Question

In: Accounting

Airlines and hotels give bonus frequent-flyer miles, gifts, and free companion tickets to attract the business traveler. These promotions are often provided

Airlines and hotels give bonus frequent-flyer miles, gifts, and free companion tickets to attract the business traveler. These promotions are often provided in lieu of a price cut. The traveler benefits personally, although their company does not get the benefit of lower rates. Is this ethical?

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Expert Solution

This is a great discussion topic designed to help students think about ethics. Here are some examples of statements supporting each side of this question:

• Unethical: In most jobs it is considered unethical to take gifts from supplier because it might unduly influence your decision to purchase from them. Why should taking gifts from travel companies be any different? What if a business traveler chooses the most expensive flight just because that airline offers them the best rewards?

 

• Ethical: Business travel is generally very taxing on people – typically such travel does not accrue any vacation time for the traveling employee, and they have to spend time away from their families and comfort. These added accoutrements are the only compensation these travelers receive for their efforts. Therefore, airlines and hotels are actually helping other establishments keep their employees by taking good care of them. Further, many businesses require their employees to pick the lowest possible fare for their trip.


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