Airline secret societies

by Tom Johansmeyer on

There’s a special type of membership level, but the airlines don’t want you to know about it … unless you’re dropping an easy $50,000 a year on full fare tickets with the same airline. The topic, which comes up from time to time, is in the headlines again thanks to the work of George Clooney and Vera Farmiga in Up in the Air.

American Airlines is mentioned in the flick, but the carrier won’t talk about the subject itself. No details have been released on how to attain these levels of air travel greatness, except the obvious: you need to be a rich frequent traveler or control a company where a lot of people are on the road all the time. The perks of this secret society include fantastic upgrades, bat-phones to experienced agents who answer on the first ring, priority check-in, lounge access and airport escorts when you’re layover’s about to go under. Simply, it translates to real customer service, a rarity in this industry.

Status has become a commodity, with double miles bonuses and other tricks helping frequent flyers amp up their accounts faster, a side-effect of airlines looking to make their passengers as loyal as possible. Because of this, anyone who wants to be a real player — e.g., American’s ConciergeKey, Continental‘s Chairman’s Circle and United‘s Global Services — will have to pierce the inner circle.

Only 20,000 of United’s 1 million program members were allowed into United’s program, which requires 100,000 miles or 100 segments. Delta is the most secretive, with Executive Partner status, which has been replaced by Diamond Medallion level status, requiring 125,000 qualifying miles or 140 qualifying segments.

Okay, so you can figure out all the basic benefits — just like every other status, only faster and bigger and bitter. And then, it isn’t hard to let your mind wander to such upsides as confirming upgrades 120 hours in advance (instead of 100 hours). But, this only scratches the surface. Forrester Research reveals that airlines know which planes have the greatest VIP density and use this to assign gate priority. A Continental passenger and Chairman’s Circle member — who took more than 300 flights and traveled more than 400,000 miles (no bonus miles tucked in there) — was able to finagle some time on an MD-80 slight simulator, because the airline values his business.

See, it is possible to get some love from the airlines. You just have to be ready to spend an absolute fortune … and make the airline need you.

%Gallery-76818%

%Gallery-79586%

Are you planning a mileage run? Four reasons to rush to the airport

by Tom Johansmeyer on

There are only a few weeks left in 2009, and frequent travelers across the country are staring more intently at their mileage statements than Santa does at the naughty/nice list. The stakes are high: miss the elite cutoff, and a year of upgrades, accelerated check-in and other perks disappear. For passengers who see gold or platinum status levels within reach, year-end “mileage runs” can make a great investment. Pay for a cheap flight, even if it is just for a night or a same-day return, and use this benefit for the next twelve months on upgrades and services that would cost a fortune otherwise.

With the low prices airlines are offering these days to bring passengers back into the cabin, the return on your investment in a “mileage run” is higher than ever. But, it’s not all to the flyer’s benefit … there’s an upside for the airlines, too. They get loyalty.

Randy Petersen, founder of FlyerTalk.com, a website for frequent travelers, told USA Today, “Whenever someone doesn’t requalify for elite status, they become free agents. And in tough times, airlines don’t want to gamble that some of their best customers will leave.” He puts the number of elite-level passengers at 7.3 million of the 210 million passengers who belong to at least one loyalty program.

So, the airlines are rolling out the red carpet for mileage runners. Here are four mileage run deals to kick around with the end of the year approaching.

1. Through December 15, 2009, American, Continental and United are doubling the elite-qualifying miles they give their passengers. So, a shorter mileage run goes a little further.

2. In the middle of next year, Continental and Untied are going to give each other’s elite passengers unlimited upgrades (based on availability) on domestic flights — and premium coach seats, too. So, if you hit the right status on either airline this year, you’ll gain even more for your efforts.

3. Starting in the spring, Delta will let you roll over extra elite-qualifying miles and credits you don’t need to reach a status level to the next year. So, you don’t have to worry about starting from zero when January 1, 2011 rolls around.

4. Delta is also adding a new top level — diamond — that will include even better perks, including free Sky Club membership.

For the frequent business traveler, especially, reaching a high elite level involves so much more than bragging rights. It defines your lifestyle for the next year — from how early you need to get up on Monday morning to your mood when you get home Thursday or Friday night. But, there are better measures to watch than up-ticks in frequent flyer accounts. My friend and former coworker from the road warrior days put it best: “The only thing better [than accumulating airline and hotel status levels] is watching them expire.” Yeah, nothing tops getting off the road for a while when you live that life.

