Fee-Fi-Fo-Fum Part V

When it comes to charging for checked luggage, Delta has some good news and some bad news. The good news is that Delta passengers can still check one bag for free. But for those who travel heavy, it's going to get pricey. Delta has just upped its second bag fee from $25 to $50. A third bag will cost $125 and a fourth will cost $200. The new fee structure goes into effect for tickets purchased on or after August 1.

First-class and some other favored Delta passengers will be able to continue to check up to three bags for free.

What's Up in Albania

If you are interested in reading about how tourism is developing in Albania, please check out my article at National Geographic Traveler's blog. The address is www.intelligenttravel.typepad.com. The entry was posted July 16, 2008.

Boarding Pass or Billboard?

Can a boarding pass be a billboard? Apparently, it is so, according to cash-starved airline executives. You have gotta love the creative twists and turns airline executives are taking as they scheme up new ways to make money. The latest twist in the revenue ramp-up is the addition of ads on the boarding passes that passengers print up at home. That's right--valuable printer ink will now get consumed publishing advertising for the airlines.

Of course, the airlines would have us believe that new policy is merely a service for passengers. For the boarding pass that's printed will be highlighted with targeted ads, coupons, and shopping and dining recommendations based on where passengers are going. People can opt out of printing the ads. On the other hand, they can also choose to provide the participating airlines (Continental, Delta, Northwest, United and US Airways) with a host of information in order to get ads that are specially personalized. Of course, this option is also likely to get people bombarded with unwelcome e-mail blasts as well.

The five participating airlines have minority stakes in Sojern, the Nebraska-based start-up that's behind this venture. While revenues will be split among the concerned parties, the potential size of the purse is unknown. Sojern figures 40 percent of 700 million annual flight check-ins are conducted online, leading to 280 million blank billboards. Methinks Sojern overestimates that percentage, and neglects to take into account those who will opt out of the game. Time will tell if this commercial scheme goes the way of advertising on airsickness bags.

Las Vegas a Loser in the Airline Wars

The last few years were a tourism jackpot for Las Vegas. Visitor numbers were up, gaming revenues were up, and room rates were up. Consequently, lots of new hotels were going up as well. But now, thanks to major cutbacks in air service, Las Vegas may be seeing an end to its tourism winning streak.

US Airways, Delta and United recently announced service cuts to McCarran International Airport. The US Airways cutbacks alone will reduce capacity into Las Vegas by 7200 seats a day. Flights that continue into the city will cost about 20% more. Furthermore, drive-in business (Los Angeles a huge drive market) is on the decline as a result of high gas prices.

The Las Vegas Convention & Visitors Authority recently released its April tourism data. It shows drops in visitor volume, room rates, occupancy rates and gaming revenue for the first four months of 2008. Room rates declined 4% to $132.74 and gaming revenue was down 2.6%. And those numbers were posted before airline cutbacks were announced.

The only number on the rise in the April data was new room inventory. That figure is going to continue to increase throughout the rest of the year. By early 2009, there will be an 18% increase in rooms, with more than 11,500 rooms coming on-line. Yet, some analysts are expecting visitor numbers to decrease about eight percent this year. So, demand is going down just as a half dozen new hotels are opening. That means hotel operators will be forced to strip back rates and Las Vegas, which in recent years has gone upscale, may become a bargain destination once again....for those who can afford to get there.

Mr. Bill: Priceless

Apropos of nothing, kudos to MasterCard for bringing back Mr. Bill. Oh no, I'm showing my age, but Mr. Bill was one of my favorite Saturday Night Live bits way back when. For those who don't remember Mr. Bill, he was a little clay figure who was regularly subjected to humiliation, torture and angst at the hands of Mr. Hand. As he gamely endured his trials and tribulations, he would wail "Oh, noooooooooooo" in falsetto exclamation.

It's interesting that MasterCard has chosen to revive Mr. Bill for this summer's version of its "Priceless" ad campaign. After all, Mr. Bill's catchphrase seems to be a mantra for this year of economic woes. What current day consumer can't relate when Mr. Bill is scalded by hot coffee ("coffee-$2")*; hit by a briefcase ("briefcase-$120); and sent out an office window to find himself splat on a windshield of a city bus. Just as Mr. Bill comments, "Hey, the bus is right on schedule," the windshield wipers go into gear. Oh, noooo. Still, for Mr. Bill, what's priceless is making it through the day.

I wonder if MasterCard first pondered a Mr. Bill scenario where he's going to take a flight. After all, doesn't every airline traveler feel a bit like Mr. Bill these days, with the airlines playing the role of Mr. Hand? Baggage check--$25. Fuel surcharge--$50. Bottled water on the plane--$2. Finally, getting to your destination with your sanity intact--priceless.

To watch this priceless ad, go to www.youtube.com/watch?v=BxMqDxtjw1U

*Two dollars? Clearly, Mr. Hand is not getting his caffeine fix at Starbucks.