Randy Petersen
Greetings all. Tonight we welcome a friend to FlyerTalk Live! Russ Hinckley, Managing Director of the Northwest WorldPerks program has been with us before and he was a very popular guest, taking the time to answer many questions and being fairly candid with the members of the WorldPerks program. And it's nice to welcome him back. As some of you know, I'm an unabashed fan fo WorldPerks and am glad that Russ will answer your questions tonight. The world of airline travel has changed quite a bit since he last visited and it is good to know that frequent flyer programs have remained pretty constant through all this.

Randy Petersen
I'll tease him a little. After his last appearance here he liked the idea so much that WorldPerks decided to do a live chat of their own. I think Russ has greater respect for what it takes to put these on. I was going to tease him that FlyerTalk had about the same number of people attending our chat as attended his NWA one which was fully promoted by WorldPerks. Yes, FlyerTalk has a huge following of WorldPerk members and we all welcome you tonight Russ, so let's get started...

Russ Hinckley
Good to be back with some of my favorite flyers.

Randy Petersen
we'll quote you on that Russ, thanks from everyone ...

Dan at WebFlyer
This question was submitted earlier by Dan Masterson: Is there any way to use a current worldperks account number to earn miles without: a) taking a flight, and b) not using a NW Visa Worldperks card? In other words, with all the other cards offering frequent flyer mile programs is there a way to apply these miles to a current Worldperks account?

Russ Hinckley
If I understand your question correctly, you are asking if there are other credit cards, other than the WorldPerks Visa Card, that you can use to earn WorldPerks miles. The answer is yes. The Diners Club Card allows U.S. members to earn 2 Club Rewards points per dollar spent, with 2 points being converted into 1 WorldPerks mile. There are other credit cards that promote themselves as multi-airline cards, allowing cardholders to earn "miles" that can be redeemed on Northwest and other airlines. With these credit cards, these aren't actually frequent flyer miles -- instead the financial institution allows you to "redeem miles" and then purchases tickets or vouchers from the airlines. If you use a multi-airline credit card, you typically have to earn all of the "miles" through spend on the card only. The advantage of having a WorldPerks Visa Card or a Diners Club Card is that the WorldPerks miles are posted to your WorldPerks account, combining with all other WorldPerks miles earned through Northwest and partner airline flights and other non-air partner activity (i.e. MCI, car rental, hotels, WorldPerks Mall, etc.), which allows you to earn free travel faster. Additionally, with a multi-airline card there may be caps on the dollar amount of the ticket with the cardholder having to make up the difference, expiring miles and advance purchase requirements. Thanks for the question.

Dan at WebFlyer
This question was submitted earlier by Premier Al (Al Smith): Russ, now that Continental has ditched America West, is there any chance that Northwest WorldPerks might become a full-fledged partner with Flight Fund by reciprocating mileage on domestic NW flights?

Russ Hinckley
Our America West partnership has been expanding to the point where our members may now earn miles and use miles for free flights on America West itineraries from the 48US to Canada, Mexico and Alaska. There are no plans to expand our agreement beyond current reciprocity. Next question.

Dan at WebFlyer
This question was submitted earlier by sgopal2: Why doesn't Worldperks give comps to OnePass elite members and vice versa?

Russ Hinckley
My point of view is that we essentially "comp" OnePass Elite members by providing the same benefits to both OnePass and WorldPerks Elite members. For instance, for our complimentary domestic upgrade benefit, it doesn't matter if you are a WorldPerks or OnePass Elite member, you are cleared for the upgrades exactly the same. Our programs are so fully integrated and reciprocal that it is basically the same as being "comped" into the other program. Thanks for the question.

Wiirachay
Are there any plans to allow people to view "I" class (upgrade space on international flights) availability on the internet? It sure helps and saves time when planning trips!

Russ Hinckley
Currently I is a private class and there aren't any plans to change it at this time. Thanks for the suggestion.

Dan at WebFlyer
This question was submitted earlier by JTownBrian: In February 2002 Beth Shultis mentioned that (in regards to difference between Plats and Golds) "we need more visible value for our elite tier. Last fall (and continuing even now), we are testing a few concepts that we hope to introduce later this year." What exactly are those concepts and when can we as Plats expect to see the differentiation that she speaks about?

