tv On the Money NBC May 29, 2016 5:00am-5:31am EDT
hi, everyone. welcome to on the money. i'm becky quick. airport nightmares, long lines, short tempers. >> whoever is at the head should be fired. >> road trip. why driving may make sense. where to go and how to get there. plus, will gas prices stay low during the summer? the summer shopping season. and if you're looking to dress up your burger, believe it or not, there's an artisinal ketchup out there. >> ketchup hasn't changed in 50 years. "on the money" starts right now. >> announcer: this is "on the money," your money, your future. now, becky quick. we begin with a bumpy start to the travel season.
a record 230 million people are expected to fly this summer but travelers are spending hours stuck at security checkpoints and missing flights. what's behind the long lines and could your vacation being at risk? reporter phil lebeau is at chicago's o'hare airport, the site of some of the worst delays. phil? >> reporter: becky, the lines are a little shorter than a couple weeks ago because of more staffing and despite the shorter lines you can bet the hassle of getting through security will be a focus for a busy summer for those traveling. the frustration is easy to see. long lines at airport security checkpoints sometimes topping one or two hours are taking a toll on travelers. >> how do we get to this point? it's crazy. >> it's got to be a better way than this. >> disgusting and uncalled for. >> whoever is at the head should are fired. >> reporter: american airlines
says 70,000 of its customers have missed their flights this year because they couldn't get through security in time. it's become so bad the head of the tsa is under fire. in response, peter and his team are adding officers and more overtime. but even he admits there will still be lines at airports. >> i think it's going to continue to be a challenge. we've got passenger growth. i haven't gotten back as much staff as i need. >> reporter: one approach in atlanta, automated security lines where five passengers at the same time can get their carry-on bags ready to be screened by using bigger bins. their bin is automatically sent through the x-ray machine and they go through a metal detector. if another traveler is going slow, they don't stop the entire line. potentially, the number of people screened every hour could increase by as much as 30%. but early on, travelers give the system a mixed review.
>> i didn't think it was faster. >> seemed to go pretty quickly. went through the front of the line and my bag did get screened but it only took ten minutes all together. >> reporter: the long lines with the record number of people expected to travel this summer could lead some travelers to say enough. >> anecdotally, some people are planning on more driving vacations within the northeast or here along the west coast to closer in destinations. >> reporter: but for those flying longer distances, driving is really not much of an option. the bottom line is this, becky. if you are flying this summer, be prepared, there may be a time or two when you get to the airport and you're going to see a lengthy line to get through security. >> yeah. it's something that people are already trying to brace themselves for, phil. what about the idea of airlines actually dropping the fees for checked bags so people don't bring as many through security? would that make things move faster? >> reporter: it's debatable how
much that would help. if you look at an airline like southwest, it's still seeing delays similar to what other airlines are seeing in the last couple of weeks. a lot of people believe that even if the bag fees are dropped, you're still going to have a lot of people trying to bring their carry-ones onto the plane and that's slowing down the system. one factor slowing down the system. >> all right. phil, thank you. phil lebeau. so what can be done to speed up the lines while keeping us safe? tom blank is a former tsa administrator and mike voight is president of voight group international. gentlemen, thank you both for being here. tom, why don't we start with you. what do you think is causing the long lines at airport security? >> tsa has made bad assumptions about the personnel resources necessary to process the 2 million passengers each day that come through. they assume that the tsa precheck program was going to create enough efficiencies and speed enough people through that
they could do with some 3,000 less transportation security officers. and they agreed with congress to cut the funding from 45,000 personnel down to 42,000. that turned out to be an error in judgment and that is one of the fundamental reasons that we're seeing the situation that we have. another key issue is that last summer tsa got a very bad report card, so to speak, on its security performance. the new administrator is changing the culture from one of convenience to one of security. that is going to slow things down. >> mike, how much of the blame do you think the airlines themselves are responsible for? we see a lot more people bringing on carry-on bags to help with the baggage fee. how much does that play in with this? >> that's not accurate. we've had the same situation a year ago. there's only 1% more flights than a year ago. it's not bags. the fact is, this is major
incompetence. there's not a single reason the tsa has given for this that you could really look at. they cut screeners, they knew hoe ma how many peopl were signing up for precheck. that doesn't mean you change things. you throw the people out at the top. we're not safer than we were before. the people at the top is a game that can't shoot straight and so they are removed and we have real security and we're not going to be safe before 9/11. >> tom, is mike right? >> well, i do think there's something to be said for the fact that tsa has had seven or eight administrators in its history -- of 15-year history. there is turnover at the top. that does create a situation where the next rung down becomes the permanent leadership of the agency. >> well, there have been complaints, look, no one gets fired. there's not real accountability, even the administrator who was not fired.
