OCTOBER / NOVEMBER 2008 

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Hello TICKET Readers:

It’s been a bumpy flight over the last couple months and much has changed and will continue to do so over the next year. These times are quite similar to what we experienced back in the early 90’s when we were at war in the Middle East, Eastern Airlines shut down, the Japanese were staying at home and many of the world’s top hotels resorted to keeping just a few floors open. (Your TICKET editor Chris McGinnis had just started his first business travel column in the AJC!) Those were dark and scary times, but we got through them. Similarly, travel tanked right after 9/11, and we never thought it would come back…but it sure did. The bright side to all this is that if you’ve got the miles or the money to take those big trips you’ve been saving up for, you’ll likely find more space and easier upgrades on planes, more room at the inn and better customer service overall. We are already seeing greatly improved airline on-time performance as you’ll read about below.

Here’s what else you’ll find in this issue of THE TICKET:

>DELTA joins the pack and institutes $15 first checked bag fee for non-elites.

>DELTA does the right thing and eliminates award ticket "fuel surcharge."

>DELTA does the right thing again and eliminates curbside bag check fees.

>After a year of increases, airlines cut fares for holiday trips

>Best airline on-time performance in 20 months

>AirTran + Southwest? Still a whisper

>Still waiting for Wi-Fi on Delta jets

>Delta slaps on new fee for “Coach Choice” seats

>More lanes, less waiting at ATL security

>Three brand-spanking new airport terminals

>Marriott Rewards dumps blackouts and makes other changes

>Sharing hotel rooms with colleagues? Get used to the idea

>Battle of London: Delta vs. British Airways

>Biz travel outlook for 2009? Not so bad  

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AIRLINE NEWS  

HOLIDAY FARES CUT. With a tanking economy, tanking demand and tanking fuel prices, cash-hungry airlines have started cutting rates for holiday trips. Mind you that fares have been running about 20%-40% higher for Thanksgiving and Christmas/New Years trips up until now, so the sale fares you see will be on par with what you were paying last season. If you want to travel on the peak days around Thanksgiving (the weekends before or after in addition to the Wednesday before and Monday after) you need to make those reservations now. airtran.com  delta.com 

CHEAPEST SEATS OF THE YEAR? If you can travel during this winter’s “dead weeks” – the two weeks immediately following Thanksgiving and New Years, you will find some of the lowest air/hotel/car rental rates in recent memory. However, you’ll have to wait until the last minute to get the lowest rates. But don’t worry; you won’t have much trouble finding excess capacity being sold off at fire sale prices in this economy. And now that oil prices are falling through the floor, airlines desperate for quick cash will discount heavily.  

SOME GOOD NEWS! Nothing like an economic meltdown to prompt airlines to right-size their schedules and drastically improve performance….. To wit: Flightstats.com reports that U.S. airlines posted their best on-time arrival numbers in over 20 months in October. About 84% of scheduled flights arrived on time (within 15 minutes of their scheduled arrival time). October marked the fifth straight month of improving numbers and the 8th month in a row to show improvements over 2007. AirTran performed well with 84.5%of flights on time in October. Both Delta and ASA were a bit slower at 80% on-time. Have you noticed a big change in on-time performance? We sure have….except when flying to/from New York City. LET US KNOW if you’ve noticed a difference.  

WANNA GET THERE ON TIME? Avoid NYC. According to the Air Transport Association, more than 50% of delays nationwide originate from the New York area airspace, even though it represents only 12% of flights. 

DELTA CUTS CURBSIDE FEE. On December 5, Delta will discontinue the $3 curbside check-in administration fee.  With this change, customers no longer will incur an administrative fee for checking bags via skycaps for Delta- and Northwest-operated flights at airport locations worldwide, consistent with Northwest’s policy. 

DELTA ADDS $15 FEE FOR FIRST CHECKED BAG. Effective immediately, for travel on or after Dec. 5, non-Medallions must pay $15 for the first checked bag and $25 for the second checked bag when traveling domestically. All customers flying in First or Business Class, including SkyMiles Medallion members can check three bags up to 70 pounds each for free.  Those flying in coach can check two bags up to 70 pounds each, for free.  All customers traveling in full fare (Y) Coach Class, as well as customers traveling internationally will receive up to two checked bags, up to 50 pounds each, for free. 