Russ Hinckley
A current program weakness that you correctly identify is that there is not enough difference in benefits between Platinum and Gold Elite tiers. This will be addressed; I anticipate the timing to be next year. I expect some changes will be publicly announced; other changes may happen "behind the curtain" and just improve your experience. This is part of the reason that I love working in WorldPerks: we have created a great platform that can be used in so many different ways to recognize and reward our best customers. Thanks again for your suggestions and ideas.

Dan at WebFlyer
This question was submitted earlier by Lillian: Are there any plans to modify the WorldPerks program to be more competitive with AA, for example, in the international travel arena bt allowing upgrades (with miles) on all fare bases?

Russ Hinckley
WorldPerks does allow upgrades using miles to World Business Class on international itineraries on qualifying fares. The number of miles needed depends on the destination and the fare. Fewer miles are required to upgrade from a full fare coach ticket to WBC than a discounted fare. As with AA, certain discounted fares are not eligible for upgrades using miles and upgrade award space is capacity controlled. If you are interested in upgrading using miles, I suggest you confirm that space is available and the ticket is eligible to upgrade. Next question please.

anbhc
Can the NWA.com web site be updated so that we can use NWA Gift Certificates to purchase Northwest tickets?

Russ Hinckley
We're currently sizing the programming required for that functionality. Thanks.

Dan at WebFlyer
This question was submitted earlier by Seth: I would love to give NW my 90K base miles a year if they would match my elite status with CO. Why won't they do this?

Russ Hinckley
As I mentioned earlier, I feel that we have basically matched your status with CO by providing the same benefits regardless of if you are in WorldPerks or OnePass. With regard to matching elite status, in general, we do not match Platinum Status and are pretty stingy with matching overall. This is because we really work hard to optimize the size of our Elite tiers so that we can fulfill our complimentary domestic upgrades with good success. The unlimited complimentary domestic upgrade and a high upgrade success rate are key program differentiators that we want to maintain. We're ready for the next question.

Dan at WebFlyer
This question was submitted earlier by Ralf Krippner: KLM just announced: "We are currently busy restructuring and adapting the FD Program to make it, more than ever before, a program that acknowledges the loyalty of our customers through giving them added value".

Russ Hinckley
We are extremely excited about the upcoming changes to the Flying Dutchman program. We have wanted our programs to be more closely aligned and these changes will accomplish that; the Flying Dutchman program is going to look a lot like WorldPerks after the changes. Since the Flying Dutchman program is our loyalty program for much of the world, having it be greatly aligned with WorldPerks has always been the goal. Northwest and KLM have a tremendous opportunity to differentiate our alliance by having programs that are so aligned that they could almost be considered one program, worldwide. Good reminder that this is a worldwide audience.

Randy Petersen
A reminder of just how generous WorldPerks is: they are sponsoring 4 winners from tonights registered chat to each win 25,000 WorldPerks miles (good for a free ticket....) and the winners will be posted on FlyerTalk tomorrow (Friday) afternoon in the Northwest WorldPerks forum. Everyone attending tonight will have an equal chance to win one of these special awards. Thanks WorldPerks for donating 100,000 miles to FlyerTalk.

Anne at WebFlyer
This question was submitted earlier by Trent Cotney: WorldPerks has recently received a lot of criticism for being unable to accommodate award travel. What is WorldPerks doing to remedy this situation?

Russ Hinckley
Northwest has actually increased the percentage of seats available for award travel over the past two years. In fact, in 2001, Northwest had the second-highest percentage of award seats available of all the major carriers. We do receive criticism about the availability of award seats, primarily because people's expectations are inappropriately set. Customers need to realize that demand for travel to prime destinations during peak periods will always exceed supply. To successfully secure award seats, customers need to be flexible with travel dates and times. They should also consider flying into alternate airports (when possible) or using the RuleBuster option. Tough question, always challenging to meet customer demand.

anbhc
I would like to see Northwest offer its Platinum Elite members the opportunity to use miles to purchase WorldClub membership. Is this a viable option in the near future?

Russ Hinckley
We have looked at this and, frankly, it's pretty costly. In this environment would be very hard to justify. We do offer significantly discounted rates for Platinum members as well as initiation fee waiver. Thanks for the question and for joining us this evening.

Anne at WebFlyer
This question was submitted earlier by John: I've recently received my World Perks Visa card and am ready to start charging my way to more frequent flyer miles. I understand that the courtesy checks that come with the card do not reward frequent flyer miles when used. Is there another way I can pay my mortgage payment and get miles even though my bank does not take credit cards for mortgage payments?

