November 13, 2014 
In This Week's Issue:

Frequent Fliers' Frustration

Many loyalty program members aren't getting the free tickets they expect - and that may matter in U.S. courts. 

 

By Rochelle Broder-Singer

 

The last time you tried to redeem your frequent flier miles or points for a free airline ticket, were you able to get the flights you wanted? According to the statistics from consulting firm IdeaWorks that we shared in last week's Latin Business Traveler, there's a good chance that no free seats were available. That's disappointing, but most airlines' frequent flier program agreements make clear that redemption of mileage or points for award tickets is "subject to limitations" or "may not be available on all flights." Does that get the airlines off the hook?

 

It might not. Research by three faculty members at the University of Miami School of Business (in Miami, Florida, U.S.) shows that many airline carriers aren't living up to their own frequent flier program agreements, from a U.S. legal perspective.

 

What do frequent fliers expect?

The researchers dug deep to determine just what airlines individually bind themselves to, contractually and through their marketing, when they offer free flights as part of their loyalty programs. They found that, despite the "limitations" or "may not be available" language, airlines do, in fact, create specific expectations when it comes to free travel. The researchers surveyed U.S. consumers to learn how often they expect to be able to redeem miles or points for a free ticket. They looked only at expectations and ticket availability at the lowest award level - which is usually around 25,000 miles or the equivalent.

 

Consumers in the U.S. expect, on average, to be able to redeem miles for a free flight more than half the time, the UM School of Business researchers found. Nearly a third of people in the survey expected to be able to redeem their miles for a free flight at least 75% of the time. But, according to IdeaWorks' data (click to see the key figures), travelers are able to get those free tickets at the lowest award level less than one-half or one-third of the time on many airlines. The airlines are creating a specific and measurable expectation that is not being met.

 

"There's a significant number of people who are absolutely mistaken in their belief about the likelihood they'll be able to redeem," says researcher Ann Morales Olaz�bal, a professor of business law the University of Miami School of Business.  

 

What might happen if someone sued?

Should a disappointed frequent flier (or a class of frequent fliers) decide to sue an airline in U.S. court for violating the frequent flier contract, the court would be required to interpret the contract in a way that is consistent with consumers' reasonable expectations, Olaz�bal adds. "This is a contract that's been written to favor the drafter, which is the airline. The program terms and conditions set up a 'take it or leave it,' or standard, form that doesn't allow for any give or take," she explains. "A court can and should use the reasonable expectations of a consumer to decide how to interpret contract obligations in such a case."

 

It's important to understand that the University of Miami research doesn't say that airlines intend to deceive flyers - only that their marketing and contracts create a reasonable expectation that is not being fulfilled. That's something to keep in mind the next time you make a purchase decision based on accruing frequent flier rewards. 


Photo by **RCB**
Holiday Inn Express: Earn up to 5,000 extra points on your next stay with IHG Rewards Club
News from our Partners
(Click the headlines to read full stories)

 

Delta

Delta Expands Porsche Gate-to-Gate Transfer Service: Will transfer select SkyMiles Diamond Medallion customers via Porsche at New York's LaGuardia Airport, Seattle-Tacoma International Airport and Detroit Metropolitan Airport, adding to existing service at Atlanta Hartsfield-Jackson International Airport, Los Angeles, New York-JFK and Minneapolis-St. Paul

 

Delta Air Lines and Virgin Atlantic launch new London-Heathrow services: Delta begins its first nonstop London-Heathrow to Los Angeles flights, taking over one daily Virgin Atlantic flight; Virgin Atlantic begins its first London-Heathrow to Atlanta flights, taking over one daily Delta flight


Explore Holiday Inn Express Hotels and Destinations: Discover the best in travel and comfort, including many newly renovated hotels.