DONE DEAL. In case you’ve been hiding under a suitcase, you know now that the Delta-Northwest merger is a done deal. The AJC says “the new Delta has about 75,000 employees and 770 planes. It serves 375 cities in 66 countries and about 170 million passengers a year. The company expects to have combined annual revenue of $35 billion. Its domestic hubs are in Atlanta, Minneapolis, Cincinnati, Salt Lake City, Detroit, Memphis and New York City. International hubs are in Amsterdam, the Netherlands, and Tokyo.” WOW! Who’da thunk we’d have the largest airline in the WORLD right here in … Hapeville! It’s going to make us all proud of Delta and Atlanta to see those Delta tails all over tarmacs in far flung Asian cities and those cold north central U.S. cities where Delta’s never been. Congrats to all those who put this deal together and pulled it off before the holidays . . . and before a new administration in Washington is installed.  

BUT WHAT ABOUT US? So … great news for Delta, but what about us? How is this going to impact loyal Delta flyers? At THE TICKET, we’ve maintained that while the merger is momentous in many regards, not much is going to change for the average frequent traveler from Atlanta. You can already fly nonstop from ATL to just about anywhere. You can earn and burn SkyMiles on Northwest flights. Delta and Northwest already have Crown Room/World Club reciprocity. They’ve just announced full upgrade reciprocity for elite level members. (See below to learn how Delta’s learning from NW about charging more for certain “Coach Plus” seats.) Are we missing something here? Please LET US KNOW what you are thinking about the DL-NW merger and how it may or may not affect you. 

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HAPPY BD AIRTRAN CONTEST. To celebrate its 15th anniversary, AirTran is asking its passengers to share how the carrier has impacted their lives. Through November 15, 2008, you can submit your special AirTran story at www.airtran.com/MyStory.  Four winners, one from each category, will win a set of AirTran Airways coach tickets and $500. 

DELTA WI-FI WAIT. Has anyone been on Delta’s single MD-88 with the new Wi-Fi system on board? Delta’s Oct 1 blog entry on the subject says that a full scale roll out of the exciting new inflight high-speed internet service is due in early December. We think that if Delta can pull this off and get the service on most or all its aircraft over the next year (as it has promised) it’s going to be a game changer Delta AND for business travelers. The question is... can they pull it off?

DELTA TO HAWAII. Delta is beefing up its nonstop schedule between Atlanta and Honolulu just as cold air starts to settle in. Starting this month, Delta will fly from Atlanta to Honolulu once daily on Tuesday, Wednesday and Thursday and twice daily on Friday, Saturday, Sunday and Monday.  

PAYING MORE FOR COACH SEATS ON NEW DELTA. Not long after Delta announced its merger with Northwest (and claimed “business as usual”), it adopted the latter’s scheme of charging passengers an extra $5-$25 to reserve certain window, aisle, or exit row seats in the coach section. These new “Coach Choice” fees apply PER LEG, not per flight, so if you change planes en route, you must pay two separate fees. If you are a medallion level flyer, you will still be able to reserve “preferred” coach seats at time of booking for no charge. But if preferred seats are sold out, and the Medallion flyer still wants a decent coach seat, he or she will have to pay to reserve “coach plus.” However, Medallions can reserve coach plus seats within 24 hours of departure for no charge. (See below for the quandary this could put Medallion level flyers in.) There’s a devil in the details here, so if you are interested, check the Coach Choice page on Delta’s site.  

OUR TAKE: We have mixed feelings about this move. While we don’t mind paying a small premium for a better coach seat, we are concerned that Delta is going to be charging more for standard window/aisle seats, and the only seats you WON’T pay a fee for will be middle seats.

EARLY REACTION TO COACH CHOICE from reader Bob Sabin: “Unbelievable!  Delta is reserving seats up front to sell at a premium.  Then – if they don’t sell – they open them and reassign in the last 24 hours before flight time…The problem with Coach Choice is – it’s like AirTran.  They block the seats from being chosen – including exit row window and aisle – then try to sell them to non-Medallion members when they check in and I can’t choose those seats until I check in – if they are still available. And for me – living in ATL – most folks have already checked in at other locations HOURS before me because they are changing planes in ATL.  Up until now, I have been able to choose aisle and window seats anywhere – including exit rows as a Medallion.”

