Do travelers expect too much? Yes, but …

Here’s a question airlines, car rental agencies and hotels wrestle with every day: Do our customers expect too much from us? After the defeat of New York’s passenger bill of rights law earlier this week, it’s an even more urgent question. Are travelers too demanding?

I’m giving a presentation on this topic at today’s Central Florida Business Travel Association meeting, and I offer you the following preview …

Yes, customers often expect too much. (For example, I just received an email from a customer yesterday — and this is not all that unusual — that asked me to intervene and get her a refund on a nonrefundable ticket, simply because her plans had changed.)

Have customer expectations changed significantly in the recent past? No. There’s a segment of the traveling public that pretends the landmark Airline Deregulation Act of 1978, which forever changed air travel, never happened. Don’t blame them for thinking that. Airlines continue to run ads that leave people with the impression that at 36,000 feet, it’s still “coffee, tea or me.”

No, most flight attendants don’t look like this.

There’s another segment — frequent fliers — where a culture of entitlement is keeping expectations artificially high. That’s a whole other problem.

But the bottom line is that customer expectation have remained pretty much the same in the recent past.

So what’s the problem?

Cost-cutting by both travel companies (certainly airlines and car rental companies, and to a lesser extent hotels) and corporate travel buyers have forced the travel industry to do more with less. And I think they’ve reached the breaking point. They just can’t cut anymore.

I believe rank-and-file travel industry employees are horrified at the prospect of reducing services any further. It’s embarrassing. How much in-flight service can you reduce, and still refer to it as “in-flight service”? Their managers feel they don’t have a choice; either they make the reductions or they go out of business. The problem is exacerbated by CEOs who often don’t understand the airline or hospitality industry — they’re outsiders brought in to boost shareholder value.

Corporate travel managers are under similar pressure. Their VPs are asking them to get the same level of service for less.

Something’s gotta give.

I think a little honest dialog would take us a long way in bridging the expectation/experience gap.

That means travel companies should stop promising their customers, including corporate travel managers, the moon. If they’re airlines, they certainly shouldn’t pretend that deregulation didn’t happen.

Travel — whether it’s an airline seat, car or hotel room — is now fully commoditized. It’s basic transportation. Until the industry faces this reality, and until its customers do, the gap between what people expect and travel companies deliver is only bound to widen.

  • Jasper

    Right on!

    On the other hand, the travel industry could also work on their branding more. In their run for the lowest price, compensated with a flurry of fees and surcharges, they seem to forget that many travelers actually do know the difference between different companies.

    I like United (cabin personnel), I hate Lufthansa (cabin personnel). I like Continental, I care less about AA and Delta. Why? Personal experiences, largely. But it does mean that I will pay $50 more to get on a United or Continental flight if the other options are the other air lines.

    Airlines complain that customers are *only* looking for the lowest price. But at the same time, they are all cutting the services that distinguish them. And, more and more, they are merging and putting customers on ‘partner flights’. If I paid for a United flight, and end up on a US Air flight, it’s like getting Pepsi when ordering Coke. When my United flight gets to be a Lufthansa flight, it’s worse, I feel like my Pepsi is been replaced with a lower shell store brand brownish soda that claims to be “the best cola”.

    So, how can they be surprised when customers just follow their wallet?

    You get crap service virtually anywhere, these days. So, if I am most likely gonna get crap, why would I pay for more?

    [If you can at random replace the air line names in this posting by rental companies, and several other branches of the travel industry].

  • SirWired

    None of this will be fixed until consumers (and this includes individuals and corporate travel departments) start voting with their wallets. Until customers start abandoning carriers that treat them like cattle, those customers are sending a clear message to the airlines that service is not important, for if it was, the customers would be willing to pay for it. A message involving your money is far more clear than yet another “grass-roots” movement to get the airlines to provide a level of service that those same customers are clearly not willing to pay for.

    I don’t understand all the (completely ineffective) complaining. When you go to McDonald’s, you do not complain to the manager when your $3-something Big Mac meal is not a juicy, flavorful, gourmet delight. When you want something that is better than just marginally-edible, you don’t even go to McDonalds, you head to a place that serves better burgers, and charges you appropriately. Yet, when we receive lousy service on an airline, we write NastyGrams to the customer service e-mail (where they are quickly ignored), and yet we (collectively, if not necessarily on an individual basis) keep flying, and receive no better service.

    It is mind-boggling to me that this has not yet happened. We already do the exact same thing with hotels… my company does not force me to stay at “Joe’s House ‘o Beds” (Motto: “Sheets cleaned sometime this week! Honest!”) even if it is half the price of the local Embassy Suites. However, when I book a plane ticket, I am absolutely required to book the “lowest logical airfare” listed on our travel reservation system.