Russ Hinckley
It is good to hear that you have a WorldPerks Visa Card. You will be amazed at how fast the miles will add up for all of your purchases. In response to your question, I believe mortgage payments cannot be paid on a credit card as a way to deter people from paying debt with debt. This is why your mortgage company will not allow you to use your WorldPerks Visa Card or any other credit card for monthly payments. The good news is that you can earn tens of thousands of miles from our WorldPerks mortgage partners, U.S. Bank Home Mortgage, LendingTree and GMAC Mortgage, to finance or refinance your home. Visit nwa.com for details.

MileKing
What was the rationale behind eliminating the 20K domestic off-season awards?

Russ Hinckley
Eliminating Off-Peak award pricing was one of our 2002 WorldPerks program changes, implemented in an effort to simplify the program for our members and agents. While we understand that the reduced number of miles needed for an Off-Peak award created some value for our members, it was difficult to communicate and often created confusion for our members. We do not feel the benefit of the Off-Peak award off-set the complications created by the two-tiered pricing system. Onto the next question!

Anne at WebFlyer
This question was submitted earlier by patricia: Besides FFF2, can we expect any summer surprizes from NWA for the true milemaniac here?

Russ Hinckley
WorldPerks and our partners consistently have promotions in the marketplace, and this summer will be no exception. Look for a WorldPerks Mall Shopping Spree promotion later in the Summer. In addition, you can always check the promotions list on nwa.com and your WorldPerks Mileage Summary Newsletter for the latest and greatest WorldPerks promotions. Good question - thanks.

Randy Petersen
All of the FFF promotions by WorldPerks have been rated #1 in the Best Bets feature from InsideFlyer magazine. They've been fun, exciting and great.

Russ Hinckley
Thanks, we think so too!

Yaatri
Can you give us a glimpse of the enhance planned for Platinums to make them distinguish a bit more from Golds?

Russ Hinckley
For competitive reasons it would be unwise to announce program changes at this time. Sorry!

ti187
Are you looking to expand your partners at the Worldperk mall

Russ Hinckley
Yes. Who would you like to see as a WorldPerks Mall partner?

ti187
Bose

mat123
AMAZON.COM!

patricia
borders

Russ Hinckley
Good news. Bose it is - give us about a month. As far as book sellers we are partnered with barnesandnoble.com and 1bookstreet.com

Anne at WebFlyer
This question was submitted earlier by Andrew Blaner: My WorldPerks statement received in the mail has detailed information about mileage partner credits, whereas the Web version lists this as Other Bonus with no details. Is there a way the Web version can provide the same detailed information as the paper version we receive in the mail? It is often difficult to determine which partner credit is referred to in the online statement when going through various paper receipts

Russ Hinckley
Glad you asked! We are in the process of upgrading the information posted online to include the level of detail you see on the Mileage Summary statement you receive in the mail. We hope to have this update online by August of this year. Next question!

ti187
following up question Is NWA looking at more ways to redeem miles EX: hotels, car rentals, vacation packages

Russ Hinckley
We look at that frequently, however, we have a hard time making the economics work for both us and the member. Thanks for the question.

Anne at WebFlyer
This question was submitted earlier by Bobcat: Why doesn't Northwest automatically enroll all WorldPerks elite members into the many different promotions that increase the number of miles that may be earned?

Russ Hinckley
In a way, you answered your own question. Really, this comes down to my business philosophy. I love to reward people for participating in our various promotions. Hopefully, these promotions create mutual value for our members and Northwest. However, I like to reward people when they raise their hand and say, "I want to play". To reward people that don't even know they are playing seems wrong and costly. We've successfully implemented promotion registration online and by phone to make it as easy as possible for you to earn Bonus Miles. Again, thanks for the question.

DC_flyer
Has Northwest considered creating a webpage whereby a visitor can search for open frequent flyer award seats?

Russ Hinckley
Interesting idea. We've added the 7-day search feature to help locate award seats in the markets members are seeking. We hadn't thought of a random search feature based solely on availability. I will tell you Cleveland is open most days. Thanks for the suggestion.

Anne at WebFlyer
This question was submitted earlier by ITK: Will WorldPerks ever consider awarding elite status based on segments flown rather than miles flown?

