The benefits of non-airline credit cards

You may have seen TV commercials featuring American Express or Capital One credit cards that promise points or miles with the clout to get you any seat on any airline without blackout dates. Those financial services companies try to distinguish their own loyalty schemes from airline programs, which restrict access to award seats.

Non-airline programs are not affected by award seat limits, because they don’t need award availability to book you on a flight. Instead, they sell you a regular revenue ticket, charge the ticket price on your credit card, then credit the cash amount back to your card and take miles or points out of your account, whose number is based on a standard formula…

Is the travel-agency model sustainable?

When was the last time you used a travel agent? I asked that question in my book “Decoding Air Travel.” Last month, President Obama asked it, too, and the American Society of Travel Agents speedily protested. So let’s examine the modern — or perhaps not modern enough — travel-agency system and the value it brings.

Many young people don’t even remember the time when using a travel agent was the only practical way to book a trip. While many consumers today book their own travel, using travel agencies is still quite prevalent in the corporate world. However, many business travelers I know are unhappy with their company’s travel agency. It’s clear the current system isn’t working well anymore for a variety of reasons. Without taking sides, let’s look at those reasons from the perspective of travel agencies and their customers…

Airlines find new way to overcharge fliers

As if the existing methods to overcharge travelers weren’t enough, some airlines have just found a new way deeper into your pockets. It comes in the form of sophisticated software designed to increase prices based on your desperation and lack of choice. Will you fall for the latest gimmick?

The new application is courtesy of Amadeus, one of the major distributors of airline and other travel-related data worldwide. This week, it announced the launch of “Active Valuation,” an “IT solution that enables airlines to maximize revenues across multiple channels,” or to charge you more for something you can otherwise get at a lower price…

Corporate travel’s lack of innovation

Why have corporate travel managers become so prone to inertia and averse to innovation in recent years? Why are numerous companies spending millions of dollars more on travel than necessary? Is it time for the travel manager’s job description to change? I’ve been trying to find answers to these questions since I dedicated myself to travel education and training this summer, through my Kralev International advisory services.

But it was a post by Scott Gillespie, who writes a blog on procurement and corporate travel management, that prompted me to air my thoughts in public. Although my arguments aren’t quite what he had in mind, I was happy to see that others share my concerns about corporate complacency…

Hilton embraces ‘games-players’

It’s no secret in the hotel loyalty business that Hilton HHonors has been probably the least creative and attractive among the major programs in recent years. Fortunately, its management has recognized that weakness and begun to address it, albeit cautiously.

While competitors such as Starwood, which includes the Sheraton, Westin and other brands, and to a lesser extent the InterContinental Hotel Groups Priority Club, came up with various promotions quarter after quarter, Hilton’s strategy seemed heavily reliant on name-recognition and reputation…

United risks customer loyalty over award blocking

United Airlines seems to be playing a dangerous game. It has implemented an “award” redemption policy that saves the carrier a lot of money but has been denounced by loyal customers as deceitful. In frustration, some of those passengers are turning their backs on United, depriving it of valuable revenue.

The customers want the airline to stop blocking “award” seats on flights operated by United’s partners in the global Star Alliance, which those carriers have made available for mileage tickets. United, however, is balking. Apparently, it saves more money by not having to pay its partners for those seats than it loses by driving some passengers away. It’s likely to continue to balk until the balance shifts. But how long will it take?…

Travelers unearth rare ‘deals’

How many frequent-flier miles or hotel points have you earned without setting foot on a plane or sleeping in a bed other than your own? To what lengths would you go to beef up your account?

Most of us have credit cards that earn points with at least one of the many loyalty programs available. There also are Web sites that track promotions in various industries on a daily basis. Then there are those deals that were never meant to be deals. About two years ago, American Express Co., the fourth-largest U.S. credit card issuer, began what company officials called a pilot program that allowed customers to use their cards to buy traveler’s checks without the standard $15 fee…