What does it really mean?

Obviously, this is a high profile acquisition but what does it really mean to the traveler, corporations and the airports currently being served by either or both carriers?

As in any acquisition, when competition is reduced prices/fares will increase. Southwest has always been one to brag about their pricing strategy. It will be very interesting to see if they can maintain “no fees for baggage” since AirTran generates a significant amount of revenue from baggage and assigned seating fees. Our prediction? Fares and fees will increase.

As for the current cities and airports being serviced by both carriers, there will be winners and losers. For example, as a result of increased flights in Baltimore, some are already predicting an increase in jobs in Baltimore. We agree with this theory as long as the city/airport is not being serviced by both carriers. Since Baltimore is already enjoying access to both carriers the flights and jobs are already here. If anything, jobs may overlap and unfortunately, jobs may decrease. However, the cities that are not being served by both carriers are the big winners. They may see an increase in flights resulting in greater employment opportunities.

What does all this mean? This acquisition is much bigger than the above. Southwest will now enter into the largest market in the world; Atlanta Hartsfield and will finally be able to service their own backyard Dallas Forth/Worth.  The addition of these two markets brings significant opportunities to Southwest. This could finally bring the “feeder” flights for international travel that Southwest has long desired.

Southwest will need to determine who they want to be – especially, with their business model. Will they begin to charge fees for assigned seats and baggage? Are they prepared to enter the international market?

Unfortunately, with the continued consolidation taking place in the industry (United Airlines and Continental), corporations and travelers will be the ultimate losers with higher fares and fees.

If you are traveling for humanitarian or missionary purposes, using everyday published airfares could be costly—very costly. Published fares are the price available to everyone at that time. Safe Harbors division; Humanitarian Travel, has special agreements with many airlines to offer what is called humanitarian or missionary contract rates. These rates typically represent substantial savings over the published fare and over what other agencies offer. “I wish I had known about you sooner,” is something our agents hear from clients every week. The passengers assumed they were getting the best deal around—until they discovered the special contract fares available through Humanitarian Travel.

Humanitarian Travel has contracts with all the major carriers—both U.S. and international. This includes contracts with every major carrier going to Africa. Humanitarian Travel also has contracts with airlines serving Europe, Asia and the Middle East.

Most travelers know that airfares fluctuate greatly—not only day by day but sometimes even minute to minute. With these special contract fares, that fluctuation usually doesn’t occur. The airline agrees to sell a flight from point A to point B for a set price as long as the inventory is still available. The price typically doesn’t change unless the entire contract is changed.

In addition to the reduced prices, these contract fares have a number of other advantages. The tickets are refundable for most of the airlines, minus a penalty fee. One of the major airlines that Humanitarian Travel uses allows Humanitarian Travel passengers to check three bags. That is significant especially when you are bringing humanitarian supplies and materials into a country. In addition, travel dates can be changed for free on some of the airlines, offering clients greater flexibility. With some contracts, clients can actually hold space months in advance without having to make a deposit. This is especially helpful for teams that are still recruiting participants.

These special fares, however, are not available to everyone. The airlines have stipulations and those stipulations vary airline to airline. As a basic rule, you must be traveling with or on behalf of a non-profit organization that specializes in humanitarian, missions or ministry of some sort. These special fares and terms are for people going to help other people in some way. The definition of this is quite broad. It includes everything from water-well drilling, to community development, agricultural support, disaster relief, food distribution, orphan care, religious work and much more.  

In addition, those going to adopt children are eligible as long as they are working through a non-profit organization.

In general, those traveling solely for animal protection or environmental purposes don’t qualify for these rates. There are, however, some exceptions to this so it is always best to check with a Humanitarian Travel agent to make sure.

Technically, anyone traveling on these special fares must have a signed letter from the non-profit agency that lists the passenger’s name as traveling on their behalf. Airlines can deny boarding without the letter.

A Humanitarian Travel agent can explain all of these contracts and let you know what special fares and features are available for your unique situation. Just ask our agents for further details if you are a current client. If you are new to Safe Harbors Travel Group / Humanitarian Travel, make a call to 1-866-429-1325 or complete a no-obligation quote request at http://www.humanitariantravel.net/ to discover how much you can save. These special rates are available for both individuals and groups.

