The Price of Loyalty
John at Gordon's Notes notes received a negative discount for supplying his "loyalty number" when pricing a car rental from Avis.
The 'arms race' of modern pricing continues apace. I priced a personal 5 day van rental twice on Travelocity - once with no loyalty number added and again with the loyalty number.(Via Brad DeLong.)
The price of loyalty, was a $200 increase. Yes, I would pay Avis for the joy of being a loyal customer.
To their credit Travelocity listed Avis twice after I entered my registration number, once at the disloyal price and again at the inflated loyal price.
These days it is increasingly foolish to do any price negotiation directly with a travel related vendor.
Labels: economics