Showing posts with label Commentary. Show all posts
Showing posts with label Commentary. Show all posts

Monday, October 8, 2012

The Special Etiquette at Exit Row

I will not conclude myself as a person who travels a lot, but I have done a decent share.

I have to admit – I am cheap. So unlike others, I will not concern about the class of service that much. In that case, Economy is my friend.

One of the great benefits of my elite status is having the choice of exit row seating. These seats are usually considered the best seats in the Economy Class due to its non-restrictive space for the emergency exits purpose. So not only me, but others, elite or not, would like to get a piece of it. These seats, to a lot of airlines, are in fact an auxiliary source of revenue.

Here is the responsibility part – for those people who are seating in the exit rows, they are required under federal regulations (or similar statutes) to assist the crews in case of emergency. So the passengers sitting in the exit row, in theory, should have understood the safety features of the aircrafts more than typical passengers.

Here is the funny part – being traveled in the exit rows, I discovered that exit row passengers (except me of course) are usually the passengers in the aircraft who always disregard the rules on an airplane:

1. I have never seen an exit row passenger reading the information on the safety card;

2. Some passengers intentionally left their electronic appliance on, like playing games, reading book. Some even let the devices’ transmission on;

3. Some even think exit rows are music chair – pick as you want.

I won’t blame the airlines for it – really, will an airline kick people off the plane because of that? Unlikely.

But do you see the irony? The passengers who supposed to understand the safety feature of the aircraft disregard the rules (like a traffic cop has a traffic violation). This makes me wonder – is breaking the rule the etiquette for the exit row?

P.S. These are my personal observations. Your experience may vary.




Saturday, August 11, 2012

Should you trust a SKYTRAX rating at all?

For frequent flyers, the name "SKYTRAX" always sounds familiar.

SKYTRAX is basically a consultancy known for rating airlines.

When you are told an airlines has such rating, in most of the case, it will be a SKYTRAX rating.

So why do I want to talk about SKYTRAX today?

Simple - how exactly SKYTRAX rates airlines?

Here is an explanation from SKYTRAX:

Official World Airline Star Ranking

In term of the methodology, SKYTRAX mentions:

"Star Rating determination examines over 800 different areas of product and service delivery, and the complete listing is only available to airlines featured in the World Airline Star Ranking programme."

So do we know? No.

So how do we know it is accurate? Let me illustrate by an example - Age of Aircraft in Fleet.

6 5-star airlines (Asiana, Cathay Pacific, Hainan, Qatar, Singapore, Malaysia) are given the following rating on this category:

5-star: Qatar

4-star: Asiana, Cathay Pacific, Hainan, Qatar, Singapore

3.5-star: Malaysia

So how about the exact data in average (based on Airfleets.net)?

Asiana - 9.4 years

Cathay Pacific - 10.4 years

Hainan - 5.9 years

Qatar - 5.6 years

Singapore - 7.1 years*

Malaysia - 11.5 year

(* The actual data may be lower as the current data reflects Boeing 747-400s as in-service, which is not the case in the reality.)

Based on that, there is no doubt why Qatar scores 5-star and Malaysia scores 3.5-star in this category. But how about the rest? They are scored 4-star, but the range can go as low as 5.9 years to 10.4 years.

Should Hainan scores 5-star and Cathay Pacific score 3.5-start in this category instead? I don't know. Remember - the methodology is not known to the public.

Unknown methodology, questionable data - if these have not yet convinced you to question SKYTRAX's rating, continue to read.

Virgin America - an airline that is named by SKYTRAX at 2012 World Airline Awards for:

Best Domestic Airline in North America

Best Low-Cost Airline in North America

So do you want to guess its SKYTRAX's rating?

See it yourself.

Wednesday, April 25, 2012

My Perspective of Compensation - The Art of Complaint


This is life. Everyone will experience troubling issues with travel. It is only a matter of sooner or later.

In this case, dealing with complaints is basically unavoidable.