    From the perspective of the airlines, their cost cutting strategy has been a resounding success! They keep cutting service, but planes are running at 90 % capacity! Consumers that are truly angry do not pack planes full to the brim. If it weren’t for those pesky fuel prices, I expect they would be doing quite well.

    In conclusion: Customers need to stop whining, and start flying somebody else.

    SirWired

  • Jazz290

    I think you should start posting the more ridiculous requests you receive (with the names changed to protect the “innocent”)

  • Jasper

    @ SirWired: This is easier said that done. Voting with you wallet is only possible when there is real competition on the trip you are trying to make.

    Chris E has recently pointed out that more and more airports are more or less monopolized by one single airline. United ‘owns’ ORD, IAD and DEN, US Air ‘owns’ CLT, PHL, PHX, and LAS, etc). If you live near those airports – and tens of millions do – and want to fly, there’s not a whole lotta voting with your wallet you can do, unless you want to accept that voting with your wallet will also cost you dearly in time because of extra stops. Folks in the really big cites have some choice because there are usually a couple of competing airports nearby. But if you live in Denver, Charlotte or Vegas, you have very little choice.

    Ergo, the so-called ‘free market’ is not as free as people make you think. It is funny that ‘free-marketeers’ often defend markets that are not as free as they claim, but have no issue turning around like nothing when their industry goes bad due to poor management and start crying like a little baby to the government for money. Airlines have done this often, and the banking world is pulling that trick right now. It’s alwas the same hypocrite argument: “Yes, we want your money after we behaved badly, but we don’t want you checking our backs in the future. Really, we will behave better!”

  • Mike

    This article and the comments make some very good points.

    I fly a route frequently that has three airline choices: Alaska, United and AIr Canada. Back in 2001, I tried out Alaska and found the service to be good and the perks in first class to be better than the others (choice of hot sandwich or salad, etc) for the two hour trip. I switched all my flying to Alaska. I don’t even bother to check the fares on the other two unless Alaska has only full fare tickets left.

    However, over the last several years, the first class perks have all been cut. No more sandwich or salad. On some flights, there was nothing but pretzels, even though the flight would have you in the air through normal dinner times. It feels like a race to the bottom, rankly.

    What incentive is there to keep using Alaska except for the elite privileges? United would actually give me access to many more destinations from where I live. Now I tend to check all three airlines for fares before deciding.

  • SirWired

    ORD is a hub for both United and American, so you don’t even have to schlep to Midway to fly somebody else, and still get pretty much anywhere.

    Yes, IAD, is a United/Star Alliance “owned” airport, but for most folks in the DC-Metro Area, DCA is more convenient, and has pretty decent USAir and Delta service, along with a sprinkling of flights from almost every domestic major. Cross country directs require a jaunt to BWI, but it is actually closer to downtown DC than IAD, and BWI has light rail service to it from Union Station, while IAD does not.

    DEN is also a hub for Frontier. (IIRC, Frontier has more flights out of DEN than United.)

    LAS has flights with just about every major.

    You didn’t mention ATL, but it is AirTran HQ, in addition to Delta.

    While CLT, PHL, and PHX are not hubs for any other airline, there are certainly other airlines that fly there, and you can fly to the hubs of most majors from any of those airports.

    If those hub cities were not hubs, then they would merely be in the same boat as most of the rest of the country, which has to fly to a hub to get just about anywhere. This gives you plenty of choice to fly whomever you wish. If you (a hub airport consumer) feel strongly enough about the service, nothing is stopping you from going out of your way to get to your destination. I don’t live in a hub city, so I don’t have a convenient way to get to almost any destination EXCEPT hubs. Except for a few very tiny airports, most airports in the US are served by at least two major airlines, which means you almost always have a choice.

    If you continue to fly the hub airline that is providing you with poor service, you are sending a signal that your time is more valuable than service. For most folks, I would go so far as to say that that is absolutely true. But from the perspective of the airline, why on earth should they spend money to make your service better if you keep flying them? You have given them no incentive to do so. Yes, if you want to save time, you have no choice, but that is not an incentive to change either; the airlines are not going to improve their service just because they can, they will do it if flyers start getting to their destinations on another carrier.

    I’m not saying that airlines provide good service; they don’t. But I am saying that the flying public is giving them no reason to change. If you hate a particular airline, stop flying them. If you don’t, you must not hate them nearly enough, and they know it.

    SirWired

  • Jeanette

    My main gripe with airlines is that when something comes up and plans do change, the airline ends up charging you $100 to ‘cancel’ your flight (i.e. issue you a credit voucher), then charges you another $15 to $30 in order to use that credit voucher, because you can only use it directly through the airline (telephone or website). We all know that airlines overbook flights and its all electronic/computerized. So why does it ‘cost’ $115-$130 to change a flight?

