JetBlue's "All-You-Can-Jet" Could Pay Off

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JetBlue unveiled its “All-You-Can-Jet” promotion this week, which means that for one specific 30-day time period (Sept. 8-Oct.8) a person can get unlimited coach travel for $599. So how can an airline afford this?

The idea isn’t a new one, it has been tried in several ways before, including American Airlines requesting $250,000 to fly free for life (program ended in 2004.) So, let’s break it down: $599 for a round-trip coach ticket anywhere in the continental United States is high, considering JetBlue has already dropped prices to $100 for many destinations. And what are the chances are the average American is going to be able to fly more than two times in a month or has that much vacation? (Perhaps if they’re laid off?)

So, in reality, promoting travel after labor day in the airline’s weakest travel time, is probably a good idea. As Bob McAdoo from Avondale Partners told CNN, “This is a way to get people to pay attention, with publicity that doesn’t cost the company much. .. They’re doing this at a time when there are probably a lot of seats available anyway.”

So, win-win, JetBlue — all that free advertising and a business model that won’t lose them any money.

Tags: JetBlue Airways Corp., Strategy, Management, Barbara E. Hernandez

Bay Area resident and award-winning business journalist Barbara E. Hernandez has covered tourism, real estate and personal finance. Her clients include the New York Times, Los Angeles Times, San Francisco Chronicle and Washington Post.

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1

Daniel M. Harrison

08/15/09 | Report as spam

RE: JetBlue's

I disagree that $599 to fly anywhere in the U.S. is high for a month period. To me, that seems extremely good value if you are in business with clients across the country. You could even take advantage of the promotion to visit clients you never usually meet face-to-face and thus form longer-lasting, more meaningful relationships. In fact, in this market environment, where loyal customers are gold dust, I would have thought there would be a number of takers from the small-business/entrepreneurial community.
2

barbara e hernandez

08/15/09 | Report as spam

RE: JetBlue's

I meant that $599 to fly coach is high, especially since JetBlue already offers many flights at $100. So, in essence, to make it worth their while, the average person would have to fly about five times in a month. Not many average people can do that.

But, as you pointed out, a business owner who makes his or her own schedule would be the likely beneficiary.
3

o'callahan

09/21/09 | Report as spam

RE: JetBlue's 'All-You-Can-Jet' Could Pay Off

It sure is paying off for "The Blue Travelers". Four young lads filming a documentary as they travel throught US and Latin America, courtesy of JetBlue!
Social Media marketing has started a following and people are actually meeting them in destinations to be in the Movie. Follow along.
http://www.youtube.com/user/TheBlueTravelers