I will not describe myself as a road warrior, as if I compare to others, I am simply an amateur. However, based on all the materials that I have read (like Consumerist, Christopher Elliott, FlyerTalk, even local channel news), a lot of travelers in fact do not know how to deal with these troubling issues. Lucky me (or I should say I am unlucky that I have learned a lot), in my course of life, I have learned the best way to deal with these issues and get the most reasonable (Remember – not maximum) compensation that I can. And here they are.

1.      Never ask for a full refund.

A lot of people think if you have trouble with your travel, you should ask for a refund, right? I was used to have this idea as well. But in fact it is all wrong.

Never ask for a full refund. Never.

Trust me or not – by asking for a full refund, you have basically shut down the entire communication channel. Regardless how reasonable you are, the company will stop listening to you because you simply ask for a full refund.

Then in what situation you can ask for a full refund?

a.      Your arrangement was not used at all.

Like shopping in a retail store, if you have bought an item and you have never opened it, unless it is a special item or all sales are final, the retail store has basically no excuse to offer a full refund when you return your item.

Same theory here. If you have booked a hotel but did not check it for some reasons, the security deposit is for sure gone. But if you can demonstrate and convince that it is out of your control, it is possible that the company can make some exceptions in this case.

b.      The amount in question is so small.

I will demonstrate this by my own example.

I have once stayed in a major chain hotel (3-star quality) by booking through Priceline’s “Name Your Own Price”. The cost is about $50. I was booked for 1 night.

Here is the issue – the bathtub was so dirty. I discovered the issue in the morning when I supposed to check out. I was having a shower at that time.

If I went down and complain, how would that hotel think of me? In most of the case, they might think that I was trying to make troubles (as why didn’t I make the complaint earlier until check-out).

What I have done was instead complaining to the hotel, I made a complaint to Priceline through American Express (aka chargeback). What surprise me was – Priceline agreed with me and issued a full refund. In the entire case, what American Express had offered was their assistance in this case. The decision of refund was made exclusively by Priceline.

2.      Make your case.

How to make a complaint effective? It is simple. Make your own case that even the company can’t resist. What it means is basically evidence.

And here is a real life example.

I was currently dealing with Singapore Airlines for my family members’ baggage issue. The short story was Singapore Airlines refused to compensate for damaged baggage because the damage was so minor. So I wrote to Singapore Airlines Corporate for a review. When I received the response a month later, I was stunned – basically totally two different thing.

Fortunately, I have the evidence – a “courtesy” damage report from Singapore Airlines describing the damage, as well as photos of the damaged baggage with baggage tag intact (to prove the bag was not used afterward).

Although I have not yet received Singapore Airlines’ final response yet, at least Singapore Airlines knows something was not right.

3.      Know your right under the law.

This one is easy – but as far as I know, a lot of people do not in fact know what they are entitled under the law.

4.      Calm Down

Remember – regardless who you deal with, they are trained to comfort you. Yelling at them will not do the work (but I know that there are some exceptions). Somehow, what you should do is calm yourself down and make sure that whoever you deal with can understand your position.

5.      Don’t make an offer.

Believe me or not – most of the companies’ internal policies allow authorized employees to issue compensation for issues. But it is basically a trade secret that unless someone is willing to speak up or sharing in the internet. So in theory, no one knows how it works.

So – make it simple – let the system works for you. See what they are willing to offer.

Usually by now, if you can calmly make your case, the company should have given you a decent compensation already.

6.      Always follow the chain of command.

Consumerist has an “almost guaranteed” method – Executive Email Carpet Bomb or EECB. Basically, what EECB is you launch a mass email campaign toward the company executive and hopefully they will look into the issues.

It is a good idea in my opinion and experience. However – a lot of people seem to forget – there are people for that (and sure executives are not designed to do complaint as well).

Always make your case to the proper channel first. Then ask for a higher review (this usually associates with unsatisfactory compensation). Don’t send to the executives until you truly exhaust all resources.

