The Energy Information Administration projects gasoline prices will average $2.57 per gallon for 2006, an increase of more than 13 percent over 2005. Another painful summer at the pump has gas card providers seeing healthy interest in their products, for both consumer and employee incentives.

"When gas prices surge, our phones start ringing off the hook," says Jim Speir, director of sales for SVM, a Des Plaines, Ill., company that provides cards for brands including BP, Exxon and Chevron. "They're big in test-drive and purchase incentives for automotives, and some companies will put them in employees' paychecks.

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In December and January, Yamaha tested a gas card promotion through another provider, eCount, sending cards to scooter buyers. "Of the people who knew about the promotion, fifty percent said they were influenced by it," says Mark Dipko, manager of motorcycle marketing for the Cypress, Calif.–based company.

The travel industry also is in on the act, as hotels and destinations use gas-themed incentives to attract visitors. Branson, Mo., offers out-of-towners 20 cents off each gallon; New York's Paramount Hotel promises drive-in guests a rebate of up to $30, applied to the hotel bill.

Also, recipients of gas cards are increasingly putting those cards to use, says Brad Callahan, director of business development and strategic planning at Marketing Innovators, based in Rosemont, Ill. "Gift cards from major retailers historically have the highest redemption rates," he says. "But gas cards have climbed and we expect redemption rates to continue to go up."

Callahan also sees the possibility of new opportunities arising for incentive providers like his company, created by greater government interest in cutting down gasoline use.

"In the not-too-distant future, I could see some sort of financial incentive being given [by municipalities] to companies that can prove their employees are doing some sort of rideshare or taxing public transportation," he says. "If there is a financial impact on companies, they will be looking for some kind of program that would incent their employees to do things to cut down on their gasoline use."


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