i think there's only been one firing in this administrator ranks since the history of this. >> well, could you level that criticism across the federal government. it's very difficult to fire and discipline federal employees. i think what you can do and what tsa must do is provide flexibility to individual airport managers. and that way they can deal with a local situation and not have a centralized control from washington, d.c., dictating what goes on where local managers could deal with some of the problems that are occurring out there if they were permitted to. >> we also need professional managers, trained security people. we need professionals running this. not political appointees. >> tom, is privatization a solution? some airports, san francisco and kansas city, are turning to private contractors. >> it could possibly help. but it should come with additional flexibility. and what i mean by that is, even though they are private
screeners, they are still required to use all the tsa procedures. they are managed by tsa personnel. but if you allow them to move personnel around, if you allow them to deduce split shifts, if you allow them to do various kinds of things to deal with peak loads, privatization could help substantially. >> mike, i want to say that part of this is poor communication. within the past few weeks i was at a flight and told to show up at least two hours early. we waited for the tsa employees to show up. it's not an efficient process. >> no, it isn't. it's not even a good security process. if anybody thinks this is better than what we have before 9/11, you're dreaming. when you have a 95% failure rate, we have a system that needs to be completely rebuilt. the public is not safer than it was before. this is all for show and not a lot of go. >> do you think it's very helpful that we'll see things fixed any time quickly, mike?
>> no way. the tsa is the victim of something that came along. we are the victims of really, really bad, sloppy management and that's why we're paying the price. >> on that note, thank you, guys, for joining us today. we appreciate it. >> thank you. now here's a look at what's making news as we head into a new week "on the money." america's economy grew slightly faster than first thought last quarter. the second gross domestic product was slightly higher than the original reading of 0.5%. housing was strong while consumer spending and business investment were both disappointing. stocks had a solid two-day rally powered in part by knowledge prices and oil prices rose. and they continued to climb later on in the week. durable good orders for april grew a lot faster than expected. those are products expected to last at least three years. things like cars and computers. they were up 3.4% but the number
was spiked by strong orders and a volatile area. aircraft. and two more big names in the auto industry are making a big investment in ride sharing. uber and a lease program for uber drivers. vw is sharing with a major european ride sharing company. dreading the airport? how about a road trip instead. we'll tell you what you need to know before you start that drive. and looking at this week's big holiday sales, everything interest grills to mattresses, we'll go bargain hunting and tell you where you'll be getting the best deals. right now, though, as we head to the break, look at how the stock market ended the week. ♪ no one speed... no one way of driving on each and every road. but there is one car that can conquer them all.
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memorial day weekend and almost 90% of them will be driving to their destination. that's according to aaa. what are some of the tips to keep you safe on your journey? joining us right now is vera gibbons and robinson claire of aaa. vera, the gas prices, as we know, have been rising but we're still below where we were a year ago. >> we're expecting lower summer gas prices that we've seen since 2005. the ten-year memorial day average is 3.15. we're significantly below that at 3.32. that's inspiring a lot of people to hit the road. but in addition to that, you have other factors contributing to it, like the heightened terrorism fears and europe travel is down by 13%. you've got the zika virus. it's too risky. let's play it safe and go closer to home. this has a lot of people saying
let's not fly anywhere and throw the kids into the car and take that road trip, low gas prices and hit it. >> and be ready to sit in traffic, too. >> americans save $18 billion on gasoline so far compared to last and we've seen heavy road travel all this year. the energy information administration says we're using 23 million gallons per day and that's a record and something we normally see in late april. and when there was sno and ice on the ground, people were driving a lot. 17.5 million. get a new car, you want to drive it. >> right. what are some of the precautions if you opt to go on a road trip? >> we performed 29 million emergency road service call as year. >> 29 million? >> 29 million. 17 for flat tires, dead batteries and people locking their keys in the car. make sure tires are properly inflated. do it before you leave.
and then you should do the penny or the quarter test. you put lincoln and washington's head in the tread and it should cover their heads. >> the kids are going to help me get involved in some of this. maybe help plan tips along the way. >> because they save on the gas and save on the tires to figure out where they are going to stop for meals and that kind of thing. kids are getting involved in different ways. they are using apps like roadside america where they can find interesting things to do, visit the robot museum. all sorts of cool stuff. and, also, food is a big part of it. kids are very involved in finding the eateries featured on tv shows, like master chef juniors and one episode which locates the eateries which have been featured. >> pretty cool. robert, what do you expect the top destinations will be this summer? >> they are pretty far afield.
orlando, myrtle beach, d.c., new york, los angeles. >> people are going to canada. it's going to be a big one. >> big one. >> thank you both for your time today. >> thanks, becky. up next, we are "on the money." memorial day weekend means sales are everywhere. could you save more if you wait? and burger getting ready for a ketchup competition that challenges the big boys. stick ar. for dog hair and dirt i use resolve pet foam. spray it on evenly. rub it in. and then i vacuum. it's like i have a brand new carpet. and, rigby is enjoying it as well.
