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Interview with Tom Parsons

Aired November 26, 2002 - 13:37   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KYRA PHILLIPS, CNN ANCHOR: Now, the holidays are typically a busy time for the nation's air carriers, and this year will be no exception. So, if you are heading out for the holidays, you may want to pack along a little patience. According to AAA, more than five million people are expected to travel by air for Thanksgiving. That is up from last year, but still down from 2000. If you don't fly, driving is always an option. This year, it will cost you $1.45 a gallon to fill up, and that's not bad, but that is more than drivers paid this time last year.
Joining us to talk more about traveling this holiday season, Tom Parsons, CEO of Bestfares.com. He joins us now from Dallas, Texas. Hi, Tom.

TOM PARSONS, CEO, BESTFARES.COM: Well, good afternoon.

PHILLIPS: Well, I guess this is good news, right? People are traveling. We think of 9/11, how that affected travel, a lot of people didn't want to get out for the holidays.

PARSONS: Well, this is going to be a very busy holiday. Remember, the airlines have downsized, but again, that means there are less planes out there. But its -- when you have 280 million people can get the time off, and we are trying to cram them in seven days, there is a lot of demand out there, and I tell you, tomorrow is going to be one of those ugly days for travelers, and also I think Saturday, Sunday, and Monday are going to be tough days out there. So I would probably say get to the airport a little early, especially if you are traveling on those days.

PHILLIPS: So you have got these layoffs that are taking place. You have got a lot of people traveling, and also a number of flights have been cut. How do you avoid some of these hassles? I mean, what are going to be some of the main things that maybe we could avoid, hopefully?

PARSONS: Well, again, I think we're just going -- I think it's going to be still a buyer's market out there. And, again, the big airlines are getting smaller. The little airlines, what we call the low-cost niche airlines, are getting bigger, and I guess overall, are we going to travel that much after the first of the year? That is why we are seeing some bargain basement deals, not only for this holiday period, but also for further out.

PHILLIPS: So you are saying the low-cost airlines, let's say Southwest, OK, and then the big six airlines, there really isn't that much a difference now? There used to be such a gap when it service. Now you are saying there really isn't?

PARSONS: Well, I think they all give me peanuts.

PHILLIPS: They are so generous.

PARSONS: But other than that, it's very difficult to get a meal service on an airplane today. They all -- the only difference between the aircraft they fly is the logo they put on the outside of the airplane, and also when you look at the consumer friendliness of low- cost airlines, like AirTrans, America West, Southwest, their refund policies are more gentle to the consumer, and probably more friendly. The big airlines have -- now, if you don't make your changes properly, do it on the right date, do it before departure, did it on the return before the departure, it's a lose it-type ticket. And -- if you are trying to go to Hawaii, and don't make it, don't do everything right, it could be $900 to $1200 out of your pocket.

PHILLIPS: Can't stop getting punished. It is like being a little kid again. Now, tickets -- I noticed that tickets to Europe, the prices are going down after the holidays. Is that because of this fear of a war against Iraq?

PARSONS: Well, actually, there are deals now, even for the Christmas -- I have been doing this for 20 years, "Bestfares" magazine, and now Bestfares.com, and I can't tell you -- right now -- I know we put up on ours, and there are some other deals out there, 599 bucks to Europe for Christmas to -- not to London, but to Paris and Amsterdam, Madrid, Rome, Frankfurt, Munich. But you know, that's not the back of the bus, that's front cabin business class that normally goes for $6,000 or $7,000. Give me a break. I have never seen it that cheap.

PHILLIPS: And I remember, just a number of weeks ago flying, and they were offering up first class for another 60 bucks, and I'm talking a long trip, too.

PARSONS: Right. Again, some of the airlines -- like Delta has now got this system wide. That's if you want to -- you know, the planes will be crowded this weekend. So, depending on the fare that you paid, Delta will allow to you upgrade for as low as $60. America West has a program up to 500 miles, maybe $50. Some of the other carriers have those special deals. So when you get to the airport, there is not that many business travelers flying this holiday weekend flying this holiday weekend. Maybe say, Hey, how much is it going to cost me to upgrade? It is not going to be $1,000 or $2,000. It can be just $50, $60, $100 depending on the distance that you are flying.

PHILLIPS: Tom, I have got to ask you about safety concerns. What are you hearing...

PARSONS: OK.

PHILLIPS: because some airports are saying it is OK to go ticketless now, security rules are changing in some airports. What do you think? PARSONS: Well, here is problem we have. I still like the paper ticket, but also don't like paying an extra $20 or $25 to get that paper ticket, and that is what they are charging, almost every major airline.

So if you have got a family of four, it can be an additional expense of $100. Now, with all of the key houses that we are seeing at the airports, as long as you have some kind of -- like a credit card, and get it, and it slashes out, you get it probably in a minute to two minutes, so I guess if I was John Q. Traveler, and I had a choice of paper or getting -- at $100 more for a family of four, or getting it for free, I think we are going to see -- I know in our office, we have seen it go from 50/50 to almost 95 percent of the travelers now elect e-ticket just to avoid that processing fee.

PHILLIPS: Tom Parsons, Bestfares.com. Have a good holiday, Tom.

