Etihad Selling Travel Vouchers With 50% Bonus

You will likely lose your money if Etihad declares bankruptcy or the equivalent in UAE. These vouchers are probably treated as unsecured debt so no recourse. So if anyone buys them, use them ASAP.

One major error. It should not have a expiration date.

No, but I wish United Airlines would get with the winning team and offer something similar. This is a great way to drum up revenue in the near-term without requiring anyone to commit to a specific destination or flight that might not ultimately work out due to continuing COVID-19 challenges.

This is a bit odd though. So they are offering me $400 to keep the value of my current $2000 flight instead of having it refunded, giving me $2400 value to book in future within 1 year. Yet if I simply refund it and use it to buy to buy these vouchers, I get $3000 value to book within 2 years , right? What am I missing here?

Where are you going since you can't go to Iceland?
Or is that another post?

@Vijay, that's not gonna happen. Etihad is literally Abu Dhabi's pride. If it weren't for EY, then Abu Dhabi wouldn't be where it is today. Given EY's global network, it is vital for AUH to work in coordination with Etihad by giving them free stopovers in Abu Dhabi, so that AUH can advertise and attract tourists into the city. It's impossible for EY to cease operations in at least 3-4 years and I guess 3-4 years is enough for you to redeem your travel voucher. And given EY's 5-year turnaround plan, we were able to see Etihad heading in the right direction until COVID-19 struck.

On another note, I am really impressed with this move but then I am afraid that these generous offers come at the cost of J Class cost-cutting. What if Etihad is downgrading its services just like EK? I don't wanna burn these vouchers for a semi-2019 business class soft product. Perhaps, I could buy them now and use it when Air Travel normalizes in a couple of years.

@Vijay, I just realized that you gotta redeem these vouchers in a couple of years. Safe to say, I guess you can redeem these voucher in a couple of years

To everyone else : Now pls don't spam, -bruh doesn't know how to read-

ok thanks bye

@Viljay/@bruh

As Etihad continues downscaling the vouchers can be redeemed ont WizzAir Abu Dhabi in the future LOL

While I *think* Etihad will survive, you just never know during these crazy times. I’m looking at buying a F tix from SFO to CPT next summer, and a 50% bonus would be nice.

Similarly, I *think* Cunard is a premier cruise line for CCL and has extreme cachet for the Brits. But I elected to get a $40000 refund on our canceled cruise this year, even though they were offering a 125% future credit. I can’t believe I turned down a $10000 bonus ... but it might disappear in 12-18 months.

@ Falco: Several reasons why they offered you $400 extra. First, it didn't cost them anything. Second, by accepting that amount, they can retain your cash. And what if you cannot or forget to book by the expiration date, they get to keep your $2,000 cash. Third, even if you remember to book and use it, I can assure that the ticket price will go up later, so to the same destination, it might cost you more than $400, which you will end up paying more. Lastly, by issuing an ETC, airline retains you as a customer instead of refunding you cash and you can do business with other carriers. Just personal opinion, if it were me, I would request for a $2,000 cash refund.

There is a big catch here. Airlines do not have any restrictions on pricing. They can easily increase the ticket price in future to counter the extra money they are giving away now.

Eg:
Say, I am eying for a ticket that normally costs $3000.
So, I buy $2000 voucher + $1000 in bonus.
What if Etihad increases the tickets from Aug 1st? What if the ticket that usually costed $3000 now costs $3800 OR $3600. You see what I am saying? This is all twisted. You may end up losing money in the long run.

My Take: Go for it if you can realize the gains immediately. I mean, if you can book a flight post Aug 1st immediately. I guess that is not possible because Etihad will probably take few days/weeks to process the bonus :). This offer is very brilliant for the company business

@Lucky what do you think is the likelihood of Etihad going bankrupt?

I'd probably take it if the bonus lasted for the two years and, if not used by then, my original purchase value was still valid indefinitely. But I have no interest as it expires.

I would probably jump at this if Emirates was offering it. But Etihad? I’ll pass. The way they’re cutting routes left and right I probably wouldn’t have a use for the credit.

Now if only Qatar would offer something like this.

Vinay - sure they can increase prices from August 1st, but the question is, will they be competitive enough to compete other carriers if travel normalize
2 points:
Etihad will Survive because Air france, Air India and many other flagship carriers have survived even though incurred loss, flagship airlines matters go beyond profit and loss
Another point is pricing, it will be always competitive, they are not going sold out all seats worth of vouchers for next 2 years. So increasing prices/fares will never be there, it will be always competitive and only higher if there is monopoly, they will never want to loose business of frequent fliers or business folks for sake of vouchers. I dont think that Voucher redemption will be more than 5% of total capacity of each plane/route for next 2 years may be even less

Correct me if I am wrong but I believe that Etihad Travel Bank credit cannot be used in conjunction with Guest miles to pay for things like surcharges

vinay,

In this kind of economy and what we'll face for the next 12 months, airlines will do nothing but slash prices and service. I've been telling people the same thing as far back as the dot com bust. You save money when the economy is good and you spend when it's in the toilet because thats when you get the best deals. Assuming you're still employed and haven't taken any pay cuts, bad economy works in your favor.

It would be nice in a perfect world that what @Joe says above actually happened.
However we have seen very recently that just two of the leading predator airlines, United and Qantas, have managed to further squeeze the pips from their FF programs in 'inventive' ways and also retail fare offerings.
Etihad's new promo is only for ASAP travel; I would never hope that there will be flights in 1-2 years that will resemble the golden days of pre-Covid service, routings and attached perks. Just sayin' .

Would we be able to buy SALE priced tickets with these vouchers ?

Important question: Must you use the voucher all at once, or can it be used for multiple trips?

The airline's bankruptcy is irrelevent if you pay with a credit card, so that's an irrelevant point.

Thanks Lucky, bought some for a trip down under next year, saved me quite a bit

Important question: Must you use the voucher all at once, or can it be used for multiple trips?

Hi just purchased 4800euro worth but the transaction is charged to your card as dollars then converted back to your account in the currency you selected mine being euros. The agent made an error and creditted my acc 4400euro. I was checking my email same time of my call and saw it. I questioned it and she corrected the error. Beware. The bonus has been added. Yes you can buy sale tickets and part pay with your card. Cant wait to book in august for next year.

Will it also be applicable to the tax? Tax is the major part of airfare; They could very well say, you get 33% off the airfare but nothing on the tax which would be a bit of a con.

@john, actually in the unlikely event that the airline was to go bankrupt your credit card cover would not return you funds. This is because you are actually purchasing a voucher of which the airline will provide you. Therefore the contract is complete. If you do not use the voucher prior to an airline going bankrupt this is not covered by your credit card as you did not initially purchase a flight which they could not provide. Thus your funds are yours to use when you please. Ideally before an airline goes under! Like I said, highly unlikely however.

@Ex-UA thanks - turns out you can't get a refund down here in SEA. So I went for the credit & bonus and bought a little extra on top. Have a trip in mind that should fit the cost well.