  • Jasper

    @ SirWired: DC has three airports, that is correct. DCA doesn’t have international flights though (except special US terminals in Toronto and Montreal) and the ‘light rail’ to BWI only runs during rush hour. Good luck trying to get from BWI to Manassass, VA after five. [And the federal govt has decided in all its wisdom that a metroline to Dulles would be a waste of money]. DCA is a hub for US Air, but what again exactly is the difference between US Air and United? Aren’t they in the process to change their name to United Air? BWI is a main hub for Southwest – few international options there too. The nearest next decent airports are PHL and CLT. So if you’re in VA, you don’t have much choice.

    There are fewer and fewer places to run when you want to use your wallet, due to code-sharing and the alliances. As mentioned above, if you book United or US Air, you have a significant choice of getting on a plane of the other. If you fly United to Germany, you might just end up on a Lufthansa flight. It is the airlines that make themselves to commodities. They should not complain about customers treating them that way.

    When customers stopped fliying (after 9/11), we’ve seen what airlines do. Were they the tough guys they are when it comes to regulation and did they take care of their own business in the free market? Nooooo, they ran to the government and cried like little babies until they get tax money to lower their prices. They actually got to charge *everybody* for their woes. Just like the banks are doing now.

    What you seem to be saying is that it is against the business interests of a company to ask their customers what they want, and listen to their wishes if those customers make their wishes known. That simply makes no sense.

    Companies ignoring their customers can only survive if the market is not truly free. The airline industry is an oligopoly, in which free free market forces (like the power of customers to break a bad company) don’t work because they all work together.

  • Joe Farrell

    Sir Wired – the problem is that they ALL suck. All of them have poor service and poor policies – if they do not want to help you, ALL of them can simply not help you.

    6 years ago I quit the US airlines for the most part. when I travel to Europe – about 3-4 times a year mostly on business – I generally have the ability to fly business class on European carriers. Service is generally superb in Business class. In fact, Euro carrier Coach is generally better than American carrier business class. I live on the east coast of the US and when I domestically, east of the rockies, I fly myself unless the weather is really really bad. I have NO as in ZERO problems with traffic delays, airport delays, people who lie to me about flight operations and when I land someplace, they are more than happy for my business. Of course, not everyone, or even 2% has this option.

    Last year, when traveling on my own dime to Tokyo and Beijing, I used my miles for a business class seat on American. The service was better, friendlier with better food in JAL’s coach flight from Tokyo to Beijing.

    Service comes from people, not from a corporation. when the people HATE their job, hate management, hate the people they work with and hate the passengers, service will be poor. When you interrupt hotel clerks personal conversations to get them to check you in – well, you cannot expect good service. In Japan, the clerks and bellhops come running to serve you. Literally. There are NO personal conversations on the job.

    The problem is that management has removed all ability of the local people to help and service customers, no ability to give out an extra bag of pretzels even. You get one – and thats the rule. One alcoholic drink per hour, or exactly one roll per person. You get exactly what you paid for – no more – no less. Hospitality in America means you’ll get as little as we can give you. Even IF you pay for more.

    Service is NOT going to improve until someone starts making lots of money with improved service. In order to do that, they need to empower staff. If a FA spills coffee all over your suit, American airlines have not given their staff ANY authority to clean your clothes. I had a British Air FA spill red wine on my suit pants in business class on a trip from Heathrow to JFK. She filled out a form using my manifest info and the station manager met the flight in NY – escorted me to their VIP club – where they then escorted me through customs so I could get another pair of pants.

    They took my suit – cleaned it – and had their baggage delivery service drive to my house. I got a phone call hours after delivery to make sure it was cleaned to my satisfaction.

    In Japan, JAL lost my bag on my flight from Beijing to Tokyo – left it in Beijing. They KNEW it when I landed and had a person meet the flight and walk me through their lost bag process. When they delivered the bag, a picture frame inside had been damaged – and they were ready with a claim form, even though I was not going to file a claim because even though it was properly packed – it is not covered. Yet, they wanted to compensate me $10 USD for the broken glass. I simply cannot imagine a US carrier doing this – you are left to your own devices – always.

    Good service DOES happen, when companies LET people provide it. That means that companies needs to relax the rules so the local person has the power to make something right. When a hotel or airline has rigid rules and the staff have no authority or even ability to change it – well – they get the rigid follow the rules mindset. Especially when people are disciplined or terminated for trying to help people by trying to bend the rules. When companies see not only their customers but their employees as the enemy – thats when you have a problem. Airlines have rigid rules and computers programmed so most people cannot change anything with a fee or approval – why make the effort?

    That and work conditions for gate agents, CSR’s on phones and hotel desk people stink. Long hours, changing in-humane shifts, angry customers, and a lack of any power make for a very demotivating employment experience.

