The Pudding Guy has done it again:
http://travel.wsj.com/n/SB953226337648696545-main.html

An excellent article by Ms. Costello... much better than the somewhat rushed and inadequate Today Show interviews.

Pudding Guy also appears this month in my 11-year-old son's Scholastic Math booklet, which combines current events with math problems. Twiz was not thrilled to have to calculate how many miles Pudding Guy earned per dollar spent on pudding.

And FT was prominently mentioned as well!!!

Indeed, Rich, I too am a huge fan as you know!

But, hey, let's also please try be fair here as well. We're talking TV, and notably NBC (my wifes' very favorite) on one hand and the WSJ and Ms. Costello on the other!

Kind of like the St. Regis being compared to Ramada no? Or perhaps even to Motel 6?

Not to trash any chain(s) but... apples and oranges, you know!

Of most interest, I think, is Guy Booth's comment that Latin Pass expects that there are only about 50 people out there who might complete the 1,000,000 promotion. If that is there expectation, then it is no wonder that they cut short the eligibility for the promotion. The WSJ and Time articles and Today show appearance would, I think, drive this number up by a VERY large multiple. We (5 of us) are off for our 500,000 mile adventure June 9-12.

I think this illustrates two problems. The first is naivety on the part of LP.... if you offer a very big reward, people will go further to get it. The second is how the mass-media dilute the value of promotions to the consumer. About a year ago, UA had a survey which was targetted at certain individuals for a reward of 500 miles. Someone posted the URL to FT and we swamped it. UA only paid out to those they had invited, to much moaning, groaning and pouting. In the present case, the 'pudding guy' is a media icon (reader - assess the merits of this) - and has led to massive publicity for the LP offer. I suspect LP 'imagined' that their offer would reach their FF's and the very savvy. Instead it has reached millions, globally - thus it is diluted by the mass media.

If you write an offer for your FF's, you do so with the aim of making money. If that offer has a big prize and becomes widely known, you could lose a very great deal of money. These promos will become less and less common in future because of TV, internet and the oxygen of publicity.

[This message has been edited by james (edited 03-24-2000).]

Thank you james for echoing my sentiments so eloquently. People will remember LP for the Mile-ionnaire promotion, but will that recognition translate into increased revenue? If 50 flyers do actually succeed in attaining the million miles at an average cost of $3000 each, that will yield LP $150,000 and cost them $1,000,000 in award travel (based on $0.02/mile). Not exactly a stellar return on investment. Will they recover the $850,000 loss on profits from increased traffic attributable to the promotion? I'm skeptical.

Yes, but also figure if Latinpass has to give out say $850,000 worth of free tickets, I'd guess they will make it nearly impossible to actually use and claim awards, and most will try to use it quickly in business or first class award travel, or they will go under, and they will have the last laugh....Oh well.

I have to disagree with Flyrights and Flyme2. Frequent flier miles do not cost the airlines very much money. Award seats tend to be seats that would have gone empty anyway. You cant translate the value of 1,000,000 miles at 2cents a mile. Please remember there is more than one airline invovled here--Each airline shoulders a portion of the cost. Even it everyone were to claim awards with the partnership airlines or Hilton, airlines have back office systems to recliam miles and they sure don't do it 2 cents a mile.
LatinPass will be around for a long time--many of the airlines in the program are the flagship airline of their host countries and with that comes government subsidies.