Obsessive Behaviors And The Retention Department

I just read this hilarious post from The Points Guy this morning, titled "10 Obsessive Behaviors of Miles and Points Junkies". I guess I haven't gone off the deep end yet, since I only exhibit 8 out of the 10 behaviors listed on a regular basis ;)  All humor aside, there are actually some very good miles/points-earning tips in his post.

One I wanted to emphasize was #5, "threatening to cancel a credit card unless they give you bonus points or waive the annual fee". While it may sound like a terrible thing to do, like I'm blackmailing or hostage taking, this is actually a very normal aspect of owning (and disowning) a credit card, and one of the main reasons why retention departments exist in the first place.

I typically do not keep a credit card past the first year if there is an annual fee, unless it provides a truly worthwhile anniversary bonus, such as a free night at a hotel or a decent amount of miles/points. But even if a card doesn't give you any of those things, it is still important to call in and speak to someone if you are thinking about canceling, because more often than not, they will try their best to keep your business.

This is exactly what I did yesterday with my American Express SPG Business Credit Card. I noticed that the $65 annual fee had posted on my October statement, and I immediately called in. Using the automated menu, I selected the option of canceling my account, and was transferred directly to the retention department. From there, I followed a fairly standard script:

• Even before speaking to anyone, first make sure you have enough leverage, and by leverage, I mean annual spend on the account. The more spend you have, the greater the chances they will provide some sort of incentive for you to keep the card.

• Tell them how you really enjoy the benefits of the card and that you use it regularly, but the annual fee is just too high. Politely ask if there is anything they can do, such as waive the fee. I typically do not ask for miles/points directly, since they may voluntarily give you this option anyway if they can't waive the fee.

• There may be some push back. The agent may tell you how great this card is, and give you a long list of reasons why you should keep it. Respond by bringing up examples of other cards you have that may provide better benefits, such as no foreign transaction fees, or an anniversary bonus.

• At this point, it is either an absolute no, and you may want to go ahead and cancel the card outright, or the agent will ask you to hold for a minute while they see what can be done.

• If a hold occurs, then there is a very good possibility that they are willing to provide some sort of incentive. If they do, decide whether or not to take it, or perhaps to push even harder for more. That's a personal decision on whether or not the offer offsets the annual fee.

In my case, the agent came back and said they could give me a $35 statement credit immediately, bringing my annual fee down to $30. I waivered for a few seconds, then politely asked if that was the best they could do. Sensing my hesitation, the agent actually put me on hold one more time, and then finally came back and said they could waive the entire annual fee by giving me a $65 statement credit. Score!

Of course, success is not always guaranteed, and I have plenty of examples where I struck out and went ahead with closing my account. But, if you have a good amount of spend on your card, and you are thinking about cancelling anyways, why not call in and see what kind of retention offer they can provide? It never hurts to try.

The South American Altiplano March 2013 - Exploring Lauca National Park And Putre

***This post is part 13 of a full trip report. The index can be found here***

Although I had already booked my stay at the Terrace Lodge in Putre for two nights, I hadn't done any additional planning in terms of getting to and seeing Lauca National Park. I figured as long as I could get myself to Putre, it would be very straightforward to book a day trip with a local tour agency. Boy was I wrong.

First things first, I got settled in at the Terrace Lodge. This quaint little property on the edge of town is owned by a polyglot couple from Italy who are also extremely knowledgeable about the Chilean Altiplano. While slightly more expensive than the few other options in town, the quality here is quite high. There are only five rooms at the lodge, and mine was the last unit.

Terrace Lodge

The bedroom was nicely decorated and spotlessly clean. A small portable heater was included, but I still found it to be rather cold at night. Luckily, the thick duvets were sufficient for keeping in the warmth. The bathroom was modern and had plenty of hot water throughout the day. A standard hotel safe in the closet area was also much appreciated.

The South American Altiplano March 2013 - Bus To Putre Via Arica

***This post is part 12 of a full trip report. The index can be found here***

To be honest, I was a little nervous about this part of my journey through South America. I had been traveling with my two friends the entire way up until now, but our paths were to diverge here in San Pedro de Atacama. My plan was to head up to the northern tip of Chile to see Lauca National Park, near the small town of Putre, while my friends' itinerary took them further south to the Lake District and Puerto Montt.

