White Collar Travel: Airline reward programs do it wrong

It’s always amazed me that airlines reward passengers for the distances they go rather than the outlay of dough. Think back to the mileage run made a few months ago by Gadling‘s esteemed top dog, Grant Martin. He sought the cheapest fare he could find to rack up the miles he needed for the next status level. The upside, of course, was another year of premier treatment, and the dollars he put out were essentially irrelevant. Meanwhile, a business traveler who spent the year dropping a few hundred bucks a week on shorter flights doesn’t get the same level of recognition, despite having spent far more. The airlines take care of the wrong passengers.

A better model for rewarding customer loyalty can be found in the hotel space. It doesn’t matter how many nights you spend in a hotel throughout the year – the points you pick up are based on the money you spend. Yet, frequency isn’t overlooked: you can amass status levels based on how often you stay. So, as long as you’re in a room, you benefit from how often you stay. When it comes to cashing in your points, you are recognized for how much you’ve spent.The doling of points based on your financial value reaches beyond the guestroom, as well. The money you spend in the restaurant, spa, gym and anywhere else translate to points. Meanwhile, the airlines only take into account how long you’ve occupied a seat. It doesn’t reflect your full value to the company.

For the airlines, the upside of a more appropriate award system could be greater than they realize. Even though business travelers rarely spend their own money on tickets, they do decide which airlines they’ll take. So, they control the cash, even if it isn’t their own. By thanking passengers in accordance with the financial commitments they make, the airlines could shift how they distribute their goodwill and turn unwilling passengers into regular fliers … and vocal advocates.

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

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.

Status seekers pulling back

It’s not just the travel companies’ bank accounts getting hit in this market – loyalty programs are getting spanked, too. The management consultants, investment bankers and attorneys – now fewer in number than a year ago – who accumulate elite status quickly aren’t spending as much time on the road. With considerably less travel time being logged, the folks who used to have platinum status on multiple airlines and in multiple hotels aren’t hitting the same levels they have for the past several years.

A study by Colloquy, which conducts marketing research for loyalty programs, showed that loyalty program membership dropped 28 percent in the travel industry. In 2007, the average traveler belonged to 2.8 of these programs. Now, it’s down to merely two. Lower- and middle-income men are being cited as the source of the decline, as they’ve been hit harder by layoffs.

Additionally, active participation in loyalty programs is down almost a third. This year, the average traveler is participating actively in 1.5 programs – a year ago, it was 2.2. Among the wealthy, this type of engagement fell 13 percent – from 2.3 programs down to two.

According to Colloquy, travelers are focusing on fewer programs and looking to get as much as they can out of them, rather than spread around their travel with the knowledge that they’ll have enough to reach and maintain high statuses with several travel companies.

Update on your Northwest and Delta miles

As we barrel forward into 2009 and the processing merger between Delta and Northwest Airlines, small facets of the company are slowly being integrated. Just a few weeks ago, the first NW 747 was repainted in DL colors, and ever so gently the NW routes are starting to disappear.

Throughout the year, mileage accounts between the two airlines will also be integrated, with the joint rules pulling from both carriers current programs. Here are the basics:

  • Miles from each program are safe.
  • Partway through this year you’ll be able to transfer miles between each account at no cost. You won’t be able to transfer elite miles, but before year’s end they should be integrated. So miles on each airline will count towards 2010 status on the new, merged airline.
  • New award fees for non-platinum members will be instituted. Booking award tickets:
    • Outside of 21 days of travel = free
    • Between 8 and 20 days = $75
    • Between 4 and 7 = $100
    • Inside of 3 days = $150
  • A new award tier asking for more miles with “better availability” will be offered. You can check that out here, but effectively if you want better flexibility with your tickets you’ll now need to cough up 30-40% more miles.
  • All passengers will now be able to earn elite status with segments.

Are these changes for the best? Most passengers I’ve listened in on are unhappy with the new fees and award tiers, but I think they’re being a bit gloomy.

I concede that in 2009 it will be harder to spend your Skyteam miles, however, so if you’re thinking about booking a ticket this year, it’s never too early to start looking.

Got a question about your miles? Shoot us a note at editorATgadlingDOTcom and we’ll try to help out.

Take a shortcut to Hilton Honors Gold Status

Reaching the upper tiers of any travel related rewards program almost always takes money, time, effort, money and money — the rewards reaped should only be for the profitable consumer, right?

Occasionally, however, programs release shortcuts — ways that guaranteed high-dollar users can skip up a tier and enjoy the benefits — so that they can lock in a particular demographic or company. And when those shortcuts get published? That’s when people like you and I can sneak in from the back door.

Apparently, Canadian Aeroplan members were offered just this for the Hilton Honors program. From what I hear, by going to this link at the HHonors website, they could plug in code “CTHC”, sign up for an account and be catapulted all of the way up to Gold status. What a great shortcut. Not that I’ve tried it. But I hear it works great.

In case you’re wondering what the benefits of Gold status are at the Hilton family of hotels, membership gets a few nice small perks at checkin. Among the goodies are two of my favorites: access to the concierge level (where available), its free snacks and drinks, or free wireless internet among the network of hotels. Those alone are worth trying to get Gold status.