Hertz Partners With SkyTeam Airline Alliance To Drive Car Rental Benefits For Frequent Flyers In First-Of-A-Kind Tie-Up

- Hertz becomes the first non-air affiliate of SkyTeam, the world's leading airline alliance

- SkyTeam passengers to enjoy car rental benefits and earn frequent flyer miles when renting with Hertz

Hertz Global Holdings, Inc., (NYSE: HTZ) announced that The Hertz Corporation has partnered with SkyTeam, one of the world's leading airline alliances, as its first non-air affiliate. Effective October 16, 2018, Frequent Flyers of all of SkyTeam's 20 member airlines can enjoy a variety of car rental benefits while notching up miles towards air travel* when they rent a vehicle from Hertz.

SkyTeam is the first airline alliance to offer its Frequent Flyers access to car hire benefits plus the opportunity to earn miles when renting a vehicle.  Passengers participating in the Frequent Flyer programs of SkyTeam member airlines will receive a special code for their Hertz car rental bookings. Hertz covers SkyTeam's global network of 1,072 destinations with more than 10,000 rental locations around the world.  Car hire reservations can be made online, by phone or through the Hertz app.  

Vincent Gillet, Vice President Marketing, Hertz International, said: "We at Hertz are honored to offer car rental benefits to the 730 million customers travelling annually with the members of SkyTeam, a world leading airline alliance. Hertz already works with more than half of the SkyTeam partner member airlines, so it was a progressive move for us to extend our relationship to the full alliance. As a proud partner of SkyTeam, we look forward to providing a seamless fly-drive experience for our mutual customers."

Mauro Oretti, SkyTeam's Vice President Sales and Marketing, added: "Millions of SkyTeam customers hire cars at home or away and we are excited to take Frequent Flyer perks up a gear through our partnership with Hertz, one of the world's leading car rental brands. Our aim at SkyTeam is to offer the best end-to-end travel experience for our customers. Extending loyalty benefits beyond the airport is a natural step as we continue to add value to our customers' everyday traveling lives."

*Due to contractual reasons Frequent Flyer mileage accrual is not available to members of Alitalia/MilleMiglia or Aerolineas Argentinas/Aerolineas Plus.

About Hertz: The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar, Thrifty and Firefly vehicle rental brands in approximately 10,200 corporate and franchisee locations throughout North America, Europe, The Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. The Hertz Corporation is one of the largest worldwide rental companies, and the Hertz brand is one of the most recognized in the world. Product and service initiatives such as Hertz Gold Plus Rewards, Ultimate Choice, Carfirmations, Mobile Wi-Fi and unique vehicles offered through the Adrenaline, Dream, Green and Prestige Collections set Hertz apart from the competition. Additionally, The Hertz Corporation owns the vehicle leasing and fleet management leader Donlen, operates the Hertz 24/7 car sharing business in international markets, and sells vehicles through Hertz Car Sales. For more information about The Hertz Corporation, visit: www.hertz.com.

About SkyTeam: SkyTeam is the global airline alliance with 20 member airlines working together to offer seamless travel on an extensive global network. SkyTeam customers can unwind in 600+ lounges as they travel, earn and redeem Frequent Flyer Miles. SkyTeam Elite Plus customers are eligible for SkyPriority services. The 20 members are: Aeroflot, Aerolíneas Argentinas, Aeroméxico, Air Europa, Air France, Alitalia, China Airlines, China Eastern, China Southern, Czech Airlines, Delta Air Lines, Garuda Indonesia, Kenya Airways, KLM Royal Dutch Airlines, Korean Air, Middle East Airlines, Saudia, TAROM, Vietnam Airlines and Xiamen Airlines. SkyTeam welcomes 730 million customers each year on more than 16,609 daily flights to 1,074 destinations in 177 countries.

www.skyteam.com / www.facebook.com/skyteam / www.youtube.com/user/skyteam

Travelore Tips: Are Frequent Flyer Miles Ever Taxable?

TAX TIP: Are frequent flyer miles ever taxable?

If you recently redeemed frequent flyer miles to treat the family to a fun summer vacation or to take your spouse on a romantic getaway, you might assume that there are no tax implications involved. And you're probably right - but there is a chance your miles could be taxable.