Since there were no regular flights available between any of these Northern Chilean cities, my only option was to make the nearly 520-mile journey by bus. In San Pedro de Atacama, both Tur Bus and Pullman had offices where we could purchase tickets. Only Tur Bus, however, offered an overnight direct route to Arica. As with all things in Chile, prices weren't cheap. I ended up splurging a little and booked a first class seat for the 10-hour bus ride, thinking I would be able to get better sleep that way.

Bus route from San Pedro de Atacama to Putre via Arica

I later regretted that decision when I realized that there really wasn't a significant difference between the first class and regular coach seats. Both were simple recliners, with the upgraded version slightly wider and more cushioned. I found the first class cabin, located on the lower level, to be small and claustrophobic, and would have much preferred to sit in the larger coach cabin upstairs. Sadly, the ticket cost me 26,000 CLP, which was quite a bit more expensive than the 18,000 CLP for a regular seat. Live and learn I guess.

The departure point for Tur Bus in San Pedro de Atacama is not at the main bus station, but rather around the corner from their office in a large parking lot. I walked there from the hotel and arrived approximately 20 minutes before departure. After confirming my tickets and loading my large backpack, I stepped on board and took my seat in the first row.

Tur Bus to Arica

First class was almost completely full, which made an already small cabin feel even tighter. And unfortunately, the bulkhead seat made it impossible for me to stretch out, despite a decent pitch. I was exhausted though, having woken up before 4:00 am that morning, so I reclined my seat and quickly fell asleep. About an hour and a half later, we made a scheduled stop in the city of Calama, where some passengers disembarked and others got on.

Bank Of America And The Global ATM Alliance

I use credit cards with no foreign exchange fees as much as I can when traveling abroad. It saves me from carrying a wad of cash in an unfamiliar environment, and I can rest assured knowing that I am being charged a reasonable rate. However, there are always times when the local currency is needed, whether it's at a restaurant that only accepts cash, or just for simple things like tipping.

It can be a hassle trying to find ways to obtain cash, especially when you're in the midst of a hectic travel schedule. You can always bring a stack of U.S. dollars (or whatever your base currency is) and do the conversion upon arrival, either at the airport or when you get into town. But doing so typically incurs high fees and a lousy exchange rate. The most straightforward method, in my opinion, is to stick with withdrawing cash directly from a bank ATM.

Bank of America charges customers a $5.00 international ATM fee, in addition to the fee that the local ATM will tack on to any withdrawal. This is where the Global ATM Alliance can save you quite a bit of money. A joint venture between several major international banks, the Global ATM Alliance allows customers to use their ATM or debit cards at any bank within the alliance without incurring any local or international ATM fees. Here are the participating banks, in addition to Bank of America in the United States:

Although not listed above, you can use China Construction Bank in mainland China (excluding Hong Kong) and Banco Santander in Mexico without any local or international ATM fees as well. Be aware that fee-free usage of any of the Global ATM Alliance banks only applies in the specific coverage area. For example, if you decide to use a Deutsche Bank ATM located outside of Germany, all applicable fees will still be charged.

Bank of America also warns customers that an international transaction fee of 1% may still apply when converting your currency. This fee jumps to 3% effective November 8, 2013. However, in my experiences using the Global ATM Alliance, I have never been charged this additional transaction fee. I have used Deutsche Bank in Germany, Barclays in the U.K., and Westpac Bank in Australia in just the past three months. For customers of other banks within the alliance, this Wikipedia entry has a lot more details regarding additional rules for each bank.

The Global ATM Alliance makes withdrawing money internationally a much less expensive proposition, and beats converting currency at the airport or at an exchange shop hands down. Nowadays, when traveling to any of the countries listed in the coverage area, I bring at most a $100 bill purely for emergencies, and withdraw any amount I need directly from the alliance banks.

The South American Altiplano March 2013 - Exploring San Pedro De Atacama

***This post is part 11 of a full trip report. The index can be found here***

San Pedro de Atacama is one of the most popular destinations to visit in Chile for international and domestic tourists alike. Located in the far north of the country and sitting in the midst of a green oasis along the edge of the South American Altiplano, it is the perfect jump-off point for touring the incredible landscape of the Atacama Desert.

Streets of San Pedro de Atacama

Main square

The first thing we did after arriving in San Pedro de Atacama was to locate our lodging at Hotel Dunas. The town is quite small, and easily walkable to virtually all points of interest. It is also very bike-friendly, and you can find bike rentals around just about every block. Hotel Dunas is a five to ten-minute walk from the center of town, located on a quiet and safe street.

Hotel Dunas

Reception