  • Jasper

    @ JF: Sometimes we disagree, but this time I can not agree more.

    As long as airlines see as annoying because they actually want the service they paid for, and employees as a drain on their revenue, things are not going to get better.

  • SirWired

    Jasper,

    You deny it, but you still are making a choice. You are telling United/Star Alliance that because United has extensive service in IAD, you choose to fly them instead of an airline that would require more time/hassle to get on, or more time/hassle to get to your destination by connecting in another airport. You, sending a message far more powerful than any survey or grass-roots organization, have told the airline that service is not as important to you as the convenience of flying out of IAD direct to your destination, combined with the ticket price they are offering.

    If United is so terrible, all you have to do is give up your direct flight, and you can go just about anywhere domestically: From IAD, you can fly to the hubs of Northwest (except Memphis), Continental, American (DFW and STL), JetBlue, and Delta, or you can hop on hub-less Southwest. If you want to head to DCA, you can get to the hubs of AirTran, Midwest, Northwest, Alaska, Continental, American, Frontier, and USAir. Not to mention BWI. Certainly, among all those airlines, you can find somebody that you hate less that can get you to your destination. Internationally, IAD can get you to a pretty fair number of foreign hubs, or you can hop any one of the above-mentioned flights to a hub airport and code-share your way to another major international airport and take the overseas carrier of your choice.

    Is it maybe more expensive fly another carrier? Sure it is! But if service is more important than your wallet, why aren’t you spending those extra dollars for a better flight(s)? Does it take more time to go to a further-away airport and connect somewhere to get to your destination? Sure it does! But if service is more important than an extra few hours, why are you taking that sucky direct flight instead of schlepping to DCA or BWI and connecting somewhere else so you can backtrack to your destination?

    And no, if the hub system shut down tomorrow, you aren’t suddenly going to see a flowering of competition over the exact same direct routes you cherish now. Instead, you would end up with every route map looking like Southwest, where just about every itinerary takes two, three, or more flights.

    Also, when you pick a flight, it is not as if a code-share flight comes as a big surprise. Every web reservations system makes it pretty clear when a flight is a code-share, so if you end up on a United flight when you wanted to take US Air, you need to pay more attention.

    By the way, I’m not defending the way in which the airlines beg for govt. help every time they get caught losing money again. That is independent of their customer service.

    SirWired

    By the way, MARC travels from Union Station to BWI all but the wee hours of the morning during the week. (There are mid-day trains; it is not rush-hour only service.) MetroBus can get you there 8AM-10PM from the Greenbelt Metro station 7 days a week.

  • SirWired

    Joe and Jasper (you both brought up the same point),

    I am NOT saying it is against the business interest of a company to ask customers what they want and then give them what they ask for. But surveys, blogs and focus groups, are a silly, expensive, inefficient and inaccurate way to do it. If you ask customers if service is more important than an extra few bucks a ticket, they pretty much always answer yes. But when an airline tries to push through a fare increase of even just $5 or so (service costs money), they fail more often than not. Instead, they survey their customers in a far more effective method, with every flight they operate. Customers, by filling those planes to the gills, have conclusively told the airlines what they want in the most unambiguous fashion possible. Southwest treats their customers like cattle (and is proud of it!), and they are the only major domestic airline that is consistently profitable!

    Companies by and large know how to provide decent service. (Some are certainly better at it than others.) It is not rocket science, but it does cost money. All those waivers of policies that make CSR jobs easier, and customers happier? More money. Friendly employess? More expensive the surlier ones. Quick checkin? Checkin terminals and agents aren’t free. Luggage service suck? Bags stolen? Paying employees decently so you don’t end up hiring criminals isn’t cheap. Airline won’t replace your suit when they ruin it? A new suit costs dough.

    I firmly believe that if it weren’t for the FAA ruling the airlines with an Iron Fist (compared to say, the financial industry anyway), we’d have a whole pile of fly-by-night operations with cheap, Cheap, CHEAP! tickets hoping to fly long enough before some safety catastrophe wiped them out. Airplane maintenance is EXPENSIVE because the FAA regulates it so tightly. (You know this Joe, or you will when your Engine is due for its next overhaul.)

    MaxJet airline just failed because they couldn’t find enough people to pay for better service. They are just the latest, in the decades since deregulation, of airlines that have failed because customers don’t want to pay for a better flight. Right now, the fastest-growing airlines overseas are ultra-low-budget operations like EasyJet and RyanAir, that make Southwest look like Business class on Emirates. Good luck getting a waiver for anything at one of those operations.

    Americans, by and large, are cheap. My own company (not in the travel industry) nearly went bankrupt after over a hundred years of proud corporate history and industry leadership because we were slow in realizing that our customers were simply not willing to pay for quality or service anymore. My company reduced both, made my job suck (I’m in customer support), and now make money hand over fist again.