Usually tax free

As a general rule, miles awarded by airlines for flying with them are considered nontaxable rebates, as are miles awarded for using a credit or debit card.

The IRS partially addressed the issue in Announcement 2002-18, where it said "Consistent with prior practice, the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent flyer miles or other in-kind promotional benefits attributable to the taxpayer's business or official travel."

Exceptions

There are, however, some types of mile awards the IRS might view as taxable. Examples include miles awarded as a prize in a sweepstakes and miles awarded as a promotion.

For instance, in Shankar v. Commissioner, the U.S. Tax Court sided with the IRS, finding that airline miles awarded in conjunction with opening a bank account were indeed taxable. Part of the evidence of taxability was the fact that the bank had issued Forms 1099 MISC to customers who'd redeemed the rewards points to purchase airline tickets. The value of the miles for tax purposes generally is their estimated retail value.

If you're concerned you've received mile awards that could be taxable, please contact us and we'll help you determine your tax liability, if any.

Remember that for your convenience, you can access our WebTaxGuide on our WEBSITEany time for current technical and legislative updates and helpful tax planning information. 

These Are The Best Credit Cards for Travel Rewards

Nicholas J. Reid/ Getty Images

See this year's top picks for frequent fliers and road warriors.

MONEY and NerdWallet have picked the best credit cards in five different categories: cash back, borrowing, travel rewards, student, and small business cards. Most of our picks assume you are using cards strategically to maximize rewards, and paying off your bill each month to avoid fees and finance charges. MONEY also went one step further this year to add an “easy choice”—the best no-muss, no-fuss, no-annual-fee option.

Easy Choice: Barclaycard Arrival World

• APR: 16% to 24%
• Annual fee: $0
• Rewards:
  • Two miles for every $1 spent on travel and dining
  • One mile for every $1 spent on anything else
  • A 5% bonus when redeeming miles for travel spending
• Sign-up bonus: 20,000 miles after spending $1,000 in the first 90 days
• Why it’s a winner: Cost-conscious cardholders who are modest spenders but want some travel rewards should look to this card. There’s no annual fee, no foreign-transaction fees, and even a yearlong 0% APR period on balance transfers made within 45 days of opening the card. You’ll earn solid rewards, including double miles for every dollar you spend on travel or at a restaurant; those miles will go even further when you redeem them for travel purchases.
• Caveat: Earning miles on this card is tougher than with some of the other travel winners. If you expect to spend more than $1,000 a month, this card’s cousin—the Barclaycard Arrival Plus World Elite—will be worth the $89 annual fee.

Best for Frequent Fliers (Tie): Chase Sapphire Preferred

• APR: 16% variable
• Annual fee: $0 the first year, then $95
• Sign-up bonus: 40,000 points after spending $4,000 in the first three months
• Rewards:
  • Two points for every $1 spent on travel and dining
  • One point for every $1 spent on anything else
  • 5,000 points when you add an authorized user who makes a purchase within three months
  • 20% off travel when redeeming points for airfare, hotel stays, car rentals, and cruises through Chase Ultimate Rewards
• Why it’s a winner: Valuable points and integration with partner programs make Chase Sapphire Preferred the best choice for those who want the most travel flexibility. You have a few options: You can redeem points against charges on your statement—getting 1¢ per mile—or get an extra 20% bonus if you use Chase’s platform to buy travel. Or you can transfer points directly to Sapphire’s travel partners: airlines (such as United and British Airways), hotels (Hyatt, Marriott), or trains (Amtrak). Those programs can be more generous or flexible, letting you use points to pay for upgrades or book business-class tickets.
• Caveat: Chase has upped the amount you must spend in the first three months to earn a sign-up bonus.

