1. NON AIRLINE "FREQUENT FLYER" PROGRAMS
 

How often have you tried to use reward points to book a flight, only to find there were no seats available? It may pay you to join one of the new breed of bank affiliated �Frequent Flyer� programs.

Take for example the National Australia Bank�s Gold Reward program. (Most major banks do have similar programs.) You earn points by using selected NAB credit cards. You can then redeem these points for complete travel packages including flights, car hire and accommodation.

NAB�s General Manager Cards, Fiona Wardlaw says �To be able to book a complete travel package with tickets to a show, car hire, hotels and airfares, or any combination you choose, is really a unique offer. This happens real time, no waiting for vouchers in the mail or two weeks for confirmation, simply phone through to the Gold Card Centre and choose Harvey World Travel as an option and you can book, confirm and pay over the phone.�

�Importantly, the number of points isn�t set for a particular destination, if you find a cheaper ticket it will cost less in points, or alternatively you can still book a flexible, last minute ticket and travel package."

If you prefer to use your points for �regular� Frequent Flyer travel, you can always convert them into Qantas Frequent Flyer points.

This flexibility does come at a price as it is generally more cost effective to use �regular� Frequent Flyer points. If you can secure a seat �

2. INDUSTRY NEWS
 

Bed down with Qantas

Well, we haven�t had this for a while. Rather than focusing on airfare deals, this month Qantas is pushing special offers on hotel stays. Of the some 25 special offers currently available to Qantas Frequent Flyer members (further details are available to Frequent Flyer Club members via Deal Watch), just 4 relate to award travel. The other deals are either discounted hotel stays or bonus points for staying in affiliated hotels.

We could only speculate what that means � seat shortage for frequent flyers, a way of clearing the backlog, who knows?

But grabbing a hotel deal isn�t such a bad idea either. Look at it this way, you can buy a domestic flight, milk all the points you can from it (purchasing, flying) and then spend less award points, or earn extra points, for staying at a hotel. A neat way of accumulating points while holidaying on home soil.

It is, however, a move away from flights being offered as rewards, and that�s a concern for those who believe frequent flyer programs were invented for frequent flying per se.

What if United falls?

The picture for frequent fliers attached to United Airlines and US Airways � two of the world�s largest carriers on the brink of financial collapse � is a big question mark at the moment.

If the airlines flop by running out of money (which some say could happen as early as the first part of this year), the Ansett Global Rewards scenario, but on a much bigger scale, could repeat itself.

For Australian travellers the focus would be on United, which has a decent presence down under. (In fact, according to our latest survey, 15% of readers of this newsletter are members of the United Mileage Plus program.) If the company finds a way to restructure, there�s a good chance the frequent flyer element will be retained, though it could take on a different shape, or at least the benefits may be scaled down. United had launched massive advertising campaigns to reassure its frequent flyers that it�s business as usual. But then Ansett�s �Absolutely� campaign had a similar focus.

Hopefully though, United and US Airways will strive to maintain its most precious resource � the flying clients. If not, then perhaps its competitors would seize the opportunity and lure United�s frequent travellers to its programs, by offering juicy incentives.

But that�s all speculation, at least for now.

Credit card fees held back

So the big question hanging in the air is whether Qantas and Virgin will start charging fees on credit card bookings. So far neither has made the lucrative move, which could see each transaction attract a percentage fee for the effort.

The Australian Consumers� Association is watching closely, saying if anyone is to take advantage of the recent credit card deregulations � which allow merchants to charge a percentage fee for credit card purchases � it�ll be the airlines.

But the opposite may also be true, with the airlines wanting to hold back on the fee hike, in an effort to attract more customers to use on-line bookings � a system which saves on travel agent fees and call centre maintenance costs.

Rumour mill

A rumour is going around that American Airlines is testing a new program which could see frequent flyers sharing points with their immediate family members.

The scheme American AAdvantage is apparently testing is called ShareAAmiles. The rumoured cost of transactions would depend on the amount of miles being transferred plus a $25 transaction fee.

Freddie, set, go

The Freddies are coming. The 15th annual Freddie Awards, the frequent travellers� answer to Oscars is happening in March. Now�s your chance to vote for your favourite frequent flyer program, credit card, airline and the like.

But you have to be quick. Voting closes on March 15. Go to www.freddieawards.com

And finally�

We hear Lufthansa is testing in-flight e-mail and internet access terminals.

Something for nothing?

