TWA Offers Discount Fare Plan for Business Travelers

In the latest twist on increasingly unusual airline discount promotions, Trans World Airlines on Monday unveiled a coupon program that would save 40% to 60% on last-minute fares popular with business travelers.

But the program, which requires the purchase of non-refundable coupons by Oct. 22 for travel through April 30, 1992, may not meet TWA’s expectations, say travel experts. Delta Air Lines has already said it will not match the promotion because of its complexity, while other carriers remained on the sidelines.

Under the Business Saver Program, travelers must purchase pairs of non-refundable coupons at $50 each by Oct. 22. The coupons can then be used toward the purchase of a $500 round-trip ticket between 56 cities, including Los Angeles. In comparison, an unrestricted round-trip ticket between Los Angeles and New York runs about $1,400.

Most of the flights covered by the TWA program require a connection in St. Louis, but some coast-to-coast trips do not include a stopover. A TWA spokesman said the airline may add flights if the promotion results in ticket purchases that exceed the number of discount seats normally available.

While the TWA discounts are attractive, travel experts said the program may not be such a great deal for most business travelers. The biggest drawback they noted was the Oct. 22 deadline to purchase coupons for travel that may or may not take place.

“There are not going to be a lot of companies who are going to advance large amounts of money just to buy coupons,” said John Hintz, president of the National Business Travel Assn. “I don’t see where it can move hordes and hordes of volume over to them.”

“The fares represents a good value, if they can decide how much they need over the next few months,” said Melinda Rippy Smith, vice president of marketing at Rosenbluth Travel. But “you are making the assumption that (flights or seats) will be available at a later date when you want to utilize the coupons.”

“Because they have to buy the coupons in advance, it will keep the sales of the product down to a minimum,” said Thomas Nulty, president of Associated Travel Management in Santa Ana. “Most companies will not jump at the opportunity.”

TWA said all money from coupon sales will remain in an escrow account until the promotion ends next April, meaning TWA does not have access to the cash. TWA expects to file for bankruptcy protection in January as part of a reorganization plan already approved by its major creditors.