What do YOU think about Coach Choice? LET US KNOW! 

Here’s a visual of how NORTHWEST explains Coach Plus on its web site.

.  

AIRTRAN + SOUTHWEST? We’ve mentioned this before in THE TICKET and here it comes again. At a recent analyst meeting, AirTran CEO Bob Fornaro said about a possible code-share agreement, "If Southwest was willing to talk, we'd certainly be willing to listen." Southwest feigned indifference in the frenzy that followed, but we wonder if something is going on here. While all players in the travel industry have to re-think their businesses these days, we are a bit leary about this. Why? Remember ATA, the recently liquidated airline that was frequently confused with AirTran? Well, in one of their last-minute moves, they formed a code-sharing alliance with Southwest. Now they are gone. Speaking of SW, we love it’s new 30-sec TV campaign about fees, which is not typically shown on Atlanta airwaves:  

 

 

AIRTRAN HEARTS COCA-COLA. AirTran announced this month that it will now offer FUZE Refresh on its flights. FUZE Refresh features natural flavor blends using real juice, vitamins and antioxidants without artificial preservatives or colors. In addition, the airline offers 19 different Coke including Coca-Cola Classic, Diet Coke, Sprite, Sprite Zero, Coke Zero, Minute Maid Lemonade, Dasani Water, Cherry Coke, Cherry Coke Zero, three types of vitaminwater, and three types of Minute Maid juices.   


THE TASTE OF THE TICKET. Umm. Yumm. "I ordered the crawfish, spinach and Gouda stuffed chicken breast, which came with a heaping pile of braised greens and was topped with natural jus ($21).  I was pleasantly surprised at how subtle the flavor of the crawfish was when mixed with the spinach and Gouda." Want to hear more? Then check out the latest dispatch from our fearless taste-tester in THE TASTE OF THE TICKET!   

DID YOU KNOW....that THE TASTE OF THE TICKET is one of the most popular elements of THE TICKET newsletter-- thousands of readers check it out every month!


 AIRPORT NEWS 

MORE LANES MEAN LESS WAITING. Just in time for the holiday rush, ATL has added ten new security lanes for a total of 32. There are four new lines in the south (Delta side) terminal and six in the north terminal. Total cost: $26 million. Have you found that these new lanes and the “self select” system (Black Diamond, Blue Square, Green Circle) are working well? LET US KNOW what you think about all the recent improvements at ATL security.  

SPEAKING OF RECENT IMPROVEMENTS…. ATL now has its own CLEAR lanes on the south side of the security checkpoint area. These are the lanes accessed only by those with the $199/yr Clear Card. We are still wondering if TICKET readers are interested in such a service since most already get access to special fast lanes for elite travelers. We emailed our contacts at CLEAR and asked the same question, and they sent the photo ->, showing a long line of medallions, and an empty CLEAR lane. Even if you don’t use CLEAR in Atlanta, you can use it elsewhere where your Delta or AirTran elite status might not help. CLEAR lanes are operational at San Francisco, Denver, New York’s JFK and LaGuardia, Washington, DC’s Reagan and Dulles, and Orlando International Airport.  

NEW DIGS IN LA. AirTran has relocated is Los Angeles (LAX) operations to Terminal 6 (from Terminal 3) offering more space and comfort.  

SHINY AND NEW. While the airlines are having a tough time this year, there’s a silver lining: plenty of airport improvements that will make the overall travel experience better:

  • Detroit: In September, the new North Terminal opened at Detroit’s Metro Airport, a welcome relief to those who had to use the decrepit Smith and Berry terminals which are now slated for demolition. The sparkling new 24-gate terminal (now home to AirTran at gate D15) is on par with the airport’s state of the art McNamara terminal, which opened a few short years ago, and houses Northwest, Delta, Continental and several international carriers.
  • Indianapolis: If you fly into Indianapolis later this year, you might think you’ve landed in the wrong city. On November 11 all airport operations are due to switch to a brand new 40-gate, 1.2 million square foot terminal.
  • New York-Kennedy: JetBlue’s new  $800 million Terminal 5  opened last month sporting a spacious check-in lobby, light-filled gate areas, fresh food and shopping options, and free wi-fi. It’s also got a 20-lane security checkpoint with nice touches like a black rubber floor for stocking feet and an enormous bench where travelers can reassemble themselves and their belongings after screening. (Sure would be nice to see JetBlue back in ATL, but don’t expect that any time soon…)

SPECIAL APPEARANCE AT ATL

MEET CHRIS AND GET A FREE MASSAGE! (How can you beat that?)

