Gift Flights?: A Review of Airline Gift Cards

Starbucks, McDonalds, Target, and hundreds of other conventional retailers have created successful gift card programs, providing easy present options for birthdays, weddings, graduations, and holidays. It was only a matter of time before airlines bought in to the declining balance boom by offering the updated version of a gift certificate for air travel. Airline gift cards, in particular, are a little sleeker and more attractive than conventional gift certificates, though both are clearly useful when they’re loaded with $500 of airfare. But something about the shiny plastic of a gift card makes the recipient feel more empowered than a piece of paper would. After all, gift cards resemble credit cards, an American symbol of purchasing power that has a resonant mental effect – whether we want it to or not. Several major airlines offer debit-like gift cards, while the others are developing similar programs and selling gift certificates by email.

1. Southwest Airlines
www.southwest.com

Leave it to Southwest to create commercial success out of existing trends. A few years ago, they latched onto reality TV by allowing their employees to be filmed in action for the popular show “Airline.” Now they’re proving that they’ve got their finger on the gift card pulse. The “southwestgiftcard” (apparently, they like it written as one word) is a new brand loyalty tool, spiffy-looking and sexier than a paper gift certificate. Although it’s also available in email format, you can send the plastic southwestgiftcard in the mail for $2.95 plus your gift amount. The card is capped at $1000 for most gift-givers; however, if you are a business and want to purchase multiple southwestgiftcards for your employees (which would likely total more than $1000), they will simply ask you to fill out an additional form for the bulk purchase. Recognizing that travel makes a great reward for employees, this airline is doing everything it can to tap into the business market. Those savvy Southwest corporate types know what they’re doing!

2. American Airlines
www.aa.com

Taking a slightly different tack than Southwest, American Airlines is also offering a gift card. Emblazoned across the top is their global range: “40 countries, 250 cities.” Not only can American’s gift cards be purchased online, but they can also be purchased at a number of popular retail establishments, like Safeway, Kroger, King Soopers, and Dominick’s. Perhaps your next grocery list will include both Brussel sprouts and airfare to Brussels? Denominations are only $50 or $100, though, so this more limited gift card won’t really purchase a flight outright. It seems like more of a let-me-help-you-out gesture.

3. US Airways / America West Airlines
www.usairways.com / www.americawest.com

In the wake of their merger, these two airlines are continuing to offer gift cards with different branding, at least for now. Like the American Airlines cards, these plastic swipers can be purchased at popular retail stores. The US Airways card, as of December 2005, was available at Staples and Kroger, while the America West card was available at some additional stores, like Rite Aid and even 7-11. Can you imagine buying an airline gift card at a quick-e-mart? Talk about a last-minute gift. Expect more features and options as these two airlines tie their branding together. US Airways plans to make their cards available online during 2006, while America West already has that option. Denominations range from a piddly $5 (who would buy someone $5 worth of airfare?) to $500.

4. Continental
www.continental.com

Although it is not a gift card, Continental offers an interesting option: the gift account. It’s like an online gift registry for air travel. Instead of telling friends and family that you want china (lowercase c), you can tell them you want to fly to China (capital C). Continental will send emails on your behalf to friends letting them know how they can contribute money online to your gift account. This program can probably be used successfully by a couple seeking assistance with their honeymoon, but it may come across like online begging if you’re not celebrating a life event.

5. Look for other airlines offering conventional gift certificates to get into the gift card game soon. Frontier, Delta, AirTran, and Northwest are bound to follow in the footsteps of Southwest and its peers.