Ethics: Should You Use a Corporate Code For Significant Discounts When You Are Not Eligible to Do So?

pon finding two rates for the same hotel room where the difference is $78.00 per night, an interesting question has been raised in this article posted at Points, Miles & Martinis: “Do you book hotel corporate rates you don’t qualify for?”

It is a similar question to “Ethics: should you use a corporate code for significant discounts when you are not eligible to do so?” — which I asked in this article back on Friday, September 20, 2013; and not one of the readers who expressed their thoughts and opinions defended the illegitimate use of corporate codes.

There are a number of ways to get low rates on different aspects of travel, which include various discounts and promotions. However, sometimes the lowest rate which can be procured — and perhaps earn frequent travel loyalty program miles and points and access benefits which elite level members typically enjoy — is by using a corporate code not typically available to the public.

Although I am an Executive level elite status member of the Emerald Club frequent renter loyalty program of National Car Rental, a client of mine gave me a corporate code to use, which results in a lower rate per day and automatic insurance coverage.

What if you plan on renting a car from National Car Rental and asked me to give you that corporate code so that you may use it for yourself? Would it be ethical of either me to give you the corporate code — or you to use it even though you are not an employee or service provider of that company?

Depending on the company, I could potentially get in trouble for encouraging the violation of the terms of the agreement between the company and the travel provider — like, for example, losing the client. If I were an employee of that company, my employment could possibly be terminated. Or, perhaps no one at either the company or the travel provider will even know or care — especially if use of that corporate code is not abused by a wide audience…

…and with rental cars, the last thing you would want to do is be involved in an accident — whether or not it is your fault — if you rented a vehicle under a corporate rate of which you are not eligible to use. The main reason is due to potential issues dealing with the insurance policy linked to the corporate rate.

Some frequent fliers have argued that using corporate codes is not ethical; and that they should be used by a qualified person — for if anyone other than a qualified person uses that code, it could violate the legal agreement between the company and the travel provider. Others contend that the more people who use the corporate code are actually doing a favor for the company by giving enough business to the travel provider to warrant the special discount and benefits in the first place — as well as give the company more power to negotiate with the travel provider.

What if someone publicly posted a corporate code on either Milepoint or FlyerTalk for you and everyone else to use, rather than me give it to you privately? Would that be unethical?

The main reason why some people like to use corporate codes illegitimately is because the risk of getting caught is usually low and there are usually no problems — but note that the key word here is usually.

Keep in mind that if you do decide to use a corporate code and you do not have proof that you can use the code legitimately, you could be forced to pay the full rate on the travel product or service which you plan to use — or you may be turned away altogether. The front desk of a hotel property on the first night of your stay is not the ideal place or time to learn that not only can you not take advantage of the corporate code, but that you might have to pay full price — or perhaps find lodging elsewhere for the night.

If you want to use a discount code, there are usually plenty of public codes from which you can choose; but those codes do not usually offer as much of a discount. You many not be able to take advantage of possible benefits with a public code like you would with a corporate code.

Interestingly, corporate codes are not always a bargain. For example, I also have access to a corporate code with Hilton Worldwide — again, legitimately from a client — for stays only at hotel properties branded as Hiltons; and even then, fewer than half of them recognize the corporate code. Although I do get discounts and benefits with that corporate code whenever I am successful at using it, the room rate at hotel properties worldwide can be more expensive — never mind getting the discount or benefits. I mention this simply because a corporate code does not guarantee the user any benefit.

In fact — more often than not, according to my experiences — the American Automobile Association rate is less expensive than the Hilton corporate code to which I have access; and yes, I am indeed a legitimate member of the American Automobile Association.

“Integrity is doing the right thing, when nobody is watching”, laggers — who is a reader of The Gate — commented back in 2013. “If you have NO right to use the code then let it alone.” Other readers of The Gate tended to concur back then…

…but do you agree today? Would you attempt to use a corporate code which you are not eligible to use in order to procure a significant discount and possible benefits? Do you frown upon the idea of other people using corporate codes when they are not supposed to do so?

5 thoughts on “Ethics: Should You Use a Corporate Code For Significant Discounts When You Are Not Eligible to Do So?”

  1. Darth Chocolate says:

    If you cannot be trusted with little things, how can you be trusted with important things?

    1. Brian Cohen says:

      Good question, Darth Chocolate.

  2. Dan says:

    I legitimately have access to the government/military rate, which is specifically authorized even for personal travel – but I’ve had the same experience as you! The government rate can be good, but it can also be higher than the AAA rate, or even higher than the published rate! It depends on the property, the time of year, and also on the cancellation policy – oftentimes if the hotel has a restrictive cancellation policy but a higher government rate, it’s because the government rate has a more friendly cancellation policy.

    1. Brian Cohen says:

      Unfortunately, there does not seem to be any rate which will be the lowest 100 percent of the time, Dan.

      These days, all rates should be explored to get an idea of what are the costs — and a surprise will sometimes arise…

  3. Captain Kirk says:

    Using a corporate rate that you are not authorized to is unethical. I have two rental car codes that my employer has provided me that I have used over the last two and a half years and it has saved me ballpark $1,000. I am all in favor of glitches and sales and coupons but corporate rates are different. They are issued to specific people and organizations not the general public. For me, I would never use one not because I am the most ethical person in the world, but for the reason you mentioned above, that I don’t want to get caught and have to pay rack rates. My vote is that corporate codes should only be used by people authorized to use them.

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