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Transcript of October 28th FlyerTalk Live! Chat

With special guests Mark Bergsrud (Vice President Marketing Programs and Distribution, Continental Airlines), Mark Sullivan (Managing Director Loyalty Marketing, Continental Airlines ), Victor Llana (Manager OnePass Programs, Continental Airlines )



Answer code: In answers from Continental OnePass in the chat below, here's the codes for identifying which executive answered the question. MB= Mark Bergsrud, MS= Mark Sullivan, VL= Victor Llana.

Randy Petersen:

Good evening all. We suspect that while most OnePass members are likely just getting off work or stuck in traffic somewhere on the way home, we are nonetheless very pleased to bring you live, the marketing executives of the popular OnePass frequent flyer program. This program which still holds the record for most Freddie Awards has earned its fair share of recognition over the years, especially its BusinessFirst product. We're pretty lucky to welcome Mark, Mark and Victor tonight. Welcome guys to FlyerTalk Live!

 

Continental OnePass

Thanks for having us Randy.

 

Continental OnePass

Hey Randy, what is with the BA logo?

Randy Petersen:

Must have been a logon mistake, I earned OnePass miles just yesterday...

 

Continental OnePass

Glad to hear it. MB

 

Randy Petersen:

We're ready for our first question...

 

Chat Moderator

This question was submitted earlier by cigarman:  Mark thank you for talking with us today. My question is dealing with Delta. I am concerned with people "laundering" their delta miles by booking flights on CO metal. How do we keep bankrupt airlines members from redeeming all the available award seats LOYAL CO flyers also want to redeem? There is basically a limited product and a very devalued currency (DL) accepted on a one to one basis with a strong currency (CO). I would be interested on your thoughts on this matter. Thanks, Cigarman

 

Continental OnePass

First, we should start by saying that we are very pleased with our partnership with Delta and all of SkyTeam.>  These relationships give OnePass members the ability to earn and use OP miles wherever they travel around the globe.

 

Specifically to your question, we do not see a trend of increasing DL rewards redeemed on CO.>  We do have things in place that help us address any issues that come up due to an imbalance in rewards.

 

Thanks. MB

Chat Moderator

This question was submitted earlier by michael leonhardt:  I have flown over 2 million continental miles.  On Delta and American million milers are granted lifetime elite status but not continental.  I am starting a new job with heavy international travel and am hesitant to use CO since I will accumulate so many miles, which will be hard to use later.>  Why don't you give a lifetime elite status as a reward?

Continental OnePass

We are not convinced that lifetime status is a good tool to reward and foster loyalty.>  Once a customer has locked in status for the rest of his traveling life, it is difficult to keep the customer completely loyal to us.>  We also lose some control of this means to influence behavior.  In addition, we are concerned that a significant lifetime population would enjoy upgrades and other benefits at the expense of our current elites.>  VL

texascoop

Since continental onepass has made it more difficult to earn elite status in 04,what if any enhancements can elite (platinum) onepass members expect in 2005 as a member benefit?

Continental OnePass

We have added a dedicated elite desk this October and eliminated restricted travel dates for reward travel in 2005.>  Our main emphasis for this coming year will be on service delivery of our elite benefits. ...

For example, we will continue to improve continental.com.  This year, we added a calendar interface for reward bookings and last week launched a redesigned page to handle promotions.  We will continue to develop our self-service check-in solutions as well.>  ...

In terms of program benefits, we feel our program is well positioned in the industry.>  MS

Randy Petersen:

Actually I like the addition of the new award calendar as a benefit. Not for just elite but it seems to work rather well.

Jake

Question for Victor: Why can't I get a pin for online access to my OnePass account over the phone?

Continental OnePass

If you can verify some basic account information via the OnePass Service Center, we can change your PIN and account information.  VL

bigpoppaco

Any thought of aggregating data for success rates of upgrades on specific flights and posting it on CO.com when people book their tickets.   For example, I would gladly fly an hour later or earlier if I knew I had a 20% better chance of an upgrade?