Russ Hinckley
Good question and one that we receive often. While we are aware that several other airlines offer segments as a means of elite qualification, we are not sure this method works for our Elite program. And this is why: one of our primary benefits is the complimentary domestic upgrade. This is a point of difference versus other airlines and a choice/loyalty factor for our members, elite members must get upgraded on a reasonable consistent basis. We constantly track our upgrade success rate to make sure this is happening. The challenge is that first class seats are a finite resource. If we overpopulate the tiers, the benefit goes away. Thus, we work hard to optimize the size of our elite tiers. Using segments as an elite qualification guideline would likely diminish our elite benefits. Only publishing a mileage threshold gives us more flexibility in optimizing the size of our elite tiers. We use other criteria beyond mileage accumulation for elite selection like segments, residence, revenue, products purchased, etc. Mileage and segments are both really surrogates for customer value; we try to consider customer value directly in our elite selection criteria. Great question.

Randy Petersen
Can I get a question in here? Seems only fair. Russ, I've been really happy with your Sprint partner because they award 7 bonus miles for every dollar I spend in long distance as an elite member with you. Is there any way that you can suggest to MCI (your new telephone partner) that your elite member group has been spoiled by that benefit? As much as I like the miles, I'm actually tempted to follow Sprint elsewhere and give up the phone miles with you. That 40% bonus was/is the best in the business.

Russ Hinckley
Randy, I'm very sensitive that the economics make sense for our partners. I'll discuss your concern regarding the number of bonus miles for elite members with MCI, but realize how the difficult telecom environment is.

Mikel at WebFlyer
Why can't WP members book WP upgrades (using WP miles) online?

Russ Hinckley
This enhancement is currently being considered but it is extremely complex and will require a lot of time to put into place.

Anne at WebFlyer
This question was submitted earlier by Jeff Basch: What is the coolest benefit of WP's that you think is the least known/used?

Russ Hinckley
Although it's fairly well known, I think the coolest WorldPerks benefit is our Elite upgrading process. The automatic notification, the fact that is it unlimited and we fulfill at a high rate makes this very cool!

luddgang
Will there be a Fly Free Faster 3 in 2003???

Russ Hinckley
I think this is a very positive promotion for our members and our partners. It is gaining momentum and I expect you'll see it again sometime. Next question.

Randy Petersen
I think we could go all night long with this because your members love talking to you Russ. You've been a real champion about this and we want you to know it is appreciated. Let's take just a few more questions and then on to open it up for general chat.

sgadless
Thank you for answering all of our questions online. Will you ever allow members of both WP and Continental's Onepass program to transfer miles between accounts free of charge?

Russ Hinckley
Your welcome. I'm happy to be here. Interesting question

Randy Petersen
ah, the "free of charge" thing, well Russ? I say charge us, we're fine with that but it would really raise the stakes in the domestic alliance business.

Russ Hinckley
Currently it looks doubtful due to legal requirements and the fact that they are separate programs, but in this business you can never say never.

luddgang
How about a Winter promo similar to Fly Free Faster 1 & 2?

Russ Hinckley
We always try to have interesting offers in the marketplace. Some are smaller in scale and more targeted but we pride ourselves on creative promotional opportunities for our members.

sgadless
followup question please......I'm an elite member of Continental's onepass program and I frequently take advantage of my status on northwest flights. I've noticed that a lot of your employees (even the ones in the elite line) don't understand all of the elite benefits (specifically the "companion upgrade" benefit). Is the company doing anything with regard to employee awareness to rectify this?

Russ Hinckley
We appreciate this feedback and will continue to work with our frontline agents to make sure the program is administered seamlessly.

Randy Petersen
It's about that time folks and if we are to ever get Russ back, we don't want to wear him down. So, let's all applaud Russ and hope he comes back.

Russ Hinckley
Thanks for having us. We appreciate the interest, questions and support of Northwest. We look forward to welcoming you on your next flight soon. Thanks again.

Randy Petersen
Russ, we are very pleased you hung in there with us and you've developed a real following on FlyerTalk with hundreds coming out tonight. You'll continue to get my Freddie Awards vote and I look forward to much more from you all. Good luck with getting that Wings thing finally formal as an alliance thanks for achieving a 93% upgrade factor with me as an elite member with you.

Randy Petersen
Everyone - Russ Hinckley, Managing Director of WorldPerks. Remember to register to win a great part of the 100,000-miles Russ is leaving us with tonight and let's go to open forums...