Loyalty Hustle: US Airways tries to eke out a preservation fee from inactive frequent flyer accounts

Over at the Consumerist, they posted a reader complaint that US Airways was sending out letters to Dividend Miles members with inactive accounts, “encouraging” them to pay up $25 to keep their accounts alive.

Expiration dates are unfortunately nothing new for US Airways. I mentioned it a year ago, and other airlines have similar policies. Most of those airlines with an expiration policy give you a chance to reclaim the expired miles — for a fee, of course — and US Airways is no exception. Their policy has a scale, from $50 to revive up to 4,999 miles, up to $400 if you need to resuscitate 100,000 miles or more.

But what’s notable here is that the notices were seemingly sent to those whose miles had not yet reached the expiration date.

A couple e-mails, a click or two, and here we have the original text of a lucky mileholder’s US Airways expiration upsell:

Dear **NAME REDACTED**:

US Airways introduced a policy last year that rewards our customers for staying active in the Dividend Miles program. In order to keep your account active, you must earn or redeem miles within a consecutive 18-month period.

Our records indicate that you have been inactive since 06-13-2006. We want to make sure you keep the miles you’ve earned. To keep your account active and hang on to your miles, you have several options:

* Contact Dividend Miles at 800-428-4322 and pay a $25 preservation fee with your credit card.
* Earn miles by flying on US Airways or any of our airline partners.
* Sign up and earn miles with one of our credit or debit cards.
* Use any of our other partners for everyday activities such as dining out, sending flowers and more.
* Redeem your miles.
* Shop with over 100 premium retailers for name-brand merchandise at the
Dividend Miles Shopping Mall, where you can reactivate your account for as little as 99 cents.

Take advantage of any of these options by 12-31-2007 and your account will remain active for another 18 months.

There are two ways to look at this. The optimist says that the airline is proactively warning its customers that they’re about to lose their miles, so that’s a good thing. And the $25 fee to keep miles alive is less than the $50 or more that it would cost after the fact.

The pessimist finds this “preservation fee” disturbing, and sees this as the first step toward an annual maintenance fee for loyalty accounts. But as the airline’s e-mail states, you don’t HAVE to pay money to the airline to stay in the miles game. You can reset the clock by earning or redeeming miles in any way. Redeem them if you can, or earn a few miles with something small if the balance is worth keeping alive.

So is the $25 preservation charge a great safety net or another twist of the screw? Personally, I think paying the money is rewarding bad behavior, and travelers should view this as another opportunity to re-evaluate their choice of airlines, or the utility of frequent flyer miles in their lives.


southwest mini 2 Short hops    September 20, 2007    Southwests revised seating policy, Virgins expanding premium cabin, international booking mysteries solved, and US Airways new upgrade policy

Southwest’s new seating plan
The experiments are over, and the San Antonio model has won out. Starting in November, the new system will be nationwide. Each boarding pass will have a letter (A, B, or C) and a number within that boarding group. Board in the order you checked in. The airline’s promo video (Windows Media) is here. Their “boarding school” is in session here. Bottom line: You won’t need to save your place in line within the A-group by putting your carry-on luggage into the corral. I guess that’s an improvement. But you’ll need to be even quicker to check in if you want your pick of the litter. Remember, check-in opens 24 hours before the flight. Do it online. See here for a list of services that provide automated web check-in. (Their business models might be slightly in flux now.)

Virgin Atlantic adds more premium seats
Virgin Atlantic must be selling its business class and premium economy seats pretty briskly. The airline is tearing out a quarter of its coach seats on Heathrow-based 747s and replacing them with the more spacious (and higher-yielding) premium seats.

Why can’t you use a foreign credit card on US booking sites?
Chris Elliott tackles this common complaint: You might get a better fare on a particular itinerary by booking via a website or agency outside your home country, but you can’t buy it, because the seller won’t accept your home country’s credit card. Why not? The travel companies are trying to slice and dice the market, so they can have greater control of fares, while minimizing the chance of fraud. Not every country has this problem. (I’ve used a Singaporean website or two to book US travel with my US card.) If you’ve ever been flummoxed by this, go read the whole post.