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centurylink, your link to what's next. allujah argonne khe sanh midway dak to normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. ♪ memorial day weekend means celebrating and memorializing our veterans, enjoying a barbecue and heading out to big sales. which deals are worth your money? joining me with when to buy and when to wait is sharon epperson. >> good to see you. >> when you get to memorial day weekend, just about everything goes on sale. let's run through the big
categories and see where things add up and where they don't. >> there are tons of ads for refrigerators and dryers and ranges. home appliances are really what is on sale and you're seeing really big sales. this is the time -- this memorial day weekend is definitely the time to buy those major appliances. you may see sales of 50% or more and you're probably not going to get a better day to buy than maybe at the end of the year but right now it's a great time to buy. >> what about people thinking about their yards, trying to get things ready, trying to get things taken care of. maybe they have issues around the house to get worked on with tools. what about that kind of thing? >> power tools, if you're being looking to buy power tools, a lot of folks may be thinking this is a great time to buy but actually this is the time to wait because father's day is actually the time when you really want to get those clearance sales on power tools. that's just a few weeks away. >> just a few weeks away.
we're looking at the end of the school year and people are starting to think about where to go on vacation. is this a good time to book travel? >> absolutely. this is the time to book those airline tickets and bundle it all together and get the deepest discounts. you're going to see a lot of savings. don't wait much longer to book the summer travel. >> what about laptops, smaller electronics? >> i want the school year to be over, actually. i have to say, let's just wait on all of that until right before the school year starts. that's when you'll see the big discounts. i think it's better to just wait right before the school year starts. that's when you're going to see bigger sales. >> and black friday. >> and black friday as well. >> what if you need a new grill, if you're looking for patio furniture? can we find sales? >> you want to spruce up your home and you want to wait for the summer clearance if you can to actually get the patio
furniture for the next season and grill for the next season. you may see a few sales here and there but the best advice is to wait. >> it's mattress sales for whatever reason. why do you see so many ads format strer mattress sales? >> right now is a great time to get a mattress. probably the lowest prices of the year are going to be this weekend. so if you need a new mattress, now is the time to get one. >> sharon, thank you. great advice. >> sure. >> up next, "on the money." a look at the week ahead. and ready to stake its claim in the grocy there's no one road out there. no one surface... no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in...
and the road you're on. the 2016 c-class. lease the c300 for $359 a month at your local mercedes-benz dealer. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ [ male announcer ] tora bora fallujah argonne khe sanh midway dak to normandy medina ridge the chosin reservoir these are places history will never forget
for more on our show and our guests, go to our website otm.com and follow us on twitter @onthemoney. on monday, markets are closed for memorial day. on tuesday, the case shiler home index for the month of march. wednesday, we'll see how well the auto sector fairs for the month of may and marks the first day of 2016's hurricane season. on friday, check out the local bakery for donut deals because it's national donut day. the big number of the week, the
may jobs report. it's memorial day weekend and i like my burger with hines ketchup. sir kensington is bringing in new competition. >> reporter: ketchup, that's what they thought about their last semester of college while everyone was out partying. >> one day we thought about how weird it was if you go to the grocery store, you walk down every i'll, you're overwhelmed by choices in yogurts, salsas, cereals, but this one area of ketchup hadn't changed in 50 years and we thought that's really weird. let's see if we can do something about that. >> we created a ketchup in line with what we wanted to eat and satisfy that really specific flavor people look for when they reach for a bottle of ketchup. >> reporter: so the students hosted a tasting for friends. >> we researched the history of ketchup and found recipes and
gave people rating cards. we wanted to make something that people really liked. >> reporter: their regular and spicy ketchups were a hit. after graduating, mark took a job in new york consulting and scott took off to tokyo to work in banking but they couldn't kick their ketchup obsession. they worked on their business plans on nights and weekends and in 2010 launched sir kensington, a condiment brand. it's in 5,000 stores in all 50 states in canada and also sells online at around $5 for a 14-ounce bottle of ketchup. and by the way, who is sir kensington? don't bother searching wikipedia. it's just a fictional character to the co-founders. >> it's about not taking yourself too seriously. >> the brand is growing at 200% annually and half of their business is actually with high-end chefs like the spotted
pig in new york city and have raised about $8.5 million so far. becky? >> you said it was about $5 for 14-ounce bottle. how does that match up? >> you're paying about a dollar or two more. but hines has a lot of artificial stuff in it. they offer versions of hines that doesn't have as many additives in it but this stuff is really natural and is much more flavorful than original condiments. >> preservatives? >> yes. things you can't pronounce. with this company, if you can't pronounce it, they don't make it. you might like it. >> kate, thank you very much. >> thank you. that's the show for today. i'm becky quick. thank you so much for joining us. next week it is june and that's the most popular month for weddings. the latest trends in saying "i do." each week, keep it right here for "on the money."
right now on nbc 10 news today, animal abuse in delaware coupty. two dogs set on fire and now police are looking for who could have committed that act of cruelty. and honoring the fallen this memorial day weekend. a look at the events remembering the true meaning of this holiday weekend. plus, we're tracking storms from tropical storm bonnie. when the rain will start in your neighborhood and how long it will last. good morning and welcome to nbc 10 news today. i'm george