Dear readers, certain links on this website pay us referral fees to send business and sales. We value your time, money, and will not waste them. Click here to see our entire advertising policy. This page does not contain any company content. These companies have not reviewed, approved, or otherwise endorsed the content. These opinions are solely the author's.One commenter to a post I posted last week suggested an interesting idea: discounts for travelers who have been vaccinated. What is the difference between price discrimination and a price benefit?Click here to book travel and sign up for a credit card. Both of these support LiveAndLetsFly.com.Add us to your Facebook or Instagram account today if you haven't already.Interesting question raised in the commentsAn article on a recent legal battle between the CDC & the state of Florida raised the issue of how to circumvent the Florida state law and make COVID vaccine declarations voluntary rather than mandatory.Rene, of Renes Points wrote:It is easy to fix this problem: Charge anyone refusing to show proof of vaccination an additional $1000 per person, and make them wear a mask anywhere onboard, including in the pool. The only way to stop being a fool is to get the shot!Initialy, I replied that it would likely violate Florida's SB 2006 law. To the spirit (but not as written), I believe that a court would likely view it the same. I'll get to that more later.Stannis, another commenter, challenged the idea that it wasn't price discrimination but a discount. It's an interesting thought. The agency's responsibility has been extended to cruises since the No Sail Order. Other businesses have offered discounts (such as free donuts or bonuses) for voluntary inoculation. These were not challenged.Is Price Discrimination Possible When Cost Incentive is Often Used?The majority of price discrimination laws stem from the Great Depression (Robinson-Patman Act), and they almost exclusively refer to monopolistic pursuits. Although each cruise line is free to follow its own policies, it is possible for them to work in lockstep. This could be considered price-fixing, which is actively pursued under much more recent laws. As a result, American, Southwest and other cruise lines have all settled.They couldn't charge unvaccinated passengers $1,000 more and could not coordinate their unvaccinated surcharge amounts. This would put Royal Caribbean in direct competition with Princess and Carnival. The prices of cruises are very competitive. If one line charged $900 more and another $1100, the line charging $900 would have an advantage and start a race to bottom.Although it is believed that customers are charged more for their vaccination status, Robinson-Patman would not apply. However, discounts are allowed. If customers are charged an additional price for their vaccination status, it is a discount and not a surcharge.Legal issues loomingThe Centers for Disease Control and Prevention (CDC), which encourages vaccination, is widely supported. However, the agency lost in a United States federal court case against the State of Florida statute challenge. These are just a few reasons that a traveler might not get vaccinated. Many of them could be a problem for businesses that have customers who aren't vaccinated.Not FDA approvedThe FDA has not approved the product, despite having granted special permission for its release in the US. The Centers for Disease Control and Prevention can't attest to the accuracy or legitimacy of the claims and the guidance provided by its federal website doesn't constitute endorsement by the CDC.Although it is now easier than ever to find a vaccine in the US, some are concerned that authorization has not been given by the Food & Drug Administration.Medical exemptionsSome people have been told not to get the vaccine because of allergic reactions or other pre-existing autoimmune conditions. This week, heart inflammation was a new concern. This makes unvaccinated Americans extra cautious until new guidance from the FDA or CDC is available.AntibodiesSome people who have recovered from COVID-19 infection may still have antibodies. Although it is not yet known how long these antibodies will last, they may still be effective against COVID-19 infections if they are present at cruise departure.Only fully vaccinated individuals would be eligible for the discount. It would mean that people with antibodies would be penalized for refusing to take the vaccine despite medical guidance. However, fully vaccinated travelers would be welcomed aboard and incentivized. It ignores science and increases risk.Preference/ReligiousSome religions discourage inoculation. According to the First Amendment, members have the right to refuse inoculations if they believe in their religion. This is why a New York Jewish neighborhood was exempted from state-required vaccinations.Slippery SlopeBusinesses of any type can offer discounts to travelers who have been vaccinated. However, this does not mean that they cannot encourage other customers to use their health information to get discounts. A business could then discount prices for people in good health. What about people who don't have a heart condition? Some might argue that this is absurd, and that it isn't transmissible, but what about other diseases? Would it not be unfair to discriminate against HIV-negative people?ConclusionAlthough technically legal in words, but not in spirit of price discrimination laws; incentivizing travelers on the basis of voluntary disclosure of their status could open operators up for significant legal questions. It is assumed that people who choose to remain unvaccinated do so because they prefer it, ignoring medical advice that says they shouldn't. This is a common practice among travel companies.Finally, I appreciated the active participation of our comments section. It was thought-provoking as well as relevant. Civil discourse on these topics opens us up and strengthens our opinions.Your opinion? Are travel agencies allowed to encourage vaccinated travelers? Do they unfairly penalize passengers who are not vaccinated?
