CONSUMER TRAVEL

Airlines, hotels use brands to gain loyalty -- and money

Major suppliers and third-party agencies continue to escalate the tug-of-war to "own" you as a customer. The prize in the tug-of-war is, of course, money.

m Airline fare "brands." Airlines are trying to "brand" their airfares depending on what extras each fare brand includes, and their websites present a menu of varied fare "brands" rather than just economy or first/business class. Of the big lines, American Airlines leads the pack, with its multilevel pricing scheme for domestic economy-class flights:

Choice is a bare-bones, lowest cost fare with no extras.

Choice Essential adds one no-charge checked bag on each trip and "group 1" boarding for an extra $58 round trip.

Choice Plus adds no change fee, 50 percent extra miles, no-charge same-day flight change and domestic flight standby, and a "premium beverage" on flights that serve alcohol for an extra $160 round trip.

More recently, Delta broke out a "basic economy" category that is completely nonrefundable and unchangeable, probably with more differentiation to come. Frontier has a similar set of options, as does Air Canada, and other lines will surely follow.

The problem here is that the only way to see all the brand options is to book through each line's website. A straightforward search on a metasearch engine such as Kayak or an online travel agency like Expedia returns only the bottom fare. But the online agents are adjusting. Expedia has announced it will start selling branded fares from "select airlines" starting in mid-2015, and the others will catch up as soon as they can. Advantage: airlines, at least for now.

m Hotel Wi-Fi. Most big midmarket and upscale chains have finally realized that "free" Wi-Fi has become a de facto necessity for almost everyone who books a room, and travelers have concluded that high-price chains shouldn't demand $15 a day or so for something budget chains regularly offer free. Last year IHC (including Holiday Inn) announced no-charge Wi-Fi for all members of its loyalty program. Marriott followed with an offer of no-charge Wi-Fi, which started Jan. 15, for Marriott Rewards members who book through the Marriott website, and elite members will get premium Wi-Fi. Starwood adopted the same plan, starting Feb. 2. And Hyatt, on Feb. 14, started no-charge Wi-Fi regardless of booking channel and loyalty status.

So far, no-charge Wi-Fi is confined to the lower-priced Hilton brands. But Best Western and most budget chains offer no-charge Wi-Fi to all comers as a matter of course. Smaller upscale chains and independents are also catching up to the trend, although you have to check each location to be sure -- and some hotels claim their "resort fees," excluded from the true rate, cover Wi-Fi. The big online travel agencies that specialize in hotels, such as Booking.com, typically indicate which hotels have no-charge Wi-Fi.

As no-charge Wi-Fi becomes virtually ubiquitous, many hotels will differentiate between base and extra-charge premium Wi-Fi. Base no-charge Wi-Fi, as I've encountered it, is OK for reading emails and looking at online text pages, but far too slow for streaming video or games that require high data rates. Depending on how you want to use it, you may still have to pay for Wi-Fi, even where it's supposedly "free."

Advantage: Loyalty programs. As long as any big chain limits "free" Wi-Fi to members of its loyalty program, join the program. Membership doesn't cost anything, and some chains offer extra benefits along with Wi-Fi.

Rental car insurance. Several big online travel agencies have started offering collision coverage for half or less than half the rental companies' charges. But there's a catch: What the OTAs offer isn't the same "walk away from it" coverage that you get from the rental companies. Instead, if your rental car is damaged, the company charges you the full cost estimate, and you then have to make a claim on the agency's insurance for a refund. And you know how insurance companies are about claims.

Advantage: A draw. Rental companies win for "walk away" coverage, third-party plans for cost. You balance the risks.

Send email to Ed Perkins at

eperkins@mind.net

Travel on 02/22/2015

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