MHD and Amex Travel
Mar 5, 2001, 9:20 am
#16
Join Date: Mar 2000
Location: YVR
Posts: 9,999
I just got an urgent call from one of my office colleagues, who's got a last minute trip on YVR-YYZ. Doing an MHD will save more than half his monthly salary.
Unless he gets delayed more than 2 weeks, we're money ahead. Big time.
Unless he gets delayed more than 2 weeks, we're money ahead. Big time.
Mar 5, 2001, 9:59 am
#18
Join Date: Sep 2000
Location: OGG, YYC
Programs: AA, AC
Posts: 3,697
Ken, I think you miss my point when you compare the cost savings to the person's salary (although, half a month?? are you serious??).
It doesn't make sense to offset an expense against another expense (airfare against salary). It should be offset against revenue. Even though an employee might only cost a company $500 per day, that employee might be generating for the company $2000 per day of revenue.
It doesn't make sense to offset an expense against another expense (airfare against salary). It should be offset against revenue. Even though an employee might only cost a company $500 per day, that employee might be generating for the company $2000 per day of revenue.
Mar 5, 2001, 7:41 pm
#19
Join Date: Mar 2000
Location: YVR
Posts: 9,999
It sounds like he needs a raise
(although, half a month?? are you serious??)
However, now that our department manager has noticed that the itinerary includes a connection (that can legally become a stopover) in Chicago, he may be reassigned a task near there on the way home.
I don't have the exact number, but when I did this very same run last December the savings were approximately $5460. It would've added about 12 hours to my journey, but I took some recreational time along the way.
It doesn't make sense to offset an expense against another expense (airfare against salary). It should be offset against revenue. Even though an employee might only cost a company $500 per day, that employee might be generating for the company $2000 per day of revenue.
Not to mention the exhaustion factor. How productive will these people be after returning from such a tiring trip.
One of the issues is the fear of any complications (and liability?)
But you raise excellent points. In my warning elsewhere about the perils of the MHD, I touched on these issues, albeit indirectly. The "inordinate" amount of time, the potential complications and missed connections, and problems at the borders are all things that have to be considered.
But our work takes us all over the world -- throughout the Middle East, Asia, India, North Africa, and all over North America (including places like Newark, NJ.) The risks and/or complications of going to Mexico seem pretty tame.
Mar 5, 2001, 10:28 pm
#20
Join Date: Jan 2001
Location: Kingston, Ont, the limestone city
Posts: 975
I think if a company is generous enough to provide business class for official travels, then they have the money to avoid MHDs. Staff comfort and satisfaction are obviously more valued here.
My company, on the other hand, sends staff on economy class. They will not care if you get a bad meals on the road... All they care is that people get their jobs done. So in this case, they will book cheapest fare so MHDs will not work well either.
So keep in mind that not all companies send their emplyoees on business or first class in travelling.
My company, on the other hand, sends staff on economy class. They will not care if you get a bad meals on the road... All they care is that people get their jobs done. So in this case, they will book cheapest fare so MHDs will not work well either.
So keep in mind that not all companies send their emplyoees on business or first class in travelling.
Mar 5, 2001, 11:10 pm
#21
Join Date: Mar 2000
Location: YVR
Posts: 9,999
Actually, MHDs may work. In this case, the $3800+ was the economy fare, while the $1435 MHD was a business class fare. The MHD could be cheaper still, but but the cash savings and the extra flying commitment by the employee justify the slight extra expense (+/-$300) of putting him in a more comfortable seat.
But as always, it a complex combination of factors that must be considered before doing one.
But as always, it a complex combination of factors that must be considered before doing one.
Mar 6, 2001, 6:44 am
#22
FlyerTalk Evangelist
Join Date: Sep 1999
Location: Toronto, Ontario, Canada
Programs: OWEmerald; STARGold; BonvoyPlat; IHGPlat/Amb; HiltonGold; A|ClubPat; AirMilesPlat
Posts: 38,186
Glad I work for myself and can make such executive decisions which affect the bottom line and my own sanity. Saving $2000 plus getting a weekend in CUN, in addition to several hours in the isolation of an airplane so I can get some work done away from phones, emails and other interruptions, is certainly a major incentive for doing a MHD more often. If my experience over the coming few days is positive, you can believe I shall be doing more of them as I cross the country through the year. If anything, this increases productivity and the return on investment can be incalculable. As for my client, they have gotten a substantial savings in my travel billing and two cross country trips rather than the original one we had planned, since I can visit and meet with staff in their Vancouver office as well as do the original Calgary meeting.
