as it’s frequently colored by the writer’s experience, research (or lack thereof), timeliness, and a host of other factors. For example, we were disappointed in a recent post on About.com: Budget Travel about airline and bank cards.

In the airline card section of the article, the writer mentions cards from Northwest, British Airways, JetBlue, Delta, and American. Does he think these are the best? Or the only ones? In the bank card section of the article (several clicks away, as is always the case with About’s articles), he lists Capital One, Citi Premier Pass, one American Express card, and a couple of obscure regional bank cards (does he not know about Merrill+, several other Amex cards, and others?). And all the hotel credit cards (Starwood, Hilton, etc.) that allow transfers into airline programs aren’t even mentioned.

Sometimes the article mentions that a card carries a 3% foreign-exchange fee, most times it doesn’t make note of that (implying, to us, that the card does not charge the fee, while in reality just about every card does.) And in the description of the one card which does not charge any forex fee – Capital One – that fact isn’t mentioned.

Finally, to us the worst inclusion is noting all the different APRs the cards carry (which, of course, vary over time and by targeted offer). The APR should be a non-issue (except for any 0% initial balance-transfer offers). If you carry a balance you should use a very low-fee card and totally ignore any frequent-flyer or reward cards (all of the lowest-fee cards we’ve seen do not offer any sort of reward program).

The lines of journalism and sales continue to blur. We wonder if most of these articles are posted so that readers will click the in-line links (in this article, it’s the “fine print” link after each card description) that go to the card website so that the web publisher (in this case About) can make some revenue. Cynical is our middle name.

Wednesday, June 25, 2008

Boomer/Senior Travel – Thoughts & Predictions

Much has been made of the coming retirement of millions of baby boomers. This generation is supposed to be the wealthiest in history; to be interested in travel and recreation; and is expected to (bad pun alert) fuel the future of the travel industry (in addition to supposedly draining Medicare and social security).

One travel newsletter from 2003 said:
“Over the next two decades, the post-50 generation (don’t ever call them ‘seniors’) will be the major force pushing travel and tourism numbers to all-time highs. They have changed every other economic and business dynamic in the U.S. for the past 50 years, so is it any surprise that this population will change travel industry dynamics for years to come?”

And one from 2006:
“Over 55 million baby boomers are getting ready to retire. When asked what they intend on doing, travel and see the world is on top of there [sic] list.”

And others are still (late 2007) tooting the same horn:
“This generation is more use [sic] to traveling and so they look for exotic destinations and interesting sites to keep them entertained. It takes a lot more to make them happy than it did the generation before them.”

(Aside from all the bad grammar), we’re skeptical. Our guess is that baby boomers or new seniors (let’s call them BBS – Baby Boom Seniors) will be pulling in their horns. Air travel is uncomfortable (especially in economy, with cramped seats and no in-flight amenities), the airport experience is dreadful (thanks mostly to TSA), everything is becoming an unknown hassle (do I have to pay 25 bucks to check a bag? to change my ticket? to take a pee?), and it’s all getting more expensive every day.

So why should BBS travelers turn out any different from previous senior generations? Those generations occasionally took cruises, went on group tours, bought huge RVs (which they now can’t afford to gas up), spent time with family, and overall just traveled less. They wanted safe, simple, easy travel. And they were bargain-basement shoppers.

A very wealthy couple we know has traveled the world for years, flying to someplace exotic and exciting every couple of months. Lately, though still in their late 50s, they drive, they take at most one big air trip a year, they complain bitterly about the few short annual domestic flights it’s necessary for them to take, and they have adopted leisure activities which keep them more locally focused.

We expect that BBS travelers will also fly less, drive more, take group tours and cruises, and stay close to family. Unless the air travel industry (not just airlines, but all aspects of air travel) sees the light, this huge demographic of wealthy potential travelers will decide to do something else. And that something else will include flying as little as possible.

Arthur Frommer – the ultimate senior budget traveler – is constantly discussing cheap this, cheap that: cruise deals, affordable lodging (motel chains), the cheapest destinations, and free entertainment once you’re there. Wouldn’t want to splurge on anything, you know. It’s as if now that BBS have both the time and the money, they want to hang onto their cash until they die. This certainly isn’t the same generation that a few decades ago claimed to want to die owing the credit-card companies as much money as possible.

From a marketing standpoint, the travel industry certainly hasn’t yet gotten the message. Most travel ads feature darling 20- or 30-somethings looking sexy and acting trendy. BBS travelers really don’t want to be around those folks. BBS travelers may not want cheap lodging (per se), but want inexpensive lodging (a significant difference). This generation will be the ones most able to pay $10 for a wine tasting, but also the ones most likely to complain about it.

And while the BBS travel demographic is technologically savvy, it will shy away from the latest and greatest web schemes. It really doesn’t want viral videos, to be inundated by obnoxious music and advertising, to figure out what YouTube or Facebook are all about, and to be challenged by tiny type and obscure navigation tools. We actually wonder if the BBS traveler will fuel a resurgence of print travel media. We wouldn’t even be surprised to see brick-and-mortar travel agencies make a comeback.

It seems mostly that for the BBS traveler, it will be about the How of travel, rather than the Where or How Often. BBS travelers will focus on how well the travel experience meets their needs. How easy is it to make reservations? How comfortable is the flight/room/seat cushion? How many other people “like me” will be where I’m going? How much outside my comfort zone am I willing to go just to see something unusual? How can you, Mr. Travel Provider, make my experience easier, more comfortable, and cheaper?

The BBS generation may, indeed, prove to be a boon for many sectors of the economy (financial services, healthcare). As for the travel industry, if oil prices have reached a level that will mean $5-a-gallon gas for the rest of our lives and cheap airline tickets a thing of the past, our guesses for American BBS travelers are: cruise lines, especially those serving north and central America (less flying); tour companies offering canned (safe and easy) travel to international destinations; and more travel to U.S. destinations (New England, California) which are within one-day drives of large population centers.

And if this large, impactful generation travels less – just when the industry expects it to travel more – all travelers will see changes in the airline/travel industry that we might not even begin to imagine.

Monday, June 23, 2008

An Upside to Higher Airfares?

We’ve recently suggested that if you’re earning miles/points with a credit card, it might be better to go for cash back rather than dump credit-card miles into a frequent flyer program. Especially with airlines teetering on the edge, reducing capacity, and merging.
But now with higher airfares, unless the airlines raise the number of miles required for an award ticket (always a distinct possibility), your miles may become “worth” more as airfares rise. If you previously used 25,000 miles to acquire a $350 ticket, you may now be using 25,000 miles for a $600 ticket.

We still prefer cash-back if we can get 3 percent on our credit-card purchases. But getting a little better than 2 percent (as in the above example), we’d be getting close to sitting on the fence as to which is the better value.

And of course, this all assumes you’re using your miles to get a basic economy ticket – if you’re using your miles for upgrades, that also changes the equation. It also assumes that the availability of frequent-flyer seats remains relatively the same (not necessarily a safe assumption in the current airline environment).

Friday, June 20, 2008

International Credit Cards Accepted In The U.S.

Here’s the last in our short series about U.S., International, and Frequent-Flyer credit cards. (To see other entries, click "ATM and Credit Cards" in the Topics list at right.)

Most international visitors to the U.S. know that Visa and MasterCard (no matter what country they’re issued in) are generally accepted everywhere. Many U.S. merchants also accept other cards – most notably American Express and Discover. In smaller communities or at smaller businesses, Visa and MasterCard may be the only cards taken.

