2016 Archives - TravelSkills

Bay Area airports booming

February 3, 2017

International traffic is reaching new highs at San Francisco’s airport. (Image: San Francisco International Airport)

As airlines laid on more flights and frequencies in 2016, the three Bay Area airports all reported fast-growing passenger traffic in statistics released this week.

Officials at San Francisco International said the airport handled a record 53.1 million travelers last year, a gain of 6.1 percent from 2015 and the seventh straight year of growth for the facility.

The jump in traffic was even greater for international flights at SFO, officials said, with a 10 percent increase over 2015. (And in 2015, SFO’s 9 percent increase in international traffic was the highest growth rate for any U.S. airport.)

That’s great news for the city and the airport, but not such great news for travelers who’ve found themselves more frequently waiting on the tarmac after long flights because another plane is at their gate.

New international carriers coming to SFO last year included Iceland’s WOW, Fiji Airways, and Mexico’s Volaris. United Airlines added three international destinations, including Tel Aviv and the Chinese cities of X’ian and Hangzhou; and China Eastern started non-stop service from SFO to Quingdao. That gives SFO service to more cities in China than any other airport in the Americas, officials said.

British Airways added San Jose service last year. (Image: Mineta San Jose Airport)

At Mineta San Jose International, 2016 traffic surged by almost 1 million passengers last year, to a total of 10.8 million. That represented an increase of 10.2 percent over the previous year, and marked SJC’s fourth straight year of traffic increases.

SJC added new international service in 2016 from Lufthansa to Frankfurt, British Airways to London Heathrow, Air China to Shanghai, and Air Canada to Vancouver. In addition, Southwest added a new transcon route to Baltimore/Washington and American started seasonal transcon service to its Charlotte hub. This spring, the airport expects to finish work on an $8 million expansion of its International Arrivals Building.

Southwest Airlines jets at Oakland International Airport (Photo: Port of Oakland)

Oakland International’s 2016 passenger total hit almost 12.1 million, a growth rate of 7.7 percent from the previous year. That caps 37 straight months of increasing numbers, and gave the airport its busiest year since 2007, when it hosted 14.6 million travelers.

That makes OAK California’s fourth-busiest airport. Southwest is set to continue its steady growth at OAK in 2017 with new international service to Puerto Vallarta and Los Cabos, as well as new transcons to Newark; meanwhile, new transatlantic flights coming to OAK this year include British Airways to London Gatwick in March, along with Norwegian Air service to Copenhagen in March and Barcelona in June.

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Are passengers really happy with air travel?

May 11, 2016

J.D. Power says airline passengers are more satisfied these days. Are you? (Image: Jim Glab)

Is U.S. airline service getting better? Or are passengers just becoming more resigned to things as they are?

According to J.D. Power’s just-released 2016 North American Airline Satisfaction Survey, respondents’ satisfaction with their air travel experience is at a 10-year high, reaching an overall score of 726 on the company’s 1,000-point scale, up 9 points from last year.

J.D. Power said the survey of more than 10,000 persons who traveled by air on the past year shows that “airlines are making positive strides by adding value to their products and services with newer and cleaner planes, better in-flight services, improving on-time arrivals and bumping fewer passengers.”

But it also noted that a 12-point improvement this year in satisfaction with costs and fees is partly due to the fact that “passengers are more tolerant of paying ancillary fees such as baggage fees or fees for extra legroom.” It also noted that the score for in-flight services (650) is still “the lowest-scoring factor overall” in satisfaction levels; other factors include costs and fees, boarding/deplaning/baggage, flight crew, aircraft, check-in and the reservations process.

The company observed that for the first time in the survey’s history, business travelers showed a higher satisfaction level than leisure travelers (733 to 725), probably because business travelers are less concerned about price. (Or possibly because airlines have been focusing their product and service improvements on the highest-paying customers.)

The survey splits airlines into “traditional” carriers and “low-cost” carriers, although the distinctions don’t seem as significant as they once did (and for some reason, it does not include Virgin America or Spirit Airlines in the survey). Once again, “low-cost” carriers got the highest overall scores, with JetBlue in first place with 790 – its 12^th year at the top of the J.D. Power charts. Southwest scored 789. The highest score for a “traditional” carrier was Alaska at 751.