Best for Frequent Fliers (Tie): Barclaycard Arrival Plus World Elite

• APR: 16% to 20%
• Annual fee: $0 the first year, then $89
• Sign-up bonus: 40,000 miles after spending $3,000 in 90 days
• Rewards:
  • Two miles for every $1 spent
  • A 5% bonus when redeeming miles for travel spending
• Why it’s a winner: Like the Sapphire, this card offers top rewards without entangling you in an airline’s loyalty program, but it allows big spenders to rack up miles more quickly. The sign-up bonus itself nets you $420 worth of travel spending, but even after that first year you can recoup the annual fee with about $750 in monthly spending. Other benefits: There are no foreign-transaction fees, and you can get your credit score from TransUnion for free via the Barclaycard website.
• Caveat: This card doesn’t let you transfer miles to airline or hotel programs.

Best for Hotel Aficionados: Starwood Preferred Guest

• APR: 15% to 19%
• Annual fee: $0 the first year, then $95
• Sign-up bonus: 25,000 points after spending $3,000 in 90 days
• Rewards:
  • Up to five points for every $1 spent on Starwood hotels
  • One point per $1 for everything else
• Why it’s a winner: When it comes to hotel rewards, not all points are created equal. Other programs may offer more points per purchase (as does Citi Hilton HHonors card) or a greater sign-up bonus (IHG Rewards Club Select)—but the quants at NerdWallet say a Starwood Preferred Guest point is about five times as valuable as those offered by Hilton and more than three times as great as IHG’s. Why? Because these points go further. Starwood’s are worth about 2.2¢ to 2.4¢ each when they’re redeemed for hotel stays—far in excess of what you’ll get through rival programs. You can also transfer points to about 30 frequent-flier programs; you’ll even get a 5,000-point bonus when you transfer 20,000. And Starwood recently nixed its foreign-transaction fee, making overseas travel less costly.
• Caveat: To reap the card’s benefits, you’ll have to stay in one of Starwood’s 1,200 hotels. But the company’s portfolio includes brands such as Westin, W, and the St. Regis, so it’s hardly a sacrifice.

See all of MONEY’s picks:

• Best Credit Cards for Cash Back
• Best Credit Cards for Carrying a Balance
• Best Credit Cards for Small Business
• Best Credit Cards for Students
• Full coverage: Best Credit Cards 2015-16

Courtesy of Money

This article originally appeared on Money.

5 Ways To Get Kicked Out Of A Frequent Flier Program

Yes, it can happen to you. Read on to find out why you may get the boot. By Carl Unger, Smarter Travel

Frequent flyer programs are anything but simple. The arcane rules, blackout dates, expiring miles, credit card programs, and numerous other complicated details make your annual taxes look like a walk in the park by comparison. One aspect of these programs that is pretty straightforward, however, is that once you join it's pretty difficult to get kicked out.

Make no mistake: Inattentive program members can suffer lost miles and lost rewards, but actual expulsion is rare and limited to just a few scenarios. That said, it's not unheard of, and it's worth knowing what you should look out for. Here are five ways you could get kicked out of your frequent flyer program.

Be a Huge Pain in the Neck

Frequent flyers, especially elites, are typically an airline's best customers. These people fly regularly and give the airline a ton of their (or their company's) money, ergo they expect and often receive special service and extra attention.

There is such a thing as expecting too much, though, and airlines will cut ties with customers who make unreasonable demands or abuse their privileged status. Being elite doesn't make you king, and if an airline feels it's being bled dry by incessant (and dubious) complaints and demands for compensation, it can and will remove you from its program.

The Make Your Complaint Work for You

Obvious Cheating

Guess what? A cello is not a person! And as world-famous musician Lynn Harrelllearned a few years back, that means A) cellos cannot earn miles and B) disregarding point A and signing your cello up for a frequent flyer membership can get you kicked out of the program. That's exactly what happened to Mr. Harrell, who lost roughly 500,000 miles and was banned from Delta's program when his account was audited and found to be fraudulent.

Another good example is hidden-city ticketing. If you aren't familiar, this is the practice of buying a multi-leg ticket that connects in your actual intended destination. These connecting itineraries can be cheaper than booking the direct flight you want, and so you just hop off at your desired destination and go on your merry way.

Well, this is very much against every airlines' contract of carriage, and if you're caught doing it, especially repeatedly, airlines can target your miles or even your membership as punishment. I stress "can" because actual examples of this are fuzzy, but let's just say you engage in this practice at your own peril.