What you may not know is that several other internationally issued cards are accepted within the U.S. JCB (Japan) and UnionPay (China) cards are (supposedly*) accepted anyplace in the U.S. that displays the Discover logo, even if the business isn’t aware it can accept those cards. Likewise, Diners Club cards are accepted in the U.S. and Canada anywhere that MasterCard is taken (most newer Diners cards should have a MasterCard logo on either the front or back). Things with Diners/Discover will probably change in the future, as Discover has purchased Diners, with integration of their card programs scheduled to take two to three years. Finally, the Maestro card (a MasterCard debit card, widely used in Europe) is accepted anyplace that displays a MasterCard logo.

[*We recently received a JCB card, and it was not accepted at a Discover merchant. We were told by JCB that the Discover integration is not yet complete. We’ll keep testing the card, and post a JCB update in the near future. The JCB card has the potential to be a useful travel tool.]

Wednesday, June 18, 2008

China Unionpay Credit Card

Since we’ve been researching international credit cards, and recently applied for and received a Japanese JCB card, we’ve been looking at other “unusual” credit-card options.

The China Unionpay card is the largest card issuer in China, with more than 1 billion (yes, we said billion) cards issued, and is accepted in 26 countries. It doesn’t appear likely that Americans can obtain a China Unionpay card (unlike the JCB card, which is available to residents of some U.S. states), but it’s worth noting that U.S. Discover cards are supposed to be accepted at China Unionpay merchants throughout China. If you’re going to the Beijing Olympics, don’t leave home without your Discover card. (How we wish we could read this Unionpay “Club” page. It’s fun just clicking on the photos.)

In our odd quest to have as many “different” credit cards as possible, we’ll keep our eyes open for ways that we can get an actual China Unionpay card (rather than just a Discover that may work on their system).

Tuesday, June 17, 2008

OpenSkies Concierge

British Airways’ “new” sub-airline, OpenSkies, has announced a concierge service that “contacts you within 24 hours of booking your ticket” to see if there’s anything they can help you with (sell you) in either New York or Paris. Nice differentiation, but really useful? Maybe they need some extra excitement, since they were originally going to be an “all business class” airline and now they’re just a typical three-cabin airline – “Economy, Prem+, Biz.”

Saturday, June 14, 2008

The Future Airline Landscape

The financial press has a slightly different take on the future of U.S. airlines than do the industry pundits. In a MarketWatch article yesterday, speculation varied from “there’s going to be just three global airlines and the low-cost carriers are going to become feeders,” to “domestic fliers on network routes...are going to find themselves on the equivalent of an airborne school bus,” and “people dependent on regional airports will likely see their fares jump, by up to three times what they've been used to paying.”

The article (oddly titled In 2010, U.S. Airlines Are Smaller, Maybe Smarter: Industry Could Stabilize for the Benefit of Passengers and Investors) speculates that Southwest, Air Tran, and JetBlue will thrive in a new domestic airline environment. As for legacy carriers, Credit Suisse upgraded its rating on Continental’s stock, while a CreditSights analyst put United at the bottom of the survivors list. Credit Suisse also noted that if the legacy carriers slash as much capacity as they’ve announced, they will wipe out the last 10 years of their domestic growth.

Lastly, to give a sense of the impact of fuel costs, the article notes that US Airways said that its average domestic roundtrip ticket will need to be priced at $299 just to cover its costs, up from $151 in 2007 and $70 in 2000.

Our take-away for consumers:

  • Buy airfare early (to lock in lower prices), or...
  • Wait until as long as possible to buy airfare (in case your carrier goes bust or flight schedules change)
  • Spend those frequent flyer miles now
  • Consider not even bothering with non-flight miles, and go for a cash-back credit card instead
  • When flying a U.S. legacy carrier, consider crediting their miles to an international airline in the same alliance
  • Drive instead of fly for shorter and/or last-minute trips
  • Start building a flying relationship with a low-cost carrier that serves your market and preferred destinations
  • Assume all the chatter, news, and advice will change on a yearly, monthly, weekly basis

Friday, June 13, 2008

Tourists Tourists Everywhere

If you’ve read some of our previous posts, you know how much we love useless surveys and lists.

Online travel company Expedia recently surveyed more than 4,000 hoteliers, asking their opinions about the best and worst travel traits and habits of various nationalities. Expedia chose hoteliers, because: “Hoteliers are the experts when it comes to interacting with tourists.” Uh huh.

  • Complain most about accommodations: Americans, Germans, French
  • Best fashion sense: Italians, French
  • Worst fashion sense: Americans
  • Overall best tourists: Japanese, Germans, British
  • Best at learning a few local words: Americans
  • Least likely to use a few local words: French, Chinese, Japanese
  • Least interest in local food: Chinese, Indians, Japanese
  • Most “fiscally conservative” (we assume this means cheap): French, Dutch, British
  • Tidiest (leave those hotel rooms clean): Germans, Japanese, British
  • Most generous (we assume this means tips): Americans, Canadians, Russians
  • Noisiest: Americans, Italians, British
These tourists are from ....

Thursday, June 12, 2008

Fee-dom In The Air

Rick Seaney of FareCompare has a great chart of current domestic airlines’ various (and extensive) fees.

Wednesday, June 11, 2008

How To Take A Wine-Tasting Tour

Whether you’re a wine-tasting newbie or an experienced wine-country traveler, there are many things you can do to enhance your experiences. Most of the following information applies to wine regions within the U.S. – some international wine destinations (France, for example) do not have the same “wine tourism” attitude we do in the states.

  • Make some choices before you go. If this is your first trip to wine country, you might want to go to some of the big names – for example in Napa you might visit Mondavi, Sterling, and Beringer.
  • Visit some smaller wineries. Even if you’re a wine-tasting newbie, take some time to visit several smaller wineries – at the smallest ones you’ll have a good chance that the winemaker/owner will be pouring in the tasting room, and you’ll have some great conversations.
  • Make appointments. If there’s some place you really want to see (especially small wineries) make an appointment in advance.
  • Don’t try to do too much each day. We find that three to four wineries in the morning, and another three or four in the afternoon, are generally more than enough.
  • Buy some wine. Unless the wine just isn’t enjoyable, purchase at least one bottle of something you enjoyed at the tasting room. It will probably taste even better at home.
  • Don’t be afraid to pour. Even the small tasting amounts can add up. You’re there for wine tasting, not wine drinking. The pour bucket is totally acceptable to use.
  • There are no “bad” wines. A wine might not be to your tastes, but don’t say, “that’s awful.” If you need to express a negative opinion, just say that the wine isn’t your style.
  • Not all wineries charge. Most smaller wineries – and ones in smaller regions – do not charge for wine tasting. In our recent travels, we’ve seldom been charged for wine tasting. But...
  • Be prepared to pay. Many wineries, especially in Napa, now do charge for tasting. Some apply the tasting fee to purchases, others don’t. Also in Napa, be prepared for the “Disneyland” experience – at some big and popular wineries, it’s now become industrial tourism, with complimentary souvenir tasting glasses (after you just paid $10 for tasting), huge cheese and gift shops, and tour busses lined up outside.
  • For the big wineries, go early. And at any time of day, if there’s a tour bus in the parking lot, go elsewhere, fast.
  • Take a tour or two. We’d suggest taking one “big” winery tour, and a smaller one. On a recent trip to California, Washington, and Oregon, our big tour was at Benziger in Glen Ellen (Sonoma Valley), where the 45-minute tour goes through the vineyards, the production facility, and the cellars, ending with a tasting. Our small tour was just the two of us (the other three guests were late), at Mayacamas (outside Napa Valley) where we witnessed what winemaking was like a half century ago – not much has changed, and that’s all for the best. Note that the small Mayacamas tour and tasting was free, and the big Benziger had a charge. Both were excellent tours, nonetheless.
  • Explore not just smaller wineries, but smaller regions. On that recent trip, we found several good wineries outside Hood River, Oregon, and wanted to spend a lot more time at the wineries in Amador County in the Sierra Foothills.
  • Be enthusiastic and appreciative. You just might be offered a special wine, or be offered to taste the whole tasting list, rather than just the limit of four (or however many) for free.

