Australia floods leave tourist industry in peril

by Sean McLachlan on


The terrible floods in Queensland, Australia, have destroyed thousands of homes, done billions of dollars of damage, and have left at least a dozen people dead. Queensland is a major coal exporter, and with the rising waters hampering shipments and flooding mines, world coal prices have risen. A major consumer of Queensland coal are Asian steel mills, which are already feeling the pinch. This has led to a rise in steel prices. That’s a double dose of bad news for the economic recovery.

Another Queensland industry has also been hard hit–tourism. The tourists have fled along with the residents, but it’s the long-term effects that are more harmful. If rising coal and steel prices hurt the economic recovery, that’s bound to hurt the tourism industry pretty much everywhere. Brisbane, Australia’s third-largest city, is the center for Australia’s Gold Coast, a major draw for Australia’s $32 billion tourist industry. Floods are damaging popular beaches and will require costly repairs. Coastal and riverside hotels and shops are being destroyed. The Brisbane Times reports that toxic materials washed into the sea could have an effect on delicate coral reefs and fish populations. With snorkeling and scuba diving such popular activities on the Gold and Sunshine Coasts, this could do long-term damage to tourism.

Meanwhile, airlines are worried about how this will affect them. Virgin Blue has already seen its shares drop by 3.4 percent today because investors fear there will be a drop in bookings. Qantas shares also dipped slightly. Airlines are issuing fee waivers for passengers who want to change their flights to, from, or through Brisbane.

It looks like Queensland residents will suffer from the flood long after the waters recede.

[Photo of Brisbane sunset courtesy user t i m m a y via Gadling’s flickr pool]

Judge blocks Sabre, gives American Airlines a break

by Tom Johansmeyer on

I guess it would make sense for American Airlines to turn to litigation. After all, this approach worked well against Orbitz.

Here’s the situation: the battle between airlines and online travel agencies escalated from the beginning of November – with American’s announcement that it would pull out of Orbitz – through the new year. The latest move was by global distribution system Sabre, which has made it more difficult for American’s fares to be found. Along the way, Expedia dropped American in a defensive move, and Delta pulled out of three smaller booking sites: CheapOair, OneTravel and BookIt.

The decision by Sabre to “demote” American Airlines had obvious business implications for the carrier, which is likely why it sought relief in the courts. As a result of a hearing held yesterday, Sabre has been blocked from limiting the visibility of American Airline flights, but there’s clearly more to come.

In addition to making it more difficult for customers to find American’s flights, Sabre also increased the fees it charges American, which would lead to an annual cost of $157 million for the airline.

Sabre maintains that it was within its contractual rights, according to an Associated Press report, while American believes the move was anti-competitive.

Five airline fees you haven’t thought about (but they have!)

by Tom Johansmeyer on

Over the past two years, the fees that airlines have figured out have been seemingly endless. Baggage and cancellations are just the tip of the iceberg. Now, passengers are stuck with a healthy dose of fee fatigue, but the good news is that there doesn’t seem to be anything left for which to charge – except maybe access to the flotation devices in the event of an emergency.

Well, don’t get too comfortable.

Despite having had a fantastic year in 2010, there are already grumblings in the airline industry about increasing fuel costs. This means, of course, that the additional expense will have to be passed along to us, the passengers, in some form. Even though we may not be able to think of (realistic) charges to levy, it seems as though the airlines have this under control, according to an article on MSN Money. Already, 19 different a la carte charges exist, and they are set to earn the airlines $22 billion worldwide for 2010.

So, the airlines want more of your money. How are they going to get it? Well, here are five ideas for them:1. Pay to talk to someone: do you need to talk to a ticket agent, or would you merely prefer to do so? Don’t worry; this perk option isn’t going away. You will have to pay for it, though, according to Jay Sorensen of IdeaWorks, a company involved in tracking consumer trends. The good news is that the only people in line will be shelling out cash for the privilege, so you won’t have to wait too long.

Alternative: if you want to talk to someone that badly, and are willing to pay for it, try online dating.

2. Pay to tote your own bags: are you ready to pay to avoid paying check-in fees? Spirit is already doing it, and most airlines in the United States have said they aren’t going to head in that direction. But, American Airlines, United Airlines and US Airways, according to MSN Money, “essentially have,” calling it “priority boarding or choice seating.” If you get a better seat you have a spot for your bags on a crowded flight. Otherwise, you’re stuck hoping for the best.

Alternative: make friends with a frequent flier.

3. Pay to take your bags overseas: we’re getting used to paying for checking the first bag on domestic flights, but we’ve been spared the humiliation when traveling internationally. That could change, though, especially since there’s money to be made.

Alternative: there’s a Paris in Illinois, too.

4. Pay to deal with your kids: so far, an infant on your lap has gotten a free ride, but this discomfort could cost you. George Hobica, of AirfareWatchdog, thinks this one could be on the list for 2011. “If the government doesn’t act to ban lap children,” he told MSN Money, “we might see the airlines make a move.”

Alternative: birth control.

5. Pay to be like everything else: back when I had platinum status on one airline and gold on another (in the same year), I came to appreciate the benefits – and this was even before the ancillary fee trend took hold. Now, status is worth even more, because it alleviates some of this fee pressure. The MSN Money article mentions that the hit could be targeted at non-elite loyalty program members, but I wouldn’t be shocked to see even the airlines’ best customers lose some of the perks someday.

Alternative: buy on price instead of loyalty.

[photo by compujeramy via Flickr]

Make a statement at the TSA checkpoint with metal-ink undies

by Grant Martin on

Tired of all of this business with patdowns, nude-o-scopes and grope-a-thons at the security checkpoint? Want to make a statement? Don’t want to strip down to your speedo to make that statement? Well then metal ink undergarments might be in your future.

Over at cargocollective.com, a series of undergarments are now on sale that use metal ink to print in their silk screening process. The ink looks and feels the same way that traditional materials do, but under an x-ray — well, they light up like a Christmas tree. This means that anyone viewing the passenger subjected to backscatter x-rays will see the metallic printing stand out.

In this case, that message is the fourth amendment, the part of the bill of rights “which guards against unreasonable searches and seizures when the searched party has a ‘reasonable expectation of privacy’.”

A great way to make a statement? Definitely. Will they prevent your special parts from being seen by the x-ray? Absolutely not. But it’s a clever trick. Among the site’s offerings are t-shirts, socks and other undergarments ranging in price from $19 to $45.

[Via Erin Drewitz]

Trade 2 minutes of your time for 150 American Airlines AAdvantage miles

by Scott Carmichael on

Mileage earning opportunities are everywhere – but they are rarely as simple as this promotion from American Airlines and Bose.

By watching a video clip about the new Bose Bluetooth Headset, you’ll earn an instant 150 miles. The video clip describes some of the highlights of this new headset, and at the end of it, you’ll be asked a simple question to make sure you paid attention. If you end up testing the headset in store, or purchasing one, you can earn up to 800 miles.

Enter your AAdvantage number, and within 24 hours, you’ll have your 150 miles. Now, we’ll admit that 150 miles are not going to get you flying for free any time soon – but they could keep an otherwise dormant account alive, or may be the final couple of miles you needed to reach a redemption point. Either way – nobody should turn down free miles!

Click here for the Bose Bluetooth headset site for the video clip and promotion.