United had the lowest score among traditional airlines at 675, while Frontier ranked at the bottom in the low-cost category at 662.

In a companion survey on airline loyalty programs – which did not divide the airlines into two categories — the same airlines dominated the results, with Alaska’s Mileage Plan earning the highest score (757) for the third year in a row, followed by Southwest’s Rapid Rewards at 754 and JetBlue’s TrueBlue at 743. United also took the bottom spot in the loyalty survey, with Mileage Plus earning a score of 673.

J.D. Power recognized that loyalty programs at major carriers are changing from mileage-based to spending-based schemes, although it didn’t ask respondents what they thought about that. It said the most significant factor for travelers in rating loyalty programs is still the ease of redeeming points/miles.

The last time we reported on a J.D. Power survey – on hotel loyalty programs – some of our readers expressed skepticism about the entire process. One noted that the results chart “uses an old trick to accentuate differences.” Another charged that it used “far too small a sample,” and a third wrote, “I took a look at what went into the survey, and it’s complete garbage in garbage out.”

What do you think about the airline survey, readers? Are J.D. Power surveys worth reporting on?

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Starwood surprise in latest JD Power survey

April 9, 2016

Hilton’s new West Palm Beach hotel. Hilton tied for first place in rankings of guest loyalty programs. (Image: Hilton)

J.D. Power and Associates has come out with the results of a new survey on hotel loyalty programs, and the results raise a new question about the upcoming acquisition of Starwood Hotels by Marriott.

That acquisition was approved by shareholders of both companies on Friday. In the run-up to the deal – which is on track to be finalized by midyear – Marriott executives cited the devotion of Starwood Preferred Guest (SPG) loyalty members as one of the reasons they found Starwood such an attractive merger target.

But here’s the thing: In the new J.D. Power 2016 Hotel Loyalty/Rewards Program Satisfaction Report – based on a poll of more than 3,000 U.S. hotel program members – the SPG program’s score was way, way below Marriott’s, and well below the industry average of the 14 programs in the survey. In fact, it was almost at the bottom. (As it has been in previous years.)

Marriott Rewards tied with Hilton HHonors as the top-ranked programs, each with a score of 741 on J.D. Power’s 1,000-point scale. Also scoring above the industry average of 711 was InterContinental Hotel Group’s IHG Rewards at 722. And Starwood’s SPG? It ranked 13^th out of 14 with a 674 score, just above last-place Red Roof Inns. Starwood didn’t fare much better in last year’s results either.

Here’s the full list for 2016:

In the case of Starwood, our best guess as to its low ranking is that SPG puts a lot of focus on keeping its elite level members happy, likely to the detriment of the much larger pool of non-elites. The JD Power survey polls all members– not just elites. Had it done a poll of hotel program elite members, I’m sure SPG would have placed much higher. And it seems to be SPG’s elite level members that are the most vocal when it comes to the Marriott/Starwood merger.

Loyalty programs are rated on a number of factors, including account management, ease of redeeming points/miles, ease of earning points/miles, variety of benefits, reward program terms and customer service.

Some 77 percent of survey respondents said they believe their preferred program is just as valuable as it was a year ago. The main reason that consumers select one program over another when they join, cited by 40 percent, is the convenience of that company’s hotel locations at the destinations where they travel.

Readers: What’s your take on loyalty programs? Do you agree with the J.D. Power survey findings?

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Outlook for Spring Break 2016

March 10, 2016

Hotel pool at the Best Western Plus Beach Resort in Ft. Myers, FL (Image: Best Western)

Even though we’ve experienced a relatively mild winter in the U.S., Americans are gearing up for a busy spring break travel season.

Why?

Well, low gasoline prices are prompting more of us to consider jumping in the car and heading to the beach or the slopes. And despite some bumps on Wall Street, the economy is humming along nicely. So with all that hard work at the office or school we all deserve a nice break, right?

There are some early indications that this spring break season could be a whopper. First, room nights booked for this year’s peak spring break travel season (March 18-31) are up 5.2 percent compared to the same time last year at Best Western’s 1,800 U.S. hotels.