Outside B.R. Cohn winery, Sonoma

Monday, June 09, 2008

Flying vs. Driving

Several recent surveys seem to indicate that many vacationers are forgoing flying – choosing to drive instead, even considering gas prices. So we thought we’d do a quick back-of-the-napkin comparison.

Say you’re planning a week or longer leisure trip along the west coast, and weighing the costs of flying versus driving. Let’s pretend it’s 800 miles one way – far enough that it’s a two-day drive, compared to a one-stop flight (which, of course, will take all of a day each way, with diving to the airport, security, plane change, and car rental time). If you can afford the extra day each way, here’s our very simple breakdown:

AIR
Cheap flight $300 each, x 2 for a couple = $600
Cheap car rental = $540
Airport parking $10/day x 7 days = $70
Total for transportation legs = $1,210

CAR
Gas at $4.50/gallon = $450
Lodging at $150/night x 2 nights = $300
Breakfast & dinner on the road x 2 = $120
Total for transportation legs = $870

So, for $340 less, but two extra days, you get to take your golf clubs, lots of luggage, and bring home cases of wine or gourmet foods.

If you’re a family, those extra airfares for the rest of the family send this comparison out the (car) window. As will extra-baggage fees if you want to travel with the luxuries you can stuff in your car for free. And if you want to upgrade to a decent car.

You don’t have to take your shoes off to go through security to get to your car. You can snack as you want (better and cheaper, too). You can still feel your butt even after a day of driving because you can stop to stretch and move around. If you have pets and can find pet-friendly lodging, you can take the critters and save on kennel costs.

You (probably) won’t be made to feel like a criminal by the U.S. government (TSA). You’ll see some incredible scenery along the way.

Finally, the cheap $300 airfare example we’ve used may soon be a thing of the past. Is it surprising that the U.S. airline industry is in deep trouble?

Mt. Shasta, California

Sunday, June 08, 2008

Premium Economy Updates

It looks like Singapore Airlines is phasing out its Executive Economy seating on the LA and New York to Singapore flights.

United has begun selling their Economy Plus upgrade at time of online ticket purchase.

And add British Airways’ Open Skies New York-to-Paris subsidiary airline to the list of those offering premium economy seating.

We wrote more about premium economy offerings here and here.

Saturday, May 31, 2008

Car Rental Insurance with American Express Cards

In the never-ending battle against car-rental ripoffs, here’s another tool to consider.

American Express offers a $19.95 car rental insurance policy that is primary rental insurance. Insurance provided by all other credit cards (except Diners) is secondary – in other words, the credit-card insurance only kicks in after you’ve gone through your personal auto insurance provider to try to resolve the issue. The Amex policy is valid anywhere in the world except in Australia, Ireland, Israel, Italy, Jamaica, or New Zealand (which is typical with most credit-card car-rental insurance coverage).

(There are some slightly different coverages and options, depending on what state you live in. See the Amex site.)

The Amex coverage is for the entire rental period (for up to 42 days), not per day. This seems like a cheap way to give yourself an additional layer of protection, especially if you’re a leisure traveler who rents a few times a year for longer periods (rather than a business traveler renting for a day or two many times a year). You are required to register your Amex card, but there are no charges until you reserve and pay for your rental with your Amex card.

Thursday, May 29, 2008

America On Sale: International Visitors Still Coming

We’re trying to understand the news from the U.S. Dept of Commerce that international visitors to the U.S. increased 13 percent in January and February 2008 over the previous year. Some specific numbers are:

  • UK up 11%
  • Russia up 20%
  • Canada up 24%
  • Germany up 24%
  • France up 22%
  • Italy up 17%
  • Netherlands up 17%
  • Spain up 22%
  • South Korea up 9%
  • China up 22%
  • India up 13%
  • Australia up 8%
  • Brazil up 22%
  • (a lot more numbers are available on the Commerce website)

Why? The U.S. government continues to make obtaining a visa harder and harder. The politicos spend endless hours thumping their chests about border fences and immigration. The TSA makes every aspect of the air travel experience more dreadful every day.

Yes, America is obviously “on sale,” with the weak dollar making everyone else’s money worth more. We could understand it if the increases were just from Europeans: snow in Europe was so bad last winter that these could all be skiers coming to the U.S. for some decent snow. Yet for other visitors, why January and February anyway? Traditionally, international tourism to the U.S. has peaked in summer and fall, so what’s in store for this summer season? Maybe gasoline sticker-shock will change that picture.

Or is it just that money always wins? “We want it all and we want it now and we want it cheap.” The rest of the world is becoming more wealthy, and not just because of the dollar’s decline. Asians, Eastern Europeans, South Americans are wanting the luxuries that increased personal wealth brings – cars, toys, homes, travel. Combined with America On Sale... If that is the case, then America has won the world. Our values (money trumps everything else) are now universal.

This is a fabulous country to visit, and international tourists bring many more things to the U.S. than just their money. They enrich our cultural understanding of the rest of the world, and might even make some Americans less protectionist and isolationist. We’re happily surprised, but nonetheless, still surprised.

Tuesday, May 27, 2008

U.S. Credit Cards Accepted Internationally

If you’re traveling internationally, you’ll invariably take a couple of credit cards. The two “usual suspects” – Visa and MasterCard are widely accepted (in our experience, Visa somewhat more so, yet one hotel in eastern Europe accepted MasterCard but not Visa). American Express is accepted much less frequently, but will usually be taken at major car-rental agencies, large hotel chains, airlines, and high-end restaurants, especially in larger cities. Discover is accepted (depending on merchant) in Canada, Mexico, most of the Caribbean and Central America, China (on the UnionPay network), and Japan (on the JCB network), but still less often than Visa or MasterCard. (Update: The Discover/JCB/China Unionpay integration is apparently not yet complete.) Discover is not accepted in Europe or anywhere else in the world. The JCB card – available to residents of some U.S. states – is becoming more widely accepted in Europe and has a large presence in Asia, especially Japan. (JCB cards can also be used in the U.S. on the Discover network. But, integration with all Discover merchants has not yet been completed.) Finally, your Diners Club card is now a MasterCard, and will be accepted anywhere MasterCard is taken. (Discover recently purchased Diners, and their card options may change in the future.)

