This is not a new pricing concept, as round-the-world tickets have been around for a while.
With tickets from San Francisco to New York costing close to $300 round trip, at first glance $599 seems like a good deal. Of course, in this economy, consumers are not doing much leisure traveling, especially since hotels and local transportation costs can add up quickly. Travelers who would benefit the most from this deal are the ones with out-of-town relatives or friends with whom they can stay while visiting.
Is it really a good deal? An average round-trip ticket probably costs around $200. One would have to make at least three trips to make the pass worth it. Even a travel lover like me would think twice before planning more than three trips in a four-week period.
So...what is the value proposition? Perhaps it is the spontaneity the pass would provide. As long as seats are available, a pass holder can book a flight only three days in advance. But then again, how valuable is spontaneity when the pass is valid for a restrictive one-month period? And what is the likelihood that seats would be available when I want to fly?
At this price point, I don't think the All-You-Can-Jet pass adds much value to consumers, but that is not the end of the story. Let's not forget about the buzz and the resulting brand image boost, since the pass does seem like a good deal at first glance.
Can a company win something for offering next-to-zero-value to its customers?
Of course. This All-You-Can-Jet pass is but one example of commercial innovation.
