Posts with category: business

United to charge for meals on international flights

Gradual reductions to in-flight meals have finally reached the international market. It used to be that everyone on the aircraft got a meal, wherever where you were going or in what class you were. That slowly devolved to meals in first class on some long-haul flights (exception: Continental, where all meals in domestic are still free!).

Now, spurned by cost cutting measures across the industry, United Airlines has announced that they're discontinuing meal service on some of their international flights.

From Washington DC's Dulles airport, flights to Europe will now offer food for purchase instead of the standard "chicken or pasta" choices. Nine dollars will get you a salad or sandwich while six buys a snack box. I found no mention of warm food in this Bloomberg article.

To reiterate: they aren't even charging you $9 for the soggy chicken that you used to get.

As to whether the changes will be unrolled to the rest of the international legs, the airline is still not sure. They'll be taking input from passengers after this trial period to see how poorly it's received.

And poorly received it will be. On a three or even four hour flight across the country I can see how someone can gorge up on food beforehand and make it through the itinerary. But on a nine hour flight you need to eat at some point. And unless you brought a sack lunch you're going to be forced to pay whatever prices they're charging. Yes, they only take cash.

Take this opportunity to send a note to UA protesting the changes. There's still time to reverse the tide.

Whose miles are worth what where?

The FrugalTravelGuy, a man that spends far more time in airplanes and is a member of far more frequent flyer programs than myself, recently spent some time musing about airline miles and what they're now worth. With carriers making it more difficult to spend miles across the board, it's becoming an increasingly valid question -- nobody wants to get pinched out of their miles nor wants them to expire out from under them.

What Rick has done is taken a personal look at many of the airlines and ranked their quality as far as value of the current mile. Things like how many miles it takes to get status, book a ticket or redeem other goodies played into the equation and the results are fairly interesting.

His best value frequent flyer mile program? BMI's mileage program. Who? British Midland Airways is based in the UK and has limited long haul service into the United States. More importantly, they're also a member of Star Alliance, which means you can be a member of their program and earn miles flying domestically on United or US Airways.

Benefits of BMI's program include 58k top tier elite qualification (versus 75k for most domestic carriers), access to airport lounges and other generous earnings.

FrugalTravelGuy's top Domestic program? American Airlines' AAdvantage program. You can bore into the details in his article, but for now we'll round out his top domestic carriers list:

2. United
3. Continental
4. Deltwest
5. US Airways

Note, his list isn't compresensive across all carriers or nations and you do have to admit that he is one man compiling a lot of data so can be biased. But his arguments are largely on point and his reflections well thought out.

If you're interested in entering the mileage game or making your miles last, give the article a read.

Talking Travel with global development researcher Chris Blattman

Besides being a professor at Yale and an expert on poverty and global development, Chris Blattman is widely-traveled and maintains an insightful and entertaining blog. Recently I asked Chris a couple questions related to the ethics of traveling in the developing world, and what the average person can do to reduce poverty.

1. These days, more and more people are combining vacations with volunteering. They might pay a fee to live with a host family, work in an orphanage or on a farm, and return home feeling quite good about where they've been and what they've done. But do these "volunteering vacations" really do anything to improve the lives of people in the host countries?

I call it "development tourism" and I've had an ongoing debate on its merits with blog readers. Most of all I think we should recognize that the short volunteering vacation probably does more for us than the recipient. Development tourism has value, most of all because it expands a visitor's appreciation for life in a poor country. But we should not fool ourselves into believing that we can have much "impact" in just a few days or weeks. Neither should we convince ourselves this is the best use of charitable funds; the cost of the travel alone could find better uses. Plus, it's not as though there is a shortage of semi-skilled labor in poor countries ready to dig wells and build homes (more cheaply too).

I say, let's call these what they are: experiential vacations-- better than splurges in tropical resorts, but not quite impactful. The distance from development tourist to the true do-gooder is not that far, however. To make the leap, I usually recommend four options: go for weeks (or months) rather than days; go with the intent to learn, not to "save" anyone; don't displace the local private sector with your work; and identify a local community organization and continue to raise money for them when home. Sending children to school is a fine idea. But helping families or community organizations to set up income-generating activities (a small poultry or piggery operation, a grinding mill, a brick-baking outfit) is inexpensive yet can generate a stream of income for years of school fees.

