Friday, November 21, 2008
What Kind of Airline Am I Flying?
When air travel is discussed in the American media, it seems that certain buzzwords are thrown out quite a bit. "Legacy Airlines," "Low Cost Carriers," and "Ultra Low Cost Carriers" get thrown around quite a bit. But explanations over what those terms mean seem to come few and far between. So, in a quest to end some confusion, here's a list of the three main types of airlines flying the skies and examples of each.
1. Legacy Airlines
Legacy Airlines is a buzzword that has been thrown out a lot recently. These tend to reflect airlines with long histories that have a large route and feeder structures. They also have a tendency to have a large international network and will have at least two classes of service on most flights. These are the big, mainstream airlines that most people have heard of for years. They used to differentiate themselves by greater service on board flights than other airlines, although economic challenges have ended that practice by and large. Part of the challenge that legacy airlines face has to do with the baggage that comes with a long history. Long term loyalty to a business does have some higher costs, as well as retirement and healthcare expenses that can handicap the bottom line as well.
In the US, the main legacy airlines consist of American, Delta, Northwest, United and Continental. US Airways could be a legacy airline, but they are changing their business model (although not necessarily their reach) to a hybrid between a low cost carrier and a legacy airline.
2. Low Cost Carriers
Low cost carriers are airlines that offer some limited services, but have limited routes as well. They are able to keep costs lower and as such are able to offer somewhat lower fares than the average airline. Many of these airlines will cap out their highest fares as well. In many cases, Low Cost Carriers actually offer more or better service than their legacy counterparts. Having a limited route network and having fewer stations to service and newer planes make this possible. Many of them offer in seat entertainment across the fleet. Some offer no entertainment but allow you to check baggage for free, something that is now history among the legacy carriers. Low Cost Carriers generally limit themselves to domestic flights or some limited international flights (generally Canada or the Caribbean and Mexico.)
The largest or best known Low Cost Carriers in the US consist of Southwest, JetBlue, Alaska, Virgin America and Frontier. There are a couple international carriers that would qualify for this status as well, Icelandair, which services a variety of Northern and Western Europe airports through its Reykjavik hub and Aer Lingus which does the same through Dublin.
3. Ultra Low Cost Carriers
The Ultra Low Cost model is a difficult one to see work. The flights themselves generally don't make money, the money is made in ancillary revenue. On board sales, extra fees, charging for privileges for example. There are very few airlines that have made this model work, and the history books are littered with ULCC failures, most notably Skybus which crashed and burned a mere 10 months after launch earlier this year. Your ticket gets you a seat and nothing else. Need to check a bag? That's extra. Want a specific seat? That might cost extra too. Food or a drink? Get ready to pay.
The only Ultra Low Cost Carrier that has had any degree of success within the US is Spirit airlines which offers fares for as low as $2 plus tax. Add in the extra fees though that you might need and it might not be any cheaper than anyone else. In Europe, Ryanair is the king of the Ultra Low Cost Carriers.
Ryanair has managed to maintain consistent profitability even in times of exceedingly high fuel costs. Fees play a big part of that - for example, a ticket from Dublin to London cost 1 Euro this October. For the American making that reservation, there was a 5 Euro fee to check in because online check-in was only available to EU citizens. Checking bags cost another 20 Euros, and then there was a separate 5 Euro fee to talk to the baggage handler who checks in your bag. All said and done, the flight ran a total cost of about 40 Euros ($55). Still somewhat cheaper than the average flight that day, but not nearly the steal that the 1 Euro fare originally indicated.
1. Legacy Airlines
Legacy Airlines is a buzzword that has been thrown out a lot recently. These tend to reflect airlines with long histories that have a large route and feeder structures. They also have a tendency to have a large international network and will have at least two classes of service on most flights. These are the big, mainstream airlines that most people have heard of for years. They used to differentiate themselves by greater service on board flights than other airlines, although economic challenges have ended that practice by and large. Part of the challenge that legacy airlines face has to do with the baggage that comes with a long history. Long term loyalty to a business does have some higher costs, as well as retirement and healthcare expenses that can handicap the bottom line as well.
In the US, the main legacy airlines consist of American, Delta, Northwest, United and Continental. US Airways could be a legacy airline, but they are changing their business model (although not necessarily their reach) to a hybrid between a low cost carrier and a legacy airline.
