Portland Archives | Nicholas Kralev

Did United choose the best rez system?

The decision by United Airlines’ management to use Continental’s Shares reservations system for the merged carrier has been causing serious problems since its implementation last weekend. So the news that the airline is working on a new version of its IT platform, integrating some of the features of the pre-merger United’s Apollo system, is very welcome, indeed.

It was hardly surprising that CEO Jeff Smisek and his team chose to keep Shares, given that most policies and practices of the combined carrier have followed the way Continental did business under Smisek. But in this case, the decision made good financial sense — Continental has owned Shares for years, while United paid Travelport, the company that owns Apollo…

Higher standards for travel sector?

How many horror stories about airline customer service have you heard? There are certainly plenty in the press and many more on various travel Web sites. Still, do we apply the same standards and scrutiny to companies outside the travel industry?

The nature of the airline and hotel businesses requires constant face-to-face interaction with customers, and an employee’s every step is evaluated by a flier or a hotel guest much more often than by a supervisor. In fact, thanks to the Internet, thousands of people can learn about an incident involving a front-line employee hours — if not days — before the company’s management does. Earlier this month, a San Francisco man complained that a United Airlines agent took a break…

Airlines curb award tickets

As if “award” plane tickets aren’t hard enough to come by, airlines are putting even more controls on those coveted seats — in some instances understandable, but in others apparently artificial and questionable.

Most major U.S. carriers are reporting record numbers of issued mileage tickets, but they are not a result of more available seats so much as more passengers rushing to beat rises of redemption mileage levels. As I wrote three weeks ago, the value of frequent-flier miles is dropping, and the airlines want them to be used up because they are a balance-sheet liability. With most carriers’ domestic capacity shrinking between 5 percent and 16 percent this fall, the number of mileage seats will naturally be reduced as well…

Cheap airfares endure

Who says that cheap plane tickets are a thing of the past? How would you like to go skiing in Utah this winter for less than $150 round trip from the East coast, including all taxes? Rather visit a warmer place? How about a ticket to Hawaii for less than $300?

Yes, these are real prices, but you might need to do some homework to get them. Airlines now publish low fares less frequently and often pull them off the market within hours. We’ve all heard travel experts warning that air fares have nowhere else to go but up, mainly because of record-high jet-fuel prices, as well as predictions that the era of affordable air travel is over. That may well be what the future holds. The present, however, begs to differ…

Air miles’ value drops

Next time an airline offers you 5,000 miles as a “good-will gesture” for something that went wrong on a flight, you might want to negotiate a bigger number.

Miles devaluation is here, and along with rising air fares, service cutbacks and various fees, it is likely to remain a prominent feature of the travel experience for a while. Some U.S. carriers have already increased the number of miles needed for an “award ticket,” and others, no doubt, will follow suit. Airlines have awarded so many millions of miles in recent years, thanks to numerous credit card and other promotions, that they started to weigh on the carriers’ balance sheets…