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Red Lion Promotion Offers Less Than Meets the Eye

Posted on October 26, 2009 at 4:40 pm ET by Tim Winship
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The headline is as compelling as it is straightforward: "Earn a Free Airline Ticket With Red Lion Hotels!" For the whole story—the real story—you'll have to wade through the offer's terms and conditions, and make a few test bookings.

First, let's consider the qualification phase of the promotion.

Between October 22, 2009, and January 31, 2010, members of Red Lion's R&R Club will earn 2,000 bonus miles for every night booked at the so-called Super Mega Miles rate, plus an additional 15,000 bonus miles for the sixth night, bringing the total to 25,000 miles.

So that free ticket is only awarded after six nights. Which means the ad headline, to be accurate, should read as follows: Earn a Free Airline Ticket After Staying Six Nights With Red Lion Hotels!

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But the qualifiers aren't limited to the number of required nights. There's also the matter of that Super Mega Miles room rate. Turns out it's significantly more expensive than the rates most travelers would expect to pay.

Looking at rates at the Anaheim Red Lion, for example, checking in on November 2 for two nights, the Super Mega Miles rate was $177 per night, $354 for the stay.

But the same two nights were also available for $89 (prepaid, non-refundable) or $109 (unrestricted) per night. Even at the higher unrestricted rate, the Super Mega Miles commands a premium of $68 per night. So to earn that "free" ticket, a traveler would pay an additional $408, if all six nights were consumed at the property in question.

Which suggests this headline: You Could Buy a Ticket for Less Than That!

Let's put that aside, however, and modify Red Lion's own headline to fit the facts. It would now read as follows: Earn a Free Airline Ticket After Staying Six Nights With Red Lion Hotels at a Premium Room Rate!

Next, there's the reward side of the promotional equation. For every night at the inflated rate, R&R Club members earn 2,000 miles in the programs of "Alaska, American, Delta, Hawaiian, or Northwest," and 15,000 miles for the sixth night. Setting aside the fact that it's no longer possible to earn miles in Northwest's program, which was folded into Delta's, there's the implicit claim that the 25,000 miles earned for six nights translate into a free airline ticket.

But as any airline frequent flyer program participant knows, 25,000 miles are only redeemable for a restricted award—significant capacity controls limit the number of seats available, and there may be no seats at all on the most popular flights.

So, after a final edit, Red Lion's tag line would look like this: Earn 25,000 Frequent Flyer Miles (Which Might or Might Not Be Enough for a Free Ticket) After Staying Six Nights With Red Lion Hotels at a Premium Room Rate!

While it's neither compelling nor straightforward, it trumps the original in one key respect: It's accurate.

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Archived Comments:

  • Red Lion VP - October 26, 2009

    Tim, as they say, "there's no such thing as bad publicity" so thanks for picking up our story. A couple of comments. Our claim of a "free ticket" at 25K miles is no different than the airlines themselves and especially their credit card affiliates. So I don't feel your ire at us individually is fair. As for the rate differential, yes, the Super Mega Miles rate is a premium rate aimed at frequent business travelers. Those travelers don't book non-refundable highly restricted $89 rates and are most likely paying a negotiated rate at the Hilton across the street that's pretty close to our $177.00 To them, this is a terrific mileage earning promotion. I'll give you that our press release perhaps seemed general which could get some leisure traveler's hopes up but it was really targeted at the corporate market. Our bad. Next time we'll be clearer in our communication.

  • Tim Winship - October 27, 2009

    First, thanks to the Red Lion rep for responding to my blog. Too few companies are willing to discuss these matters. Granted, credit cards also promote 25,000 bonus miles as the equivalent of a free ticket, as Red Lion did. But I've repeatedly pointed out that that's a misleading claim, no matter who makes it, for the reason stated. The larger point of the article is that travel marketers have been playing increasingly fast and loose with their claims, at the expense of the industry's credibility. A prime example: the heavily promoted $35 airfare that doesn't exist, because it's half the round-trip price of a ticket that requires a round-trip purchase. And then there's the second asterisk, advising that taxes and fees are extra. It's no wonder the industry is held in such low esteem. I have a simple test I routinely apply to travel industry advertising: Is it honest, and is it transparent? When both answers are "yes," it's a win-win for advertisers and consumers alike.

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