Randy
Greetings all. This is like old home week on FlyerTalk Live!. Last night we had the return of Debra Benton from Southwest Airlines Rapid Rewards and tonight we have the very popular return of Russ Hinckley, Managing Director of Northwest Airlines WorldPerks. Russ has been with us in the past and welcomed all the questions the members of WorldPerks could throw his way. Tonight will likely be the same.

Russ is a real stand up guy when it comes to WorldPerks and despite the financial restructuring that Northwest Airlines is going through right now, never hesitated when I asked him about coming on to talk about the WorldPerks program and the future. As for the past of WorldPerks, well just this last year they won a Freddie in the industry impact category for the plethora of bonuses they have introduced to their members. Who among their members tonight hasn’t participated in at least one of these promotions to earn an extra 10,000 bonus miles or more?

I’m sorry I have taken so long to introduce our guest tonight, so here he is: Russ Hinckley.

Russ Hinckley
Thank you for having me. I am excited to spend some time with you. Although anyone that is giving up watching CSI makes me nervous

Randy
i have Tivo

Russ Hinckley
me too

LaDonna at WebFlyer
This question was submitted earlier by Steve Horler: Why do NWA not give Platinum Members International upgrade certificates like UA, AA and Delta?

Russ Hinckley
The demand for our new World Business Class product is very strong and the supply is quite low. As a result, this is an expensive proposition for NW that we have chosen to not match at this point. Thanks for your question.

LaDonna at WebFlyer
This question was submitted earlier by Jordon Kimura: Will there be some sort of reciprocated upgrade system between Northwest and Delta?

Russ Hinckley
We are currently looking at this, but I would say it is unclear when or if this will ever happen. thx

LaDonna at WebFlyer
This question was submitted earlier by LMK: Could you please consider letting customers hold one-half of an itinerary – just the outbound portion – if award seats for the return haven’t been loaded into your system yet? When calling NW for awards 330 days out, I may find availability outbound, but return dates 1-2 wks later aren’t in the system yet b/c it’s >330 days out. The NW agent says I can’t hold just the outbound, so if I don’t want to lose it, I must hold a fake return, e.g. the day after the outbound. So somebody who really wants that return seat is told it's unavailable b/c I'm holding it, and I don't even want it, I just have to hold it as a “placeholder” b/c I can’t hold only the outbound! Then every day I have to call back & try to change the return, sometimes 1 day at a time until if I’m lucky I get the date I want. This wastes everyone’s time -- mine, agents', other customers'.

Russ Hinckley
I will discuss this with our systems and operations groups. I can appreciate the challenges associated with our current process. At the same time, the reason that we strictly avoid one-way award travel is to limit business travel substitution. Awards being used for business travel really increase the cost of the program and, consequently, we try to build fences to limit business travel opportunities with award tickets. thx

**** Ginkowski
Russ, welcome. We've heard from NW management that nothing will change with WP, so we don't need to address that now. But it seems that neither customers or employees know what's in the offing. Why should be stay loyal to NW when we don't even know if our flights, routes, etc., will still be in existence?

Russ Hinckley
Yes. The company, program, schedule are going to survive. Fortunately, NW has some tremendous assets that will help us get through this challenge. thx

Mikel at WebFlyer
This question was submitted earlier by Lisa: Several flyertalkers have recently reported receiving comps to Silver or Gold through Feb 2006, with promotional offers to requalify thru Feb 2007 w/ 2 qualifying flights for silver or 5 for gold -- can you explain if these offers are targeted, and how? Some have speculated they may have received these offers due to elite status with particular hotel chains or other airlines. I am silver with Marriott, and my husband and I are both gold with Hilton. A comp to NW Silver elite would certainly “incentivize” us to fly NW more often! Is this possible?

Russ Hinckley
We frequently make member development/trial offers. They are always targeted, but I don’t think it serves me well to discuss targeting parameters in a public forum. A huge part of my job is to always be testing members and non-members to see if I can capture more of their travel spend. Development/trial offers are a powerful tool to test if there is more money to be had. We would have to talk about an individual incentive off-line. thx

LaDonna at WebFlyer
This question was submitted earlier by lisak: Can you explain the discrepancy in taxes & fees for 2 people using miles on the same exact flights, same dates, but one using CO miles and the other using NW? DH’s taxes & fees (using CO miles) are $75.81, my taxes & fees (using NW miles) are $104.01. Why is there any difference, given that we are flying on the same exact metal, in the same class of service, on the same dates, using the same number of miles? Thanks in advance.