Friday, May 23, 2008

Package Shipping

Not only is checked luggage a time-consuming hassle, but now it’s getting more and more expensive. American Airlines just instituted a $15 charge to check even one bag. Most airlines have adopted a $25 charge for a second bag. Our suggestion is to ship it. If you absolutely need more than your carry-on bag, consider UPS, FedEx, or the Post Office. Several articles and blogs have claimed it’s too expensive – $200 for next-day shipping – but why should you need it next day? Send it ahead to your hotel or friends a week in advance. For a 50-pound package from coast to coast (and if you can’t get everything you need in a 50-pound box, you might just as well stay home), UPS charges $59 (8 days), Post Office $44 (7 days), FedEx Ground $51 (5 days). We’ve strongly suggested that you travel light, and the new airline fees makes us even more inclined to do so. The airlines are tacking on fees (baggage fees, change fees, phone-booking fees, in-flight food fees) in desperate hopes of raising revenue by nickels and dimes, and annoying travellers in the process. Pack a sturdy cardboard box with clothes and essentials, and ship it ahead. Buy your shampoo and toothpaste on arrival. Beat the airlines at their silly games.

Tuesday, May 20, 2008

Airlines Offering No-Annual-Fee Credit Cards

In our continuing short series (see our previous posts about sign-up bonus miles for U.S. and international airlines’ frequent flyer credit cards), here is a current list of airlines that offer a no-annual-fee card. This is different from a card that promises no annual fees for the first year, but then (unless you cancel the card) institutes an annual fee thereafter. As we’ve said before, we don’t think that we’ll ever again chose to pay an annual fee for a credit card, but you should decide for yourself. Some of the cards listed below may even offer a sign-up mileage bonus (less than that offered for the annual-fee cards), and most will only earn miles at 1 mile per $2 spending (vs. 1-to-1 for the fee cards). Still, these cards may be useful depending on how often you fly an airline, or if you just want to occasionally charge something to the card to keep a mileage balance current. You might also consider acquiring the annual-fee card for the first year (if it’s offered free that first year), and then calling to switch to the no-fee card just before your first year is up – we’ve had success doing this with both United and USAir (as we wanted to keep a card for those airlines).

Also note that with the state of the airline industry, some of these card offerings (and some of the airlines themselves) may disappear. For example, we know that some time ago Continental offered a no-fee card, but we’re not able to find that offer anymore. And as we write this, Frontier is in bankruptcy but still flying. If they go under, you can kiss goodbye any miles acquired from any source – including from the credit card.

Airlines offering no-annual-fee credit cards:

  • American
  • United
  • USAir
  • Midwest
  • AirTran
  • Frontier
  • IcelandAir
  • China Air
  • Korean Air

Friday, May 16, 2008

Kansas Déjà Vu All Over Again

Seems like the state of Kansas has got a patented mojo working. First there were the 8 Wonders of Kansas, with nominations and voting and awards. Now, we have the 8 Wonders of Kansas Architecture. At some point, this gets kind of tedious. Will we soon have the 8 Wonders of Kansas Cheeseburgers? The 8 Wonders of Kansas Prairie Potholes? The 8 Wonders of Kansas Shopping Malls?

So we promise, for the last time, we’ll note that Kansas is on a PR roll. If you’re curious about the finalists for the 8 Wonders of Kansas Architecture, visit kansassampler.org.

Tuesday, May 13, 2008

International Airline Frequent Flyer Credit Card Bonuses

Here are the current (as of May 12, 2008) bonus offers for international airline frequent-flyer credit cards. The cards listed below are apparently available to U.S. residents. Generally, if we don’t list an airline, it’s because it doesn’t appear to offer a U.S. card or the information is unavailable. The cards offered by these airlines may be Visa, MasterCard, or American Express cards. As mentioned in our previous post about U.S. frequent-flyer credit cards, we suggest you visit Free Frequent Flyer Miles for a lot more info about airline frequent-flyer credit cards.

Some of these offers may be buried on sub-pages of the airlines’ websites. The terms and conditions may be different (such as only getting bonus miles if you fly within a certain time period, etc.) from typical terms you’ve come to expect for U.S. airlines cards. Most of these cards have annual fees (although at least one we know of, IcelandAir, offers a no-annual-fee card, but with lower bonus miles). Read everything carefully if you’re interested in any of these frequent-flyer credit cards. From what we can see, these are all typical U.S. bank credit cards – none are the up-and-coming international standard “chip & pin” cards. Note also that some international airlines value miles and reward flights differently than do the majority of U.S. airlines.

  • British Airways - 20,000
  • Lufthansa - 20,000
  • Korean Airlines - 15,000
  • IcelandAir - 10,000
  • China Airlines - 7,500
  • Asiana Airlines - 5,000
  • ANA - 5,000
  • Mexicana - free companion ticket

Sunday, May 11, 2008

You WILL Be Paying Higher Airfares

“...no airplane was ever designed to make a profit with jet fuel at these prices, and no carrier has figured out a way to charge enough to make up the difference.”

That is from a fascinating article in the current (May 12) issue of Fortune magazine. The author, Barney Gimbel (quoted above), is interviewing American Airlines CEO Gerard Arpey, and discussing the state of the industry.

The article talks of airline mergers (a mixed bag, but the Delta/Northwest merger isn’t viewed favorably); ticket pricing; extra fees and charges; competition (especially Southwest); and, most significantly, oil prices. “[Jamie Baker] J.P. Morgan analyst, thinks that at current fuel prices the industry needs to shrink as much as 20%.”

At jet fuel prices of $2.74 per gallon (when the article was written), American’s cost to fly one seat one mile increased 29% in one year. “The problem? The market allowed fares to go up only 5%.”

The final sad commentary comes from Arpey himself. “‘There is no business,’ he said, ‘that can go on forever selling its product for less than the cost to produce it.’”

Friday, May 09, 2008

"Who Flies Where" Airline Search Tool - jetnav

We’re always looking for better flight-planning tools, and we’ve been searching for the best “Who Flies Where” website. Although we frequently use ITA Software, its matrix results are sometimes too detailed, especially when we haven’t even begun price shopping.

The UK site jetnav.co.uk seems to offer a good Who Flies Where tool. In our rather limited tests, it shows more airlines than ITA does (ITA doesn’t show Southwest or easyJet, for example). Another thing we like about jetnav is that although you have to plug in dates, the results show what days a flight operates.

Since jetnav doesn’t list prices, the results are displayed by flight times (great for planning), and the endless combinations in ITA are simplified or eliminated. For example, jetnav showed all airlines offering Spokane, Washington (GEG) to Durango, Colorado (DRO) and showed “20 outward flights and 15 return flights,” while ITA had a staggering 500 combinations for the same city pair. ITA too often shows “United [or whatever] and other airlines” without showing what those other airlines are. jetnav’s results show both airlines of a combination. When we’re just trying to find what airlines fly from A to B, jetnav offers simpler results.

jetnav does seem slow for some of its searches from little airport to little airport, and for flights of more than one stop. And on an intentionally obscure search (FIH to BKK – Kinshasa, Congo, to Bangkok, Thailand) jetnav only showed one flight on Ethiopian Airlines, while ITA showed one-stops on Air France, South African, and Thai. Conversely, on a Stansted, London (STA) to Prague (PRG) routing, ITA showed a ridiculous one-stop on “Delta” which turned out to be an American flight from London to New York, and then a Delta flight from New York back to Prague. We’re glad that jetnav didn’t bother to show that one, yet did show all other airlines on that route.

This looks like a promising tool – we’ll continue testing.

Thursday, May 08, 2008

All Electronic Tickets Coming June 1

According to Breaking Travel News, a large Australian travel agency (Flight Centre Limited) is concerned about the impending June 1 death of the paper ticket and the switch to all-electronic airline ticketing. There has been nary a peep from the U.S. media about the switch, yet Flight Centre makes some interesting points, including:

“...significant issues had not been resolved in relation to: Customers travelling with infants, as most carriers would not allow infants to travel on e-tickets; Some codeshare and interline fares involving more than one carrier; Some round-the-world fares.”

