Originally Posted by
YYCYYZ
One of my companies has run similar "gift card" promos in the past few yers where you get 25%+ off but you pre-buy. The average we've seen is indeed 10% - 15% of cards going un-utilized and that's even with a very friendly 6 month expiry and "if you complain after 6 months we'll let you use it anyway" policy.
We figure those un-redeemed cards into our model when we forecast revenue.
If AC did this, it could be advantageous to those who purchased and used them, but still could probably let AC come out ahead.
Really, it's similar in structure to the flight passes, but with a more general use. As a business as well, I'd be open to buying up let's say $10K worth of GCs for myself and staff if I got $12K in value out of them. We never use flight passes as they exist now because a) they're too restrictive and b) we rarely fly to the same destination as a company so we don't fit neatly into any of the AC buckets and c) the savings are usually not ~20%.
Not totally sure where you're coming from on "a very friendly 6 month expiry". I would classify that under very unfriendly, as most Canadian companies offer no expiry on gift cards.