Workin' on the Railroad Deals
Amtrak Challenges the Airlines

"Guest Rewards" Frequent Rider Program

If Amtrak wants to fight it out with the airlines, a frequent rider program is essential. Here's how Guest Rewards works:

Amtrak will give you 500 points for enrolling in the program, and then two points for every dollar spent in the system.

You're also allowed to forget the two-point deal and take a flat 500 point reward for Acela/Metroliner trips--750 for first class trips on selected routes.

	COMPETING FROM THE INSIDE OUT Trains generally can't be as fast as jets, so they have to be more comfortable.

Which selected routes? You guessed it. All of the 14 that qualify involve Boston, Washington, Newark or New York.

Points will buy free travel on Amtrak or airline tickets for Continental, United or Midwest Express flights.

Note that U.S. Airways and Delta are not on the list. They provide many of the shuttle flights in the northeast corridor.

The company says its list of restaurants, hotels, car rental firms and retailers accepting Guest Reward points will grow.

How many points are needed for a free trip? Initially, the only direction appears on the news release: "...members must call the Amtrak Guest Rewards Service Center." This seems a bit curious for a company trying to promote a new rewards service.

But Amtrak says it takes 2500 points to earn a $25 USD travel certificate, and the same amount for an unreserved seat in coach. At 5000 points, you may trade for an equal number of frequent flier miles with the airline partners.

It certainly was not a coincidence of timing that Acela and Guest Rewards were rolled out on the same day. Amtrak's future hinges on these offerings.

Workin' on a Deadline

A lot is at stake in this run on the airlines. The U.S. Congress has mandated that Amtrak become profitable by the year 2003. That's the target date for minimizing a lot of the federal subsidies. If Amtrak still needs that help, it will be in deep trouble. Associated Press reports Acela Express is expected to generate $180 million USD per year.

But consumers might view all of this as "better late than never." Japan has had 150 MPH trains for 30 years. So too has Europe.

Ridership on trains in the United States has increased as the airline problems and fuel costs have increased. Yet Americans seem lukewarm in their support of high-speed train systems. One important reason: billions of dollars would be needed to lay the necessary new track and perform other improvements.

A debate about the wisdom or folly of spending that money is beyond our focus. But budget travelers do have a stake in alternatives to clogged highways and saturated airports. That's why they should take a close look at Amtrak, Acela Express and the new rewards program.

About Budget Travel resources:
Planning Your Trip: Destination Help
Subway Maps for Linking with Train Systems
Train Links Around the World

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