Your TICKET editor Chris McGinnis has teamed up with 3M to spread the word about 3M Privacy Filters—those nifty screens that fit over your laptop preventing others from snooping on the work you’re doing. Here’s what’s on tap: 3M Privacy Filters is creating an Airport Haven or “privacy oasis” at ATL during two of the busiest travel days of the year – Tuesday, November 25th and Wednesday November 26th, 9-5 pm. Come on by for some VIP service including free wi-fi, massages, snacks and beverages, a chance to visit with yours truly, and of course try out a 3M privacy filter. So stop by and say HEY!

WHERE? Atlanta Hartsfield-Jackson International Airport, Executive Conference Center on the 3rd floor of the Atrium between the North and South terminals. (Take the elevator up from the atrium seating area.) 


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 HOTEL NEWS 

ROOMMATE ON YOUR NEXT BUSINESS TRIP? You betcha! American Express says that an increasing number of companies are implementing room-sharing programs as a means of cutting travel expenses. Check out my ruminations and reader comments about this scary practice on the new Youmustbetripping.com blog by your TICKET editor Chris McGinnis. Be sure to leave your comments!  

BLACK OUT ON BLACKOUTS.  Following in the footsteps of Starwood Preferred Guest, IHG Priority Club and Hilton HHonors, Marriott Rewards has eliminated blackout dates for award stays (effective Jan 15 2009). That’s great news for members frustrated by not being able to use their hard-earned points on holidays and other peak days. (Note that while blackouts no longer exist, capacity controls are still in effect. So don’t think for a minute you’ll be able to redeem your Rewards points now for a room at the Marriott Times Square for the early December shopping rush in Manhattan…) Hilton told AP that since it dumped blackout dates earlier this year, HHonors points are at an all-time high. Why are hotels doing this? We suspect that in times of declining occupancy, they are thinking they might as well have members in rooms spending money at hotel restaurants or in-room amenities or at the spa than not having any guests at all.  

MORE FROM MARRIOTT REWARDS. In addition to dumping blackout dates, Marriott Rewards changed the redemption structure so when members redeem for a four-night stay, they get the a night for free and they upped the platinum elite bonus from 30 to 50 percent.  Not bad! On the downside, Marriott added a new 8th tier to its Rewards chart—asking members to cough up 40,000 points per night for stays at 14 of the chain’s hottest properties in high demand, high priced destinations such as Paris, London, New York and California.

NO LOOMING GLUT OF HOTEL ROOMS. With all the new hotel rooms we see being built, you’d think that a slowing economy would mean a big glut of empty rooms. Not so fast say the hotel industry gurus at Smith Travel Research. In a recent article, they say that there are now about 195,000 rooms under construction in the U.S. But, new construction peaked several months ago and once we get into 2009 and 2010, new construction will drop off dramatically. At the same time, there a LOTS of hotel rooms closing due to lack of funding for renovations and natural disasters like hurricanes, etc. From 2004-2007, about 90,000 rooms closed and about 45,000 rooms will close each year over the next three years.  

ANYONE HOME? Travel trade rag Travel Weekly reports that domestic hotel occupancy could drop to its lowest level in 20 years next year, according to a revised forecast by PKF Hospitality Research. The firm expects occupancy will drop to 58.3%. Hoteliers are saying publicly that they are not going to discount room rates, but privately there’s a LOT of deal-making going when it comes to corporate contracts or meetings. We suspect that this is going to seep out into the general rate structure soon….unless of course we see some strong signs of economic recovery.  