Expansions in the business-class-only service

The all-business-class model for airline carriers has been a touchy subject over the last few months. With all but two of the airlines now out of business (OpenSkies and Singapore Airlines' select flights), many wonder if the original approach was a good idea.

Yet OpenSkies (EC, owned by British Airways) and Singapore Airlines (SQ) continue to press on -- and even expand. Earlier this month, OpenSkies announced that they would be adding service further into the European Union, while SQ just expanded their A340 service from Los Angeles into Singapore.

How can these carriers thrive in such tight times? How can they survive where so many others failed? Well, there's no doubt that the deep pockets of each carrier are helping ride out the storm of high oil prices. While Americans sort out their financial woes, each airline plans to build a product and loyal customer base, get the word out on their product as much as possible and fight for a place in the future market.

Things could be a little rough for OpenSkies. With the American economy suffering and the EU economy headed in the same direction, demand for business class seats is going to be dropping off pretty quick. Unfortunately, the worst may yet be to come.

According to Singapore Airlines, their business-class-only service has conversely enjoyed packed flights and thriving business.

The true gauge for each airline, regardless of their current situation, is long term sustainability independent of their parent airline or routes. If the routes fail to generate profit after a few years they will surely disappear, but perhaps if we're all lucky and the trend picks up, OpenSkies' and SQ's business-class-only flights will be here to stay.

Olympics inspired congratulatory bouquets-- Chinese style

Perhaps watching the Olympics has inspired you to congratulate the athletes in your life--or someone else with a spiffy accomplishment. Here's an idea that has an Olympics and Chinese-flavored twist.

You could give the person a bouquet of flowers with Chinese symbolism. Jim Wells wrote a post on Flora2000's blog that outlines just what you need.

  • You've probably noticed that the bouquets handed out during the medal ceremonies are red. Red is the color of good luck. Pink and yellow represent happiness.
  • The presenters also offer the bouquets with both hands which is the Chinese tradition.
  • If there is a congratulation note, it's never written in red ink.
  • Also, eight is a lucky number, so eight flowers would be terrific.
  • Don't give only four though, because four is unlucky.
  • Although yellow is a color for happiness, don't give a yellow chrysanthemum--or a white one. Those are only used for funerals.

Jim's recommendation for a perfect bouquet is one made of white and pink Oriental lilies and red roses. To be ultra classy, he says to give flowers from Europe. They are quite popular in China these days.

(At the time Jim wrote his post, Michael Phelps only had 5 gold medals. Weren't those races something to watch?)

And the dollar rallies!



If you've been in the EU or Japan any time in the last 18 months or so, you've probably walked away from a currency exchange or ATM scowling. With the American economy virtually in the dumpster, oil sky high and our trade deficit in the stratosphere (but coming down!), the value of the dollar has been plummeting like it's out of style.

While few economists can agree on whether this recession will end (or even if it is a recession, proper), what they can observe is the state of the European economies -- and apparently they're not doing well either. While their struggle with the credit crunch and mortgage crises haven't been as pronounced as the Americans', the Europeans haven't been immune to money problems of their own, most notably fuel and food prices.

So while we might be sinking further into the depths of the credit netherworld, at least the Europeans are right behind us -- and so is their currency. Against the Euro, the US Dollar has spent the last month running for the trees, gaining about 8% in thirty days with Ben Bernanke cheering from the stands. That means when you slip a hundred dollar bill under the TravelEx exchange in Heathrow you'll be getting $67 back instead of $62.

It's not too late to book that Thanksgiving trip to Mallorca.

[image courtesy Yahoo finance]

Delta to raise award ticket fees, passengers to give up on award tickets

One of the most sensitive places that airlines have been pandering for extra money in has been in their frequent flyer programs. We're well past the "I thought award tickets were supposed to be be free" argument in the airline circles -- at this point, many travelers are just in hand-on-the-forehead mode, waiting to see how high fees will go.

Award tickets have always incurred a few fees. Taxes, most obviously, are always tacked on top of "free tickets" because the airline has no control over their imposition. But recently, "fuel charges" have started to appear, ranging in prices from 25$ for domestic tickets well into the hundreds for international fares.

