All posts in Business Travel

“Did you know…Air Travel Trends for 2015

(USA Today)

2015 travel trends

 

 

 

 

 

 

Expedia and the Airlines Reporting Corporation (ARC) released a joint comprehensive review of air travel data, and a look at what it might mean for travelers, airlines, and more in 2015.

USA Today recently summarized much of the more pointed highlights of the report – answering questions that are top of mind among frequent flyers, such as: Will airfares go up – or down – in 2015? Is there a “best” day to find low fares? And when should you take that trip to Europe?

Read the full article here: http://ht.ly/GIexr.

 

One-on-One with Markus Ruediger, Star Alliance, Media Relations Director

Mark Ruediger, media relations director, star allianceIn this month’s One-on-One blog, ExpertFlyer talks with Markus Ruediger, Director of Media Relations at Star Alliance, about the global reach and perks that airline alliances, such as Star Alliance, bring to air travelers.

With 27 participating air carriers, the Star Alliance Network brings together networks, lounge access, check-in services, ticketing and dozens of other services to improve the travel experience for customers, wherever they are in the world.

Star Alliance member airlines fly to more destinations than any other airline alliance in the world – which means easier travel and quicker connections. Airline members are conveniently located closer together in airports and “connection teams” are installed for faster transfers and smooth traveling. Common airport facilities, coordinating schedules and a range of new technologies are frequently shared among Alliance members..

“Alliances in the travel industry will continue to exist for the simple reason that no single airline or entity could possibly offer the expanded benefits enjoyed through a network.”

– Markus Ruediger, Director Media Relations, Star Alliance

What are some of the recent changes/improvements that have occurred within the Star Alliance and what distinct value does the network bring to travelers as compared to oneworld and SkyTeam?

2014 saw a variety of developments at Star Alliance. In terms of network, we welcomed Air India in July, improving access to one of the fastest growing aviation markets in the world.

The highlight of this year was no doubt the completion of a major airport infrastructure, London Heathrow’s Terminal 2 – the Queen’s Terminal – our new home at Britain’s premier hub.  The combination of a state-of-the art terminal and having all member carriers located in the same building, has vastly improved our customer proposition.

During the course of this year we also made further investments in our Star Alliance branded lounges. The Paris – CDG lounge was refurbished and in addition to providing more space, it now sports many of our new design features, while having a Parisian flair. At Sao Paulo Guarulhos Airport we opened a new lounge which was designed by Brazilian architects and features mainly materials from Brazil. Continue reading →

“Did you know…American offers bonus miles for premium travel?”

(Via BusinessTraveller)

American Airlines recently announced a new year-long promotion in which premium travelers will earn bonus rewards as part of the company’s AAdvantage and US Airways Dividend Miles programs.

first class air travel

According to a report from BusinessTraveller.com, in 2015, American Airlines will reconfigure its frequent flyer program to reward members travelling in first and business class.

The promotion will see AAdvantage and US Airways Dividend Miles members earn miles based on a combination of distance flown, the fare purchased and elite status level. This is the first time that American has taken ticket price into consideration and hasn’t awarded miles based solely on distance flown.

Read the full article here:

http://www.businesstraveller.com/news/101150/american-offers-bonus-miles-for-premium-travel

One-on-One with Jason Steele, Credit Card & Travel Rewards Expert

In this month’s One-on-One blog, ExpertFlyer talks with Jason Steele, Credit Card and Travel Rewards Expert. Jason, in addition to being a travel rewards guru, has also worked as a commercial pilot and contributes to several of the top personal finance sites, including Credit.com, The Points Guy, Business Insider and many others, as well as his own blog, Steele Street. Jason shares his up-to-the-minute tips and information surrounding the dynamics of frequent flyer rewards.

I am a huge fan of Southwest Rapid Rewards and their Companion Pass. This is the only program that offers reward tickets worth even more than revenue tickets… After that, I love American as their award chart still has reasonable prices, such as business class to Europe for 100,000 miles.”

– Jason Steele, Credit Card and Travel Rewards Expert


What are some of the key changes you’ve observed in points and mileage programs lately? Which have the biggest impact – good and bad – on air travelers?
The obvious trend is the move towards revenue based mileage accrual by Delta, and having it quickly being copied, almost word for word, by United. This will work out great for those who fly on expensive walk up fares paid for by their client or company, but pretty poorly for everyone else. This is by design as Delta execs are very clear that they are going after high value business travelers and feel little need to reward leisure travelers and others who may be price-sensitive.

Yet many reward travel enthusiasts are somewhat indifferent to these changes since flying has always been a poor way to accumulate miles. It can take days upon days of air travel to accumulate the tens of thousands of miles you can earn in minutes from a credit card bonus or a good promotion.

The airline industry is consolidating and a-la-carte pricing is masquerading as cheap airfare. How can savvy air travelers – both frequent flyers and typical leisure travelers – effectively gain perks in this environment?
I don’t mind the a-la-cart pricing, so long as the airline is delivering something tangible. Food, drinks, WiFi, checked baggage, extra legroom, and in-flight entertainment are all fair game in my opinion. On the other hand, I find charging for carry-on bags to be obnoxious, and charging for non-upgraded seat assignments to be a pretty nasty way to extort family travelers by forcing them to pay to sit with their own children. To gain perks in this environment, I simply avoid the carriers that play these games and stay loyal to those that don’t. And if your travel is paid by a company or client, perhaps you can bundle these benefits in with a fare that is acceptable and come out ahead.

