Posts Tagged ‘price guarantee’

Deal or Dud: Orbitz Price Assurance

Wednesday, September 24th, 2008

Airline Price Protection

You may have seen the recent TV ads for Orbitz’s new Price Assurance program.  Basically, the way it works is if you purchase your airline ticket in advance and the price subsequently drops, you are refunded the difference (up to $250).  Sounds good, right?  Let’s see…

From Orbitz.com:

If another customer books the same flight at a lower price, we’ll automatically send you the difference in cash.

Here’s how it works:
1) Book flight
Book a flight on Orbitz and we’ll start tracking to see if another customer subsequently books the same itinerary at a lower price.

2) Refund earned
We’ll continue tracking until the day you fly. Each time the price drops and another customer subsequently books your same itinerary for less, we’ll issue a cash refund for the difference, between $5 and $250 per traveler.

3) Check mailed
Expect to get your refund check about 30 days after your trip. It’s automatic — no need to call, e-mail or fill out forms. Just make sure to cash your check within 90 days of the issue date.

That seems innocent enough.  Although I find it a bit odd that another orbitz.com customer has to purchase a ticket at the lower price before you can get your refund.  Also, note that the minimum refund is $5, which is understandable given the processing costs on their end.

T&C Legalese

Here are the fine print highlights:

  • The subsequent ticket booked must be the same dates/times of travel, on the same airline, with the same flight numbers, for the same passenger type, itinerary, cabin, and subject to the same fare refundability.
  • Price Assurance only applies to lower airfares found on Orbitz.com.
  • Price Assurance is for individual flights booked on Orbitz.com and does not apply to package fares, such as airfares sold as part of a travel package.

Deal or Dud?

I travel frequently for work, and in my experience it’s pretty rare for an airfare to drop over time.  Typically once you’re within 21 days of your flight, the prices actually skyrocket.  But I suppose this might actually save you some money if you book your flights well in advance (which I typically don’t have the luxury of doing).

Even if Price Assurance is just Orbitz marketing fluff, there are no apparent additional costs to the consumer, so I’d say it’s got deal potential.  I’ll remain skeptical about anyone actually cashing in on a $250 refund though.

Amazon Ditches “Secret” Price Guarantee

Wednesday, September 10th, 2008

One of my favorite things about shopping on Amazon was their 30-day post-purchase price guarantee. This policy granted shoppers a 30-day price protection window in case the price of an item you purchased dropped below the price you paid.  A simple email to customer support and voila, a refund was issued almost instantaneously. This was probably the site’s best kept secret.  Or was it?

Apparently enough shoppers had gotten wind of the price guarantee that Amazon was leaking too much of that $14.8B annual revenue.  As of September 1, 2008, Amazon has dropped the policy.

All is not lost however. According to PriceProtectr.com there are still at least 130 other online retailers offering up price protection today.  Be sure not to overlook this great price saving tool after making your next purchase.  I’ve saved literally hundreds of dollars using PriceProtectr after purchases of an HDTV, a camcorder and some miscellaneous stuff in the past 12 months. It’s a great addition for your bargain hunting toolkit.