US Airways increases the cost of upgrades, but makes more fares upgradeable
Mileage upgrades on US Airways are more expensive, with each Lower-48/Canada/Alaska upgrade costing 15,000 instead of 10,000 miles as of October 3. On the flip side, they’re opening up ALL their domestic fares for upgradeability, so it’s no longer just the most expensive tickets that are eligible. That’s a plus. Similarly, on international flights, you’ll be able to use miles to upgrade any flight that cost you $600 or more each way. By my reading of the new rules, that $600 number includes taxes and fees. (via WebFlyer)

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10
Sep
2007

charlotte airport US Airways   United codesharing is still broken

I’ve been encountering US Airways a bit lately, and it hasn’t always been fun. A function of my recent move to North Carolina, perhaps. Hard to avoid US Airways in these parts. But having previously observed that United-US Airways codesharing and cooperation aren’t living up to their hype, I’m still convinced that these two Star Alliance partners aren’t working well together, and need to shape up their cooperation.

The breakdown of cooperation starts with the little things, right at the time of purchase: Why can’t the US Airways website allow me to enter my United frequent flyer number in the reservation? They’re both in Star Alliance, and other Star Alliance carriers let you choose from a range of different frequent flyer options.

Update: The option to add other airlines’ frequent flyer numbers is back on the US Airways site. Not sure what was missing when I booked, but it’s there now. Yay!

Admittedly, other sites have similar issues, especially third party booking sites — Orbitz, I’m looking at you. I bought a ticket on Orbitz recently when no one else would sell me that particular itinerary at a lower price. Again, no option to enter a partner airline’s frequent flyer account. I could enter a US Airways account number, or nothing at all. This limitation isn’t isolated to Star Alliance, either. If you, say, book a British Airways ticket, you can only enter a British Airways frequent flyer number, and not an American Airlines number. (Expedia is much more flexible with frequent flyer accounts.) Alliances and partnerships aren’t new, people! Give us the option!

The cooperation breakdown continues at check-in: My wife bought a United-coded ticket for an all-US Airways flight on United.com (the UA-coded ticket was cheaper) but when she got to the airport to check in, she was told that the ticket wasn’t paid for. Apparently, United hadn’t transmitted the funds to US Airways, and the ticket was still listed as reserved, not issued. Her United receipt (and credit card statement) showed that it was indeed paid, but until the ticket number was manually entered into the computer record, she wasn’t getting a boarding pass.

This is stupid. I know there are incredible complexities that arise when large organizations attempt to integrate or link their data systems, but if the increasing frequency of these kinks is any indication, the problems are getting worse with time, not better.

Related:
- Star Alliance out of alignment: Are United and US Airways fighting codeshare wars?
- Update: US Airways and United codeshare conundrums
- Confused by codeshares? Sue!

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us airways customer service Upgrades and Downgrades    July 16, 2007    Status, scales, fares, and the little guy

Upgraded: US Airways elite status for non-elites
Downgraded: Existing US Airways elite member satisfaction
US Airways is letting those without status buy their way into the rank and file of the elite frequent flyer set, giving them access to the upgrade waiting list and a few bonus miles. Whoo. If I were a US Airways elite, I’d be peeved at their “Try Preferred Status on for size” promotion. Much like Tim Winship argues, it’s hard enough getting an upgrade; now the airline is willing to sell your loyalty down the river to make a quick buck, thereby making it even harder to snag that wider seat with the marginally better service. Classy.

Upgraded: Virgin America
Slow-going upstart Virgin America got its approvals all lined up, and they’re officially legal to sell tickets and fly around the USA. But they’re not selling tickets yet. Their website still promises the moon. What’s the holdup? Jeez, people! August, they say.