7.      Never says “Never”.

Never says “Never”. Remember you make a complaint because somehow you want the company to win you back as a customer. So it is always unwise to say “ I will never...again…”

In this case – as you have said the magic word – why would the company have the excuse to do anything for you?

8.      Accept the form of compensation, as soon as the amount is reasonable.

Of course, cash is king. But if a company offers you gift card, voucher, and even points, don’t always reject the offer if it is a reasonable offer.

Remember – what the company is your business. By providing gift card, voucher, and even points, the company in fact encourages you to try again and give the company another chance to make it up.

Have some faith and take it. In some cases, these offers are usually more generous than the actual cash value.

Monday, March 5, 2012

Is Scott correct on Frequent Flier Miles?

Finally, I am back. I have couples of personal things going on with my life, so I have not posted for a while.


On March 1, 2012, Scott McCartney from The Middle Seat of Wall Street Journal posted "Redemption Strategies: Getting the Most Out of Your Frequent Flier Miles" in his blog.

At Boarding Area, the post receives negative reviews from Gary and Seth, claiming that his conclusion is wrong:

Horrible advice on award valuation from the Wall Street Journal (By Seth from the Wandering Aramean)

The Wall Street Journal’s Strategies for Getting the Most of Your Miles (are Wrong) - (By Gary from View from the Wing)

I have read those 3 posts over and over again. Even I understand both Seth's and Gary's perspective, I see nothing wrong with Scott's post at all.

Based on Scott's post, here are how I agree with Scott (and disagree with Seth and Gary):

1. Without doubt, miles are devaluing as we speak (Mile Inflation).

When the airlines start imposing fees on travel, award tickets (without tax and surcharge) are no longer as free as they are used to be. In fact, it is not news that people have to pay for hundreds of dollars in order to travel for "free".

2. Routing issue is a complicated subject.

To most people, getting from City A to City B seems easy - "Sure, fly to there".

But how many people (including frequent flyers) know exactly how?

Here was a real, actual experience that I have.

My friend needed to get from San Francisco to Geneva, Switzerland one-way. As any international one-way ticket can cost as much as a round-trip, my friend chose to use miles instead.

He is a United MileagePlus General Member.

At that moment, Swiss and Lufthansa were not available. His only hope was United.

However, the website was quoting him the trip would need 40,000 miles (plus tax and surcharge).

Then I have taken a look and I found the issue - the increase of miles was not due to the Trans-Atlantic segment of the flight, but the San Francisco-Washington D.C. Dullus segment.

So I used a trick by finding a award seat for the San Francisco-Washington D.C. Dullus segment instead (as the Trans-Atlantic segment was never the issue at all). By inserting a stop at Dallas/Fort Worth, my friend saved 12,500 miles.

By the way, this route was constructed manually, which no one from United could have constructed this route (as the result, the booking fee was waived as well).

Here is my question - how would you expect a typical passenger to know all these?

It is exactly the same - when you asked a person who self-files his own tax return, "Do you know how the tax system work?", he or she would probably say no to you as well.

My real-life example is simple - routing issue, with the additional complication of inventory issue, can make a trained professional becomes an amateur.

(By the way, Gary did suggest award booking service may work, which I agree. However, based on Elliott's blog, 75% of people will not use such service.)

3. Scott suggested for a change in strategy. But he did not offer one.

In his conclusion, Scott said,

"As ticket prices go up, travelers may have to re-adjust their expectations – and strategies – for mileage award redemption."

However, he did not address how. So he merely suggested his readers to look into this issue. He did not offer other advices.

4. Last but not the least - Most people travel on Economy, not Premium Class.

(And this is exactly why I start this blog - Economy, as always, is easily forgotten class of service, but yet the most crowded.)


So how wrong (or correct) is he? I don't know. But at the least, he has a point.

Tuesday, January 17, 2012

Tuesday, December 27, 2011

Christopher Elliott - Right or Wrong?

Christopher Elliott is a great person, at least to me.