2. Low Cost Carriers
Low cost carriers are airlines that offer some limited services, but have limited routes as well. They are able to keep costs lower and as such are able to offer somewhat lower fares than the average airline. Many of these airlines will cap out their highest fares as well. In many cases, Low Cost Carriers actually offer more or better service than their legacy counterparts. Having a limited route network and having fewer stations to service and newer planes make this possible. Many of them offer in seat entertainment across the fleet. Some offer no entertainment but allow you to check baggage for free, something that is now history among the legacy carriers. Low Cost Carriers generally limit themselves to domestic flights or some limited international flights (generally Canada or the Caribbean and Mexico.)
The largest or best known Low Cost Carriers in the US consist of Southwest, JetBlue, Alaska, Virgin America and Frontier. There are a couple international carriers that would qualify for this status as well, Icelandair, which services a variety of Northern and Western Europe airports through its Reykjavik hub and Aer Lingus which does the same through Dublin.
3. Ultra Low Cost Carriers
The Ultra Low Cost model is a difficult one to see work. The flights themselves generally don't make money, the money is made in ancillary revenue. On board sales, extra fees, charging for privileges for example. There are very few airlines that have made this model work, and the history books are littered with ULCC failures, most notably Skybus which crashed and burned a mere 10 months after launch earlier this year. Your ticket gets you a seat and nothing else. Need to check a bag? That's extra. Want a specific seat? That might cost extra too. Food or a drink? Get ready to pay.
The only Ultra Low Cost Carrier that has had any degree of success within the US is Spirit airlines which offers fares for as low as $2 plus tax. Add in the extra fees though that you might need and it might not be any cheaper than anyone else. In Europe, Ryanair is the king of the Ultra Low Cost Carriers.
Ryanair has managed to maintain consistent profitability even in times of exceedingly high fuel costs. Fees play a big part of that - for example, a ticket from Dublin to London cost 1 Euro this October. For the American making that reservation, there was a 5 Euro fee to check in because online check-in was only available to EU citizens. Checking bags cost another 20 Euros, and then there was a separate 5 Euro fee to talk to the baggage handler who checks in your bag. All said and done, the flight ran a total cost of about 40 Euros ($55). Still somewhat cheaper than the average flight that day, but not nearly the steal that the 1 Euro fare originally indicated.
Labels: airlines, legacy airlines, low cost carriers, ryanair, tips, travel, ultra low cost carriers
Monday, November 17, 2008
Cheap Date: New York City
The greatest cities in the world are often some of the most expensive cities in the world to stay in. However, with a little know how, and a sense of adventure, a great vacation in a world-class city can be made on a tin can budget. This is the first of an occasional series on this world traveler to show just how easy it can be. This week: New York City.
Housing
For a city of 8 million, affordable hotel availability seems relatively scarce. Even a Holiday Inn Express can run upwards of $200 a night on any given weekday. Staying across the Hudson in New Jersey might save you some cash, and looking into hotels near JFK airport might also save you some money, even though they are quite far away from most of the sights and scenes of the New York City that is worth experiencing. For the more adventurous, Loftstel might be the right place to stay. No private rooms, all bedrooms are shared with at least three other people, the stay seems like its in its own enclosed NYC house with gorgeous kitchen accomodations, free wi-fi and a lot of other extras. Starting at $25 a night, it might just be one of the best bargains out there in New York City.
Food
New York City is home to many of the world's best restaurants and any kind of food can be found here. If there was one thing worth splurging on in New York City, it would be the restaurants. But if the budget is tight, there are a number of places worth visiting.
The best fries in the city are undoubtedly at Pommes Frites off St. Marks. The regular size is extremely filling and affordable. It's possible to get filled with potatoes and any of 40 different frites sauces for under 6 dollars. Strongly recommended: the "Frites Sauce," a danish tangy mayonnaise that's available for free with the purchase of an order of fries.
Dirty water dogs are available at every street corner for about a dollar or two and they are quintessentially New York. They also may get you a little sick. For something that's an NYC hot dog tradition, skip the overpriced dogs at Nathan's and head to Gray's Papaya (3 locations in Manhattan including 37th Street and 8th Ave, just off the A/C/E subway lines at 34th st) for the "Recession Special." Two dogs and a drink for $4.45. Worried that the recession will be over before the visit is possible? No problem, the recession special is even available in boom times.
