Let's say you ran an airline. And say you had a long-term program of printing 100-mile FF coupons on the backs of cereal boxes. All of a sudden traffic plummeted and your airline faced a financial crisis. Would you curtail the cereal-coupon program, or leave it alone, or promote it?
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Would you introduce some sort of enhancement for outstanding coupons, perhaps a doubler coupon or something like that....? http://www.flyertalk.com/forum/biggrin.gif
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Middle_Seat
Originally posted by Middle_Seat:
I don't know of any other airline that has ever distributed miles.
The original Healthy Choice promotion included 6 airlines - US, NW, AA, UA, TW, DL.
Originally posted by Lunalilo:
If someone gets to fly using 350 certs just from cereals, more power to that person, but I don't know if AA can recoup the money from its cut from Kelloggs to make-up for the sale of that seat being occupied.
That's a pure costing problem -- if AA sold the miles too cheaply to Kellogg's, and can thus not make-up for the sale of that seat being occupied, that's their own stupidity. Correct costing should avoid that
Waste?!? 100% of what I get are sent in. I would figure that AA and Kelloggs would stop any new printing and let the current promotion expire. The first expiration date is November 30, 2001 and then there are certs that expire January 31, 2001.
We can probably forget about emailing each other 100 mile printable certs to be used in conjunction with 4 more. AA will make money on this promo as it sells seats that may not have sold. Only additional cost really is a meal on board. I have been on plenty of award tickets in which the flight was not sold out.
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"Fly me to the moon and let me earn alot of miles."
The buzz is out that the greater part of the cerael certs are wasted. I wonder how many are actually sent in?
Good morning <yawn>. Unfortunately, it seems the number of Kelloggs products carrying certificates is down, and it has nothing to do with the current troubles.
I don't see the bulk Eggos and Nutrigrain items with certs anymore at Costco. Nutrigrain Twists, Bars and Squares appear to be always on sale here in the chains at closeout prices. And many cereal types that are supposedly still in the promotion, such as Mini-Wheats and Crispix, haven't carried certs in a long time, while they still remain on the high-end (and usually pricier) types like Cracklin' Oat Bran. Looks like the promotion is winding down, and the troubles may hasten its demise sooner than expected.
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Maybe they can put in the sleeper seats now ? What percent do condoms give goldpoints to aadvantage conversion. AAdvantage Cereal CouponsWhat Now?
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Look, the airlines want those seats filled, but they prefer PAYING CUSTOMERS, even if the people got Priceline seats. If someone gets to fly using 350 certs just from cereals, more power to that person, but I don't know if AA can recoup the money from its cut from Kelloggs to make-up for the sale of that seat being occupied.
Originally posted by Middle_Seat:
Let's say you ran an airline. And say you had a long-term program of printing 100-mile FF coupons on the backs of cereal boxes. All of a sudden traffic plummeted and your airline faced a financial crisis. Would you curtail the cereal-coupon program, or leave it alone, or promote it?
Would you introduce some sort of enhancement for outstanding coupons, perhaps a doubler coupon or something like that....?
AA doesn't pay a cent for these coupons. In these cross-marketing arrangements the 'awarder' of the miles (e.g., Kellogg's) pays AA an amount per mile. Making the assumption that these miles are costed properly by AA (taking into account mileage redemption %, profit margin, etc.) AA thus needs as many of these deals as possible to increase revenue.
That's at least my take on it
AA probably gets on the order of 1.5¢/mi. from Kellogg's for every coupon redeemed (nothing for those that are tossed). That's $375 for the 25,000 miles it takes to get an economy round trip in North America. Since award seats are controlled not to impact revenue passengers (not that this is a major issue right now, unfortunately) that's $375 for a seat that would otherwise be empty - more than most sale fares, and a pretty good deal for AA! If I were AA's management, I'd run ads encouraging people to buy the stuff.
I am 99-9/10 % sure that AA make money on the cereal certs. It would seem to me if AA was in financial trouble, they would have coupons on everything from boxes of condoms to rat poison if they thought it would help bail them out. http://www.flyertalk.com/forum/smile.gif
Originally posted by anandrag:
That's a pure costing problem -- if AA sold the miles too cheaply to Kellogg's, and can thus not make-up for the sale of that seat being occupied, that's their own stupidity. Correct costing should avoid that
American seems sold on the idea of putting miles on food containers...they did Healthy Choice products a couple of years before they started Kelloggs products. On the other hand, I don't know of any other airline that has ever distributed miles.
Perhaps there is more to the cost/benefits decision than meets the eye.
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Middle_Seat
I think that the various cerael cert programs have actually increased the demand for dollar tickets. Why? Well, papa has a 'free' ticket, what about mom and the kids?
I've gotten a ton of miles from cerael etc. certs. What will happen when all the people who've collected these try to get seats?
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AAdvantage Cereal Coupons...What Now?