Jul
28
This would increase consumer spending and tourism.
Airlines and rental car companies can offer discount coupons on certain gasoline stations only. Therefore tourists to exercise the coupons would have to travel to the locations where those gasoline stations are located. Otherwise, the coupons expire and it’s profit split between the gasoline station and the rental car company. It’s a money-maker.
If the tourist takes advantage of the coupons, then those towns near those gas stations will profit from anything those tourists buy in those towns.
This scheme can be used to help a lot of towns in the Midwest. It would be like you rent a car in Cleveland. The Alamo Rental car in Cleveland includes a free coupon if you meet certain timeframes. The coupon value is 50% off any BP gas station in Akron.
Now you can save money on a trip to Akron and if you don’t, you end up paying a barely noticeable fee split between Akron’s BP gas station and Alamo. And they’d make money.
If you buy gas in Akron, the town of Akron may see an increase in consumer spending, so it becomes a win win.
The industry would profit because significant numbers of travelers would wind up not redeeming the coupon because of inconvenience, and they probably wouldn’t care.
Edit: but this isn’t a deviation from supply and demand. This is a promotional coupon!
It’s like when you have a call option on a stock or a buy one get one free. It’s purely a business friendly idea.
KEN