Downgraded: Airport scales
Surprise, surprise. The scales at airports are often wrong. How often? 90% of scales were off in a Phoenix television station’s investigative report. Problems limited to Phoenix? Probably not. Try to make sure your scale is at zero when you put down your bags, but that won’t necessary avoid trouble. (Via Consumerist)

Upgraded: The little guy
Jane Waun rocks. She took Spirit Airlines to small claims court for the additional expenses she incurred after Spirit summarily canceled her flight and left her high and dry. They refunded her money for the ticket (eventually) but didn’t cover her additional costs. So she sued. And she won, in part because Spirit never showed up to fight it. 90% of success is showing up, or something like that, right?
(Update: I see Chris Elliott picked up on this, too. And he goes a step further, suggesting that everyone take every travel company to small claims court. Sue them every time, and hope they don’t show, in order to force them to change their practices. Nice idea, but small claims cases still take time! That’s probably why Spirit blew the case off in the first place. But if you have the time, go for it.)

Upgraded: Price transparency in the European Union
The EU Parliament has passed a set of rules mandating that airlines have to quote full prices, not just base fares. (Take that, easyJet!) The law needs approval from member states before taking effect, but this is pro-consumer. Let’s hope the member states pass it.

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21
Jun
2007

After posting about the difficulties in reserving a mixed US Airways-United itinerary on either airline’s website last week, I contacted the two airlines about their codesharing policies, looking for some clarification. I’m pleased to report that US Airways has replied with a detailed response.

I asked Valerie Wunder, Associate Manager of Media Relations, to clarify why United-operated flights that had a US-codeshare weren’t coming up on usairways.com. (I asked similar questions of United Airlines, but have not yet received a reply.) She responded with a great, detailed e-mail, the bulk of which is quoted below the jump.

Four things stand out for me:

1) My observation that codeshared flights were restricted from sale (and not simply sold out) is largely validated, though my suspicions for the cause of the restriction are in dispute. Two reasons for the failure to list all codeshares are cited: “System migration issues” and “minimum connect timetable issues.” The former reason makes some sense, considering the integration of America West with US Airways systems has been incremental and problematic. Why should codeshare sales be any different?

But the minimum connect times? Over an hour’s connect time at CLT shouldn’t be an issue, so either the computers are being overly aggressive in blocking out partner flights with “short” connects, or this is a red herring.

2) United isn’t codesharing on the US Airways flights that are technically still operated by America West. United also isn’t codesharing US Airways Express flights when the plane has a capacity greater than 69 people. In both cases, “commercial reasons” are cited. Hmm…

3) US can’t sell UA nonstops if they operate the same exact nonstop route. ORD-CLT and ORD-DCA might be such routes. But they can sell these flights if they’re part of a connection.

4) More codeshares might be hard to come by, because they’re running out of numbers to use.

The bottom line from the airline’s corporate HQ is that US Airways’ website and reservation center still have a few more kinks to iron out of their system. They admit as much. And they admit that other booking sites may come up with more options (which is somewhat like throwing in the towel…)

Read the complete official explanation after the jump…
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gatwick poledancer Upgrades and Downgrades    June 18, 2007    Aerial poledancing, greener rental cars, inflight wine, on ground sippy cups, and profitable granniesDowngraded: Odds of seeing pole-dancer art on London-Gatwick approach
First it was the Kentucky Fried Chicken ad featuring a Colonel Sanders image visible from space. Now, a website’s advertisement featuring a giant chalk outline of a poledancing stripper is causing controversy in the UK. The image, in a field below a common approach path for flights to London’s Gatwick Airport, is only visible from the air, but is still causing an affront. It’s likely to be removed soon. But thanks to news reports and posts like this one far more people will see it online than ever would see it from a plane. (Yes, I’m guilty of supporting their marketing machine… I know…)

Upgraded: Kayak.com introduces alliance-based search
Aggregator Kayak.com tweaked its search tools ever so slightly, allowing you to sort by alliance (Star, oneworld, Skyteam) and not just by airline. But you can only sort it that way AFTER you’ve the basic search. (You can search preferred airlines up front, so why not alliances? Meh.) Orbitz has allowed alliance search for some time, but this is the first aggregator that I’m aware of that’s doing this.