Corporate travel databases: give morale a shot in the arm

by Tom Johansmeyer on

“Corporate,” “database” and “morale” usually don’t show up in the same sentence – at least not without some sort of negative word nestled in there. Images of tedious data entry are conjured, which does nothing for your state of mind while on the road. Yet, these words can be joined, and the resulting concept can be a gold mine for any company with legions of road warriors. Every employee accumulates knowledge while traveling. They learn which restaurants are best (and worst) in a particular city, and they develop coping strategies that their colleagues may find useful.

The curse of a travel-heavy company, of course, is that the employees don’t see each other often enough. When they do, talk turns to business first, and many of these tips remain hidden. A single place where the collective wisdom can be stored and shared can make business travel much more enjoyable tolerable while fostering communication where it might not exist otherwise.

I’m still stunned by the fact that I only saw the corporate travel database in action once during close to a decade of frequent business travel (frequent = around 40 weeks a year). It was pure genius, worked well and was used regularly. With the social media tools now available, it’s even easier than it was back then to implement the concept. Rather than a “database” in the traditional sense, a company could use a Facebook page, LinkedIn account or even a simple message board to share ideas, experiences and advice with coworkers.

So, how do you get a corporate travel database off the ground?

1. Someone needs to own it

No project gets off the ground in Corporate America without a “champion.” Clear it with whoever has the rubber stamp before pulling the trigger, and become the first contributor. Post regularly, and tell people about it – especially those who are going where you’ve already been.

2. Identify likely helpers

Find the eager beavers who will join the cause – every company has a few. Everybody wants to be heard, and this is a save and easy way to gain a voice.

3. Publicize your successes

As people take advantage of these shared tips, let everyone know, especially if there was a business impact. For example, “John Smith’s client loved dinner at Pomodoro Rosso … we was so tired of restaurants in midtown.”

4. Get granular

Simply being redundant with TripAdvisor and other user-generated content sites won’t help you out. Think local, unusual and relevant to the travelers in your company. You’re looking to solve a problem. So, find and contribute real on-the-ground intelligence. Late-night bars that will be open after a day of marathon meetings, for example, are both valuable and had to find when you’re new in town. The names of restaurant managers who are sympathetic to a little palm-greasing can be gold when you need a table on short notice. Every detail counts.

5. Respect boundaries

Know your company’s policies, and abide by them. If you use Facebook for your travel-sharing tool, be sure access is tightly controlled. Also, management needs to be on board, and the “right” people (different in every company) have to be kept in the loop. If your tool is developed properly, you’ll have one hell of an intelligence file. Just think of what would happen if it got into the wrong hands!

So many companies fail to tap the collective knowledge of their employees in so many ways. While a corporate travel database may not boost sales or share business information, it can help with morale and client entertainment (and, ultimately, relationships). Knowledgeable people become more productive, especially when they don’t have to cope with the quirks of a strange place while figuring out the intricacies of a new project. And, it’s always good to have at your fingertips the info you need to blow off a little steam. In the end, performance goes up, and people feel better about their jobs.

We have the tools at our disposal, and there’s no shortage of information. The only thing missing is the effort that pulls the two together.

Airlines: why it always has to come down to price

by Tom Johansmeyer on

Imagine what would be pretty much a perfect world, at least for airline CEOs. You’re running a reasonable profit – let’s say 10 percent, enough to keep the shareholders off their backs. And, they’re growing annually at a low double-digit rate, as well. Again, the shareholders are seeing an upside, so there’s no pressure on the airline’s management. Since the numbers being posted are healthy, the need for cutthroat competition evaporates, and passengers make their choices by destination and service, the latter playing a minor role, because in this perfect world, service is pretty much consistent (and high) from one airline to the next.

Blissful, right? Well, it’s just about impossible.

What shatters this fantasy, in which Santa‘s the pilot and the tooth fairy is pushing the drink cart, is the concept of price. The travel market – like any market – doesn’t carve itself up neatly into the best possible outcomes for all involved. Some people make fantastic decisions, while others behave like morons. The leaders of each company think they can find an edge. Even in the perfect world described above, the mere possibility of an advantage can send the whole system into mayhem, but we’ll get to that in a moment.