PARSONS: Well, thank you.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired November 26, 2002 - 13:37   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Now, the holidays are typically a busy time for the nation's air carriers, and this year will be no exception. So, if you are heading out for the holidays, you may want to pack along a little patience. According to AAA, more than five million people are expected to travel by air for Thanksgiving. That is up from last year, but still down from 2000. If you don't fly, driving is always an option. This year, it will cost you $1.45 a gallon to fill up, and that's not bad, but that is more than drivers paid this time last year.
Joining us to talk more about traveling this holiday season, Tom Parsons, CEO of Bestfares.com. He joins us now from Dallas, Texas. Hi, Tom.

TOM PARSONS, CEO, BESTFARES.COM: Well, good afternoon.

PHILLIPS: Well, I guess this is good news, right? People are traveling. We think of 9/11, how that affected travel, a lot of people didn't want to get out for the holidays.

PARSONS: Well, this is going to be a very busy holiday. Remember, the airlines have downsized, but again, that means there are less planes out there. But its -- when you have 280 million people can get the time off, and we are trying to cram them in seven days, there is a lot of demand out there, and I tell you, tomorrow is going to be one of those ugly days for travelers, and also I think Saturday, Sunday, and Monday are going to be tough days out there. So I would probably say get to the airport a little early, especially if you are traveling on those days.

PHILLIPS: So you have got these layoffs that are taking place. You have got a lot of people traveling, and also a number of flights have been cut. How do you avoid some of these hassles? I mean, what are going to be some of the main things that maybe we could avoid, hopefully?

PARSONS: Well, again, I think we're just going -- I think it's going to be still a buyer's market out there. And, again, the big airlines are getting smaller. The little airlines, what we call the low-cost niche airlines, are getting bigger, and I guess overall, are we going to travel that much after the first of the year? That is why we are seeing some bargain basement deals, not only for this holiday period, but also for further out.

PHILLIPS: So you are saying the low-cost airlines, let's say Southwest, OK, and then the big six airlines, there really isn't that much a difference now? There used to be such a gap when it service. Now you are saying there really isn't?

PARSONS: Well, I think they all give me peanuts.

PHILLIPS: They are so generous.

PARSONS: But other than that, it's very difficult to get a meal service on an airplane today. They all -- the only difference between the aircraft they fly is the logo they put on the outside of the airplane, and also when you look at the consumer friendliness of low- cost airlines, like AirTrans, America West, Southwest, their refund policies are more gentle to the consumer, and probably more friendly. The big airlines have -- now, if you don't make your changes properly, do it on the right date, do it before departure, did it on the return before the departure, it's a lose it-type ticket. And -- if you are trying to go to Hawaii, and don't make it, don't do everything right, it could be $900 to $1200 out of your pocket.

PHILLIPS: Can't stop getting punished. It is like being a little kid again. Now, tickets -- I noticed that tickets to Europe, the prices are going down after the holidays. Is that because of this fear of a war against Iraq?

PARSONS: Well, actually, there are deals now, even for the Christmas -- I have been doing this for 20 years, "Bestfares" magazine, and now Bestfares.com, and I can't tell you -- right now -- I know we put up on ours, and there are some other deals out there, 599 bucks to Europe for Christmas to -- not to London, but to Paris and Amsterdam, Madrid, Rome, Frankfurt, Munich. But you know, that's not the back of the bus, that's front cabin business class that normally goes for $6,000 or $7,000. Give me a break. I have never seen it that cheap.

PHILLIPS: And I remember, just a number of weeks ago flying, and they were offering up first class for another 60 bucks, and I'm talking a long trip, too.

PARSONS: Right. Again, some of the airlines -- like Delta has now got this system wide. That's if you want to -- you know, the planes will be crowded this weekend. So, depending on the fare that you paid, Delta will allow to you upgrade for as low as $60. America West has a program up to 500 miles, maybe $50. Some of the other carriers have those special deals. So when you get to the airport, there is not that many business travelers flying this holiday weekend flying this holiday weekend. Maybe say, Hey, how much is it going to cost me to upgrade? It is not going to be $1,000 or $2,000. It can be just $50, $60, $100 depending on the distance that you are flying.

PHILLIPS: Tom, I have got to ask you about safety concerns. What are you hearing...

PARSONS: OK.

PHILLIPS: because some airports are saying it is OK to go ticketless now, security rules are changing in some airports. What do you think? PARSONS: Well, here is problem we have. I still like the paper ticket, but also don't like paying an extra $20 or $25 to get that paper ticket, and that is what they are charging, almost every major airline.

So if you have got a family of four, it can be an additional expense of $100. Now, with all of the key houses that we are seeing at the airports, as long as you have some kind of -- like a credit card, and get it, and it slashes out, you get it probably in a minute to two minutes, so I guess if I was John Q. Traveler, and I had a choice of paper or getting -- at $100 more for a family of four, or getting it for free, I think we are going to see -- I know in our office, we have seen it go from 50/50 to almost 95 percent of the travelers now elect e-ticket just to avoid that processing fee.

PHILLIPS: Tom Parsons, Bestfares.com. Have a good holiday, Tom.

PARSONS: Well, thank you.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com