I knew his name since the TSA fiesco when the TSA served subpoena (Subpoena Duces Tecum to be exact) to 2 travel bloggers - Steven Frischling (from Flying With Fish) and him.

You can read the story in here:

TSA Threatens Blogger Who Posted New Screening Directive (With a nice picture on how the subpoena is served)

The Fallout From SD-1544-09-06 : The Feds At My Door

Full text of my subpoena from the Department of Homeland Security

(Bottom line - TSA backed off.)

I have even offered my help to Chris, although it did not seem to work out.

So why do I write about Chris for his right or wrong?

He is a excellent customer advocate, with no doubt about it. But as a travel critics, he may be seem to be a little bit too biased.

The Ground Zero begins when Chris publicly criticizes travel loyalty programs, as well as mile addicts from FlyerTalk and Boarding Area:

Should you play the loyalty game? – Sponsored by TripInsuranceStore.com

The Insider: Point of No Return

Then Gary (from View from the Wing) fires back against Chris:

Christopher Elliott Plays Fast and Loose with Some Facts, Leads to Bad Advice for Travelers


I am sure that this war will be spread over.

So is Chris right or wrong? Or simply Gary is too paranoid because of Chris's criticism?

If you are looking for an answer for me, then you are wrong. I don't have the definite answer this time.

It is simply because if I do give one out, the war will never stop.

But I can give you my insight on this, so you can determine what is the best word that you should take:

1. Bottom line - all loyalty programs are scams, not matter how they work.

Loyalty programs basically represent the basic theory of Economics 101 - Unlimited wants, Supply and Demand, as well as scarcity.


Let me make an example and you will understand.

A supermarket has a lot of different selection of products. Some are popular but some are not. Then how can that supermarket make profits with a loyalty program?

A loyalty program records each customer's purchases so that that supermarket knows the shopping pattern of its customers. Then the supermarket can provide promotion to its customers by driving its customers for products that have less demand by their price (supply-driven) while at the same time, maintain or even increase the price with popular products.

By this - you should know why ice cream and soda are cheapest in winner.

Also, since a lot of data is collected with loyalty program, companies tend to sell them for further promotion and profits.

So no doubt - loyalty programs are scams. But somehow both sides profits - companies make more money while customers can buy in cheaper prices.

2. In theory, it should not cost you anything if you join the loyalty programs.

Back to travel. In this case, I will use Southwest as the example (since I have explicited said I hate Southwest in here, so I will not be biased at all).

Southwest is known as low-cost carrier, although I don't agree.

So when a typical customer joins Southwest's Rapid Reward and flies with Southwest, what is the cost?

The ticket by itself.

So when a typical customer does not join Rapid Reward and flies with Southwest, will he or she save money?

None.

So what's the harm of joining? None, in theory.

3. Your Mileage May Vary

Each person has his or her own story. Same as travel.

Not everyone has the same travel pattern. So basically you can't copycat someone's pattern and do so.

For instance, the reason why I fly with United in most of the time is San Francisco is a major hub for United.

Ryan Bingham (acted by George Clooney in Up In The Air) travels with American because of corporate agreement.

So you have to pick a program that fit you. Simply saying, if you live in San Francisco Bay Area, it will be a disaster if you pick Delta, which has more coverage in the East Coast.

Even a lot of people have criticize Delta SkyMiles, it does not mean that program won't fit your need.

4. No one ever told you to concentrate on one program.

In my life time, I have opened 6 frequent flyer programs.

At this moment, only 2 are active

(For such purpose, I have counted both United MileagePlus and Continental OnePass as one single program due to merger.)

Even I seem so "loyal" to United, I still have an active Cathay Pacific Macro Polo Club / Asia Miles account.

5. It is a matter if you know how the game is played.

The topic says it all - if you don't know how the system works, you are "worked" by the system.

6. Mileage Runs makes sense - only if you know what you are doing.

Mileage Runs do not hurt at all - if you know what you want. Otherwise, it will be a waste of money.

If you want to know if you need mileage run or not, see if you know the program well first.