There's an entire culture devoted to finding and exploiting loopholes in frequent flyer programs, but outright cheating, and making a habit of it, will get your carrier's attention sooner than later.

Pretty Much Any Reason At All

Here is some choice verbiage from Delta's SkyMiles rules and conditions:

Delta reserves the right to terminate your membership in the SkyMiles program at any time if you violate the SkyMiles Membership Guide and Program Rules, any term or condition of Delta's contract of carriage, Delta's fare rules, or any other Delta rule and regulation that apply to your travel.

And from JetBlue, emphasis mine:

Fraud, misrepresentation, abuse, improper conduct (as determined by JetBlue in its sole discretion), or violation of applicable rules may result in ... the forfeiture of all Points and/or Award Travel, forfeiture of any accumulated Points in a TrueBlue Member's Account, deduction of TrueBlue Points, as well as cancellation of the Account and proscription of the Member's future participation in TrueBlue.

You don't need to be a lawyer (I'm not) to understand what these paragraphs mean, but I'll spell it out: When you sign up for a frequent flyer program (or even buy an airline ticket) you're giving the airline most of the power in any dispute that may arise down the road.

In the case of frequent flyer programs, airlines reserve the right to levy penalties at their discretion for any activity that violates their terms. And while expulsion is likely reserved for big-time fraud, "lesser" crimes of having multiple accounts and transferring miles outside the airline's approved transfer system are subject to any penalty the airline deems appropriate. This is what we call the Roger Goodell Theory of Justice.

RELATED: 10 Ways the Airlines Try to Scam You

Selling Miles

Unlike the Big Brother-y "we can do whatever we want" provisions above, this one is pretty simple. Miles are not your property and, as such, they are not yours to sell. This is spelled out pretty clearly in your program's rules and conditions, and you can be sure the retribution will be swift and severe if your carrier catches you profiting off what is technically their property.

To be clear, selling miles is generally not illegal, so you can't get in trouble with the feds if you decide to go that route. But in addition to canceling award tickets and expelling you from the program, airlines can sue for damages and bleed you dry with legal fees. Basically: Don't do it.

Inactivity

Inactivity is the bane of many casual program members. Each airline has its own rules, but in most cases miles expire after 18 months of inactivity.

"Activity" includes earning flight miles or redeeming an award flight, earning or redeeming miles with a program partner (such as an affiliated rental car company), buying or transferring miles, and in some cases using an affiliated credit card.

But inactivity can also lead to your membership being terminated. Again, each airline's policy is different, but here's the language United uses, for example:

Any member who fails at any time to engage in account activity for a period of eighteen (18) consecutive months is subject to termination of such member's membership and/or forfeiture of all accrued mileage as of the last day of the 18th month.

Chances are that if you've been completely inactive for 18 months, you won't miss your membership (or be missed by the program). But it's a good reminder that members should keep tabs on their status and stay up to date on the program policies to ensure their miles--and membership--aren't blundered away.

Read the original story: 5 Ways to Get Kicked Out of a Frequent Flyer Program by Carl Unger, who is a contributor to SmarterTravel. 

Guide to Understanding Frequent Flyer Miles

 

While you weren’t paying attention last fall, there was a seismic shift in the currency of frequent flyer miles as the last major airline moved from a distance-based model to revenue-based rewards. Here’s what you need to know to maximize every flight – and dollar spent – in the new marketplace. By Alex Pasquariello

Spend Big, or Loyalty is Meaningless 
In a time before deregulation, hub-and-spoke, discount airlines, oil hedging, airline-branded credit cards, and baggage fees, airlines knew there was a correlation between distance flown and revenue generated. Your butt in a seat was as valuable the next butt in a seat, and everybody was generally awarded equally for all miles traveled through increased fidelity rewarded in mileage bonuses, elite status, upgrades, lounge access, and other perks. In an era when a seat on the same flight between New York and London can range from $500 to $5,000 (or more) that correlation no longer holds, and the new revenue-based programs are aimed at promoting loyalty among valuable big spenders. 