Upgraded: Hertz’s environmentalist credibility
Last September, Hertz rolled out its “Green Collection” of rental cars and I was thoroughly unimpressed. Buick LaCrosse? Come on. Where were the hybrids? Well, it took nine months, but Hertz finally got around to buying more genuinely eco-friendly vehicles, with a purchase of 3,400 Toyota Priuses (or is that Prii?). That’s more like it.

Upgraded: Wine in coach. Viva jetBlue!
JetBlue is serving up some slightly more interesting wines than usual the usual coach fare. Thanks to a partnership with Best Cellars, the airline is giving their all-economy class passengers a slightly better guzzle. Choosing wine for coach can be challenging, since it has to be a) cheap, b) in tiny ready-for-sale bottles, unlike in premium cabins, and c) pair-able with a wider range of foods. I hadn’t thought about that last one before: After all, the wine in business and first can presumably be paired with the menu (though that’s not always obvious). But in coach, a wine demands “versatility in pairing with a wide assortment of airport meals people bring on planes, including pan pizzas from Pizza Hut and Taco Bell burritos with chicken and mole sauce.” (Taco Bell has a mole sauce? Really?) Either way, good for jetBlue, and good for their wine-imbibing passengers. (Thanks Tyler!)

Downgraded: US Airways right to serve any wine
Unlike jetBlue… US Airways, which got into trouble for selling booze without a license in New Mexico a few months ago, and which has been serving the sauce with a temporary scrip since then, was denied an extension of its license this past week. Tough break. BYOB, anyone?

Upgraded: Marriott; Downgraded: Ian Schrager (or is it the other way around?)
Look, I happen to like Marriott hotels for what they are: Consistent, clean, competent, and overall comfortable spaces to spend the night. (4 C’s!) They usually don’t have too much bling or pizazz, though some of their big-city properties have that 1980s glitz that has an odd appeal to my mid-to-late-30s, graying-gracefully, receding-hairline self. So when I hear that they’re teaming up with Ian Schrager, king of the boutique hotel, to create a new boutique-y brand, I’m skeptical. It seems like a late-to-the-game attempt to create a “W” chain within a chain. If it adds a little funk to the Marriott decor, great. (Bye bye brass fixtures, please!) But it also smacks of desperation. And isn’t Ian Schrager past this? Seems like he’s here to cash in while the cashin’ in is good.

Upgraded: WestJet’s honesty; Downgraded: Little old ladies’ pensions
Canada’s WestJet (hearts) little old ladies. Not because they’re nice grandmas, but because they’re walking piggy banks, and the airline’s got a hammer. Consider this nugget from the airline’s president:

“There would be a little old lady coming up and she’d have a table and she’d have a chair and she’d have six or seven bags and we’d say ‘Yeah, take it on the plane. No problem.’ Now we’re actually going to charge a little bit of money for taking that table and chair and those extra bags on board. And that incremental revenue that we extract from that little old lady is very, very profitable to us. Some 85% goes to the bottom line.”

Good for him, for saying publicly what other airline executives discuss privately. So I guess the business traveler isn’t the company profit center; the rarely-traveled senior citizen is. Bank it.

Upgraded: Amputees and their TSA experience
Got a prosthetic? The TSA wants to make your security checkpoint experience kinder and gentler. Good! On the other hand…

Downgraded: Sippy cups, and TSA cinema verité
A former Secret Service agent reports that she was harassed when she accidentally carried her child’s sippy cup of water through security. Stupid enough, but it gets more absurd: The TSA actually released a silent security tape of the incident, labeled “Mythbusters,” in their own defense. Feel free to view the videos, read the incident report, review the embarrassed mother’s story, and decide for yourself.

Upgraded: Demolition
Let me make myself perfectly clear: I want to help destroy this hotel. I’ve never been to it, but I want to help Spanish hotel chain NH Hoteles wreck the Alcala Hotel in Madrid. The company is holding a contest to see who can take a sledgehammer to the joint. Only 30 lucky few will get to play rockstar-cum-wrecking ball. Let the spirit of Keith Moon guide you.