Randy Petersen:

The question of the night. And a really good one for all programs to consider, after all, there is data on the on-time percentage of these flights. And the answer is....

Continental OnePass

Interesting idea. We will consider it, but what we have done is added the ability to view a seat map on continental.com that allows customers to see the 1st class cabin.  That isn't the whole picture but will help.  MB

Weatherboy

I'm a Platinum Elite on track to earn over 100k base miles this year. Why doesn't CO offer any additional perks/privileges for Platinum's that earn their top-tiered elite status early? Why not put a program in place that would incent me not to earn elite status on another carrier? Elite bonus mileage and harder-to-get automatic upgrades are not sufficient incentive. --Weatherboy

Continental OnePass

We are looking into possible benefits for our highest mileage customers.  It is difficult to determine whether there will be an ROI for the extra expense.  Our experience and data haven't indicated that we lose a lot of customers after they hit the 75K threshold.  We think most customers do value the bonus miles and upgrades throughout the year.>  What do you have in mind?>  MB

JonIND

With Continental joining SkyTeam, is there any reason to be concerned that non-SkyTeam partners will disappear from OnePass? I am particularly concerned about Qantas, since Australia is not well served by SkyTeam.

Continental OnePass

We have no plans to discontinue any current relationships due to our entry into SkyTeam.>  MB

 

texascoop

you recently partnered with skyteam, and now have an AROUND THE WORLD AWARD AVAILABLE, as a platinum member with 500,000 + miles ,how difficult will it be to obtain this award???      when I called your OnePass department last week your staff couldn't answer any of my questions or seem to tell me if flights where available............!

Continental OnePass

Thanks for the feedback.>  You may be the first customer that has tried to redeem this reward type through us.  I will look into this matter tomorrow.>  VL

Vulcan

On NWA.COM I can request a fare quote BY FARE CODE on a city pair, on any date. I can choose any code P through L. If I could do the same on CO, I would most likely pay a little more to be higher on the upgrade food chain. Is CO considering this enhancement. Thank you. -Vulcan

Continental OnePass

Our most important priority for continental.com in Q1 2005 is to improve the usability of the site for customers using certificates and promotional offers.>  I don't know if we will offer the ability to book by fare code, but we will achieve the same level of usability (or better).>  MB

Jake

Do you guys ever lurk on FlyerTalk "just for fun" (like at home in your slippers?)

Continental OnePass

I confess that I occasionally do.>  MB>  So do I. MS  I do more than they do. VL

Randy Petersen:

Hey, everybody notice that Directors and Vice Presidents from Continental Airlines 'confess' to lurking on FlyerTalk! We welcome them and many others. We think that's great and hope that the 'real-time' feedback of FlyerTalk helps.

thesilb

I consider myself an "experienced" OnePass user with well over 1,000,000 lifetime CO/NW miles, yet I have to say that I do not profess to understand Continental's international award and upgrade rules. They are so very complex that I find most agents don't understand them, either - as evidenced by the fact that one phone agent will say one thing, another agent another thing. Why not just simplify this whole process - with standard rules for Europe, S. America and Asia, a reasonable early release of seats versus just one month out, and elimination of the "surcharges" for upgrading. These rules not only make the system unattractively complicated for your end users, but they seem to be out-of-sync with your major competitors. Will you be making it easier for your regular fliers to travel on awards and to upgrade internationally anytime soon?

Randy Petersen:

I can understand where this question is coming from. But to point something out - American AAdvantage members were just introduced to changes in that program, which are quite similar to that of OnePass. The industry seems to think OnePass has it right and that's a compliment from American.

Continental OnePass

Our BF upgrade policy sure gets a lot of play on the chat room.  It also is a very popular reward redemption option.>  ....

What we think is appealing about our upgrade reward, is that a customer can purchase any fare type and have access to the reward.  Some other carriers do not allow upgrades off of low fares.>  We start releasing our upgrade seats at 270 days before departure.  MB

Jake

Have you considered giving Miles for Bumps instead of  Vouchers? Like maybe 15,000 "Qualifying Miles" instead of $300

Continental OnePass

To be honest, we have not thought of this idea.>  There are some legal restrictions as to what we can and cannot do.  We will look into it.  MS

Jake

Any chance of one-way awards on the horizon?