Russ Hinckley
I have spoken to our tax group about a situation like this for award travel to Mexico. The difference comes from an interpretation difference about the tax law; of course, our tax group believes their interpretation is correct. Since I am not a tax attorney, I trust their judgment. thx

LaDonna at WebFlyer
This question was submitted earlier by markie: How about having a designated lurker from NW on flyertalk on a regular basis like Starwood does, so you can see the questions and concerns that some of your best customers are facing and even respond to them on flyertalk from time to time? I think it would be good for NW's customer relations. :)

Russ Hinckley
I have avoided implementing something like this for a couple of reasons. The biggest reason is that I don’t have the staff resources to make this commitment. After a lot benchmarking with other large airlines, I believe we have the leanest management team in the industry. Since, I am not sure we could execute this idea well; I think it is safer to pass. Second, also related to staffing concerns, but slightly different, I am not sure that I want to establish another communication venue. Frankly, I think we are mediocre at staying on top of customer communications with our existing venues. Adding another communication option would only compound this situation. Having said this, we do watch FlyerTalk. In addition to being highly entertaining, we also learn where all the loop holes are in our promotions! You have helped us many times. thx

gldwebs
I had an interesting conversation with FA on my last trip to Kona regarding "Mile Runs". It seemed that some of the FAs know what they are and others just take offense to someone just flying to get miles for free tickets. What is the official view from WorldPerks as to their position on "Mile Runs"?

Russ Hinckley
We have decided to have fun with Mile Runs; that is why we ran our own Amazing Race Promotion. thx

LaDonna at WebFlyer
This question was submitted earlier by LK: Why doesn’t NW allow one-way award bookings?

Russ Hinckley
We try to build fences around things that would encourage the substitution of award travel for business travel. This type of substitution would make WorldPerks a much more expensive proposition for NW. thx

LaDonna at WebFlyer
This question was submitted earlier by Michelle: Why can't I book award seats on NW's website for flights on CO, Delta, etc.?

Russ Hinckley
You can book award seats on nwa.com for all of our biggest partners, including: Continental, Delta, Alaska, KLM, Air France, and Aero Mexico. We are working on getting all partners available via nwa.com but it will take some time to complete; building this capability is not a high priority for some of our partners. thx

Gordie
If I move to Europe and have my miles transfered to Flying Blue's program (KLM's frequent flyer program) is their anyway to get my miles back into NW Worldperks later?

Russ Hinckley
Yes. We have made arrangements for that with Flying Blue for people to transfer back to WorldPerks. I would also like to talk about the size of our Elite tiers since some members get concerned about their benefits being diluted. We always watch the size of our Elite tiers closely. We also monitor our domestic upgrade success since it is size sensitive. I am very confident that we will continue to upgrade Platinum Elites at the 90% success level. thx.

LaDonna at WebFlyer
This question was submitted earlier by Ann: Russ,your member's guide has the following rule. "If no mileage from any source is posted to a WorldPerks member's account for three consecutive years, the account is subject to termination, including forfeiture of all accrued mileage." With the filing of Bankruptcy, is NW considering enforcing this rule?

Russ Hinckley
Although I believe this rule could be a useful lever to drive more program activity if enforced, we are not planning on enforcing it anytime soon. Operating in Chapter 11 is a strong incentive to not make any program changes that could irritate our members. Obviously, we are relying on our WorldPerks base to help pull us through the most challenging environment airlines have ever faced. I got a big kick out of many “experts” talking about programs being in jeopardy because of a Chapter 11 filling. In fact, I believe the most stable period you will ever see in any program is when a carrier is in Chapter 11. thx

LaDonna at WebFlyer
This question was submitted earlier by fromYXU: Platinum Points: any chance that this promotion be improved so that it is more relevant to most Platinums? I fly a lot, some high fares, some international but get little in returns from Platinum Points to encourage me to do more.

Russ Hinckley
Platinum Points is only targeted to high value activities. It wasn’t meant to reward everything. However, I am the first to admit that Platinum Points has many shortcomings and I haven’t been too excited by our results. I am committed to running it one more year and seeing if we can learn enough to design a better program for the future. thx

mr exec
How does your system determine who gets upgraded on paid tickets when there are multiple travelers with the same elite status?

Russ Hinckley
We do look at a number of factors. First we sort by tier, then revenue, then LT value factors, then time of ticketing. I think it works very well and is the strongest benefit of our program. thx.

LaDonna at WebFlyer
This question was submitted earlier by Cameron: Russ, My question deals with the great perk of free upgrades to first class that NWA elites receive when space is available. I understand that fleet configuration is not within your realm of control but I'm very concerned with the pending removal of Mesaba's ARJs from the fleet. I believe that most elites do anything possible to avoid CRJ's in the schedule as they are the most uncomfortable plane ever made but airline economics dictate use of such an efficient airplane. So if the ARJs are removed, has any thought been given to possible perks for having to travel on equipment without first class like the CRJ? Is automatic seat blocking for elites provided space is available a possibility? A couple of drink coupons would be nice :) Thank you for your time. Have a great day. Cameron

Russ Hinckley
I appreciate your suggestion and feedback. We will look into this. thx.