Looking for something with more bite? Try Oasis, in Williamsburg, Brooklyn. Amazing falafel, schwarma and just about everything else. Pricing is extremely reasonable too for a great takeout meal in one of the most happening neighborhoods in the city. (On 7 Street, just off the L train at Bedford Ave)
Getting Around
The best and cheapest way to get across New York City cheaply is the subway system. Day passes are available for just $7.50 and this will get you unlimited access for the day. Also, get a great view of the Statue of Liberty without paying to get there by taking the Staten Island Ferry from Manhattan to Staten Island and back. The ride is free and offers some wonderful views.
Things To Do
There's so much to see and do in New York City, and much of it is cheap or free. Central Park, Rockefeller Center, Coney Island, Times Square. All those places are worth hitting up and they don't cost a dime. A lot of museums have free admission occasionally as well. The Museum of Modern Art on 53rd Street is free on Friday evenings, and the New Museum on the Bowery in SoHo is free on Thursday nights. Also in more than a handful of spots in the city, ice skating is possible during the winter for just the cost of skate rental.
Looking for nightlife? That's a bit more costly, but there is one spot in Williamsburg where there's always live entertainment and never a cover charge. Pete's Candy Store in Williamsburg (Lorimer Street, off the L train at Lorimer) hosts three or four performance a night ranging from indie rock to poetry readings and spelling bees. Plus $2 drafts for happy hour. It's one of the best values and most pleasant venues in the city.
There's plenty to do for very little money in New York City, enough to easily fill a weekend. NYC can definitely be a cheap date.
Housing
For a city of 8 million, affordable hotel availability seems relatively scarce. Even a Holiday Inn Express can run upwards of $200 a night on any given weekday. Staying across the Hudson in New Jersey might save you some cash, and looking into hotels near JFK airport might also save you some money, even though they are quite far away from most of the sights and scenes of the New York City that is worth experiencing. For the more adventurous, Loftstel might be the right place to stay. No private rooms, all bedrooms are shared with at least three other people, the stay seems like its in its own enclosed NYC house with gorgeous kitchen accomodations, free wi-fi and a lot of other extras. Starting at $25 a night, it might just be one of the best bargains out there in New York City.
Food
New York City is home to many of the world's best restaurants and any kind of food can be found here. If there was one thing worth splurging on in New York City, it would be the restaurants. But if the budget is tight, there are a number of places worth visiting.
The best fries in the city are undoubtedly at Pommes Frites off St. Marks. The regular size is extremely filling and affordable. It's possible to get filled with potatoes and any of 40 different frites sauces for under 6 dollars. Strongly recommended: the "Frites Sauce," a danish tangy mayonnaise that's available for free with the purchase of an order of fries.
Dirty water dogs are available at every street corner for about a dollar or two and they are quintessentially New York. They also may get you a little sick. For something that's an NYC hot dog tradition, skip the overpriced dogs at Nathan's and head to Gray's Papaya (3 locations in Manhattan including 37th Street and 8th Ave, just off the A/C/E subway lines at 34th st) for the "Recession Special." Two dogs and a drink for $4.45. Worried that the recession will be over before the visit is possible? No problem, the recession special is even available in boom times.
Looking for something with more bite? Try Oasis, in Williamsburg, Brooklyn. Amazing falafel, schwarma and just about everything else. Pricing is extremely reasonable too for a great takeout meal in one of the most happening neighborhoods in the city. (On 7 Street, just off the L train at Bedford Ave)
Getting Around
The best and cheapest way to get across New York City cheaply is the subway system. Day passes are available for just $7.50 and this will get you unlimited access for the day. Also, get a great view of the Statue of Liberty without paying to get there by taking the Staten Island Ferry from Manhattan to Staten Island and back. The ride is free and offers some wonderful views.
Things To Do
There's so much to see and do in New York City, and much of it is cheap or free. Central Park, Rockefeller Center, Coney Island, Times Square. All those places are worth hitting up and they don't cost a dime. A lot of museums have free admission occasionally as well. The Museum of Modern Art on 53rd Street is free on Friday evenings, and the New Museum on the Bowery in SoHo is free on Thursday nights. Also in more than a handful of spots in the city, ice skating is possible during the winter for just the cost of skate rental.