My conclusion - regardless who gives the advice, it all depends upon the person who actually involves in the game and how they want to play it.

A smart consumer (not only traveler) need to know what advice is good for him or her, and what is not.

Thursday, December 15, 2011

What exactly is TSA?

I always wonder, especially as a Government Employee, what exactly is TSA.

TSA is a name that everyone know, and yet everyone hate.

TSA stands for Transportation Security Administration, an agency under the "supervision" of the U.S. Department of Homeland Security. If you want to know more, you can read the following first:

Transportation Security Administration - Wikipedia, the free encyclopedia

TSA | Transportation Security Administration | U.S. Department of Homeland Security

Why do I want to talk about TSA today?

Because TSA is simply a monster, that is "monster" enough that is complete out of control.

Personally, I did not experience any negative from TSA (except a Freedom of Information Act / Privacy Act information request). But still, in my view, TSA is an perfect example of government waste.

Yes- you heard me correct- it is a waste.

So what exactly is TSA?

1. TSA is not a law enforcement agency.

In most of the cases, TSA does not have to authority to investigate and arrest.

How about their employees? Most of them are basically under a special pay grade that are not even classified as law enforcement (Based on the U.S. Government's design, all law enforcement Federal Employees are paid under General Schedule - Law Enforcement, known as GL, which will give them an automatic 25% premium from a regular General Schedule, or GS employee, to settle overtime issue and early retirement.)

2. "Our failures are known, our successes are not..."

It is a line spoken by Al Pacino in "The Recruit", a movie that talk about Central Intelligence Agency, or CIA.

Well, even people now know the success of CIA, how about TSA?

As always, their failures are known, like allowing live ammo, loaded gun, butcher knives into secured area.

Have they ever success? I will rather say the counterpart of TSA in other countries do a better job than TSA.

3. Security Personnel?

Really? Even a Private Security Officer, under the U.S. Department of Homeland Security, Federal Protective Service, has a firearm. What does TSA have? Hands with blue gloves.

4. Security Measures

Are they even work? If you think so, read or watch the following and think again:

Anderson Cooper 360°: CNN: Do TSA body scanners even work?

TSA's Revised Cost Comparison Provides a More Reasonable Basis for Comparing the Costs of Private-Sector and TSA Screeners

Personally, I am a strong supporter of pat-down, as I never believe those body scanners, known as Advanced Imaging Technology, work at all.

5. Oversight?

Based on personal experience (work unrelated), the U.S. Department of Homeland Security does not have its oversight and control over TSA at all.

Basically, Homeland Security do this in one way, and TSA will do it in another way.

So my readers, can you tell me what TSA is exactly?

Tuesday, December 13, 2011

United's Upgrade Policies - My Perspective

I am a great supporter of the bloggers at BoardingArea.com.

Today, I read the following:

United Airlines needs to change its Unlimited Domestic Upgrade program

I am sympathetic to that person who did not get his/her upgrade. However, I think Darren is wrong in this case.

United's Upgrade Policies is the most generous in the entire air travel industry. United did not score Best Elite Program for nothing. Based on my research, in summary:

1. United offers the largest area for complimentary upgrade, even intra-Asia flights are eligible (which Delta does not offer at all).

2. United has the least restrictive Systemwide Upgrade.

When I read stories about top-tier elites did not get what they want, like stuck in a middle seat, upgrade failure with full-fare tickets, my first reaction is they don't know how the game is played.

When you buy a last-minute ticket,  a typical customer knows that the price is going to be expensive and there will be less choices of seats for sure (I have a one-time exception - I bought a same-day return Round-trip ticket from San Francisco to Los Angeles within 48 hours of departure in last year. I got the "regular" price and even my upgrade got cleared at the gate).

Let's face the reality. The flight is almost full (or full) and you still want to find a good seat? It is somehow impossible, even you are a top-tiered elite. In this case, the wisdom is go to the airport early to see possible for reassignments, as some people may not show up for their flights.