    We Americans (collectively, not always on an individual basis) shop at Wal-Mart instead of the home-town dept. store. (And then complain about all those Chinese imports) We buy at Home Depot instead of Mon ‘n Pop hardware and then wonder why our projects don’t turn out. We buy “disposable” appliances, because we don’t want to pay for a sturdy one, nor do we want to bother getting it fixed when even something minor breaks, and then complain that “they don’t build ‘em like they used to.” We buy Dell or HP computers and put up with useless tech support because they are $50 less than the local computer shop, and then moan when we have to pay the local guru $60 to make it work because you can’t understand the guy on the phone.

    Believe it or not, domestic cars these days are better than ever, and close enough to the foreign nameplates in reliability that the difference between the two now would have been a rounding error two decades ago. Why did they improve so much? Because the competition made a better product, and the results have crippled the domestic automakers so much that they lost a lead built up over most of a century. Customers finally voted with their wallets and paid more for a better product. Detroit has listened, and largely mended the error of their ways, although it may be too late to save them.

    Service in the travel industry will NOT improve until travel customers collectively do the same thing. Sure, there are times in which we have no choice, and have to take whatever service we can scrape up. But by and large, we DO have a choice, whether that is going out of our way to get to our destination, driving, or simply not choosing to go at all.

    Airline service was reportedly MUCH better before deregulation. (Before my time, I’ll admit.) But at the same time, a plane ticket cost a heck of a lot more money than it does now, and there were far fewer flights. Deregulation caused a huge explosion in the size of the industry, and a dramatic drop in fares. When everybody had to charge the same, of course service was better! It was the only way to attract passengers! When the airlines could charge whatever they wanted, customers collectively said they wanted to pay less money, and didn’t mind the drop in service. Just ask PanAm how well that whole “service for a premium” thing worked out. Oh, wait, you can’t. They are long gone.

    Good service happens, but only when customers are willing to pay for it. Once they pony up the cash, it will happen.

    SirWired

  • SirWired

    By the way, I don’t want anybody to get the impression that I enjoy the current state of the industry and hope it never changes. I just feel people do more complaining than acting.

    I avoid USAir like the plague after they treated me like dirt after stranding me in PHL. (Even though it means car trips from RDU to Charlotte and Philadelphia.) I will only fly through ORD if I have no other choice. You’ll never catch me behind a Thrifty rent-a-car counter. Fairmont Hotels will never see me again after they thought it was a good idea to charge $.99 a minute for a local call and $120 when I bumped the mini-bar with my suitcase. AA from RDU->EWR is a flight I’ll never attempt to take again, after getting canceled or delayed far too often.

    There are no HP products in my house after they screwed up a warranty parts order for three months and completely ignored my complaints without so much as a single apology. I have no Wal-Mart shopping bags passing my front door. I use a nice, sturdy, same-design-for-40-years top-loading Whirlpool washer, instead of some impossible-to-repair front-loading wonder from Europe. My Clothes come from Land’s End because they stand behind their products, which means they end up being cheaper in the long run, because I can return the ones that don’t hold up as long I think they should. (BTW, I’m not one of those clowns that wears a shirt for ten years and then gets myself a refund for it…)

    All this costs me a little more money than the alternatives, but I pay, because that stuff that sucks simply doesn’t deserve my money.

    Do HP, Wal-Mart, LG, CheapClothesCo., USAir, etc. care individually that I don’t buy their stuff? No. Would they change anything whatsoever if I wrote them a sternly-worded, but polite, complaint letter? Nope. But when I, a few million other folks stop giving them our hard-earned cash, it will be noticed in the only language a large corporation generally understands: the bottom line.

    I drive a VW Passat, while acknowledging that isn’t exactly a Camry reliability-wise, and all their customer service training must have come from the Soviet Union. But I knew that before I bought it, and don’t whine about it either. Why? Because I get the driving experience of an Audi for far less money than Audi wanted for the same car. I got what I paid for, and while I would like better, I know I can’t get something for nothing.

    Yes, the domestic airlines largely suck, but simply scolding them for it in a survey or a blog or even on the floor of Congress isn’t going to make flying a major domestic airline a suddenly fun experience.

    SirWired

  • Joe Farrell

    Sir Wired – how true – how true.

    We redid our upstairs last year . . . did NOT hire the lowest bidder- I went with the most qualified and reliable contractor and had a little chat about what he was charging. We negotiated a little bit better price and I got a complete 1000ft2 upstairs demo and renovation with top of the line marble, granite and heating flooring in baths from walk into to punch list in 5 weeks.

    I go to Walmart. I buy toothpaste, paper towels and toilet paper, Ketchup, water and detergent. It is cheaper than costco and the warehouse stores for human quantity levels – that being said, women go through toilet paper like they own stock in the companies.