For flyers on "discount carriers" such as Southwest and JetBlue, the revenue-based rewards model being adopted at American, Delta, and United Airlines is old news, as each awards points rather than miles based on dollar fare equivalent. But if you're left craving the good ol' days, look to the West Coast where Hawaiian Airlines and Seattle-based Alaskan Airlines are the only two major carriers still operating under the "butt-in-seat" system. 

RELATED 10 Airlines to Watch 

Pledge Alliance 
While it may not make sense to commit to a single airline, exclusivity with one of the three major airline alliances is a solid, though deeply personal, strategy. Search deeply within yourself to figure out which of the three - One World, Sky Team, or Star Alliance- is best for you. Which has the most flights landing in your home airport? Do alliance airlines cover the cities and destinations to which you fly? Is there fare class earning among partner airlines you fly often? Will the alliance actually award reward flights on your desired routes? 

For their part, the constantly changing alliance programs are adapting to the new realities of the marketplace and even taking discount airlines under their umbrella. Later this year, look for the 28-airline Star Alliance to add South African discount carrier Mango as part of its new Connecting Partner program. Just keep in mind that Mango, and other low-cost carriers, won't be full alliance members, so don't expect cheap-o fares to materialize into anything redeemable on United, Lufthansa, or China Air. But, if all goes as planned, the partnership could make your South African safari within reach of award availability. 

Navigate Variable Award Pricing 

Shifting from mile-based currency to revenue-based rewards (think points instead of miles) also allows airlines to shift to variable award ticket pricing. For instance, last February, Delta ceased production of charts showing mileage-award levels and quietly began pricing choice award tickets based on the same factors that influence dollar fares. April 2015 saw Southwest add variable pricing on popular routes and flights while raising their standard award conversion rate from 60 points to 70 points per dollar of fare. The variable pricing model will only continue to ripple through the marketplace in 2016 and beyond as airlines tweak their programs to manage costs and maximize revenue. 

While variable pricing allows airlines to rapidly devalue points, frequent flyers are often better served by low-cost carrier reward programs with variable award pricing. Consider that both Southwest and JetBlue price award seats on dollar fare equivalent, and anannual study of award availability by consultant Switchfly found that each airline's frequent flyer program ranked among the top five for overall award seat availability and lowest average award ticket price.

Be Plastic 

When used strategically, co-branded airline credit cards can be a boone for jetsetters and big spenders looking to maintain elite status and amplify their points or miles rewarded per dollar spent. 

At their most basic level, the current crop of co-branded airline credit cards reward flyers with additional points or miles for purchases made at their respective airlines. For instance, the Southwest Airlines RapidRewards Visa offers two points for every dollar spent at the airline, and the United MileagePlus Explorer Visa, Citi AAdvantage MasterCard and Delta SkyMiles American Express reward every dollar spent at their respective airlines with two frequent flyer miles. Alaska Airlines has one of the best basic offerings, rewarding flyers with three reward miles for every dollar spent at the airline with their Visa Signature credit card. 

These co-branded credit cards are also an excellent vehicle for status addicts. Consider that both Delta and United have revenue-based requirements for achieving elite status. However, both airlines will waive that requirement if you spend at least $25,000 on one of their qualifying co-branded credit cards. American flyers should check out the Citi AAdvantage Executive World Elite MasterCard offering 50,0000 miles after you spend $5,000 in three months and another 10,000 elite qualifying miles after spending $40,000 in a calendar year. 

Most of the co-branded airline credit cards on the market offer tantalizing perks such as complimentary checked bag, priority boarding, and limited lounge access when you purchase airfare with their respective cards. While it seems like a good deal on the surface, these cards also charge annual fees. In many cases, use of perks available can justify annual fees, but be sure to do the math before opening a co-branded airline credit for the free checked bag bonus alone. 

Finally, remember that these cards aren't designed for consumers looking to build their personal credit or those that carry a balance month to month as their interest rates are generally high. Furthermore, be aware that the actual airlines have very, very little to do with these credit card products or their customer service, as banks simply purchase miles from the airlines to package as a co-branded credit card. That means that perks such as complimentary checked bags are not in fact complimentary as your bank pays a negotiated fee to the airline for that luggage. 

Source: http://www.jetsetter.com/