Beside - the root of the issue is not United's Upgrade Policies, but simply United has too many elites.

If you have read my previous trip report, then you will know how crazy it is the current situation - almost half of a Boeing 737 are elites.

As a customer (elite or not), you do have a choice - to fly or not to fly with an airline. Use your money to vote. Making complaints like this will never help.

Tuesday, November 29, 2011

Korean Air Fare Error - Korean Air's Option

I read an interesting article from Elliott today:

Korean Air cancels tickets because of fare error

Christopher Elliott, in conclusion, says, "I really don’t know what to do with this case. Honestly."

Don't worry, Chris. I have a solution for you - Korean Air should honor the deal, no matter what.

Let's look at the issue in a deeper detail than Chris.

Based on the original thread posted at FlyerTalk ([FARE GONE] KE: JFK-ROR $560 ai), the fare was originally surfaced on September 2, 2011.

Korean Air pulled the plug on November 7, 2011.

It takes 66 days for Korean Air to pull the plug.

A similar occurrence happened with British Airways. But at that time British Airways caught that in 2 days.

66 days seem too far.

How about being fair?

When we want to change our reservation, how much does the airlines charge us in cash? Now they want to change the reservation, so travel vouchers are enough?

So is it mean every time when an airlines think the price is too "low", they can pull the same trick again?

I traveled on extremely low-priced air fare before (like Air Canada's $562.50 San Francisco to Hong Kong via Vancouver, British Columbia Roundtrip last year). There is no way for a regular passengers (unless you know the stuff well, like those from FlyerTalk) to tell if it is mistake fare or not.

So in this case, passengers will be in nightmare about ticket cancellation, as airlines can cancel it at any time with any reasons.

And the most important is:

1. Korean Air provided the fare;

2. No one has ever done anything to trick the reservation to lower the price intentionally (one of the tactics is known as fuel dump).

So? Learn the lesson, Korean Air.

Monday, November 28, 2011

Am I too harsh to Cathay Pacific?

 I got couples of comments regarding my trip report about Cathay Pacific.

Am I too harsh to Cathay Pacific?

Or do I simply expect too much from Cathay Pacific?

Before I go into it, please take your time to review Skytrax's ratings for the airlines I have traveled last time:

Air China

Cathay Pacific

United Airlines

Also, I have reviewed again my trip reports. It turns out I don't think I am biased as other think.

Here are my explanation (and some of my concerns):

1. Unlike a lot of trip reports, I did not focus a lot of in-flight meals and snacks.

It was exactly my conversation on CX 807 with a senior flight attendant. At that time, the senior flight attendant offered me Kamameshi (it was the translation I found from Wikipedia - 煲仔飯 from Chinese) that was served in First Class. I sincerely decline it, as I believe there is no in-flight food that you can compare with what you can find on ground, which the senior flight attendant agreed.

While a lot of trip reports grade airlines based on food served, I intentionally leave this one out in understanding how airlines are operating.

I believe no airlines ever want to serve inedible food to their passengers, crews as well.

2. I have given credit when I review the Wing.

As a lot of people know the Wing is under renovation for now, I did not focus on what's outside. But what's inside only. Even my conversation with the agent at the Wing confirmed that the Cabin, with no doubt, has a better food offering.

3. CX's Skytrax rating has no doubt dropped.

For the record, based on Wikipedia's Skytrax page, CX's rating is dropping even they do still maintain as a 5-star:

http://en.wikipedia.org/wiki/Skytrax

Based on the page, CX has officially dropped out from top 3 airlines of the year since 2010 (and they were in top 3 for the last 9 years).


4. Not the people, but the Corporate culture makes CX worse.

Surprisingly, not one, but several flight attendants told me that I should report my disappointment with CX directly.

They are claimed the same reason - CX is not willing to listen to their feedback.

As a service industry, feedback is important for a company's continuous improvement. Who do you think know what customers want, a C-level manager or a front line agent?

When the chain of feedback is broken, no matter what the front line does is meaningless, as they are faked based on policies and procedures.