Mar 7, 2001, 2:37 pm
#23
Join Date: Mar 2000
Location: YVR
Posts: 9,999
He he... It's happened again, to one of my fellow employees. Needing to go on a last minute trip to YYZ, he called and asked me to figure out an MHD for him. He then called the our travel agency, to book it.
But she didn't book the specific flights, and came up with the $5000+ figure. After checking with me, he called back with specific instructions to book specific flights, whereupon the MHD magically appeared.
But the agent insisted there must be something wrong, or illegal, or something. She then called AC to check (covering her backside, I presume) only to be told that everything was OK, and that the price I originally quoted was correct to the penny.
And like other agents mentioned elsewhere, she still doesn't understand. I think we'll keep it that way. Life goes on...
But she didn't book the specific flights, and came up with the $5000+ figure. After checking with me, he called back with specific instructions to book specific flights, whereupon the MHD magically appeared.
But the agent insisted there must be something wrong, or illegal, or something. She then called AC to check (covering her backside, I presume) only to be told that everything was OK, and that the price I originally quoted was correct to the penny.
And like other agents mentioned elsewhere, she still doesn't understand. I think we'll keep it that way. Life goes on...
Mar 8, 2001, 8:49 pm
#26
FlyerTalk Evangelist
Join Date: Sep 1999
Location: Toronto, Ontario, Canada
Programs: OWEmerald; STARGold; BonvoyPlat; IHGPlat/Amb; HiltonGold; A|ClubPat; AirMilesPlat
Posts: 38,186
Well, now that I have actually boarded my first MHD flights and was not challenged at check-in about the fare, etc. I will reveal that I just walked down to the Amex Travel office at the Royal York to be ticketed. It is strange that the Halifax office would not ticket such an itinerary, while I had no problems — aside from the astounded reaction of the travel agent when the final fare come up on the screen — with the same company here in Toronto.
Mar 9, 2001, 1:14 am
#27
Join Date: Mar 2000
Location: Germany
Posts: 2,635
Originally posted by Ken hAAmer:
And to really make a point, the same effective itinerary can be had on UA, AA, and CO, and perhaps others as well.
And to really make a point, the same effective itinerary can be had on UA, AA, and CO, and perhaps others as well.
If you really want to take advantage of the US carriers, you can ticket in F class, although you would still travel in J. But you would receive a 50% COS bonus when collecting AA/oneworld miles. The additional cost would be $2... Canadian.
Mar 9, 2001, 2:29 am
#28
FlyerTalk Evangelist
Join Date: Nov 1999
Location: FTFOE
Programs: TalkBoard: We discuss / ad nauseum things that mean / so very little
Posts: 10,225
Originally posted by Ken hAAmer:
Because AA (and other US carriers) have stopped offering F class service on some routes. You could buy a J class ticket, but you'd only get 25% COS bonus. If you buy an F class ticket you get a 50% COS bonus, but because there is no distinction between F and J on the plane, the F fare is typically only 1 or 2 dollars more than J class. Therefore you get a 25% Q-mile bonus for 2$.
Because AA (and other US carriers) have stopped offering F class service on some routes. You could buy a J class ticket, but you'd only get 25% COS bonus. If you buy an F class ticket you get a 50% COS bonus, but because there is no distinction between F and J on the plane, the F fare is typically only 1 or 2 dollars more than J class. Therefore you get a 25% Q-mile bonus for 2$.
I should point out also that AA has reduced qualification requirements (for Canadian resident AAdvantage members) for Gold and Platinum status. 18k Q-miles/points for Gold and 35k Q-miles/points for PLT. These are obviously to match AC's Prestige/Elite. (Normal levels are 25k and 50k, respectively.) Coupled with the Gold/Plat Challenge, it's an attractive offer to achieve or maintain oneworld status.
FewMiles..
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oneworld comparison chart 2001: coming soon
[This message has been edited by FewMiles (edited 03-09-2001).]