Looking for nightlife? That's a bit more costly, but there is one spot in Williamsburg where there's always live entertainment and never a cover charge. Pete's Candy Store in Williamsburg (Lorimer Street, off the L train at Lorimer) hosts three or four performance a night ranging from indie rock to poetry readings and spelling bees. Plus $2 drafts for happy hour. It's one of the best values and most pleasant venues in the city.
There's plenty to do for very little money in New York City, enough to easily fill a weekend. NYC can definitely be a cheap date.
Labels: budget travel, cheap date, cities, hostels, new york, new york city, tips, travel
Tuesday, November 11, 2008
Cruise Value Center folds: 3 Ways to Protect Your Investment
Sources tell me that long time wholesale agency Cruise Value Center went out of business yesterday after about 15 years in business, taking with it about 75 jobs. Apparently the entire office was let go midday yesterday, but the website is still up although there is no longer any answer to their phones. Cruise Value Center was one of the largest wholesalers in the country, placing about 100,000 passengers on cruises and tours annually. Many of these people may be affected. To the extent that they are may not be so clear yet.
However, if affected by this closure or any closure - the following steps can be taken to minimize any loss.
1. Check your reservation with your travel provider (Cruise Line, Tour company, etc.) directly.
Your reservation may be paid in full with the travel provider in which case, you're fine. Your trip is still safe and there will be no problems on your vacation - especially if you already hold your tickets or are able to print out your documentation from the travel provider's website. This means that your reservation is considered paid in full and in good standing. Although you may want to review your standing with your travel provider, generally you will be fine. Any additional amenities, however, that were promised with the vacation will probably not materialize.
2. Check your Credit Card statement This is probably the most important part of the equation, especially if your reservation doesn't show paid in full with your travel provider. It is entirely possible that your travel agency charged full or final payment to their account, planning to send net payment due to the travel provider at a later date. If your agency is out of business, this was most likely not done. If your travel agency charged your card within the last 60 days for full and final payment, but the travel provider has not received the payment, don't waste any time at all, but rather call your credit card and dispute the charges immediately. The sooner you can dispute the charges, the sooner you can get that money back. Time is of the essence here, because if the charge is seen as too old, you're stuck with the loss.
3. Ask the travel provider for help directly.
In some cases, your cruise line, airline, or hotel may not help you. But given the current economic climate, they may take steps to at least guarantee your reservation if its not paid in full and give you an opportunity to pay the reservation in full with them. It never hurts to speak with them and ask them for these opportunities. Ask for the customer relations department at most travel provider's reservation lines and you'll be on the right track.
Unfortunately, a lot of people might be financially affected by a travel agency closure. As the economy gets ugly, a lot of agencies that thrive on discount rates will come close to calling it curtains. These are three simple tips that might help if this situation occurs but they are by no means gospel on how to handle a situation like this.
UPDATE: 11/13 5 PM- So more information has been dribbling out of this mess as we speak. Apparently up to $4 million of travelers' money never made it to the travel and insurance providers for services purchased. So a lot of people have been affected by this problem.
If you have been affected, you should contact your cruise line. Some of them have separate hotline desks Here's a partial list.
Carnival - 1-800-327-9501 for regular reservations: ext 70041, for group reservations: ext 70030
Royal Caribbean - 1-866-562-7625 and ask for resolutions
Holland America Line - 1-800-426-0327 (no special desk has yet been set up)
Celebrity - 1-800-647-2251 and ask for resolutions
Princess - 1-800-PRINCESS and ask for Customer Relations
NCL - 1-866-234-7350 and ask for a supervisor. There is no desk yet, but they are assembling one. (NOTE: NCL reservations were booked through sister agency Cruises of Distinction, which also apparently went out of business on Monday so they may have your reservation listed through Cruises of Distinction rather than Cruise Value Center)
Prime Travel Insurance - Contact Best Price Cruises' internet department at 1-800-344-0401. They are dealing primarily with passengers who have received letters of nonpayment on their Prime Travel Insurance policies. They will however assist with affected cruises as best as they can, although they may only be able to answer general information questions at this time on existing bookings.