We’re not sure how much – if any – impact there will be for U.S. air travelers, but in today’s aviation environment, anything that throws a wrench in the system can have cascading effects down the line.

Wednesday, May 07, 2008

Airline Credit Card Mileage Bonuses

There’s always a lot of interest regarding airline frequent-flyer-mile credit cards, so we thought we’d present a wrap-up of current bonuses for signing up for various airline credit cards. These may be MasterCard, Visa, or American Express offers. Most waive annual fees (usually in the $75-per-year range) the first year. There may be a spending requirement over a certain time period to receive these miles. It’s up to you to decide if applying for new credit is worthwhile, and if you want to pay any annual fees (should you choose to keep the card).

In general, we find the best source for more detailed information about frequent-flyer credit cards is at Free Frequent Flyer Miles.

Here are the bonuses advertised on various U.S. airlines’ websites as of May 7, 2008.

Many international carriers also offer mileage credit cards, and we will research those soon and post their current offers.

  • American - 25,000
  • USAir - 25,000
  • United - 21,000
  • Continental - 20,000
  • Hawaiian - 20,000
  • Alaska - 20,000
  • Delta - 17,500
  • Northwest - 15,000
  • Spirit - 15,000
  • Frontier - 15,000
  • Southwest - 8 credits
  • Airtran - 8 credits
  • JetBlue - 50 points

Monday, May 05, 2008

Stress-Free Travel Tips

We’ve reached the point where we want our travels to be fun, enlightening, relaxing, invigorating, and EASY. Stress is not on our list – in life or in travel. We want our travel adventures to be ones we plan, not ones that result when rural bus schedules change in third-world countries. Sure, things out of our control will happen – they always do. But we can do things to minimize the challenges of travel. Here are our ideas for reducing travel stress.

Plan Ahead
Make as many reservations in advance as possible. Especially for your first night or two of lodging, and for any car-rental, train, air, or other major transportation. Keep copies of all reservations and receipts.

Travel Light
We’ve said it, other commentators have said it, but few of us travel light enough. If any time on your last few trips you found yourself wishing for less crap to lug around, make a vow to travel only with a 20-pound carry-on next trip. Try it.

Be Flexible
If something doesn’t work out as planned, let it go. If your train schedule changes, call ahead to change your hotel reservation – but don’t worry about it. Aside from losing a passport or credit card, or having a major injury, most challenges aren’t worth worrying about.

Get Exercise & Get Rest
Don’t rush from place to place – take time to smell the croissants. Conversely, exercise every day – walk, swim, hit the hotel gym. But not obsessively. Mostly just walk as much as possible – walking is stress-relieving, as well as a great way to see and interact with locals.

Eat, Drink, and Enjoy
Life is meant to be lived. Linger over dinner and wine. Get up late. Take a picnic to a park and sit and read. Don’t become obsessed with capturing the sunset photo or making the 8 o’clock performance. Have another glass of that wonderful digestif instead.

Money Matters
Don’t be so cheap that you feel you’re depriving yourself. You’ve spent probably thousands on just getting where you are – allow yourself a few hundred for treasures. Don’t worry about bargaining a vendor down from 25 cents to 20 cents. As for money itself, rely on credit cards as much as possible, and use ATMs for local currency.

Mobile Communications
Take that international cell phone so you can call ahead to change reservations. And consider not giving the number to your friends at home. If something happens while you’re traveling, there isn’t much you can do about it from 3,000 miles away. Life works itself out. Use that cell phone for your convenience, not someone else’s. Likewise, stay off the internet as much as possible. Ditch the email, your blog, and web surfing as entertainment.

Leave Lots of Time Between Connections
Nothing, absolutely nothing, stresses your composure more than running across a train platform while towing a large suitcase behind you and having another two bags smacking you on the back.

Don’t Rely on (Probably Outdated) Guidebooks
Use those guidebooks mostly before you travel, to get general ideas about the “How To” of travel to a destination. At your destination, avoid the places listed in the guidebooks (especially lodging and dining), except for the “big stuff” you just have to see (Angkor Wat, the Tower of London, the Great Wall, the Eiffel Tower).

Friday, May 02, 2008

Hyatt’s a Riot

From our “Did anyone ask the marketing department?” files. Hyatt Hotels has a new “online travel community” called yatt’it. The company has put a trademark symbol after yatt’it, but they really needn’t have bothered – no one is going to infringe on that name. We’ve done brand marketing for dozens of companies, and have seldom seen names as dreadful as yatt’it. Oh, wait, we get it. They didn’t have to “talk to the marketing department” because this is from either the public relations department, or (from the sound of the name) was a Texas second-grade class project.

On the site, there are travel tips from “Gold Passport Members, Hyatt Concierges, and Frommer’s.” But it gets us rather suspicious when “Member” tips with high votes are posted by folks with screen names like Hyatthound and hyattleo. This is nothing more than a Hyatt PR feel-good site – if you have any doubt, read the Posting Rules section. Don’t say anything critical.

Aside from the dreadful name, we really don’t know why anyone would either visit the site looking for self-serving “tips” or bother to contribute. If you’re curious anyway, visit yattit.com.

Thursday, May 01, 2008

More Premium Economy Offerings

Air France will reportedly be adding a Premium Economy class to their long-haul flights over the next year and a half. The seats are said to have 38 inches of pitch (typical economy seats are 31-32, depending on airline), and will have extra in-air amenities. The seats will be installed on all long-haul aircraft (including the new Airbus A380) except for the 747s, which are being phased out.

Other airlines are possibly jumping on this trend also. A good overall Premium Economy wrap-up article is on the (UK) Business Traveler website, which mentions that Air New Zealand, Qantas, British Air, KLM, bmi, JAL, and several other airlines are planning to either add or expand their Premium Economy product.

If, like us, you enjoy a bit of extra comfort short of a full-on business-class price, this is a welcome development.

Monday, April 28, 2008

More Homeland Insecurity Idiocy

From the "If it weren’t so frightening, this would be so funny" department. Quoting a Yahoo Travel News article, headlined: To Stave Off Terror, Feds Issue Safety Strategy For Boaters

“As boating season approaches, the Bush administration wants to enlist the country’s 80 million recreational boaters to help reduce the chances that a small boat could deliver a nuclear or radiological bomb somewhere along the country's 95,000 miles of coastline and inland waterways.

“According to an April 23 intelligence assessment obtained by The Associated Press, ‘The use of a small boat as a weapon is likely to remain al-Qaida's weapon of choice in the maritime environment, given its ease in arming and deploying, low cost, and record of success.’

“The millions of humble dinghies, fishing boats and smaller cargo ships that ply America's waterways are not nationally regulated as they buzz around ports, oil tankers, power plants and other potential terrorist targets.”

What a sad commentary on our government – not just the Bush administration, which is so zealous in this regard, but any administration in today’s world, when no one can be perceived as being soft on terror. Witness the idiocy about flag lapel pins during the recent Democratic debate.

Any 12-year-old can tell you that airport screening is a theatrical joke – we don’t catch terrorists by wanding grandmothers at the Boise airport. And we don’t catch terrorists by having the “80 million recreational boaters” in the U.S. play cowboy on the water.