The perfectly coordinated airline industry has a practical barrier. Such harmonizing is also known as “collusion.” And, it’s illegal. Just imagine every grocery store in your neighborhood setting the same prices. In doing so, they could guarantee themselves a tidy profit, as long as all agree not to break ranks. Now, if the airlines did this, they could basically set the prices they want, regardless of service. In fact, if all agreed to provide shitty service for a universally high price, you’d be screwed.

A lesser form of this is regulation. The prices are fixed, and there are no secrets about it. We tried this for a while in the United States, and I’ve heard great things about the experience of flying in those days. But, the thought of the government setting prices for anything makes me a tad uncomfortable. Business owners should be free to make a profit that reflects their hard work and skill.

So, we are where we are now … which is pretty ugly. Most airlines are struggling to keep planes in the air. Bankruptcy announcements are not met with surprise (unlike profitable quarters). Even the layman, who knows nothing about the air transportation industry, knows that the airlines are screwed up. The challenge is finding where the blame needs to go and fixing the problem. While it’s pretty easy to beat up the airlines on this one, the reality is that the system as a whole is pretty close to unsustainable.

Fares sell by price
We may complain about having to pay for soda or not getting those crappy little pillows and blankets (which we complained about getting before they were taken away), but we still beeline for the cheapest flights available. Need proof? I’ve heard countless people wonder aloud about an airline that charged just a little more for something resembling customer service. Yet, those wheels never go up. Meanwhile, Ryanair plans to get rid of some seats and creating a standing room only section on its flights and will probably sell tickets for those torture devices before filling the cheap regular seats on the plane. We’re addicted to cheap. If there were real demand for anything slightly better than what we have now, it would exist.

There’s a reason fares sell by price
Sure, there are travelers with a little extra disposable income, and they’d pay for a class that’s lightly better than coach. Maybe they’d shell out an extra $50 or $100 – maybe more. But, there’s always the squeal point. The squeal point, per ticket, gets lower when multipliers are involved. I’d pay an extra $100 for a little more legroom and coffee in a ceramic mug. Seriously. I don’t need a pillow or a blanket; I really don’t even give a damn about getting a smile. I just want to stretch out a little and sip my coffee from a civilized receptacle. Here’s the problem: if I fly with my wife, that $100 luxury becomes $200. If we were a family of four, it would jump to $400. Legroom isn’t worth that much.

For the business travelers, the situation is even more severe. It’s easy to figure that these guys would go for the extras because they don’t have to pay for it. Well, that’s true. But, someone does. These guys are accountable to the people who write the checks. Would a client notice a weekly expense bill that’s $100 higher? Probably not. When I lived that life, I’d run up $3,000 to $5,000 in travel expenses a week. Flight prices changed from time to time. The $100 wouldn’t be noticed. If someone did notice, he probably wouldn’t care.

But, we have to deal with the multiplier.

If you have 100 consultants or other professionals on a project where each has a weekly flight and hotel stay for an entire year (call it 50 weeks to leave room for vacation), the money adds up fast. The extra $100 becomes $5,000 per traveler. For the entire project team, this small taste of luxury would amount to half a million dollars … which would be noticed and to which the client would object. Business travelers are constantly pressured to keep expenses as low as possible, which takes us right back to buying on price. With business travel off substantially this year, we’re experiencing this dynamic today.

Airlines have to live with this
Since customers make their decisions based on the cost of a ticket, this is how airlines have to position themselves in the market. Being the best can mean going out of business. Instead, an airline has to be the cheapest for a particular route in order to win in the market – there’s no alternative to this. That’s why people complain about the service they get; if they weren’t flying these airlines, they wouldn’t be complaining.

So, to succeed, an airline has to make the calculated decision that anything can be sacrificed in the name of low prices. Whatever misery is inflicted on the passengers, they’ll accept it – they made that decision when they bought their tickets. I’m not trying to be mean, here, just honest. We’re not talking about Santa any more.

The market has evolved into one in which passengers have little likelihood of being happy … in part because they are making the conscious decision to fly that way. As long as price is king, the airlines have few levers they can pull.

