2012 Premium Travel Forecast

January 2012
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Before I start to crystal-ball the coming year, I would like to thank you for your loyalty during the past one. FCF is dedicated to giving you a leg-up on getting the best deals and using your miles in the savviest ways to fly in a Premium Class of service. Among our coups in 2011: Seven Reasons to Leave Your Elite Lover, How Best to Take Advantage of Credit Card Programs for Premium Air Travel, and my Special Report: Class Distinction. These and many other strate-gies, which are worth a first or second look, are all archived in our newsroom.

Our New Year’s resolution is to stay on it—to give you a combination of news and analysis that will take you farther, faster, and in more comfort. Now, sit back, relax, and get a jump on knowing what’s in store for 2012.

The Upside: The growth in A380 service from the U.S., which promises a lot more comfort opportunities for premium-cabin flyers; the embracing of Premium Economy by more airlines; and the 100% bonus for buying miles, a promotion offered by Delta and US Airways.

Mixed Feelings: Mileage program changes by British Airways, United/Conti-nental, and US Airways took away more than they gave—but this also under-scored our perennial recommendation: Stay diversified with options.

The Downside: The continuing devaluation of entry-level elite-status benefits.

What 2012 Holds For You: 13 Game-Changers

The Big Picture: To Get the Best Fares, Stay Connected and Don’t Wait

Business Class fares to Europe will be hotter than ever: I predict seasonal promotions—those for spring, summer, Thanksgiving, and Christmas—will come out sooner than in years past. Look for summer Business Class fares in the second week of January, and holiday fares in the second week of August. (Spring promotions are in now; see this month’s “Fare Sleuth” for sample fares.)

Europe will also offer unbelievable one-off Business Class fare promotions: These will be short-term—and I mean lasting only days, not weeks. In December, many major airlines including Air France, Ameri-can, Lufthansa and United (see Dec.14 alert) offered a one-day promotion to Austria, Germany, and Switzerland for travel through mid-April at a starting rate from New York of $1,997 including taxes, a savings of up to 65%. And let’s not forget Virgin Atlantic’s Boston-Vienna fare for $1,411(including taxes, see our Dec. 6 alert), which offered a savings of 83%. Expect more like this. (Before long, you will be able to man-age having these alerts sent to you via email!)

First Class to Europe will continue to see free upgrades from Business Class: Keep a sharp eye out for deep, seasonal First Class discounts to Europe. A handful of airlines—Luf-thansa, SWISS, and United—will offer many more First Class fares at Business Class levels. Don’t wait because the demand is high and the window is short. Current promotional First Class spring fares have a purchase-deadline of Jan. 4; see our Dec. 19 alert for savings of up to 73%.

Asia Business Class fares will remain high: You’ll find the best deals—savings up to 40%—on lesser known Asian airlines such as China Eastern, Hawaiian Airlines and Philippine Airlines.

Business Class fares to Northern South America (Columbia, Venezuela, Ecuador, Peru, etc.) will remain low: However, the cost of flying to deep South America (Brazil, Argentina, Chile, etc.) will remain high, at $3,000 to $4,000 (in-between Europe and Asia, you might say). Here the airline to look for is oneworld partner LAN, which often offers Business Class fare promotions at significant discounts. Look for promotional holiday fares late in the year (November or December) for savings of up to $2,000.

Business Class fare promotions to deep South America will have a shorter fuse: Act fast when they happen—see our Dec. 9 and Dec. 21 newsroom alerts.

Premium fares to the Caribbean and Central America will stay low: This is your best bet if you need EQMs or just a short getaway in comfort.

Domestic First Class fares will remain high: Look for connecting flights on airlines such as Alaska and US Airways to get a discount. For example, New York-Los Angeles on non-stop carriers American, Delta, and United is $3,158 in Business Class, whereas US Airways charges $1,398.

Premium Economy is the Product to Watch in 2012

Premium Economy is “the must have in-thing” for airlines and more of them will start offering it in 2012: American, Cathay Pacific, and Delta on domestic flights. Look for more airlines to announce Premium Economy service. But, as we mentioned in our special report in March, not all airlines offer the same Premium Economy (PE) product. Look for my March 2012 update to tell you which carriers offer Premium Economy “lite” and which Premium Economy “elite”.

Fallback Fares Will Be Important in 2012

Count on lesser known airlines for the best Business Class fares year-round: The list includes such airlines as Air Berlin, Air China, Air Europa, Air Pacific, Avianca, Copa, Hawaiian Airlines, Iceland Air, and Philippine Airlines.

Other Items to Pay Attention To

Your bankruptcy vigil will pay off in 2012: Keep an eye on American’s elite promotions post-Chapter 11, as it will force other airlines to offer similar deals. (In other words, you don’t need to be an AAdvantage member to reap the benefits.) See AA’s current double EQM earning promo.

Chase Sapphire Preferred will be the credit card to watch. As this card increases in popularity, more airlines could join as a point-transfer partner. The card already offers access to the three major alliances through British Airways (oneworld), Korean Airlines (SkyTeam), and United (Star Alliance)

“Buy miles” promotions will come with stiffer restrictions: It’s hard to know exactly what form they will take, but it’s been easy to circumvent them if you: have ac-counts with all of the airlines you fly (or would fly: major and back-up), and have enough miles in each account to keep it active so that you can take advantage of these offers as they arise, as that’s two common requirements emerging.

May 2012 bring you yet another bountiful year of opportunities to travel up-front in comfort.

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