 

 Save on Fall Fun with Holiday Inn Express:: Free hot breakfast and high-speed Internet in the U.S. and Canada, choice of pillow and savings of between 10% and 30%

  

Academic Medicine in a Top-Rated Concierge Environment: One patient explains how New York orthopedic surgeon Dr. Jonathan L. Glashow helped his shoulder injury heal

 

New Techniques Speed Healing: Board certified orthopedic surgeon Jonathan L. Glashow, MD and his associates specialize in orthopedic surgery and sports medicine

 

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High Performance Living Symposium with Jonathan Glashow, M.D. - Orthopedic Surgery & Sports Medicine

Travel News

New Airline Routes and Route Changes

Mexico, Caribbean and Central America

Sun Country Airlines will expand its winter service to include weekly flights between Minneapolis-St. Paul International Airport and St. Maarten, between Minneapolis and Manzanillo, Mexico and between Minneapolis and Rio Hato, Panama from December through April.

Sydney, Australia

 

SunWing Airlines will launch weekly seasonal winter service between Fort McMurray in Alberta, Canada and Cancun, Mexico.

 

International Connections

QANTAS will add a seventh weekly service (Tuesdays) between Sydney, Australia and Dallas, Texas from December 9, 2014 through January 20, 2015.

 

Airline Alliance News

JAL (Japan Airlines) and TAM Airlines plan to begin codeshare service on December 12. TAM will operate JAL flights between New York's John F. Kennedy International Airport and both Rio de Janeiro and Sao Paulo, while JAL will operate a TAM flight between New York-JFK and Tokyo Narita.

 

Tokyo's Skymark Airlines will begin Airbus A380 service from Tokyo Narita International Airport to New York-JFK in December.

 

Other Airline News

Grupo Viva will launch another Viva-branded low-cost carrier in Latin America by the end of 2015; the group will also take over VivaAerobus' order of 52 A320 aircraft.

 

ClipperJet Inc. has launched individual and membership private jet service between Los Angeles and New York. The program, which flies Gulfstream IV (G4) aircraft, allows frequent bi-coastal fliers to cut travel time in half and have access to up to four one-way flights per month as well as unlimited 24-hour standby access.

 

Airport News

JetBlue Airways has added a terminal extension (dubbed T5i) at New York-JFK, which is equipped with six international gates and immigrations and customs facilities and will handle the JetBlue's international flights at the airport.

 

American Airlines has consolidated operations at Los Angeles International Airport, moving all US Airways operations from Terminal 3 to Terminal 6.

 

South African Airways

Loyalty Program News

JetBlue Airways has added South African Airways to its TrueBlue loyalty program, allowing members to earn points when traveling on flights operated by SAA.

 

Club Carlson members can earn either double points or double elite-qualifying nights via stays at participating Carlson hotels through December 30.

 

HHonors members can earn double points for their second and subsequent stays at participating Hilton family hotels, through January 31, 2015.

 

Hotel News

Marriott Rewards program members will receive free, standard in-room Wi-Fi at most Marriott family hotels beginning January 15, 2015. Reservations must be made on Marriott's website, mobile app, toll-free line or via the hotel itself.

 

The Dreams Las Mareas Costa Rica is now open in the northern Guanacaste region of the country. The 447-suite beachfront resort offers conference facilities, a 44,000-square-foot pool with water slide, 10 spa therapy cabins, eight restaurants, five bars and lounges and 24-hour concierge services. 

 

Sydney, Australia by Corey Leopold; South African Airways by Aero Icarus

 

Latin Business Traveler

 Resources from Latin Trade Group 

 

Latin Trade Magazine Distribution Grows

Latin Trade magazine is now available for travelers in American Airlines Admirals Club lounges in seven additional airports around the Americas: New York's John F. Kennedy International Airport, Los Angeles International Airport, Miami International Airport, Buenos Aires Ezeiza Airport, Mexico City's Benito Juarez International Airport, Rio de Janeiro's Gale�o-Tom Jobim International Airport and the International Airport of S�o Paulo/Guarulhos.

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Editorial Assistant/Production Manager: Leslie Gutirrez

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