Steve
Why do NWA not enhance the travel experience by doing the "Free stuff" Elite boarding happens around 50% of the time, welcoming by name on WBC about 20% of the time?? (oh and by the way the food on WBC is awful - have you ever had the dessert?

Russ Hinckley
We started an experiment earlier this year with our Ground Services group where they would skip pre-boarding Elite customers when the flight consisted of over 60% Elite members. Before agreeing to this test, we looked at how many times this might occur and the number was very small. We also establish a tracking system that would allow us to review when an agent didn’t offer Elite pre-boarding to see if the flight actually met the 60% parameter. Bottom line: skipping pre-boarding should almost never happen. Based on this question, I’ve set up a meeting with Ground Services to make sure the terms of our agreement are being enforced. If they aren’t, the test will be over. I will discuss your feedback about the service with InFlight. I tend to eat the dessert. But I tend to eat everything in sight. thx

LaDonna at WebFlyer
This question was submitted earlier by Libby: Is there any chance that you will be adding more partners on the WorldPerks Mall? The two I would love to see are Zappos.com and Amazon.com.

Russ Hinckley
We are interested in adding more partners to the WorldPerks Mall and appreciate your suggestion. Overall, I think the WorldPerks Mall is an under appreciated asset of the program and want to continue to grow it. We have approached Amazon previously and it didn’t really fit with their business model. We’ll see what we can do with Zappos.com. thx

gldwebs
As Platinum elites, we have a first hand knowledge of all the positives and negatives that happen every day in the traveling experience. Is there any plan to take advantage of this base of very experienced travelers to possibly put together an advisory committee to help you (the airline) better improve service to meet the needs of the business (and leisure) traveler

Russ Hinckley
We run an on-line advisory board every year. Our carrying capacity is about 100 members so it will take a long time to get to everyone. One thing I really value about our members is their willingness to share their insights and give their time to help us improve. thx

LaDonna at WebFlyer
This question was submitted earlier by Steve Horler: Why is there no incentive to fly more than 75,000 miles on NWA...how about some incentive threshold awards.

Russ Hinckley
I understand that we have an issue here. People don’t feel rewarded for going “above and beyond” and have the potential to divert their business to another carrier for status consideration after achieving our 75,000 mile threshold. At the same time, developing four differentiated tiers could be costly for NW and may provoke a competitive response that could be damaging. I prefer to continue to make private offers that reward customers for extra stretch and not introduce a permanent fourth tier program feature at this time. thx

jiburi
As NW Platinum elite, I have been able to experience Continental's Elite Access program and really like it. Is there any plan for Northwest to implement similar initiative to have Elite Access lane for elite boarding, and other benefits?

Russ Hinckley
While I believe that CO does a better job of branding this. We basically offer most of the same services to our Elite members. What do you think we are missing?

LaDonna at WebFlyer
This question was submitted earlier by fromYXU: Here is a general question: What can we expect of the WP program for 2006?

Russ Hinckley
Given the state of NW and the industry overall, we aren’t planning on major program changes at this time. Obviously, we will be responsive and competitive, but we think WorldPerks is one area where we will offer stability during this difficult time. thx

slippahs
Russ, you've been a great help to me in the past. Thank you for that. Will the perks offered to WorldPerks members outside the Continental US, such as those living in Hawaii (upgrade certificates) and in Asia (free WorldClub access) still be available in the future, especially given the economic situation of Northwest?

Russ Hinckley
As I mentioned previously, we are not planning any program changes currently. Benefits will remain intact. thx.

Radiocycle
The Million Miler "Milestone" has lost value. There are no advertised benefits at this time. Are there any plans to offer specific benefits for showing this level of consistent loyalty to NWA?

Russ Hinckley
I agree that we have not emphasized this program. Given the current environment, I am glad to be still sending recognition gifts. Talk to me again in a few years on this. thx.

LaDonna at WebFlyer
This question was submitted earlier by Steve Horler: Why is Platinum points not based on dollars spent. Domestic full fare (Y)passengers have to spend up to 2 times the amount for the same award as International J class passengers. DTW to LAX = $2000 = 20 Platinum Points, wheres DTW to AMS in J = $8000 or 160 Plat points.