I truly believe that all the flight attendants I talked to were willing to listen to my concerns and they were sympathetic to my disappointment. However, since the Corporate has no word from them, how can an airlines improve?

5. I am not alone...

Lucky, from One Mile at a Time, traveled on CX First Class for several time. Based on his comments, trip reviews, as well as his response from others regarding CX's service, he basically concludes that First Class is exceptional. But for the others, it really depends on the circumstances. In other word, he believes that there may be other which is doing better than CX.

6. Last but not the least - my expectation has been tiered based on Skytrax's rating, and I am being fair at all time.

Yes - I may be biased before in discussing CX without traveling with them (although I believe I was not).

But it is a fair question - Will you expect service level of the Peninsula from a Motel 6 Inn, or vice versa?

If you know how to answer this question - then you should know what standard I should use with Cathay Pacific.

Tuesday, November 22, 2011

Why the Fuzz - The Value of Miles

Before I finalize my trip reports, it is brought to my attention that there is a heated argument about the use of miles:

Is international first class a waste of miles? (One Mile At a Time)

Redemptions in coach make sense, at least to me! (UnRoadWarrior)

Domestic Mileage Redemptions: Yay or Nay?  (Mommy Points)

Value Your Miles as Money (View from the Wing)

My Worst Use of Miles: International First Class (Frugal Travel Guy)

Why Redeeming Miles for Domestic US Travel Makes Sense (Million Mile Secrets)

And here is my 2 cent for the value of miles:

1. There are always people "influencing" what you want.

Simple - when you have a close one who want to shop for a car, for example, suddenly a lot of people, rather than the dealerships, will become the "experts" of cars, telling you what to buy and what not to buy.

2. The value of an item (including miles) depends on you, not others' point of view.

Who cares what you want anyway? For example - an iPhone. Some people think iPhone is the best phone in the world, and some are not (I am one of them - even I will switch to a iPhone as the use of iPod within days), mostly because of the prices.

If you think it is worth for you, nobody can really judge you at all.

3. You should have a method to justify the way you spend.

Simple - Domestic or International; Premium or Economy - it is all up to you - as they are your miles.

As soon as you have a way to justify, it is all good enough.

For example, I have a friend who I helped him to save up about 80000 United Mileage Plus miles for a trip back to Hong Kong.

But something came up. I helped him to use the miles in a more valuable way - 2 One-way to Europe (United's rule says if you have begun your trip, no change can be made afterward).

In that case - he saved about $2,000 instead of the original $1,000.

4. Not all advices are good for you.

Couple months ago, I posted my opinion about sleeping in the flight:

Sleeping During Flight - Facing the Reality

In conclusion, I said you are the answer.

In this case (the value of miles), the answer is also you.

You have your own travel pattern. So there is no need for you to follow someone's advice (and that's why I don't give out advice here, but only my experience and insights).

So if Domestic are what you do exclusively, I don't see a problem you redeem domestic award (and it will be the question if it is worth to buy or redeem).


Personally, I have only redeemed 2 award tickets for myself - one is for a round-trip ticket from San Francisco to Hong Kong by Singapore Airlines during Christmas and New Year, and another one is for my recent trip from Hong Kong to Beijing by Air China.

Both shares the same characteristics - the tickets are simply too expensive to buy.

So what is my value of miles? Selling them to my family members. (Note: My family members know my miles has its cost - flying on revenue tickets. So they don't mind to "sponsor" me in this way - and they think it is fair as well - as the money I get from them are not enough to cover the ticket price if they choose to buy it).

Monday, November 7, 2011

My 2 cent for credit cards...

Before I start, please read the following first:

How hard is it for middle Americans to charge $10,000 in a year? 

Based on the Man (I assume he is the husband of  Mommy Point), it does not seem it is difficult to charge $10K in a year, right?

No offense - in my opinion, he is wrong.

Why?