CORRECTION: Apparently even the cruise lines are a bit confused with this fast moving situation and the number Carnival provided me earlier was the insurance hotline number, not the number to call regarding your cruise. This has been corrected with information that Best Price Cruises (the insurance provider hotline) has provided for me. I apologize for any inconvenience.
UPDATE: 11/20
Ten days after Cruise Value Center has shuttered their doors, they have finally made a public notice of some sort on their website, http://www.cruisevalue.com There isn't a lot of information, but they do provide a mailing address should you choose to contact them. They are not taking emails or phone calls at this time apparently.
However, if affected by this closure or any closure - the following steps can be taken to minimize any loss.
1. Check your reservation with your travel provider (Cruise Line, Tour company, etc.) directly.
Your reservation may be paid in full with the travel provider in which case, you're fine. Your trip is still safe and there will be no problems on your vacation - especially if you already hold your tickets or are able to print out your documentation from the travel provider's website. This means that your reservation is considered paid in full and in good standing. Although you may want to review your standing with your travel provider, generally you will be fine. Any additional amenities, however, that were promised with the vacation will probably not materialize.
2. Check your Credit Card statement This is probably the most important part of the equation, especially if your reservation doesn't show paid in full with your travel provider. It is entirely possible that your travel agency charged full or final payment to their account, planning to send net payment due to the travel provider at a later date. If your agency is out of business, this was most likely not done. If your travel agency charged your card within the last 60 days for full and final payment, but the travel provider has not received the payment, don't waste any time at all, but rather call your credit card and dispute the charges immediately. The sooner you can dispute the charges, the sooner you can get that money back. Time is of the essence here, because if the charge is seen as too old, you're stuck with the loss.
3. Ask the travel provider for help directly.
In some cases, your cruise line, airline, or hotel may not help you. But given the current economic climate, they may take steps to at least guarantee your reservation if its not paid in full and give you an opportunity to pay the reservation in full with them. It never hurts to speak with them and ask them for these opportunities. Ask for the customer relations department at most travel provider's reservation lines and you'll be on the right track.
Unfortunately, a lot of people might be financially affected by a travel agency closure. As the economy gets ugly, a lot of agencies that thrive on discount rates will come close to calling it curtains. These are three simple tips that might help if this situation occurs but they are by no means gospel on how to handle a situation like this.
UPDATE: 11/13 5 PM- So more information has been dribbling out of this mess as we speak. Apparently up to $4 million of travelers' money never made it to the travel and insurance providers for services purchased. So a lot of people have been affected by this problem.
If you have been affected, you should contact your cruise line. Some of them have separate hotline desks Here's a partial list.
Carnival - 1-800-327-9501 for regular reservations: ext 70041, for group reservations: ext 70030
Royal Caribbean - 1-866-562-7625 and ask for resolutions
Holland America Line - 1-800-426-0327 (no special desk has yet been set up)
Celebrity - 1-800-647-2251 and ask for resolutions
Princess - 1-800-PRINCESS and ask for Customer Relations
NCL - 1-866-234-7350 and ask for a supervisor. There is no desk yet, but they are assembling one. (NOTE: NCL reservations were booked through sister agency Cruises of Distinction, which also apparently went out of business on Monday so they may have your reservation listed through Cruises of Distinction rather than Cruise Value Center)
Prime Travel Insurance - Contact Best Price Cruises' internet department at 1-800-344-0401. They are dealing primarily with passengers who have received letters of nonpayment on their Prime Travel Insurance policies. They will however assist with affected cruises as best as they can, although they may only be able to answer general information questions at this time on existing bookings.
CORRECTION: Apparently even the cruise lines are a bit confused with this fast moving situation and the number Carnival provided me earlier was the insurance hotline number, not the number to call regarding your cruise. This has been corrected with information that Best Price Cruises (the insurance provider hotline) has provided for me. I apologize for any inconvenience.
UPDATE: 11/20
Ten days after Cruise Value Center has shuttered their doors, they have finally made a public notice of some sort on their website, http://www.cruisevalue.com There isn't a lot of information, but they do provide a mailing address should you choose to contact them. They are not taking emails or phone calls at this time apparently.
Labels: bankruptcy, cruises, help, tips, travel