It seems like every initiative coming from the Department of Homeland Insecurity is a Wag The Dog moment. Fingerprinting foreign visitors when they leave the U.S. Harassing chicken farmers. Devising toy X-ray machines for children. George Orwell was right. There is probably no hope for us to ever return to sanity and normalcy. But maybe that’s exactly how our elected politicians want it.

Defending our coastlines

Sunday, April 27, 2008

Joe Sharkey's Blog

We’re adding a new favorite Big-Ass-Opinion blogger to our list. Joe Sharkey, on his blog Joe Sharkey At Large, really says it like it is (or how he feels it is). We especially love his skewering of other (usually traditional print) media for their frequently inane and un-researched comments. He posts whenever it’s warranted – daily, weekly, or several times a day. If you like your travel news with a BIG dose of attitude (informed, nonetheless), not some MTV sound-bite journalism, visit Joe’s blog. We come from a traditional print media background, and have seen both the glory and the crap coming out of print and TV these days.

Thursday, April 24, 2008

Euro Low-Cost Airlines

It’s not just here in the U.S. that airlines are struggling. Reuters reports that Francois Bacchetta, managing director of easyJet France, predicts that of the roughly 50 low-cost European carriers, only four will survive the competitive environment considering current fuel prices. (LowCostAirlinesEurope.org counts 60 carriers.) Bacchetta said that if easyJet currently passed along fuel surcharges, the airline would need to “raise ticket prices by 10 percent ... and our payload factor would fall from 85 percent to 60 percent. Our whole low-cost business model would be thrown into question.” Of course, Bacchetta says that easyJet will be one of the four survivors. If this type of scenario turns out to be the case, it could be back to the trains (which are getting faster, are electric, and getting more competitive every day). If you’re planning European travel, and you give any credence to this report, to keep from disrupting your travel plans consider booking these types of flights at the last minute and always using a credit card.
(A tip of the hat to Online Travel Review for this lead.)

Tuesday, April 22, 2008

Government Bureaucracy Wins Again

The 102-year-old Verkamp’s Curios store on the south rim of the Grand Canyon will close this year. According to an AP story reported on Yahoo Travel, the store’s owners are finally giving in to “bureaucratic process fatigue. There’s just so many hoops to do what you’ve always been doing,” said Susie Verkamp, the 60-year-old granddaughter of store founder John George Verkamp. “It kind of wears you out.” The National Park Service has purchased the building, and Superintendent Steve Martin said the structure may be used as a visitor center or a history museum.

Saturday, April 19, 2008

Trying to Understand Southwest Airlines

We really, really would appreciate it if anyone could explain Southwest Airlines to us. Every time we check a Southwest fare, it’s more expensive than one of the Big 6 (5? 4?). There’s no assigned seating. And for anything more than a hop from Albuquerque to St. Louis (and why would we want to do that?) the routings usually seem to make more stops than the Big Guys do. (And Southwest doesn’t even tell you what the stops are, unless it includes a plane change.) What’s keeping them going? Is this just a cult thing that we simply don’t understand? Or are there truly some fares that are significantly cheaper and actually offer better routing? SeatGuru tells us that seat pitch is 32-33 inches and width 17 inches (most U.S. airlines flying similar aircraft – 737s – are 31-32 inches), so there may be 1 inch more leg room. Whee. There’s no video, audio, or other entertainment, even on Southwest’s longest flights. Obviously, we’re planning more domestic travel, and again for some reason we looked into Southwest. We just don’t get it.

Friday, April 18, 2008

US Air's New Seat Charges

It’s kinda hard to agree with two divergent points of view at the same time.... but we’re gonna try.

Upgrade: Travel Better seems to seriously dislike US Air’s new “pay-more-for-nothing-special-extra” seats at the front of the plane. We’re talking up-front economy seats at windows and aisles. From the Upgrade blog: “US Airways, dead-set on reminding Americans why they should dislike air travel with a passion, and insistent on making the movement from point A to point B just a smidge tackier... These aren’t perks. There’s no extra legroom.” Which we wholeheartedly agree with.

Cranky Flier feels that the extra $5-30 for a “better” seat is a decent idea, and considers that “It’s all about paying extra for added value these days.” Which we wholeheartedly agree with.

It’s cheap and mean-spirited. Yet it’s also something we’ve espoused – the willingness to pay more for a better product.

Thursday, April 17, 2008

Retrospective Book Review – Europe on $25 A Day

There has been so much news lately about airline failures and mergers, we thought we’d do something fun and different. A few nights ago we pulled another old travel book off our shelf – Europe On $25 A Day. (Yes, we know the “original” was $5, but we weren’t travel aware when that book came out. So, this was one of our first budget-travel guidebooks.)

This 1985 edition of Arthur Frommer’s famous work (his photo is still on the back cover) is truly fun from a historical perspective. The book deals almost exclusively with the great cities of Europe – London, Paris, Vienna, and many more. Still, it doesn’t neglect Greece and Scandinavia, and does have several introductory sections on planning and logistics.

We were especially fond of material such as that about making reservations in advance: “...the cost of conducting an air-mail correspondence over reservations is a relatively heavy one...” The section on bathrooms in the room (now called “en-suite”) was also pretty fun to re-read. And given the budget profile, the $25 per day was to include “hotel[s] for from $12-14 per person..., breakfast for $2, lunch for $3.50, dinner for $5.” And The Big Splurge section revealed “the whereabouts of ‘luxurious’ meals that may run as high as $7 to $10.”

Despite the prices and other obvious changes over time, the few maps in the book are still usable – Europe hadn’t changed all that much physically (except for the wars) for several hundred years before the book was published, so it’s unlikely it has changed much in the 20-odd years since. No photos, but the words make up for it.

Find a used bookstore, pick up a copy of any of the old Frommer’s Euro guides, and read the sections of places you’ve recently visited. We guarantee you’ll be entertained.

Monday, April 14, 2008

Chase Freedom Visa Points to Airline Miles

We’ve written that the Chase Freedom Visa is a 3% cash reward card (on up to $600 in spending per month, then it goes down to 1%). An interesting feature of the card is that you can convert your cash rebates to points (and vice versa, once per billing cycle). One use of the points is that they can be converted to United or Continental airline miles at the rate of 6,000 points for 5,000 miles.

Doing the math (which we were admittedly never very good at), the maximum you can annually earn at the 3% rate is $216, but you get a $50 bonus if you wait to redeem until you have at least $200 in rebates (instead of in smaller increments), thus giving you $266. With the miles-to-points conversion, you could switch to 21,600 Freedom points per year, which would convert to 18,000 United or Continental miles. Either way, the cash or points come from $7,200 in spending per year. (This is all assuming you just charge up to $7,200 for the 3% maximum, and then switch to another card or live with 1%.)

For comparison, $7,200 in spending on a United Visa or Continental MasterCard would get you.... 7,200 miles. Plus, the airline cards have annual fees (the Freedom card has no annual fee).

Hmmm, let’s see....

  • $266 cash (with the Freedom card cash rebate)
  • 18,000 United/Continental miles (with the Freedom card points)
  • 7,200 United/Continental miles (with an airline card)

We’d certainly chose to go for the cash over 7,200 airline miles from an airline card. (That represents $798 in cash before we’d even get to the level of a 25,000-mile economy ticket with an airline card.) And we’d be on the fence comparing $266 to 18,000 miles. But it gets interesting when you consider upgrades. If you want to get out of the cheap seats, those 18K miles can be as much as halfway toward a round-trip upgrade seat (for example, depending on fare class, United’s round-trip international upgrades are 30,000 or 60,000 miles). Comparing an economy seat at $1,200 (for a random-date DEN-LHR flight) to a $4,000 business-class seat, those 18,000 miles could be “worth” from $700-$1,400. That might be a worthwhile deal.

