High Gas Prices Send Drivers to Corporate Rentals

Washington frequent flier David Biderman said paying as much as $20 more each way wouldn't cause him to fly a cheaper airline, all other things being equal.

"Of course I sympathize with the airlines paying higher fuel bills. After all, I am doing the same at the gas station," said Biderman, who is general counsel for the Environmental Industries Association.

Fairfax software technician Kate Schwarz said she was glad that the airlines were honest enough to reveal the reasons behind their price increase "instead of trying to hide them or disguise them as something else."

Dan Gallagher of McLean said airlines should increase ticket prices on the cheaper, advanced-purchase tickets, not on the last-minute tickets that business travelers often purchase that are more expensive.

"They should not nickel-and-dime the higher-fare-paying business customers like myself," he said.

Minneapolis-based fare expert Terry Trippler said he expects the airlines to try to raise fares again, possibly within another week. He said fares remain at historically low levels, another reason airlines continue to lose money despite filling high percentages of available seats.

Use 'em or Lose 'em: For the first time since Hilton created its frequent stay honors program in 1987, the hotel chain has sent out letters this year alerting members with inactive accounts to stay at a Hilton property or use a Hilton co-branded charge card or their account will be terminated.

Mary Jackson received one of those letters. The frequent business traveler and senior director for the Association of Research Libraries in Washington hasn't stayed at a Hilton since March 2003.

But Jackson has been a member of Hilton's program since it began. With nearly 41,000 Hilton points, she could redeem her points for a free weekend stay at Hilton's famed Waldorf-Astoria in New York. Jackson said she understands why Hilton wants to drop her, but she said she was disappointed that the chain would end her relationship since she has been with program since its inception.

Hilton says it sent the letters to streamline its program and reduce the financial liability. Just as airlines carry millions of dollars in liabilities on their balance sheets for outstanding frequent flier miles, so do hotels with their frequent guest points.

"Some value has to be placed on these points. They can either stay with the program and keep their account alive or redeem their points and go away," said Cindy Baker, vice president of Hilton's frequent guest program, which has 13 million members.

Hilton seems to be the only major chain trying to shake off its dead weight. Spokespersons for Marriott and Hyatt said that while they could terminate inactive members under their agreements, they have never sent out such a letter and have no plans to do so.