    Out of winter, I drive a Porsche. Why? 30mpg, and really really good service. I pay for it – but I actually get service. In winter I drive a Jeep. Good dealer service? No. Does it matter? I only put 8000 miles a year on it – it’ll rust out before it falls apart.

    I ditched all the computer madness and bought Macs. Mac laptops and Mac desktops. Never looking back. Better quality equipment, better service after the sale, no hassles – it just works. No drama with Windows, less risk, more secure system.

    I do not fly USAir either. Never voluntarily. I have flown them after getting bumped off Delta. I fly the airlines domestically only when I have to. That means when the weather is so bad I can’t fly myself, or I am going to the West Coast. I know what my engine is gonna cost to rebuild. And its worth every single dollar when I land at a place like Charleston SC – and my car rental is brought to my plane, and someone helps me load my luggage and literally 10 minutes after landing I’m off. Its fun when Tiger Woods is in the lobby, and there is free coffee and soda and chocolate chip cookies. When I come back, the plane is fueled, the car is driven right to the airplane, with no security hassle. There are attractive ladies behind the counter thanking me for my business with a smile, and 15 minutes after arriving I’m wheels up and off to whereever. That kind of convenience is worth every single dollar of that $30,000 rebuild.

    I do not EVER complain to the airlines any more, unless they cost me money. Directly. Like if I have a ticket on Delta and they cancel a leg and put into me LaGuardia instead of Kennedy for a reason that is their fault, and my car is at Kennedy. Then, I politely request a refund of my cab fare. I NEVER rely on them getting a bus – when was the last time an airline got a bus for people between airports? It takes HOURS. Politely ask the gate agent to note your request in the PNR for accomodation to your original airport. Thats the only time I ever complain anymore. I NEVER check my bags – EVER. Anyone who does gets what they deserve.

    Would you like fries with that?

  • Jasper

    @ SirWired: You say that voting with my wallet is the only efficient way of telling a company that I don’t like their service. This is partially true. Voting with your wallet only give a final judgment on the entire product, not on a single element, such as customer service. It is an insane idea that I should reward a company with an inferior product (extra legs (and related taxes), time and hassle) over a company that has it almost right (direct but crappy service).

    For the last couple of years, I have voted with my wallet for United, because, as I’ve said before, I kinda like them. And they are very present where I live and go. How has United paid me back for my loyalty? Well, they’ve lowered the amount of luggage from two bags @ 70 lbs to two bags @ 50 lbs. They happily fined me a $50 “securtiy fee” when returning from a SCUBA vacation one of my bags was 50.5 lbs. Now they are paying me for my loyalty by asking me to even pay and extra fee for my second bag.

    I have voted for United with my wallet because they had Economy Plus. A very nice feature that was mostly open to miles-clients, and a blessing if you’re 6’8″. I love it. How does United pay me back for my loyalty? They figured out that customers liked the extra service and started charging an extra $50 for Economy Plus. They even charge $50 for an exit row seat these days. [BTW, the fact that they get away with chargin customers for Eco , shows that customers are willing to pay more for a better product.]

    I have voted with my wallet against all airlines together by driving 900 miles once or twice a month in stead of flying, simply because driving was more convenient (I get to leave when I want to, no security lines, decent food along the highway (!)), cheaper (way cheaper) and not even that more time consuming. How do the airlines repay my voting? They whine about losing customers and not being profitable anymore, and cut more cost and increased fees.

    Ryanair, Easyjet and SouthWest, are successful because they cut cost *and tell their customers up front*. They has listened to their customers and offer a markedly different product than the other airlines. They offer cheap 1-hop short and mid-distance flights *and they tell potential customers not to expect anything* Not when flights are delayed, not when you have a connection, nothing.

    Especially Ryanair is *very* clear about this. Their customer service contract contains of three words: “You get nothing”. To me that is way more clear than a United’s 47-page contract of Carriage filled with broken promises, disclaimers and hidden fees.

    Ryanaid charges me for my bag. Do I care? No. Why? *They told me upfront*, and they flew me for one single euro (ex tax), less than one third of the bottle of soda I bought in the airport while waiting for my flight. Oh, and while they manage to fly me for a single euro, they “only” charge me 15 euro per bag. Not 25, not 50. Oh, and BTW, they are the most on time airline of Europe. Why? Because they discourage customers to take connecting flights, and never wait for customers. Good for them.

    in conclusion, voting with your wallet does jack diddly squad. Zippo. Nada. Niets. My travel wallet is happy when I get back home from all the voting it does. The problem is the the opinion of one customer are irrelevant. That’s why I come and complain here. I hope to motivate CE and others to come up with some serious customer representation for travelers. Or at least, to keep CE do what he does. It’s way more efficient than my poor wallet-voting. If we wait for the industry to change itself, we’re in for the long haul. The airline industry is obsessed with CEO bonuses and cutting cost, and has no respect for its customers and its personnel.

