NWA shifts frequent flier rules

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BY ERIC TORBENSON Pioneer Press

Northwest Airlines tweaked its frequent flier program Tuesday, wiping out
"blackout' dates but also boosting the minimum miles needed for free travel.
But within hours, American Airlines, which said last year that it would
eliminate blackout dates in 2003, accelerated its plan and said that it would
lift its restrictions by Feb. 1, one month before Northwest. The airline will
allow a limited number of frequent flier tickets on 14 days -- sprinkled
around major holidays -- that previously weren't allowed. Observers say
Northwest is the first to make this move, and expect other programs may
follow suit. "I can honestly say that Northwest Worldperks is the only
frequent flier program in America with no blackout dates,' said Randy
Petersen, a frequent flier guru and head of Inside Flyer, a magazine and
online service that closely watches the programs and their changes. "If
you're looking to book on those dates that are now open, I'd act fast because
it's first come, first served.' Airlines picked the dates because they
figured to be high-volume days where frequent flier seats would only cost the
carrier lost revenue from a potential paying passenger. Northwest research
showed that its sophisticated pricing computers could set aside a few free
seats without costing the carrier money. Even on the busiest flying days,
some seats were flying empty, Northwest said. The blackout dates end as of
March 1, and a bigger change begins June 1 when "off-peak' awards granted
during slower winter months will go away. Northwest is also scrapping its
off-peak domestic travel policy, which allowed travelers with 20,000 frequent
flier miles to fly free. That's 5,000 less than normal. The 20,000-point
component has been a focus of the carrier's marketing. The airline expects
some backlash, said Beth Shultis, vice president of marketing programs and
worldwide advertising. "I think some people will be disappointed,' she said
Tuesday, but the changes help simplify the program and the airline's research
showed travelers were booking more trips over the full year instead of
concentrating in the off-peak months to save a few points. The changes will
likely benefit heavy users of the program and the carrier's "elite' fliers,
who often rack up more points than they can redeem. Elites who buy business
class or first class tickets will now get an extra bonus that helps them keep
their status on Northwest. For less active users who save up points over
time, the hurdle to get free travel rises another 5,000 points, but that's
where most major carriers have had their lowest free trips awards for some
time. Some signs of upset emerged online Tuesday. Some Worldperks regulars
who post on FlyerTalk message boards called for the creation of a site called
"saveworldperks.com' that would urge the repeal of the most recent changes.
The changes also mirror actions at Northwest partner Continental Airlines,
which said earlier this month that it would end its 20,000-point "off-peak'
awards, also on June 1. Shultis emphasized that though the two programs have
reciprocal benefits, each carrier makes independent decisions about its
respective frequent flier program. Continental has not announced whether it
will dump its blackout dates. Onepass remains the perennial favorite of
frequent fliers according to Petersen's research, but Northwest's program is
gaining and in some ways exceeds Continental's. He lauded Worldperks' online
capabilities - giving statements out online and being first to let travelers
book award travel online - as setting it apart. Northwest's elite fliers seem
to get upgraded more frequently than elites in other programs, he said,
though many still say Northwest falls short in the service area, Petersen
said. "On paper it's as good a program as any, but in the past it's been the
delivery of the product where some say Northwest falls a bit short,' he said.
In a concession to frequent fliers, Northwest will give 250 frequent flier
miles for flying on a Cybersaver fare. Last spring the carrier stopped giving
mileage credit for the heavily discounted fares, lighting up message boards
with protest. Northwest will also allow members to purchase up to 7,500
Worldperks points per year to help reach award levels or to help others
increase their balance. Details on how much the points will cost weren't
available. Shultis says Worldperks had great appeal before the most recent
changes and should be even more attractive without the blackout dates. "We
took a close look at the program and found that one of the irritations we
could see was that over time there's been several layers of changes to the
program, and we thought about ways that it could be clarified a bit,' she
said.



Leo/ORD

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