Russ Hinckley
I think this is an excellent question and observation. We worked out the points based on average revenue per point. Obviously, the math doesn’t always work out! I would love to move a number of promotion rewards to dollars spent, but that has its own set of challenges too. First our measure of dollars spent on a transaction is net dollars to NW. This means that I throw out taxes and distribution expenses, which can be around 25% of the ticket price. While this is the right way to look at the money, it means that I will have a major reconciliation challenge when talking to customers. The last thing I have time to do is verify customer’s Visa statements. We are going to try a dollars based promotion some time; we just haven’t had the guts to face these challenges yet. thx

OnAMileHigh
Why are the award redemption levels for travel to Australia so high? The mileage required by NWA is no where near competitive with UA which has direct service whereas travel on NW and partners require a connection in Asia?

Russ Hinckley
The answer is somewhat in the question. Because we don't serve the market directly, it costs us more to fulfill this reward. thx

gldwebs
Simple request: Can you add to the Account Summary page the actual number of miles flown so we can see how far we are from hitting Million Mile status (especially if WP decides to improve the MM status)? This should be an easy change and the current lifetime WP amount seems useless compared to this.

Russ Hinckley
We will take this under consideration. Thanks for the suggestion.

uttrekr
Any chance of enhancing the experience with Alaska codeshare connections? (e.g. using their elite check in when starting a trip with an AS connector?

Russ Hinckley
We are working on this. I am glad we anticipated your request. thx

Jaimito Cartero
Any chance of getting equal upgrades on Copa? Their Onepass members get it on NW, but we can't get it on Copa.

Russ Hinckley
We have had discussions with them about it, but the program development will take some time and the return looks fairly small. thx

slippahs
Russ, I know you won't have a definitive answer for this, but perhaps you can speculate. Will we be seeing promotions such as the double elite qualifying miles promo in the future in the future?

Russ Hinckley
As you know, we are a promotionally active airline, but I never comment on future promotions. thx.

gldwebs
Back on the topic of mile runs, would there be any interest in NW offering last minute deals for open seats strictly set up for mile runs like long distance cheap tickets especially on routes that you know will have enough opening to support an extra butt in the seat for the added revenue?

Russ Hinckley
One of the problems with this business is that there are always a number of offers exactly like what you suggest. For the best deals, watch nwa.com and subscribe to our email alerts. thx.

Randy
Russ, I hope no one minds if I butt in here for just a second. You were sure quick on the trigger in matching and actually improving on that recent United Mileage Plus challenge to some of your members. When you see something competitive like the current British Airways transatlantic bonus offer – how long does it take you to really match the promotion without research? Any chance we’ll see transatlantic bonuses from you for this winter?

Russ Hinckley
Really it only takes us a day to turn a competitive response. But the offers we respond to have to make business or competitive sense for us to match. thx.

Randy
Thanks, your double miles with double elite credits was really OUTSTANDING!

Russ Hinckley
I enjoyed it too. It was fun to out UA on a private offer

CaseyN2
How about including Canadians in all WP specials. At present we feel left out of specials such as "Cash and Miles " promotion.

Russ Hinckley
I believe it is due to some hockey jealousy. No really, I will check on this. I think it has to do with some credit card issues. thx.

Randy
It's me again. Any chance that the next time you join us for an online chat that i could beg or borrow some bonus miles for you to give away. No matter how many promos you do and they are all so excellent - your members on FlyerTalk always want more. I think they would be happy with 50,000 miles. No, that is not apiece.....

Russ Hinckley
Randy, I will happily donate 50K miles to a chat participant. You can select the winner at Random and send me the information.

Randy
i hear massive applause.......

Russ Hinckley
I don't

Randy
keyboards are clicking everywhere...

WI Guy
I travel internationally a few times a year for pleasure. Rather then risk the .00000001% chance of an OP UP to WBC at the gate, I buy a paid upgradeable coach fare on flights that have upgrade space and use miles. Currently only NW, CO and KL offer this kind of upgrade with NW miles. I would like to see NW negotiate this option with the other Sky Team partners.

Russ Hinckley
We are looking at this currently. I hope it happens in my lifetime. thx.

Steve
Why do promotions (which are there to drive revenue) have so many restrictions? I spent $7000 on a NWA DTW to CPH ticket last month...but did not get double miles because it was not an E-Ticket - Yet I was unable to purchase an E-Ticket. Talk about biting the hand that feeds you!

Russ Hinckley
I find it very strange that you couldn't get an e-ticket. However, promotions have restrictions for a lot of reasons. We need to protect ourselves from a business and legal perspective. But we try to manage the number of restrictions so that people still want to play. thx.

Randy
what a wonderful evening of great information about many members favorite frequent flyer program. i know i feel very positive about Northwest Airlines and certainly the guy managing the WorldPerks program. Thanks Russ for the answers .... and the miles

Russ Hinckley
Randy, it is always fun to spend time with you and flyertalk folks. thx.

Randy
good evening all, have a safe trip away from your computers....