Randy Petersen:

I'd like to publicly thank Mark, Mark and Victor again for coming on tonight. I flew down to Houston to chat with them about the program and they were most courteous when I asked for them to commit to a time and date.

Continental OnePass

We enjoyed having you, Randy.>  On the one-way rewards, your idea has been noted.  We would need to do some serious analysis and negotiation with revenue management as usual.>  To be honest, we don't get a lot of requests for this type of a reward.>  MB

chubbyff

For those of us that sometimes need to purchase an extra seat for personal comfort and safety due to our size, why is it that we are not accorded the One Pass benefits that come with buying a ticket, i.e., no qualifying miles or regular miles, carry on baggage allowances, etc. ? Will CO consider making this available?

Continental OnePass

Reasonable request.>  There are some significant systems challenges to overcome before making this a reality.  MS

Randy Petersen:

I'd like to jump in here with a question. I noticed in a previous question that Mark answered about one-way awards that they would have to negotiate with revenue management. For the benefit of our members tonight who like to know how programs work, could you briefly describe how you negotiate with the revenue management for "awards?" Not pricing, just how it might happen.

Continental OnePass

We talk about the current and lifetime value of our customers.  We demonstrate that our elite customers buy higher than average priced tickets.>  We demonstrate the need to have a competitive program as they need competitive fares.>  MB

thesilb

I would like to let the OnePass management here know that the International Partner awards desk folks really shine. I have booked about 10 international partner rewards and these folks go the extra mile. They are super and deserve some recognition.

Continental OnePass

We will tell our friends in SLC that you appreciate them.  Thanks for the feedback.  MB

selector

Are there any plans to extend the partnership with Virgin Atlantic to allow more seats to be available with OnePass miles such as Premium Economy seats?

Continental OnePass

Our contract with Virgin does not allow our customers access to the Premium Economy seats.>  We do not have a similar product to offer their customers in return.  MB

channa

While we're at it on compliments, let's also send a round of kudos to the new Elite desk. I've found them very well trained, and a pleasure to deal with.

Continental OnePass

Thanks channa.>  I saw a lot of positive comments on Flyer Talk and forwarded them to our reservations team.  They appreciated the kind words.  VL

Nightflyer

One of the great frustrations of OnePass for me is the 72-hour cutoff of the waitlist for BF upgrades. More than once I have sat in back while seats go empty up front. I have heard this is to prevent "bogus" reservations, which are cancelled at the last minute to open a BF seat.  Isn't there a less punitive way to prevent this from happening?>  For instance, why couldn't CO publish a policy that any reserved BF seat cancelled within a certain amount of time before the flight (say, 14 days) would not be included in upgrade inventory.>  There would then be no incentive for customers to make bogus reservations.

Continental OnePass

We understand your frustration when the BF cabin is not full.  We work hard to prevent this from happening.>  Our revenue management people have increased their flight firming efforts in order to release more seats at 72 hours.>  The total number of upgrades has increased significantly this year.  We don't upgrade within 72 hours due to the value of the last minute demand for BF.  It is simply too costly.  MB

CALfly5

In the year 2000, I was a Gold Elite.>  OnePass sent me a statement toward the end of the year detailing the number of free upgrades I earned, the number of bonus miles I earned, the number of flights I took, etc.>  Basic data, but it gave me a really nice one-time snapshot of my benefits as a CO Elite.>  Any thought of bringing that back?>  (Save on the distribution cost by emailing it or posting it to a member's account for online viewing)

Continental OnePass

Good suggestion.>  VL

Vulcan

Is there any chance an "advance mailing" by email could be done to Platinum members advising them of special "sales" (like the BF sales to Europe over Thanksgiving and the Holidays) so that they would know when to go online for the best opportunity. I get these all the time from Macy's, as a valued customer.