At a time when employers are looking for ways to save more money on business travel, the baggage fees imposed by many airlines can add up to a considerable expense. Most airlines are charging from $10 to $45 for one checked bag, and often more than that for additional bags. If your bag happens to be overweight or oversized, expect to pay even more.

Fortunately, there are ways to avoid paying baggage fees. Some are practical, while others are quite creative. First, the easiest way to ensure you don’t pay baggage fees is to pack less and use a carry-on bag only. Take a really hard, objective look at what you pack for a business trip – you’re sure to find some things that you could do without. Then, make sure your carry-on bag meets the size and weight requirements for carry-on luggage for the airline you’re taking.

Another option is to ship your bags ahead of you. This does cost money, but the cost may be no more than what you would have to spend on baggage fees. On the plus side, your bags will be waiting for you at your destination, meaning you won’t have to lug them through the airport. Just be sure to ship your bags in time for them to arrive before you do.

Bag fees are often waived if you’ve flown on a particular carrier often enough and have earned “status” with them. So whether you’re flying first class or as one of their most frequent flyers, airlines check their top customers’ bags for free. Some airlines like Delta are now allowing their branded credit card holders to check bags for free.

Finally, ask your fellow business travelers what they do to avoid baggage fees and the other new fees being introduced by airlines and hotels. Their experiences are likely to give you some new ideas for saving on expenses while on the road.

You may have read by now that United and Continental Airlines are planning to merge. Pending Federal Anti-trust approval, this could be completed by 4th Quarter 2010. With the recent approval of the Delta – Northwest merger, approval should not be far away.

What does this mean to the traveler, corporations or associations? If you are a United or Continental frequent flier, you should be very happy about the additional number of flights and reach in both carrier’s systems. Frequent flier programs could be more attractive, but be aware of potential changes the carriers could make during this transition.

Simple economics: when there are fewer players and demand increases, prices will increase. That will certainly play out in this scenario and most certainly in non- competitive markets. Domestically, look for opportunities for the low cost carriers to expand into the markets dominated by United and Continental.

Internationally speaking, the combined resources of the carriers will expand their reach, but we don’t expect fares to decrease. Also, this merger could ultimately decrease the number of flights to global locations. This could result in a decrease in options and will impact those required to utilize US carriers bound by the Fly America Act.

What do you think?

As you have heard in many circles, Spirit Airlines announced they will charge for carry on luggage starting August 1st while American, Delta, JetBlue, United and US Airways have all announced they will NOT charge for carry-on bags.

Okay, let’s think about this one. Actually, this makes some sense. The airlines live by on-time schedules and outside of weather and mechanical issues, what typically causes delays are slower boarding times with passengers trying to stuff everything into the overheads. So, if the reverse logic is used, travelers should pay for carry-on luggage and not be charged for checked-in luggage hopefully enabling the flight to depart from the gate quicker.

Actually, maybe what really happened is Spirit was the sacrificial lamb and picked the shortest straw to charge such a controversial fee. Let’s guess which airline comes out (or chooses the next shortest straw) next with a different fee. What do you think?

We have almost completed half of the year and it does not appear the travel industry vendors are seeing the turn around. Unfortunately, some industry watch dogs are predicting further tough times for the air carriers, car companies, and hoteliers. The latest estimates predict a $9billion dollar loss for all carriers globally. In fact, Richard Branson of Virgin Atlantic Airways predicts that a major US carrier will fail this year.

It is difficult to forecast the resilience of an industry so sensitive to outside influences and so reliant on consumerism. However, one thing is certain, whatever may lie ahead, vendors are looking for ways to win your loyalty.

For example, through our “Top 10 Travel Management Tips”, we offer you Tip #8. Does your company spend at least $20,000 per quarter on one airline? Many of our corporate clients are taking advantage of airline soft dollar programs and if your company travels this much it can earn free tickets and other benefits to offset travel costs. Please keep in mind; these programs do not interfere with personal frequent flier award programs.

If you are unsure or need help with the airline programs, we would be more than happy to assist. Please send and e-mail to clientservices@safeharbors.com and we can help identify your programs and eligibility.

Let us know your thoughts about the state of the travel industry!