Do you think Frequent Flyer Rewards programs will eventually do away with the highly sought after advantages for elites, like seat upgrades and free travel?
No, I don’t think so. There are a huge number of people who will happily pay extra (or have their client or employer pay extra), just for the chance to be upgraded to first class. Likewise, the idea of free travel is so alluring that the reward credit card industry is practically based on it. It’s only when these fantasies don’t live up to the reality that a minority start to become disaffected and look elsewhere.

Frankly, I see this loyalty model being adopted by hotels, car rental agencies, and, I predict, even by companies outside the travel industry. Imagine if your grocery store had a priority checkout lane for its best customers, or an electronics manufacturer offered upgrades to its latest gadget to its elite members first. That seems more likely than frequent flier programs going away.

Do you see the overall value of loyalty program miles and points increasing or decreasing? Is it worth saving your miles or spend them because of potential devaluation?
While the absolute value of a point or miles continues to erode with devaluation, I see the relative value remaining stable. That is to say that you will always need more points or miles next year than you will this year, but there seem to always be new ways to earn those miles in greater quantities. And when you throw in the increased quality of premium airlines seats, the effect is largely a wash. For example, ten years ago, you might have to fly international first class to enjoy a flat bed seat, but now a similar seat is offered in business class. And back then, you earned just one mile per dollar spent on your credit card, but now, you might earn 2x, 3x, or even 5x. So I do warn people not to sit on large mileage balances for years, but I am not worried that the age of award travel is ending.

How do you see alliances, such as Oneworld and Star Alliance, affecting the value of miles? Do you prefer one over the other?
These alliances do amazing things for the value of your miles, as you can utilize them on so many different partners, not just the carrier you earned them with. And the real value is for people who know enough to search Expertflyer for the awards that aren’t visible on the carrier’s web site.

That said, each has its own personality. Star Alliance has a strong presence in Europe and Africa, but is very weak in South America, China, and Australia. OneWorld is pretty weak in Europe, especially when you are trying to avoid fuel surcharges imposed by BA and Iberia. Skyteam is like a dysfunctional extended family that bickers all the time, but the pretty much own China.

Which credit card offers the most generous points or other travel benefits to customers?
As a credit card expert, I get this question a lot, and I won’t surprise anyone by saying Starwood. I once counted all of the airlines you could book awards with, including the Starwood transfer partners, and each of those airline’s partners, and came up with nearly 200! The Chase Ink cards are also a favorite of mine. Their transfer partners are not as numerous, but you just can’t beat earning 5x at office supply stores and on telecommunications services.

Which airlines offer the best rewards programs right now?
I am a huge fan of Southwest Rapid Rewards and their Companion Pass. This is the only program that offers reward tickets worth even more than revenue tickets, because they are fully refundable with no change fees. So when schedule changes, as it does frequently, and I don’t stress out about it. Meanwhile, my wife and I both have a Companion Pass, so our two kids travel for free.

After that, I love American as their award chart still has reasonable prices, such as business class to Europe for 100,000 miles. Their domestic award space can be amazing, while their partners usually can do the job internationally. Finally, they have no change fees for their awards, so long as the origin and destination remain the same, so you can book now and always try to find a better option later.

Do you recommend any tools or apps to help travelers manage their points/miles to their best advantage?
Like many, I use Award Wallet to keep track of my accounts. When researching an award booking, I often start with the Wikipedia page for the airports in the cities I am visiting, so I can learn which airlines fly which routes. I often use Great Circle Mapper, especially when booking awards on distance based programs. Finally, I always consult Seat Guru before choosing a seat assignment.

What loyalty program trends are you seeing take shape now and how will they affect business travelers and frequent flyers moving forward?
I am not seeing any company move towards greater simplicity, only complexity. For example, Delta’s new program seems to rival the Federal tax code, and even Southwest’s program is much more complicated than it used to be. Like the early days of personal computers, points and miles are becoming something that only serious hobbyists enjoy, while others become frustrated and give up. On the other hand, such complexity increases the demand for what I do, which is to try to help people make sense of these programs.

The Airport Economist on India

Last week, Tim Harcourt, also known as The Airport Economist, dispelled myths about the difficulties of doing business in China. In this week’s installment, he covers his experiences doing business in India, which are also featured in his new book, Trading Places: The Airport Economist’s Guide to International Business .

doing business in indiaOffering tips on the countries that have become his backyard, Harcourt says when considering opportunities in India its best to leave any cultural baggage at home.

“India is much more than the 3 C’s – cricket, curry and commonwealth,” says Harcourt.

He adds that business people must be mindful that 50% of the population is under 25.

“So education, sports and fashion are very popular,” he advises, but cautions that solely relying on the national obsession with cricket can be a mistake. “Cricket is a good icebreaker but it won’t do the entire job for you,” says Harcourt.

He says that countries like Australia have successfully used cricket superstars, like Shane Warne, to open doors, but after that the relationship must be based on the usual business diligence.

A bonus in India as compared to other countries in Asia, is the large, and free, English media.

“The large English press opens many opportunities to run a good public relations campaign,” he says.

Harcourt also advises that businesspeople wanting to enter the Indian market would do well to ask their country’s representatives in India for help navigating the notorious red tape.

“It’s a relationship driven country rather than translational so business takes time. As my Indian colleagues say: ‘It’s a good wicket, but before you can make runs you must carefully prepare the pitch.’”