 |
“Everything you think you know about frequent flier programs is wrong. Even the name “frequent flier program” is misleading. And every misperception you embrace helps the airlines beat you at the game.” What can we as frequent fliers do to protect our miles? Can we still collect on those “rewards” promised by the airlines? What can we expect if the airlines spin their FF programs off into separate companies? |
Joe Brancatelli has a great article on Conde’ Nast Portfolio.com about the misconceptions most of us have about frequent flier programs.
Joe is quick to point out that regardless of how these programs started, they’re no longer “loyalty programs.” They are, at heart, major marketing and promotion tools for the airlines.
They get us to shop differently, pay higher prices, and even pay higher interest rates on credit cards. Joe offers some very wise and sage advice on how to best deal with your frequent flier miles and how to “beat the airlines at the game.”
I would like to add that many airlines are considering spinning their frequent flier programs off into separate companies. The FF programs already generate billion(s) of dollars in revenue a year for the airlines. In fact, Air Canada has already taken the step. While this might help the airlines stay in the black, what will it mean for consumers?
If the frequent flier programs are no longer in- house, will we see something akin to a sibling rivalry develop between the airlines and their FF programs? Will we be hit with hundreds of more marketing pushes that only make it harder for us to actually get any use out of our frequent flier miles?
Take a look at Joe’s article, Frequent Flier Fallacies, and let me know what you think will happen to frequent flier programs in the next few years. With jet downsizing rampant and load factors in the 90% range at peak times, oil at $100 a barrel do you really think there is going to be a “free” seat for you and your family?
All I can say is that I am filing for my 8th frequent flier ticket to Europe (yes, LAX to CDG) since 2002. Sooo, I would say the system works as long as one can bok in advance and be flexible with dates. I’ve always gotten seats on the days requested or within one to two days of my request. I always stay a minimum of 20 days, so a day or two extra will only add to my pleasure abroad.
-Joanie
Comment by Joan Hess — November 21, 2007 @ 11:47 am
I am getting ready to use FF miles on United for the first time, so I guess I’ll find out. Our friend Elizabeth always flies United and has a bazillion FF miles. She has been a customer for many years and has never had a bad thing to say about their program.
Comment by Dolores — November 21, 2007 @ 2:37 pm
Joe is absolutely right. FFM are nothing less than an outright marketing sham and the smart business traveller would never make a airline ticket purchase based on the number of miles awarded.
We’ve long known that if you choose to claim the awards “earned” then be prepared to have a flexible travel plan.
Comment by David K — November 21, 2007 @ 2:53 pm
I am one of those stuck with about 70,000 Delta SkyMiles remaining that for all intensive purposes are worthless. I don’t travel overseas anymore and trying to get a domestic flight now is a pain. All my flights of late have to do with caring for ailing elderly parentsb ack home
Delta’s customer service borders on rude. I plan to drop my SkyMiles accountcard next year. The card processor keeps raising the annual fee. Last time I checked they will make money a bundle on me since I have not flown overseas in 4 years.
Premium cards are a money-making racket by the card industry banks and processors. There are very few true bargains and nothing is ever free.
Comment by Karen — November 23, 2007 @ 12:11 am
I’m on AirCanada and have had fairly good luck using miles. But that’s not the reason I covet status. I travel a lot and refuse to check luggage, there is nothing worse than being on a sold out flight and trying to find space for your carryon. All airline programs let status FF members board first and that for me is worth it, miles are just a bonus. On the AirCanada spin off of Aeroplan, it gets confusing. I used to be an AA Gold member, if i had a problem i could call the AA frequent flier number and they would take care of it. With Aeroplan I get transfered to AirCanada and dumped in the general reservation queue. Also, if i book an awards flight it doesn’t show up with my other current bookings, all very, very, very annoying. Most of the time i get the feeling that folks at Aeroplan don’t know which airline they’re affiliated with.
Comment by cd — January 4, 2008 @ 7:01 pm
Frequent Flyer surcharges:
Certain airlines, primarily BA and Air France, in my experience, have added huge surchages to FF tickets dramatically reducing their value.
A recent request for two Business Class tickets on BA between US and Geneva in June incurred $450 in taxes and surcharges. With American Airlines the same ticket on partner BA flights was $125 in taxes and charges.
A recent request on Air France between NY and Paris for March required $310 in taxes and surcharges while the same ticket on Delta, American or Continental had charges of $77! A paid ticket on Air France during this time period was about $640 whereas a “free” milage ticket was $310 in taxes and surcharges!
Unlike US airlines, both BA and Air France refuse to indicate the taxes and charges on the ticket. When asked BA referes you to Customer Service and when you call Customer Service there is a recording saying they no longer take phone calls and suggest that you write them! A recent requst to Air France eventually came back with an explanation of charges saying that in addition to a fuel surcharge and taxes there was $100 described as “surcharge” with no explanation! Customer Service on both airlines has become an oxymoron!!
Perhaps FareCompare can investigate this practice so consumers understand exactly what their miles are worth.
Comment by Bob Hertzka / Resorts Online — March 24, 2008 @ 5:56 am
Note US Airways frequent flier program will be adding an
“Award processing fee Effective August 6, 2008 - $25 continental U.S./Alaska/Canada, $35 Latin America/Caribbean, $50 Hawaii/international”
Comment by Michael Frankel — July 4, 2008 @ 11:51 am