    PS: I don’t buy at Wallmart nor McD. I live in suburbia, so there are few mom and pop stores, but I do try to frequent those that are there before they get bought out by the big boxes. I also try to avoid eating out at big chains, favoring local places. I only make a (grudging) exception for local places that are becoming chains – but I do keep an eye out for deterioration of quality. My regular wallet compensates more than enough for the lack of political voting rights that I have here (and don’t want either). Oh, and you may know that I am Dutch. According to the rest of Europe, we’re up there with the Scottish and uncle Scrooge on the cheap-scale.

  • Tom

    Why not just fly business class? You get much better service, better in fact than you would receive in coach class 30 years ago and at a price roughly comparable to what you paid 30 years ago in coach.

    Many people don’t select the cheapest possible hotel. In fact, places like Marriott and Ritz Carlton to a brisk business. I wonder how many people fly in coach and then stay at a Marriott?

    No service coach is great. A lot of people just want the lowest price from A to B. That didn’t used to be available. You had to pay for a lot of extra service that you might not even want. Now coach is available to those who want transportation, but not a lot of services and business class is available to those who enjoy a little pampering. Problem solved.

    Except that some people want business class service with coach class prices. That doesn’t work. For anybody.

  • SirWired

    Jasper,

    Up until the point at which you are on the very verge of changing to another airline or taking another mode of transportation, United is either providing you with *too much* service, or they are *not charging you enough*. Having a more-than-optimal number of customers who can handle an even bigger bump in fares and/or reduction in cost/service represent a failure of pricing. Clearly, since you continue to fly United, they should have been charging you $50 for your 50.5lb bags all along. They should have been charging extra for better seats this entire time. They have foolishly been accepting two checked bags for free all these years.

    You state that United, by virtue of their frequent service, has it *almost right*. You can write all the letters you want to United, but why should they listen? Increasing their customer service levels costs money, which would reduce their profit. They are not in business to necessarily provide you with a pleasant flying experience, despite their buzzword-packed mission statements and empty slogans. They exist to extract as much profit from you as they possibly can. They *will* continue to reduce service and/or increase prices until the load factor drops. This is Product Pricing Theory 101.

    You state that the wallet of a single customer does not matter. You are correct, the wallet of a single customer is a rounding error. The wallets of millions of fed-up customers… now you are talking about real money. Just ask the Big Three domestic automakers about this. They have learned it all too well.

    You will notice, if you read this blog, that the most frequent solution, where the customer was not actually due a refund because of a contract violation by the airline, is the granting by the airline of Yet Another Voucher. While all this is entertaining to read, educational, and informative about which providers care at all, it is not even particularly effective on an individual basis, much less is it going to convince the airlines to increase their service levels at the expense of their profitability. It’s worthwhile for CE because his ad providers and MSNBC pay for it, but that does not mean it is really going to actually change how the industry works.

    Certainly, if a provider of any good or service does not fulfill their contract terms, you absolutely should get from them what you paid for. But if you simply had a terrible time and were treated like dirt, but you, and your luggage, still got from point A to point B, you should never expect more than the grudging granting of a voucher, and only that because vouchers are cheaper for them than you going somewhere else.

    Now, I *absolutely* agree that if an airline wants to be a low-cost provider, it makes a heck of a lot more sense to go about it by being RyanAir, Southwest or EasyJet. Doing it the way the domestic majors are (unofficially promising more than they provide) is obviously is not working very well since they are collectively losing gobs of money. It really sucks to be in their place where they cannot increase their fares (and improve service) because of fare-sensitive consumers, but can never reduce their costs enough to beat the “low-fare” airlines either.

    In fact, I would be so bold as to say that if they were truly serving their stockholders, (as they are legally bound to do), they would probably make more money (or lose less, anyway) by simply shutting down and getting as much for their assets as they possibly could. This is a *lot* cheaper for stockholders than going bankrupt. From the perspective of a consumer, I don’t see any way out for them. If they continue to reduce service in an effort to drop cost, and therefore fares, SouthWest will just drop fares even more, as their costs, for a given level of service will almost always be less, due to excellent fuel price hedging and less expensive employees. If they increase fares and service, their customers, the most profitable of which (businesses) are tightwads, they will lose to carriers that didn’t increase fares.

    SirWired

    P.S. Took an EasyCruise in Greece about a month ago. Floating Motel-6 accomodations and service, youth hostel price. Loved every minute. Would have paid double what they charged without even blinking, which I am sure would make Stelios very upset if he read this.

  • Jasper

    @ SirWired: “They exist to extract as much profit from you as they possibly can.”

