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What's the Real Value of a Free Companion Airline Ticket?

In June of 2006, I purchased a $200 product that also included an offer for a “free companion airline ticket.”  I mailed the required form but it contained very little detail.  A "buy one, get one" coupon quickly arrived with the detailed restrictions (limited availability, reserve at the CompanionFare web site or call them, book at least two weeks ahead, a Saturday night stay is required, etc.).  It listed the specific fares to various zones and cities in the country.  A $9.95 processing fee is also charged for each ticket.  The coupon had a unique certificate number allowing access to the “CompanionFare.com” web site.  Companion Fare is run by PROPCO (Promotions in Travel Marketing) and their web site lists the following companies as their clients: Kroger, Chase Bank, Discover Card, National City Bank, US Bank, American Express, General Mills, Walgreen, Wells Fargo and Verizon.  PROPCO offers other products and services and no mention is made whether these companies offer or offered the "free companion airline ticket."

What is the value of the “free” companion airline ticket?  I attempted to reserve flights to 10 different cities from Detroit (Phoenix, Las Vegas, Boston, Dallas, Los Angeles, San Francisco, Chicago, Miami, San Diego and Washington, DC) for two mid-week trips; one in mid August and one in late September.   CompanionFare was unable to find flights at the fares listed on the coupon 65% of the time but did offer to make reservations at a higher fare.  I included those fares in my comparison of fares for comperable travel from another public web site.  The result: CompanionFare prices had only 35% availablity and were higher 80% of the time!  Two lessons to be learned: don't use the offer of a "free ticket" in deciding to buy something; if your company is considering offering this type of promotion to help sell your products, check-out the real value to your customers.  In this case, 80% of the customers will be disappointed (if my testing is typical).  Is this what you want your customers to think of your company?  On June 25, 2006, I sent the results of my testing to AeroBed (the product I purchased that included a mail-in form) and Promotions In Travel asking for their comments but have not received a reply as of this publication date.

 

Destination Trip Dates Availability Companion Price Fare Trip Dates Availability Companion Price Fare
From Detroit 8/8   8/15 Fare Elsewhere Difference 9/20  9/27 Fare Elsewhere Difference
Phoenix NO $577 $572 -$5 NO $577 $572 -$5
San Diego NO $598 $744 $146 NO $598 $664 $66
Los Angeles NO $702 $682 -$20 YES $498 $460 -$38
Miami NO $492 $472 -$20 NO $492 $472 -$20
Las Vegas YES $456 $434 -$22 YES $421 $341 -$80
San Francisco NO $558 $546 -$12 NO $558 $556 -$2
Boston NO $514 $552 $38 YES $257 $236 -$21
Chicago O'Hare YES $294 $276 -$18 YES $297 $276 -$21
Dallas - Ft. Worth NO $592 $572 -$20 NO $592 $572 -$20
Washington National YES $257 $272 $15 YES $257 $236 -$21
Average price difference for two tickets:   $8       -$16
Green shows savings over fares available elsewhere, Red shows where Companion Fares were higher
              -$26
When Companion Fare was able to offer fares at the prices listed in their table, the fares averaged $26 more per person than available elsewhere
               
Companion Fares were only available 35% of the time at their listed prices.              
Companion Fare made an offer to book at higher fare, combined with available fares were an average of $4 per ticket higher than available elsewhere.
Found savings only 20% of the time.              
Conducted 6/25/06 using ITASoftware            

 

 

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