The final benefit we see regards what we touched on just recently – what happens if your airline goes under and you lose your miles? By leaving points in the Freedom program until you want to transfer them (they do have an expiration, but it seems to be 3-5 years from when earned), you’ll have another way to preserve your miles. And you can always switch to the cash reward if the Freedom points are getting close to expiring.

Of course, this type of credit-card juggling (using one card for some things, up to spending limits, other cards for different purchases) can be a pain. But the reward side can be pretty attractive.

Saturday, April 12, 2008

bmi's Boss Has an Opinion

We generally love it when a CEO puts his or her mouth on the line. This quote from bmi airline’s boss, as reported on Breaking Travel News, isn’t some trite mumbo-jumbo from a PR flak. The quote is in response to news that British Airways (BA) will delay moving its long-haul flights to London Heathrow’s Terminal 5 until June. (BAA is Heathrow’s operator.)

Nigel Turner, bmi chief executive officer, said: “It is an absolutely outrageous announcement by BAA and done with no thought, consideration or consultation of any other airline other than BA. The sequence of moves affects over 50 airlines, including bmi, at Heathrow. The programme and timescale of changes was agreed in joint consultation with all airlines that are now geared up to undertake the moves as agreed.

“BAA and BA have shown a total disregard for all other airlines and their passengers at Heathrow in coming to this decision because of their own shortcomings and their inability to implement an agreed plan.

“BA through their mismanagement of the move to Terminal 5 will materially disadvantage all other airlines at Heathrow whilst BAA, through their perverse regulatory system, will actually benefit financially. The UK is once again a laughing stock

“This is yet another clear example of BAA treating airlines and passengers with contempt and no consideration whatsoever to a consultation process that took some considerable time to achieve an acceptable programme of terminal moves.”

Friday, April 11, 2008

Rethinking Mileage Credit Cards

With the recent wave of airline bankruptcies (Frontier) and shutdowns (Aloha, Skybus, ATA), you may be wondering what could happen to your frequent flyer miles. Most likely, if the airline stops operating, your miles go with them. (A bankruptcy such as Frontier’s generally means the business continues operation while they straighten out their financial situation. As long as they’re still flying, your miles should be OK. For awhile.)

There are two significant types of frequent flyer miles (although in nearly all cases, both types go into the same bucket). First are miles you earn by flying (which, incidentally, also count toward elite status with that airline, but that’s another topic). Second are miles you earn elsewhere, primarily with credit-card spending. For actual flight miles, the only way to hopefully “preserve” your miles is by affiliating with an airline which you hope will stay in business. Also by not hoarding miles but using them as much as possible. But credit card miles are discretionary. You can choose to use a Delta American Express, a United Visa, or any of the other airlines’ credit card partners. (As an added incentive, with an airline card there’s usually a big mileage bonus for signing up for the card.) But, those miles are dumped into your Delta or United or whatever account, just like flight miles. So if the airline folds, kiss your miles goodbye.

One alternative is to not even worry about miles from credit cards. There are many cash-back credit cards, some offering up to 3-5% on certain purchases. Percentage-wise, that may be a better deal than one-mile-for-one-dollar on your United Visa (depending on how you value your miles).

The second alternative is to use a payback-type system. Cards like Capital One, Merrill+ Rewards, or the American Express FreedomPass card accrue fake “miles” that can be redeemed for any travel purchase. Most offer about 1% back and most can be had for no annual fee. (We recently reported on a Capital One MasterCard which offers 2% back and has a $39 annual fee.)

Thirdly, if you want other types of travel awards, consider a hotel-affiliated credit card. We’ve used the Hilton American Express card (no annual fee) for years, and have accumulated a lot more Hilton points than we’ve used for stays at Hilton hotels. We’ve also heard many good things about the Starwood Amex card ($45 annual fee). Many of these cards have some sort of transfer program with various airlines, but generally at no better than a 1-to-1 ratio. The benefit of this system is that you hold your miles/points in a program which isn’t tied to a particular airline, yet can transfer points to certain airlines as needed. So unless the hotel chain goes under (much less likely) your points should stay valid. And if you use the hotel points in these programs for actual hotel stays, your “value” may be a lot higher than a 2% airline equivalent or a 3% cash-back program.

Finally, there are the proprietary systems such as the American Express Rewards or Diners Club programs. These, also, generally offer transfers into various airline programs, but most of these cards have significantly higher annual fees ($95-$350, for example) than even the airline’s branded credit cards (which are generally $50-90 per year). Most of the Amex/Diners programs also offer other perks to cardholders, but while the perks may make the annual fee acceptable, that’s beyond the scope of this article.

With any of the non-airline programs, the benefit is that you’ll keep at least some of your “miles” should the airline go bust. The miles already in the airline program might disappear, but you’ll still have some miles in the bank/hotel/card program for future travel. Personally, we go back-and-forth, back-and-forth. We’ve changed our thinking on this more than we care to admit. But in today’s environment, we believe that: 1) we’ll never pay an annual fee again (unless there is some big “other” benefit to the card); 2) we’ll consider carefully what airlines we choose to dump credit-card miles into (and then only if we can get the airline credit card for free); 3) we’ll use a cash-back credit card if we can get 3% or better; 4) we’ll only use a no-foreign-exchange-fee credit card overseas, whether it gives us miles or not (at least with Capital One or Discover, you can get some points/rebates, even if they’re not the greatest); 5) we’ll continue to use our Hilton Amex for points into that system (no card has been consistently better for us over the years).

Several websites have good info on credit card programs, including Frequent Flier, Free Frequent Flyer Miles, Ask Mr. Credit Card, Index Credit Cards, and Rewards Cards. Be forewarned, if you search for “Best Airline Credit Cards” or such, you will stumble upon several very OLD articles – one search of ours turned up a 1999 posting on the first search page.

This machine does not take credit cards

Tuesday, April 08, 2008

Farewell Aloha, ATA, Skybus; Welcome to Higher Airfares

In just one week, Aloha, ATA, and Skybus airlines all folded. Aloha’s and ATA’s demise may have been long in the works, but Skybus began operations less than a year ago. Yet similar Euro cheapo carriers easyJet and Ryanair are still flying and still (apparently) profitable. (Upon the launch of Skybus, Dan Garton, executive vice president of marketing at American Airlines, was quoted as saying: “Skybus is very Ryanair-esque.”) Why the difference between Ryanair’s success and the quick exit of Skybus?

Ryanair and easyJet set up shop in one of the most-densely populated parts of the world – the British Isles. The UK has a population of some 60 million, all wanting to get off their crowded island more than occasionally. The Brits are also known to be peripatetic travelers, seeking out one new destination after another (even if they can never speak the language once they get there). So Ryanair and easyJet deliver weekend holiday-makers to hot spots across the continent – planes always full, and passengers charged for everything. (For the record, we’ve flown easyJet and it was very cheap compared to the mainline Euro carriers – such as Air France or BA – and it was fairly convenient and not completely dreadful. We have not been on Ryanair.)