Of course, this isn’t universal. There are some airlines with excellent financial track records (Southwest comes to mind immediately), and their flights can be decent, even enjoyable. While customer service is an obvious way to make even a no-frills flight much better, there are structural problems in the industry that have to be overcome. An obvious thought is that the big airlines should cut back to be more like their smaller, regional counterparts, which tend to do a better job of running profitably.

Let’s think through this.

First, cutting some routes can cause a chain reaction of change in the vast network that an airline traces around the world. There aren’t any easy answers here, but it can be done. Many airlines have cut back on flights and cities this year and have lived to tell about it. Take it to the extreme. The large airlines carve themselves up into little guys, run their routes and post strong earnings. Unfortunately, profits are intoxicating – and shareholders will want more. Eventually, this requires growth into new markets (e.g., adding routes) or acquiring other airlines. It may take a while, but the airline industry would eventually return to where it is today … and would assume the problems it has now.

Doing the right thing, essentially, would lead the industry back to doing the wrong thing.

The exceptions to the rule
Alternatives do exist for passengers who want more than the claustrophobic experience that is coach. Business class and first class come to mind. The problem is that the gap is far too wide – both in terms of amenities and cost. Most coach passengers could be fairly happy with much less than business and first offer. Unfortunately, it’s all or nothing, and the prices reflect the “all.”

There are passengers who pay the extra cost for these improved offerings, but there’s always a reason. They may have the financial means to make the decision easy. Or, in the corporate world, they reside far enough up the food chain that corporate travel policies favor them.

The super-luxury travel market has plenty of services available for passengers who don’t buy on price. You could use an exclusive service (though many of them have fallen on tough times), get a private jet share or simply buy your own wings. Again, this is far more than the legroom and ceramic mug I’m looking for.

Of course, even these upscale services aren’t making as much as the airlines had hoped, even at lower prices.

Why even collusion wouldn’t work
Let’s circle back to where we started, that imaginary airline industry in which everything is perfect. Even that is doomed to failure. Take regulation out of the picture (that’s a whole different animal), and think about airlines in which passengers can get something slightly better than what we have now. They pay a little more, but air travel is no longer a dehumanizing experience.

Now, think about a smoke-filled backroom in which a guy with a new idea is surrounded by cigar-chomping investors.

“I have something for you. I want to start an airline. Yes, I know that the guys in the market now have gotten together to fix their prices – it’s an open secret. But, I’m not going to play ball with them. I figure we can cut prices and run at a thinner margin. What we lose per flight we’ll make up in volume. Hell, people will buy on price, and they’ll flock to us. We’ll grow like mad.

“The other airlines will try to make a play on service, on how they give a little extra legroom and coffee in a ceramic mug. But, we’ll only need to say, ‘We’re cheaper.’

“It starts with short flights. If you’re only flying from Boston to New York, do you really need the extra legroom? How about Boston to Washington? The slope is awfully slippery. Next thing you know, people will go for the cheaper fares on flights from New England to Orlando … and then Orlando to Los Angeles. Finally, they’ll cut their comfort when they cross oceans.

“And, they’ll be flying our airline.”

The investors would be fools not to drive dump trucks up to this guy and unload their cash at his feet … at first. For a while, this airline would dominate the skies. But, the others would catch on. One by one, they’d break ranks from the agreement to keep their prices high, and they wouldn’t stop until the industry looks a lot like it does today.

What the airlines can do
It looks like the airlines are out of options. They are doomed to a low-margin (at best) existence in which cost-cutting, layoffs and disgruntled passengers are the norm. A Hobbesian state of nature will always play itself out at the gate. Knees will always poke chins in increasingly compact quarters.

This doesn’t mean the airlines are powerless to make the experience better, though. Even with small seats and no meals, there are plenty of ways to win on service. A smile can go a long way. Being polite can defuse a nasty situation.

Of course, none of this addresses the cost and price pressures and their impacts on the industry. But, does anyone think that’ll ever change?

