Aloha joins Hawaiian in eliminating coupons

By Kelly Yamanouchi
Advertiser Staff Writer

A day after Hawaiian Airlines announced it will stop issuing interisland flight coupons, Aloha Airlines said it will follow suit, effectively eliminating coupons starting Monday.

30 years, may be the most tangible symbol of the dramatic change that has consumed the Hawai'i airline industry in the past year.

Coupled with rigorous new security measures, it also effectively ends the era of last-minute, jump-on-the-next-flight excursions that made interisland travel as effortless as catching the bus.

Hawaiian and Aloha have both said they lose money on interisland flights. While people in Hawai'i enjoyed the convenience of using coupons with their choice of flight times at almost every hour of the day on some routes, the airlines said that came at a high cost to their bottom lines.

Coupons, which have been sold in books and redeemed for any flight with available seats, were especially popular among commuters, frequent business travelers, companies and vacationers who could buy coupons from travel agents for spur-of-the-moment trips.

The airlines will stop selling the coupons effective Monday. Existing coupons will be honored until their expiration dates, many in March.

Both airlines also plan to to use electronic tickets exclusively for interisland and Mainland flights. Starting Monday, travelers who want paper tickets will pay $25 extra.

Doing away with coupons is also the latest development in what is expected to be continuing efforts to cut costs and make interisland flights profitable.

The measures follow federal approval received by Hawaiian and Aloha in September that allows them to coordinate capacity on some routes. The airlines had been running flights with more seats than they could fill but were unwilling to independently cut back because it could mean losing market share. The cooperation agreement allowed them to coordinate the changes, a step toward making the interisland flight market more viable.

Spokesmen for both airlines said eliminating coupons allows the carriers to better manage inventory of seats because they will know how many people are booked on any given flight.

Hawaiian Airlines spokesman Keoni Wagner said the end of coupons and paper tickets will also save the airline money, allowing it to electronically conduct transactions and store information.

However, the end of the coupon program alone will not necessarily make the interisland flight market profitable, he said.

"This is certainly a step in the right direction but it's far too early to say for sure," Wagner said.

For consumers, the end of coupons means travelers no longer can walk up to the ticket counters and hop on a flight at a predictable price.

Travelers looking for the best price from the airlines will need to book their seats for a specific time at least a week ahead of their flight.

Coupons for one-way flights on both airlines cost about $72. If travelers don't book ahead, the price of an unrestricted ticket is $75 and on Hawaiian Airlines flights, it can run as much as $92.50. Changing existing reservations will cost $15.

The move was bound to happen, said Danny Casey, president of the Hawai'i chapter of the American Society of Travel Agents.

"It's one of those things that was inevitable, and now it's here," Casey said. Up until now, it wasn't uncommon for people to stop at a travel agency to buy coupons on their way to the airport.

"It really is going to force people to make reservations much earlier than what they're used to," Casey said. "This is part of continuing changes that are taking place in the travel industry, and, of course, there are going to be people that don't like it and people that love it."

He said for some who are not comfortable booking airline reservations over the phone or over the computer, travel agents will be important, especially for travelers who need to learn about the restrictions attached to lower fares.

There are other benefits for some travel agents, said Rachel Shimamoto, a travel agent at Travel Ways in Honolulu. Airlines sold coupons only to specific agencies, which resold them to other agencies. The agencies found it difficult to make a profit. With the change, the playing field could be leveled, she said.

"I would like to see people doing away with the coupons," Shimamoto said.

But for consumers, the change will require knowing more about fares and planning ahead.

"You can't just have a piece of paper in your hand and go to the airport and get on a flight," said Wendy Goodenow, owner of HNL Travel Associates. "Business people are really the ones that are going to hurt on this. They won't be able to just get up and go."

Some businesses, organizations and government agencies that have bought coupons in bulk from the airlines are concerned about increasing costs.

The state House of Representatives, for example, spends at least $1,430 each week for interisland coupons for Neighbor Island members. The amount does not include the cost for flights to attend special meetings or events, according to the House's chief clerk, Pat Mau-Shimizu.

"We're assessing the situation now, not only looking at perhaps new procedures, but also looking at how it's going to impact the budget of the state House," Mau-Shimizu said. She said it can be difficult for House members to make advance reservations.

"Due to the circumstances of the session, sometimes you'll be running late unexpectedly, or things will change unexpectedly, and they have a difficult time," she said.

Businesses like the Sheraton Waikiki Beach Resort, which sold about 300 coupons a month last year to hotel guests through its travel desk, said it may lose business if day trips become more expensive because fares bought on the spur of the moment cost more.

Goodenow said travel agencies and tour wholesalers that have coupons or buy them before the deadline and resell them to the public beyond Monday may increase prices on the heels of the airlines' announcement. Some travel agents expect consumers to rush in to buy the remaining coupons.

David Saldana, who lives on Kaua'i and commutes to Honolulu two days a week, said he usually flies on Hawaiian Airlines and has always used coupons.

"I'll probably get used to it," Saldana said. Adjusting to the electronic tickets could also take some time, he said. "I'm not very much an electronic person yet."

Kaua'i resident Anne Woodard, who flew to O'ahu with a Hawaiian coupon after a visit home for the holidays, said she has often used coupons for the convenience.

"You can just jump on a plane," Woodard said.

She has never used electronic tickets, and was concerned that she and others may not feel comfortable with the switch from coupons to electronic tickets.

"I was the one that never got into the computer thing," Woodard said. "It would take some getting used to."

Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.