Airlines in the U.S. expect to have their busiest spring, ever: 140 million passengers, up from 136 million last year. Plus, the TSA is expecting a 7 percent increase in the number of fliers passing through airports this spring and warning travelers to brace for longer security line waits.

Increased demand for air travel has provided airlines with the confidence to raise fares three times since the beginning of the year. However, keen competition from aggressive low-fare carriers is keeping a lid on big increases in the markets where they fly.

To avoid the highest prices and the possibility of sold out flights, hotels or rental cars, those planning trips in late March should make reservations as soon as possible– especially if headed to popular spring break destinations such as Florida, the Gulf Coast, Rocky Mountain ski resorts and Mexican beach resort areas.

If you have the flexibility to travel in early March, or later on in April, May or early June, you’ll find lower prices than during the late March peak. After mid-June, peak summer pricing kicks in as demand soars.

Brace yourself for a busy spring break season in places like Puerto Vallarta (Chris McGinnis)

What’s different about this year’s spring travel season? Well, late March is usually the busiest time of year for collegiate spring break dates. Early April, when Easter usually falls, is more popular with families. But this year we have a very early Easter weekend (March 25-28), which means families, AND college kids are going to be crowding airports, hotels and the beaches simultaneously.

Due to this concentration, travelers should be on alert for surprise crowds at airports, especially if you live in or near (or are traveling to or from) a big college town OR if you are headed to a warm weather destination like Florida, Mexico or the Caribbean. This is also the case for airport hubs with connections to warm weather destinations such as Atlanta, Houston, Dallas, Los Angeles or Phoenix.

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An early Easter means you’ll find a spring travel “sweet spot” during the first two weeks of April when spring breakers have gone home, or gone back to school. That’s when you’ll most likely find the best last minute deals and smallest crowds.

Don’t forget that St Patrick’s Day falls at the beginning of peak season this year on Thursday, March 17. Travelers should expect extreme vigilance on the part of police and highway patrol when it comes to drinking and driving on that Thursday.

TIP: If you are a business traveler staying over in a resort or beachside area in March, ask for a quiet room away from the pool or other public areas, which may attract a rowdy spring break crowd.

Top spring travel destinations this year are:

Nearly everywhere in Florida, especially Orlando and coastal cities.
Cities along the US Gulf Coast in states such as Alabama, Mississippi, Louisiana and Texas
Las Vegas
Rocky Mountain and New England ski areas
Washington, DC
Low-cost, nearby Caribbean destinations such as Puerto Rico, the Bahamas or the Dominican Republic\
Mexico, especially coastal resort areas such as Cancun and the “Riviera Maya” along the east coast and Puerto Vallarta, Cabo, and Baja on the west.

This post originally appeared on Best Western’s YouMustBeTrippin.com blog

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American AAdvantage switches to spending-based program

November 17, 2015

American will overhaul its AAdvantage program next year. (Image: American)

A lot of people have been speculating that when American Airlines finally got around to revising its AAdvantage program after dealing with other merger-related priorities, it would follow the lead of Delta, United and Southwest by switching from a distance-based to a spending-based system.

And now American has an answer to those speculators: You were right.

Starting in the second half of next year, AAdvantage members will start to earn award miles based on the price of their ticket in combination with the buyer’s elite status.

Non-elites will earn five miles per dollar spent; AAdvantage Golds will get seven, Platinums will earn eight, and Executive Platinums will bring in 11 miles per dollar spent, American said. Details here

Does that chart look familiar? It should, because it’s nearly a carbon copy of the United and Delta programs announced last year.