Don’t become a hermit: eight tips for solo business travelers

by Tom Johansmeyer on

Solo business travel can be downright depressing. Even if you hate team dinners (and your colleagues), don’t mind dining alone and prefer a bit of privacy, frequent individual business trips can turn you into a hermit. After a while, you socialize almost not at all, become intolerant of other people and seek out the types of conversation that can only be held in your own head. Along the way, you can become perpetually annoyed or even seriously depressed. The tendencies that characterize your personal life can invade your job performance, as well. Sucking at work can take a toll on your self-esteem, intensifying the problem. Before you know it, you’re beholden to this toxic dynamic — extracting yourself requires a triumph of the will, which is unlikely when you’re trapped by the pressure of a seemingly inescapable situation.

Prevention is really the only course of action at your disposal. Otherwise, you’re left waiting for someone else to notice the problem and pull you out of your rut. For lone road warriors, unfortunately, regular exposure to anyone is rare. Clients are most likely to realize the situation, but that’s more likely to result in a call to your boss than to you. Your extrication from the perils of solo business traveler life thus could come at the cost of a ding to your career. To avoid this, you’ll have to be, as the management gurus say, “proactive.”

Your sanity and livelihood are on the line. Fortunately, you’re inherently equipped to protect yourself, and the travel environment offers much that you can use. However, both your mind and the hotel offer plenty in the way of temptation, so try to stay on an even keel.

Here are six ways to ward off hermitdom for the solo business traveler:

1. Dinner should not be “do not disturb”
Avoid room service at all costs. Once you get a taste of the convenience, even if you have a good reason that first time, you’ll slip into the habit of eating in bed every night. It won’t take you long to have an excuse for every occasion. Go down to the restaurant. If you have access to a car, leave the property. Otherwise, you’ll start to think that meals should be consumed in hiding. Some restaurants offer a communal table for business travelers: take advantage of it.

2. Join the club
Most business travelers have some form of elite hotel status, allowing them to hang in the club-level lounge. Skip the hotel bar, and use the exclusive offering instead. Sure, the food (and sometimes the booze) is free, which is always a plus. More important is that you’ll be around people like you. Shared experiences lead to natural conversations. And, if you and the other guests in the club are on long-term projects, you may wind up with some new friends. You may have a companion for dinner a night or two a week.

If your hotel doesn’t have a club level (or if you don’t have the status yet to get in), see if it has a manager’s reception. These are not at all uncommon (I stayed at a Homewood Suites in a Nashville suburb for that had one nightly). You can snack a bit, get some free liquor and meet the other road warriers who live the way you do.

3. Seek open spaces
You don’t have to work in your room. Instead of holing up in your cave, take your laptop down to the lobby — it has all those seats for a reason. Listen to the piano player while you peck away. Or, sit by the pool. Just being around people will help you remember that they exist.

For many professionals, confidentiality is a concern, but don’t let this become an excuse. Find a seat with your back to a wall, and you should be fine.

4. Take your client out
Yes, this is like volunteering for more work, but you’ll get something out of it. In addition to maintaining some human contact, you’ll strengthen your business relationship. Forego big team dinners in favor of one-on-ones where you can get to know each other. Just be careful not to get too chummy: it’s a business relationship first.

5. Check out the local color
If you’re on a long-term assignment, join a local gym instead of using the one at the hotel. Hit Craigslist to see if there are any groups around that share your interests. At first, you’ll be plagued by the nagging thought, “But, I’d have to drive (or walk or take the subway) to go.” Think about what home life is like for a normal person, though. You leave the house all the time. It shouldn’t be any different because you’re in a hotel.

Local networking groups can be a great outlet. You’ll meet people who want to be met, and you’ll further your career … all while keeping yourself from going nuts.

6. Find a friend of a friend
You may not know anyone where you’re going, but there’s a decent chance you know someone who does. Ask around. A friend of a friend can help you get oriented and give you an occasional buddy for dinners and drinks. It may be awkward at first, but that will go away. In the end, you’ll make a new friend, and you’ll get the hell out of your room for a while.

7. Meetups and tweetups
The internet can be useful. I’m always seeing traffic on Twitter for various get-togethers. Poke around. Also, cruise LinkedIn (if your mindset is professional) and Facebook (if it’s not). There’s always something going on in just about every city, and social media can make it pretty easy to find something that will turn you on.

8. Treat yourself to a spa experience
Chances are you need it anyway. Line up a massage one evening, and enjoy human contact of the most relaxing kind. Sit in a hot tub for a few minutes afterward. Then, go back to the drudgery of solo business travel at least somewhat refreshed.