=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2002/12= /15/TR120826.DTL ---------------------------------------------------------------------- Sunday, December 15, 2002 (SF Chronicle) Leisure travelers pay price for business fare reduction Ed Perkins American Airlines' stab at a new price structure, intended to lure business travelers back, is likely to be bad news for consumers -- and especially for seniors. Business fares are down, and to offset those cuts, leisure fares are up and senior fares are out. So far, American is testing the new fares on only 23 routes, but if management likes the results, you can expect a system-wide rollout fairly quickly. And if other giant airlines copy American's move, leisure travelers will almost certainly be paying more for air travel, at least on those lines. Fortunately, odds are that the low-fare airlines will stay with their mo= re senior-friendly pricing. More than ever, senior travelers should look to AirTran, America West, American Trans Air, Frontier, JetBlue and Southwest for the best deals. A few months ago, I noted that the country's giant airlines were dropping an "Imelda's closet full of shoes" on senior travelers. Unfortunately, there are lots more shoes in the closet, and American has dropped another. >From the previous 15 to 20 fares on each route, the carrier cut the total number of fares to just five, with no senior fare. And the lowest of those five are generally higher than the lowest fares were before the change. To show how it works, between Dallas and Los Angeles, the unrestricted (business) fares dropped from $1,073 to $647 each way, while the minimum, year- round, round-trip leisure fare rose from $258 with a 14-day advance purchase to $350 with a 30-day requirement. Most of the industry focus on American's new "simplified" fare structure has been on the top business fare, with no restrictions. Those business fares dropped by about 40 percent, a move widely applauded by industry pundits. By dropping the unrestricted fares, goes the conventional wisdom, the airlines will wean business travelers away from the more restricted cheap fares they've been using. But what's good for business travelers is often bad for leisure traveler= s. And in this case, American has put a quadruple whammy on senior travelers: no more senior fares, higher bottom-end prices, a longer advance-purchase requirement and a shorter maximum stay. Which of those changes is worse depends on your particular travel patterns, but all four are bad news. The last time American made a similar move, other giant lines turned it into a full-scale fare war. This time, however, might be different. Although the other giant lines immediately matched American on the 23 test routes, none of them cut prices below American's levels. As I'm writing this, those industry pundits are hoping the other lines will follow American's lead rather than again scuttle the idea. My guess is that there's at least an even chance that the new structure will hold, at least for a while. If American's move touches off a wholesale move to similar pricing, seni= or travelers are going to have to be savvy to avoid being hurt. Here are some options: -- Low-fare lines America West and Frontier still offer senior discounts, and they haven't (yet) raised the minimum fares on which those discounts are based. -- Southwest still offers published senior fares for travelers age 65 or over that are unrestricted -- an advantage that is more important than ever, given American's move to a 30-day advance-purchase period and 30-day maximum stay on its lowest fares. -- America West still sells senior coupons -- a very good deal for long- haul travel. -- Other low-fare lines continue to offer good any-age deals, generally without that onerous 30-day requirement. -- The opaque online sites, Hotwire and Priceline, will continue to undercut the giant lines' advertised prices, usually without any minimum advance-purchase requirement. Senior travelers can still find some good airfare deals, even if they ha= ve to work harder at it. If the giant lines continue to ignore you, try one of the many that still value your business. E-mail Ed Perkins at eperkins@mind.net.=20 ---------------------------------------------------------------------- Copyright 2002 SF Chronicle