Frequent Flyer programs were featured again on A Current Affair.

We believe that Frequent flyer programs are still the way to go for those who travel often, but it�s important not to fall into the trap of spending money just for the sake of point collection. Here are a few handy tips:

• Fly between major destinations: If, for example, you can�t get on that Gold Coast flight you�re after, check out the availability of seats to Brisbane which is only one hour up the road
   

• Fly out-of-season: Bear in mind that places like Fiji are still warm in summer, and there are no crowds
   

• Fly at off-peak times: Monday morning to Melbourne is naturally going to be full of paying businessmen, so frequent flyer seats will be harder to come by
   

• Book your flights as early as you can: If you already know the times you wish to travel, for example school holidays, you can try booking in advance to boost your chances of getting on the flights of your choice
   

• Earn points where it doesn�t cost: You can earn points without it costing you through things like travellers� cheques and your mortgage
   

• Don�t fly any more than you have to, and don�t fly for the sake of collecting points
   

• Be patient and book award flights well in advance � the reality is they�re not for instant travel � there are more points than free plane seats and that�s that
   

• Don�t spend unless you have to � there�s no point spending more money on products you don�t need for the sake of getting a free flight some time down the track. An easy trap to fall into, especially for those who don�t travel often but want to keep earning points
   

• Don�t get addicted to earning points � believe it or not, bonus point offers can be addictive. You have to keep a cool head and make purchase decisions based on your needs, rather than point bonuses on offer.

Which program for Oz?

Much has been said in recent times of the effectiveness of frequent flyer programs.

Our recent survey of frequent air travellers has shown that while many have lost confidence in airlines, they�re still willing to stick with their frequent flyer programs.

Why? Because at the end of the day it�s still better to get something in return for your loyalty.

Down under, while some of the international airlines are working hard to entice Aussie travellers, Qantas Frequent Flyer membership still offers a good deal, especially for domestic business tripsters.

By earning points on paid domestic Qantas flights, you can then redeem international flights through the airline or many of its OneWorld partners.

The biggest gripe with Qantas is availability of award seat. This is perhaps one weakness other airlines could try and capitalise on by offering more flexible award deals.

However, the tight global market for airlines means Qantas isn�t the only one struggling to keep its frequent flyers happy.

Point scoring strategy

Our discussion board is always full of interesting ideas, suggestions and plenty of questions from our readers.

Here�s one example. Many of the regular frequent flyers believe that the best strategy for point scoring is to buy local, redeem global.

In other words, collect points by buying domestic flights, and redeem them on longer, more expensive international flights. Another cost-effective strategy is to use your points to upgrade you international flights.

And don�t forget, it pays to research whether flying out of another city on an award flight (especially on international flights) works out cheaper than from your originally intended departure point.

By paying for a domestic flight to get there, you get to earn some points without the extra drain on your award flight balance. And you get a better award flight deal.

4. REWARDS AND SPECIALS FOR FEBRUARY
 

Qantas

Save 5,000 off an economy award flight between Sydney and Los Angeles in May. But you have to be quick; the offer expires February 6 and is valid for phone bookings only.

Qantas has stopped offering the bonus 1,000 book-on-line points. But award, e-deal and commercial bookings made before March 31 will go into monthly draws for a chance to win either one million points or one of four runner-up prizes of 250,000 points each.

Qantas Wine Club is offering up to 1,500 points on wine purchases. Valid until end of March, you�ll earn 750 points on the New Year six-pack or 1,500 on the New Year dozen, averaging at about $10.99 per bottle.

Air New Zealand

While Qantas has shut its extra points on-line offer, Air New Zealand is still offering up to 1000 bonus Air Points for internet bookings. But don�t hold your breath, this deal is valid only until February 15. Economy bookings get 500 points, business and first score 1000 bonus Air Points. Plus membership of the Air Points program is free.

Air New Zealand is running a kids-fly-free promotion. Book a flight from Sydney to Los Angeles and pay from $2089 twin share, plus one child per adult flies free. There�s other kids attractions thrown in as well. Travel with the family and earn big points at the same time.

Fly Buys

In another one of those hotel-pushing promotions we�ve talked about in this gazette, you can earn double points by staying at the Best Western hotels. They also have free kids discovery packs going.

Earn 100 points by using the Fly Buys card as a Telstra phone card while you�re away. For every $25 you put on the card, you�ll receive 100 points plus a whopping $2 in extra free calls.