Continental OnePass

We do look for additional advantages to provide to our Plats.  Usually, our BF sales are in weaker periods with good availability of inventory.  MB

Continental OnePass

Randy BTW - how 'bout them Astros VL

Randy Petersen:

I was going to start off by acknowledging the Astros. Great season and surprised many. Of course the Colorado Rockies helped them along the way....

Continental OnePass

Thanks for that.>  VL

Guest

I had heard rumors that CO is considering expanding P-Club access to full-fare Y pax - any truth to this?

Continental OnePass

That is the first I have heard of it.>  MB

johnsmith

Is there a chance we will see upgrades on Delta flights in 2005?

Continental OnePass

We will continue to refine our relationship with DL over time.  We can't comment at this time regarding upgrades on DL.>  MB

Continental OnePass

Mark and Victor, are you plotting behind my back? MB

Randy Petersen:

it's good we could bring you all together tonight.......

Pegasus23

At one time, seems so long ago, Continental had more service from Denver....Any chance of schedule increases or new destinations in the works for DEN?

Continental OnePass

Regarding DEN, CO's future expansion will continue to emphasize Newark , Houston and Cleveland.>  Denver will continue to be a great city and destination for us.>  MB

cigarman

I am extremely concerned about the unequal situation with EQM's and Northwest. There is a situation where two people fly the same miles, yet one is Platinum on NW and gold on CO. Then the Plat on NWA trumps a gold on CO, yet the CO flyer is the one bringing revenue to CO... In essence the program has created an unequal playing field.

Continental OnePass

We know that alliances create some imbalances from time to time.  We measure our upgrade percentages for elites and haven't seen any declines due to our relationship with NW.  In addition, our Platinum's bump their Gold's on NW's flights as well.>  MB

Randy Petersen:

We're currently at the one-hour mark. Wondering if Mark, Mark and Victor could stay around to answer two more question? Pretty please......

Continental OnePass

We would be honored, but it may cost you lunch at "Mark's".  MB

Randy Petersen:

I'll gladly "pay" After all, anything for more miles.

bocastephen

As you probably know, Elite Qualification Miles have been a source of concern for many customers. How does Continental address the issue of 50% EQM for those corporate customers who are required to book and pay the lowest available fare and use their assigned corporate travel agent or portal to complete the purchase? These customers cannot earn full Elite miles while complying with their corporate travel policies, and many of your corporate clients are unwilling to permit employees to use a Continental-booking portal.

Continental OnePass

This has been a sticky issue with some customers.  We have the EQM advantage on continental.com to differentiate the site from other competing sites.>  We need to grow our web bookings to lower our distribution expense and compete more effectively with low-cost carriers.  Most corporations that have a deal with us buy higher than average fares and their customers are earning elite status as they have in the past.>  We added a 50% bonus to H in addition to the Y bonus to compensate for the loss of EQM miles on the low end.>   MB

Continental OnePass

oops . . . question coming from Vulcan in the Guest Speaker window.

Continental OnePass

We were doing our Karnak the Magnificent routine.

Randy Petersen:

And here's the last question from Vulcan: Has any thought been given to having a semi-official representative on FlyerTalk, similar to the Starwood Lurker. It would help dispel a lot of incorrect rumors and be a real resource for OnePass as well as FlyerTalk

Continental OnePass

We don't want to impede the free flow of thought and ideas.  We like to see your thoughts, compliments and complaints straight up.>  MB, MS and VL

Randy Petersen:

Well, I did invite Mark, Mark and Victor here for an hour and they stayed around an additional fifteen minutes - thanks guys. There is a nice balance of questions tonight though we probably could have just posted about BF all night long. There's been a question for everyone and we all thank the marketing executives at OnePass for their time and their program. Most of all, we thank them for not making us worry about the future of our frequent flyer miles.

Continental OnePass

Thanks to everybody for coming tonight.>  We appreciate the forum and of course -- your business.  Good night from Houston.  MB, MS and VL

Randy Petersen:

Thanks again to OnePass and let's open this up for open chat....

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