NICE VIDS FROM INTERCONTI. Two of the fastest growing facets of online travel are user generated information sites like TripAdvisor.com and the recent explosion of online travel video—both of which are influencing travel buying decisions more than ever. InterContinental hotels has put together a classy and informative collection of online videos from hotels in some of the greatest business travel destinations in the world. Best of all, each video is hosted by a knowledgeable InterContinental concierge. So even if you are not staying at the InterContinental, the videos, which are about the city and not the hotel are slick, informative and spot-on. See http://www.intercontinentalvideo.com

FREQUENT FLYER NEWS 

FUEL SURCHARGE FOR AWARD TICKETS? Delta’s $25-$50 “fuel surcharge” for award tickets is sticking despite the fact that a barrel of crude is going for less than this time last year. Here’s what Delta’s SkyMiles boss Jeff Robertson said when the surcharge was added last summer when fuel costs were more than TWICE what they are now: "This was a difficult but essential decision in the face of record-high fuel costs. We hope this is temporary, and should fuel prices subside from current levels, we will reevaluate this surcharge." Umm. Last we checked, a barrel is going for about $65, down from a high of $147. We’ve queried Delta about this, but so far, no response….. 

DELTA DOES THE RIGHT THING!! Effective immediately, the fuel surcharge on award tickets is lifted! Go Delta!

 

GREAT QUOTE: Tim Winship of FrequentFlier.com in the WSJ: "Airlines are not using programs to generate loyalty as much as to generate fees." For the past five years, he says, airlines have continually eroded their loyalty programs. 

MEDALLION MILES AT HILTON. You can earn 1000 Medallion qualifying SkyMiles AND 1000 bonus SkyMiles with every stay of two or more nights through Nov 30 at participating Hilton Family hotels (incl Hilton Garden, Embassy, Doubletree, etc). You must enroll here first.  

AA CUTS MINIMUM MILEAGE BONUS. American Airlines will no longer offer the 500 mile minimum and instead offer miles equal to actual distance flown starting Jan 1. However, elite level members will still earn the 500 mile minimum.  


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INTERNATIONAL  

LONDON. The battle is on for ATL-London Heathrow passengers. Delta has put out yet ANOTHER press release promising full flat beds in business class between the two cities, but not for another 9+ months. So sit tight. In the meantime, you can fly British Airways right now in a nice flat business class bed, and arrive at the spectacular new Terminal 5 at London’s Heathrow Airport. While Terminal 5 took some lumps at opening, it’s worked out the kinks and traveling to/from or through it is a spectacular experience. Your TICKET editor took a trip across the pond earlier this year to check it out….and he’s never been more impressed. Especially with the business and first class lounges. AND the view of Windsor Castle from the roadway passenger drop off area.

Check out BA's new Terminal 5 ad. Ahhh. So nice. And cuddly. Sorta.

 

OLE AIRTRAN. AirTran will offer nonstop flights from both Atlanta and Baltimore to Cancun, Mexico starting February 5. AirTran’s single daily flight will depart ATL at 10 am and return from Cancun at 12:15 pm arriving ATL at around 3 pm. We checked March flights ATL-CUN and they are running high….in the $450 to $600 range (fares checked on Nov 3).  

UP AND DOWN. This month, Delta kicks off new nonstop Boeing 777 flights between Atlanta and Kuwait and Mumbai, but reduces daily service between ATL and Shanghai to just 5x per week.

MISCELLANEA 

STAY CLEAN. Interesting nugget as the flu season approaches…..In a recent tripadvisor.com survey of U.S. travelers, eighty-three percent say they are concerned about germs, bacteria and viruses when traveling. Airplanes are considered the most “germy” by 34 percent of respondents, followed by public transportation, and hotels. Sixty percent of travelers surveyed said they wash and disinfect their hands more often while traveling than they ordinarily do. (Oct survey from Tripadvisor.com)

BIZ TRAVEL OUTLOOK FOR 2009. Here’s what American Express is forecasting for business travel next year—and it’s not so bad.  “Considering airfare, car rental and hotel stay, we expect the average domestic trip to increase 2.8 percent, or $31 USD, to a total of approximately $1139 USD.  An increase of 4.3 percent, or approximately $147 USD, is expected for international trips to bring the average cost to $3556. However, if you include the costs of additional travel expenses including baggage fees, dining, airport parking and even package shipping, it can add an estimated $400 to the total trip cost.”

 

GOT A COMMENT, TIP OR ADVICE YOU'D LIKE TO SHARE? Email us and it could end up in a future issue of THE TICKET! Send yours to ticketatl@travelskills.com. Thanks!


 

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now back to our regular programming . . .


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