Best Hotel Ratings, Delta's Revolutionary
Pricing Structure
Happy New Year to you all. We are of course still digesting the horrors of the recent Tsunami. It seems that Asia cannot get a break, with one event each year seeming to impact negatively on its tourist scene (remember SARS and the Bali terrorist attack?).
In today's Travel Alert I'll discuss Delta's pricing structure introduced with much fanfare this week, and the fate of US Airways. I'll also tell you about two travel magazines now featuring their "best hotel" ratings, and my brand new newsletter to debut this month.
- Delta has announced a "revolutionary" simplified fare
structure for domestic (NOT international) travel, which
it claims will be like low cost carriers. Key features
will apparently be simplified coach fares (no more than
six), with highest fares for last minute travelers capped
at $499 each way and no Saturday night stay requirement.
First class seats will have just two prices -- $499 each
way for advance purchase and $599 each way for last
minute fares.
My interpretation: As of today, I still see 40 coach fares in certain markets. The best fares are only available mid-week -- when traffic is lowest. Some fares still have Saturday night stay requirements. Delta's partner Northwest has called this announcement "revenue negative", meaning that it will net lose money. I agree with Northwest Airlines' analysis, not least since major airlines (including Delta) do not yet have the same low cost structure as the low cost carriers such as Southwest and JetBlue.
If the new price structure does take hold and is matched by other major airlines, I don't believe there will be any significant change for leisure travelers, who already have been benefiting from lower fares as major airlines such as Delta have had to compete with the low cost carriers. Last minute business travelers could be big winners, however, as will those wanting to travel first class and willing to pay $1,000-$1,200 roundtrip for the privilege. Losers could be elite travelers trying to upgrade -- with lower first class fares, there may be fewer first class seats available.
- You are all well aware of the US Airways fiasco that
resulted in hundreds of cancelled flights and mislaid
baggage over Christmas weekend. As you know, I have been
warning for almost a year that US Airways will be
liquidated and disappear -- and I think we are now really
close to that occurrence. So, if you have not already
done so, use your last remaining US Airways miles on a
partner airline (such as United, Air Canada or
Lufthansa) -- and do not purchase any non-refundable
tickets on US Airways.
- Travel magazines Conde Nast as well as Travel & Leisure feature their "best hotels" rankings in their January editions, currently available on the newsstand. The information covers accommodations around the world, is based on surveys of thousands of travelers, and rates each property by quality of rooms, service, location etc.
My brand new newsletter Road Warrior Report will debut mid-month. Download a free sample edition by clicking here:
http://www.traveltactics.com/sample.pdf
For those of you who have already subscribed, thank you for your patience. I promise some fascinating articles that will help you on your way towards luxury for much less. If you have not yet subscribed, and want more details, click here:
Please fell free to send me your comments direct to theo@travelexpert.com.
Bon voyage--Theo
P.S. If you have enjoyed the information in this article, please be sure to forward it to a friend.
Dr. Theo Brandt-Sarif
9108 Hillboro Drive
Los Angeles, CA, 90034-1125
United States