While booking fees for award tickets have been around on some airlines (not all of them) for a while now, Delta just decided to up the ante and take an extra gouge out of frequent flyer's pockets starting today:
  • For Award Tickets issued 21 days or more before departure date, no fee is applied.
  • For Award Tickets issued 8 to 20 days before departure date, a $75 fee is applied.
  • For Award Tickets issued 4 to 7 days before departure date, a $100 fee is applied.
  • For Award Tickets issued 3 days or less prior to departure date, a $150 fee is applied.
  • The fee is waived for Award Tickets issued from a Platinum Medallion® members' account
For example, someone needs to fly to Milwaukee this Sunday from Atlanta because his or her mother is sick. Market price? 258$ Book an award ticket on Delta? "Free" plus 150$ in taxes. Net saved, 158$ 108$. You tell me if it was worth saving up that 25,000 miles.

British, American and Iberia Airlines to sign cooperation agreement

The UK's British Airways, American Airlines and Spain's Iberia this morning announced that they would soon be cooperating on flights between North America and Europe while they would also start to collaborate and expand on other routes together in the Oneworld Alliance.

Are the airlines merging? No. But aren't they already all part of the Oneworld alliance? Yes, they are. What the airlines have agreed to is tighter collaboration among their operations. Ground operations, codeshares and mileage programs will be better integrated to ensure seamless operation among carriers (read: keep passengers hooked in the alliance), while costs and overlapping spending will be reduced.

It's important to note that the airlines will continue to operate independently, similar to the Continental and United collaboration announced earlier this year. What's not clear is whether they will be collaborating on pricing. As Virgin Atlantic, the main competition, sulks about the conglomerate having over 50% of the landing slots at Heathrow, many have noted the potential for monopolistic pricing among the new bedfellows.

So will prices actually go through the roof? Technically, less competition in the market suggests that prices may have the potential to rise -- but there are still plenty of carriers and entry points into the EU. American, British and Iberia may soon have a good handhold on Heathrow (Sorry, Virgin), but Amsterdam, Gatwick and Frankfurt are still wide open, so with a little bit of creative routing you don't have to call of your summer vacation.

Several Oneworld airlines are filing for antitrust immunity to get the ball rolling on the cooperation agreement -- should this get approved, expect to see small changes in operations over the course of the year.

Olympic watches (and much more) at Silk Street market in Beijing

Last night, one of the news commentators during the men's gymnastics All-Around competition mentioned going to the Silk Market in Beijing and seeing watches with Yang Wei's face on them. Yang Wei is the men's gold medal winner for the All-Around and the Chinese gymnastic darling.

The commentator (I forgot which one) mentioned that the Silk Market, now referred to as Silk Street, is his favorite place in Beijing, I have to say he has good taste. If you're in Beijing, it's a place not to miss. Stalls upon stalls of wonderful items.

When we were there several years ago, instead of Yang Wei's face, alarm clocks and watches with Mao's face were part of the offerings. We loaded up on handmade quilts instead, even though they are a lot more cumbersome than watches and alarm clocks to pack. I think we bought five in all, plus a large duffel bag with wheels in which to carry them.

Since I was there, the Silk Market's venue has changed from an alley to a regular five-story shopping mall. Not as funky, for sure, but from what I've read, there is A LOT more to buy and the shopping is more organized.

If you can't find Yang Wei's face on a watch, which I think would be a pretty fun and funky souvenir, and if quilts are too big for you to handle, look for items that are Chinese zodiac related. I also bought these for friends of mine whose birth year I could remember.

Zimbabwe residents turn to gasoline as currency

Tired of carrying around stacks of $50-million-dollar bills to pay for their groceries, Zimbabweans are turning to gasoline vouchers as substitutes for their hyperinflating currency.

Because the government of Zimbabwe will not allow transactions to take place in US dollars, people and businesses are finding other things of value to trade for goods and services. Gasoline vouchers, scarce food, and old coins, which have recently been revalued, are all being traded instead of the Zimbabwean dollar, which now has an inflation rate of about 50 million percent.

To illustrate how bad the inflation is, restaurant owners have been tacking on an extra 80% to the bill of customers who pay by check. That's the amount needed to compensate for the inflation that will take before the check clears-- about five days.

More here.

[HT: Chris Blattman's Blog]


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