1. I hate Southwest (See There are reasons why I hate (not even dislike) Southwest... )

2. It is simple - each card is designed for different situations. There are cards designed for groceries, gas, restaurant, and even travel (like airlines, hotels cards).

A lot of FlyerTalkers in fact know and in their wallets some of the programs are way much better than an airlines' loyalty programs, such as Citi's Thank You (A reward program that allow you to use points to book travel - and at the same time - you earn airlines reward as well).

3. The reality is - credit cards are not always welcome.

And the most important is - the value of the reward you earn from credit card.

I will use Chase United or Continental Card as the example (they are pretty the same now).

What can you do with 10K miles you have earned after spending $10K (in this situation, I assume no bonus has been involved)? A one-way ticket, subjected to inventory control, from San Francisco to Los Angeles, plus tax.

How about if you want to go to New York round-trip instead? Let's assume the ticket costs $500 (tax included). And there will be 2 checked luggage with lounge access both directions.

For Chase United card, you will need 2.5 years in order to get enough miles.

Then the annual fee kicks in.

So it costs $237.5 (I assume that Chase would refund the unused portion of annual fee, which in reality it is not the case) to earn 25K for a round-trip ticket from San Francisco to New York. Then the tax (About $22), luggage ($35 X 2, the card waives the first luggage), and lounge access (free passes from the card, otherwise, $39 online purchase per visit).

Then the actual cost will be $329.50.

How about Citi's Thank You? You will still get 25K points in this case (again, no bonus whatsoever...) The points will be only able to cover half of the trip ($250).

In this case, the actual cost will be $448.

However:

1. With the airline miles, you are subject to inventory control.


2. San Francisco to New York is not always $500. The lowest I see is less than $300.

With the assumption that in both ways, you get the same flight, but this time, the price dropped to $300.

With this, the actual cost associated with redeeming the miles will be still $329.50. However, the actual cost of using Citi's Thank You points will be dropped to $248.


And please read this before continue:

Confessions of a Once and Future Credit Card Churner


Gary (not to be confused with me) addressed an important issue - why you have to earn the reward in a hard way by earning everything dime by dime?

This I agree. The way I see it - the value of airline credit cards is its opening bonus, but nothing else.

My suggestion - plan your own way of using credit cards.

Sunday, September 11, 2011

Is Cathay Pacific Ready to ditch oneworld for Star Alliance?

Before reading my post, please read the following:

Cathay Pacific reported ready to ditch oneworld

I am not an industry insider. However, this topic is so interesting that I have to provide my insight.

It is not going to happen, unless Cathay Pacific is so desperate to get out.

Their first obstacle is the U.S. Department of Justice.

If you travel a lot to Hong Kong, you probably know that the following cities have direct non-stop services from North America to Hong Kong:
  • Toronto (Air Canada, Cathay Pacific)
  • Vancouver (Air Canada, Cathay Pacific)
  • San Francisco  (Untied, Singapore Airlines, Cathay Pacific)
  • Los Angeles (Cathay Pacific)
  • Chicago (United, Cathay Pacific)
  • New York (United/Continental, Cathay Pacific)
  • Detroit (Delta)
This will give you a perfect idea - if Cathay Pacific wants to join Star Alliance (*A), it will be basically a cartel situation, which servicing to Hong Kong will be almost dominated by *A.

Do you really think Delta will stand still and not do anything? How about the Department of Justice?

Basically, Cathay Pacific will have to compromise in order to join *A, liking cutting routes/services.

But here is the issue - who will they give it to?

The only airlines that are capable to run this route are Delta and American Airlines, in which these are the possible replacements (in theory):

  • American - Los Angeles, New York (Cathay Pacific just recently start their service in Chicago, so they will be allow to keep for a while)
  • Delta - Minneapolis (Restore), New York
However, none of them have any extra aircraft to do this route. So?

Back to Square #1.

It will not seem worth the trouble to go with *A.

No offense, oneworld is not as organized as *A, but as the King of Hong Kong, Cathay Pacific does not need to do anything in order to strengthen its position in Asia.