United’s MileagePlus conversion calculator (Feb 2014)

Delta’s SkyMiles conversion chart (February 2014)

Beginning in January, AAdvantage will dump elite-qualifying points, and will provide two ways for members to gain elite status: Elite-Qualifying Miles (EQMs) or Elite-Qualifying Segments. American claims it will offer “the most generous multipliers in the industry,” offering 1 EQM for discount economy fares, 1.5 for full-fare economy, 2 for discounted premium fares and 3 for full premium fares. Here’s American’s comparison chart with Delta and United:

Upgrades in the revised system will also be based on EQMs, with Golds and Platinums earning four 500-mile upgrades from each 12,500 EQMs. Executive Platinums will score four systemwide upgrades upon qualification, and up to four more based on subsequent flight activity. How to earn AAdvantage Elite status in 2016

And award redemption charts are changing as well, American said, with some increasing and some going down (especially to Mexico, the Caribbean and Central America for flights booked after March 22). What’s more, MileSAAver awards for flights of 500 miles or less in the U.S. and Canada can be had for as little as 7,500 miles one-way.

Which award routes will cost more? “Other routes will be adjusted to match increased customer demand, including routes that feature our world-class A321T and 777-300ER aircraft,” an AA official remarked. American uses the A321Ts on its upgraded transcontinental service (JFK LAX SFO), and 777-300ERs on key international routes.

Full details about the new AAdvantage program on AA.com

To me, it never made good business sense for airlines to base programs on miles flown instead of dollars spent. That’s because airline fares are not based on distance flown; they are driven by market forces. This is why it can cost three times as much to fly from, say Atlanta to Nashville (215 miles), than it does to fly from Atlanta to New York (750 miles). As painful as this announcement is to American devotees, it makes business sense for airlines to better reward their customers who spend the most…not those who fly the farthest.

Airlines made a mistake when they started distributing applications for “frequent flyer” programs to everyone—even those who fly once or twice a year. That diluted the loyalty experience for the airlines’ best customers…the ones who pay the most (not those who flew the farthest). It opened the door to a wily generation of “gamers” who figured out how to snag more miles at very low fares by manipulating an admittedly imperfect system. With new spending based programs, those gamers can still earn mountains of miles and travel “for free” but over time I’m betting they won’t get those upgrades, shorter lines and other bennies bestowed on those who spend a lot.

The move to revenue-based programs realigns the system back to its initial premise: to reward truly frequent business travelers, those who fly 10+ times per year on non-discounted fares. I’m talking about the person whose company pays $6,000 for a business class ticket to London, or a $550 last minute fare between Portland and San Francisco. If that’s not you, then sorry. If that is you, then get ready for things to get better. But it will take a while.

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Business travel hot spots – or not?

July 22, 2015

India is one of six countries seen as business travel “hot spots” next year. (Image: Jim Glab)

While business travel worldwide continues to show a steady recovery from the dark days of the great Recession, some countries are emerging as “hot spots” where prices will increase more than in others.

That’s the conclusion from the new 2016 Global Business Travel Price Outlook issued by the Global Business Travel Association Foundation and Carlson Wagonlit Travel.

It said that air travel costs will remain mostly flat next year — increases of one percent or less — except in six nations where it sees “increased business travel demand…driving significant air price increases.” Those countries are India, China, Colombia, Mexico, Singapore and Australia, where air fares are expected to grow by 2.6 to 3 percent, the study said.

The researchers said the same is not true of hotel rates, which are likely to show significant increases worldwide “because demand is overtaking supply in every major global region.” The study predicts hotel price increases of 4.3 percent in North America next year, driven by heightened business activity in the Bay Area, Los Angeles and other major cities.

Hotel rates are likely to grow by 3.7 percent in Latin America and 3 percent in Asia Pacific nations, but only 1.8 percent in Europe, the Middle East and Africa, GBTA said.

The full report is available free through the GBTA website.

GBTA also suggested on its blog that in looking at the U.S. data, the highest projected hotel price increases for 2016 appear to be in cities where the “tech and entertainment industries” are dominant — e.g. 12 percent in San Jose, 8.8 percent in San Francisco, 7.8 percent in Los Angeles — while cities with a wider or more traditional business base will see hotel rates “barely keeping pace with inflation” — such as a projected 1.0 percent increase in New York and 2.0 percent in Washington.

That may be, but in considering only the demand side of the equation, GBTA is neglecting the other big driver of price changes: Room supply. The number of available hotel rooms is notoriously tight in San Francisco, which has seen prices spike in the past couple of years; and it has expanded considerably in New York in recent years with a large number of hotel openings.

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