In the U.S., Southwest also tapped a vein at the right time, with reasonably low fares (yet in our experience nowadays, seldom significantly less expensive than the majors), a fun attitude, and minimal amenities (no assigned seating). Nonetheless, they carefully picked their markets, frequently alternative airports in metro areas (Love Field instead of DFW) or good-sized second-tier cities (Albuquerque, Las Vegas). In contrast, Skybus decided to fly to lower-tier markets (Chattanooga, Ft. Lauderdale), or cities that had good service (Boston) just maybe not from places like Greensboro (what were they thinking?). Maybe they were looking at the Euro model (Skybus even painted their planes orange, like easyJet) instead of the Southwest one. From the minute Skybus started less than a year ago, we were skeptical.

Most likely, it’s simply another example of the fact that it’s expensive to run an airline, and you really can’t make a lot of money by giving away your product for pennies. We think this only reinforces our opinion that higher airfares are inevitable (especially for domestic U.S. travel), and will be here to stay.

Monday, April 07, 2008

Discover to Buy Diners Club

Discover Financial Services (Discover card) is buying the Diners Club credit card from Citigroup. Integration will take awhile (two to three years for full implementation, according to the announcement), but once in place it should mean that Discover cards will be accepted wherever Diners cards are taken, and vice versa.

One interesting and curious aspect is that the current Diners Club card in the U.S. is affiliated with and carries a MasterCard brand, and is currently accepted at any MasterCard merchant. Diners has an interesting array of value-added travel services (airport lounge access, primary car-rental insurance, frequent-flyer point transfers, much more international acceptance than Discover). Discover has been known for its various cash-back rewards programs and 0% foreign-exchange fees (although the card is seldom accepted internationally, except for Canada, Mexico, Central America, the Caribbean, and China).

It will be fascinating to see what card(s) come out of this alliance, and what the branding will be, but we would expect a much more useful (both U.S. and international) travel product.

Saturday, April 05, 2008

Premium Economy Seats

A couple of years back, American Airlines tried their “More Room Throughout Coach” program. Apparently, American didn’t garner enough additional business or revenue to make it profitable to remove seats from planes to get the extra legroom.

We aren’t currently elite fliers with any airline, so don’t have access to upgrades unless we use miles (which we think is a good use of frequent flyer miles) to upgrade to business. Thus, we frequently seek out airlines offering some sort of Premium Economy service, especially for longer flights.

There aren’t a lot out there: Air New Zealand, ANA, bmi, British Airways, Eva Airlines, Japan Airlines, SAS, Singapore, Thai, and Virgin Atlantic are the only carriers listed on Seat Guru that offer Premium Economy, with seat pitch usually all around 38 inches, and generally about 1 inch of extra seat width. Seat Guru doesn’t count United, noting that United’s “Economy Plus is not sold as a separate cabin and doesn't have enhanced amenities beyond legroom.”

We, on the other hand, love United’s Economy Plus. No, you can’t purchase it as a separate fare, but it’s automatically available to all United Elites; you can frequently purchase an upgrade at the ticket counter; and us common folk can purchase a one-year Economy Plus Access for $349. United’s EP generally offers pitch of about 34-36 inches, a surprisingly comfortable addition over 31. With EPA, customers are offered EP seating anytime a seat in that section is available, and can take one companion on the same reservation at no additional charge. The seating is available no matter the booking channel, and is also available for award flights.

Some commentators have knocked United’s EP as being half-assed. To each his own – we love it. It is a lot cheaper than the fares for most international carriers’ Premium Economy. For example, a recent search on SAS for Seattle to Copenhagen flights found regular economy at $1331, premium economy at $2041 (in a separate cabin, offering a slightly wider seat and 38 inches of pitch, according to the SAS website), and $5031 in business. British Airways had a SEA-LHR flight on the same dates for $1322 in economy, $2142 in economy plus, and $5477 in business.

If seat comfort is important, and you’re not looking for the absolute lowest fares, look into premium economy offerings.

So you don't have to walk like this when you get there.

Friday, April 04, 2008

Guns in Cockpits

There’s been a (justified) media circus around the pilot who “accidentally” discharged a firearm in the cockpit of a USAirways plane. Finally, it comes out that he was apparently putting a lock on the gun when it discharged.

OK, whether you believe armed pilots are a good idea or not, two thoughts ....

Firearms do not go off accidentally. It’s only human intention or error. A person has to apply some sort of action to make a gun discharge – either through actual intent (shooting), or because of neglect, poor training, poor judgment, or ignorance. Secondly, if the gun is locked, what good is it? Firearms meant for protection need to be accessible – you don’t see police officers walking around with trigger locks on their sidearms.

Wednesday, April 02, 2008

No International ATM Fees with Schwab

After writing about our recommendation of the Schwab checking account that reimburses all foreign ATM fees, a reader asked about our experience with it. Frankly, we had continued to use our Bank of Internet ATM card overseas, but now we’ve finally opened the Schwab account and acquired the accompanying ATM card.

The Schwab “High Yield Investor Checking Account” is simply a typical on-line bank account with a few twists. It requires you to open a Schwab brokerage account, but there is no charge for the brokerage account – nor any requirement that you use the brokerage functions. The checking account pays competitive rates (currently around 3%) with no minimum balance requirements and no service charges.

Upon opening the account, we received a personalized welcome email (not some canned PR crap), and massive amounts of support materials. We were very impressed, especially compared to other no-fee, on-line accounts we’ve opened.

The account promises (quoting the Schwab materials): “No ATM fees. We reimburse any ATM fee you are charged – worldwide.” This seems pretty unambiguous to us. The card is a combo Debit/ATM Visa card (usable on Visa/Plus/Interlink ATM networks worldwide), and allows $1,000 in ATM withdrawals per day. (Note that most individual ATMs do not allow that maximum per machine. If you need that much cash per day, you may need to hit several different ATMs.)

We believe ATM withdrawals are the best way to get cash on your international travels – far better than banks or money changers. For international travel our suggestions remain: Get a no-foreign-exchange-fee ATM card (such as this Schwab card), and use a Capital One credit card (which does not add the typical 3% foreign-exchange fee to credit-card charges) for all your non-cash purchases.

Tuesday, April 01, 2008

Travel News for April 1, 2008

Bush Administration Permits All Travel to Cuba
With the first wave of legal American tourism in 40 years, Dick Cheney leads a hunting trip to....

Credit Card Companies Drop All Foreign Exchange Fees

Card companies announced that not only would they eliminate foreign ATM fees, but....

Exchange Rate Drops to Parity: 1 Euro to 1 Dollar

In efforts to encourage U.S. tourism, tourist boards throughout Europe have....

Airlines Add Eight Inches of Legroom to Economy Seats
In related news, the airlines said that all seats would be eligible for frequent flyer....

TSA No Longer Has Time to Screen Grandmothers and Babies
But watch out for your sandwich. Deciding to focus its efforts on food screening, the TSA said....

American Schools Will Require All Students to Live Overseas for 1 Year
Hoping to have U.S. students learn more about the world, Congress passed legislation....

Cruise Ship Passengers Sink Small Caribbean Island

With 14 ships in port, and 34,000 visitors on land, a Caribbean island began to sink lower....

International Olympic Committee Chooses Sites for 2048 & 2050 Games

Feeling that host countries didn’t have enough time to plan a quality event, the IOC....

Oil Closes at $23 Per Barrel

With the price of oil declining by 80 percent, airfares are predicted to drop about $5 per ticket....

Old hand-colored postcard, Bermuda, 1930s