[Historical Discussion] TWA Credit Card (aka Getaway Card)
Aug 31, 2015, 8:26 am
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[Historical Discussion] TWA Credit Card (aka Getaway Card)
Hello all, New here so if this is in the wrong area I am sorry. Just wanted to know if anyone here remembers the old TWA Getaway credit card? Wanted to know if it was issued by a separate bank or did TWA actually own it? I do know that it was only good for charging only for TWA so leads me to believe it was owned by TWA and not a bank. Thank you for any info you may have.
Aug 31, 2015, 8:54 am
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This article indicates that it was an in-house lending account designed, in part, to reduce discount payments to credit card issuers:
This article indicates that it was an in-house lending account designed, in part, to reduce discount payments to credit card issuers:
Trans World Airlines Getaway Credit Card, New York, New York
The first turnaround for Mr. Mosier occurred in 1974/75 at TWA. The Getaway Credit Card had flat revenues for the prior three years, stalling at roughly $63 million. A marketing decision to put the credit cards in the hands of college students resulted in an unusually high bad-debt ratio – in excess of 15% of revenues. This made the card hugely unprofitable, and increasingly unpopular among the airline's senior management. Mosier introduced a strategy of getting the Getaway Card in the hands of the airlines best customers. The goals were three-fold: (1) grow revenues, (2) lower bad debt to make the card a financial success at the airline, and (3) lower the fees paid to the credit card companies (American Express, MasterCard, Visa, etc.) for the privilege of using their cards. Secondary goals were to build on the card's administrative superiority to build brand loyalty by offering streamlined service. Within one year after taking of the Getaway Card, and implementing the objectives, sales were increased to $85 million, bad debt dropped to less than 5% making the card a financial success and the discount fee paid to other credit card companies dropped by one-half percent. The turnaround was a huge success.
The first turnaround for Mr. Mosier occurred in 1974/75 at TWA. The Getaway Credit Card had flat revenues for the prior three years, stalling at roughly $63 million. A marketing decision to put the credit cards in the hands of college students resulted in an unusually high bad-debt ratio – in excess of 15% of revenues. This made the card hugely unprofitable, and increasingly unpopular among the airline's senior management. Mosier introduced a strategy of getting the Getaway Card in the hands of the airlines best customers. The goals were three-fold: (1) grow revenues, (2) lower bad debt to make the card a financial success at the airline, and (3) lower the fees paid to the credit card companies (American Express, MasterCard, Visa, etc.) for the privilege of using their cards. Secondary goals were to build on the card's administrative superiority to build brand loyalty by offering streamlined service. Within one year after taking of the Getaway Card, and implementing the objectives, sales were increased to $85 million, bad debt dropped to less than 5% making the card a financial success and the discount fee paid to other credit card companies dropped by one-half percent. The turnaround was a huge success.
Last edited by mia; Aug 31, 2015 at 9:04 am