    And I understand that. I just want them to make it easy for themselves, and do it in one big lump sum, and I’d like them to smile while they take my money. I don’t think it’s too much to ask. Have you seen what they are trying to charge for tickets to Europe this Summer? “Low $, high fuel cost bla bla”. Sure.

    The current situation is that they have a sadistic fun in “nickeling and diming”, or corrected for inflation “Granting”, me several times, while laughing in my face that I am so dumb that I use their service.

    It makes no sense to displease your customers. None. A good company makes it as easy as possible for their customers to spend their money.

    The above mentioned Marriott knows all to well how to do that. Trust me. Been there, done that. Disney is a master at it too. But when you spend way too much on a $50 on a Disney T-shirt, at least you know you’ll be wearing that overpriced T-shirt for at least 5 years (while being the laughing stock of all your friends, that don’t dare to wear their Disney shirts anymore.)

    Airlines have been serving their share holders as well as their customers. With great contempt. I wasn’t joking when I said above that they’re only interested cutting cost and CEO bonuses. They way it works is that a “new” CEO comes in, and makes sure his bonus is solely dependent on cost cutting, which any idiot can do. So the CEO sits for a year or two, insults everybody, runs the company nearly in the ground, whines about the weather, the low dollar, or terrorism and then launches himself, padded with a nice cash bonus, to his next “opportunity”, while leaving a little note to his successor: “Good luck, don’t do anything else than I did – fill your pockets and run”.

    Unfortunately, there is no alternative means of transportation across the Atlantic and the Caribbean. That’s the main thing that keeps me flying. Family and a good beach. For anything else, I drive. My little (Japanese) car does 1 in 34. And it’s not even a hybrid. I ride when I want it to. I impose no security checks on myself other than sobriety. I bring my own drinks, and eat wherever I want to. And while Americans whine about “huge” >$3 a gallon gas prices, I smirk and know that my family pays $8.50 per gallon.

    Lastly, it’s funny to see the difference in business philosophy between the major airlines and companies like Ryanair, Easyjet and SouthWest. They try to give you as much for your buck as they can do while still making massive profit. The ‘other/regular’ airlines are trying to give you as little as they can and they are not making profit. Ryanair personnel smiles to me, United personnel smiles to me, when charging me another fine. Ryanair is the largest airline in Europe, United is forever on the verge of bankruptcy. I don’t think you have to have an MBA to understand why one is doing better than the other.

  • KG2V

    As SirWired said – until you are on the point of bolting to a different airline/form of transport/NOT taking the trip, they are not charging too much

    Back when, I used to fly on the average of 2x every other week. About 1/2 the time it was LGA to Manchester NH and back. Got to the point where the crews would greet me by name (That’s when you know you’re flying a route too often – and when they ask about your family, and say “see you Monday?”)

    Anyway – I have almost totally stopped flying – partly because of a change in job, partly because if I have a choice, I don’t fly. I used to love it, now I dread it. If I need to go to DC, or Boston, etc, I’ll either grab Amtrak, or I’ll hop in MY car or truck, and drive. I’ll have my radio to play with (I’m a ham), I can stop when I want (within reason) and with the 45 minutes to the airport, and the 2 hour early arrival rules, time to get a rental car etc, I can drive to DC/Boston in about the same time as flying

    It’s gotten to the point where my friend Pete would rather drive from North Central NJ to Dayton OH than fly – and he’s a frequent flyer with miles to cash in.

  • BriCo

    SirWired: Using McDonald’s to reinforce your point about bad quality and/or service was truly a faux pax. Although never confused with gourmet food, McDonald’s always has consistent quality and very good service (quick, cordial, pleasant). And some of their products are fairly tasty, given the price-point. Jasper is correct when he implies as long as we know up front what to expect, accepting what we get is not too bad. It’s the unpleasant surprises (or costs) which really upset us.

    Also, MY company (large, well known, international, multi-billion dollar) DOES require me to stay at certain hotels and use certain airlines, both at minimum rates. Neither is flea bag or Joe’s airline – today – but the choices are limited. As to using our wallets to send a message: how would we do that, considering no matter your personal preferences or suggestions (USAir?? AirTran?? – I’ve read mostly horror stories about those), on any given day, each of the carriers is as bad as another. For example, as “good” as JetBlue seemed to be with price, seats, food, etc., they left their passengers stranded for hours in NY a couple of years ago. And then after much ballyhoo, they proceeded to do it again not long after. And Southwest attendants are happy and cheerful, but I’ve been in their “cattle call” before and I don’t like it, especially when I fly with companions.

    The companies we work at dictate, with some price/brand choice, the hotels and airlines we must use. For leisure, my personal wallet is not exceptionally fat and so I can’t pay for fly 1st class, and when flying with companions, paying more for “better” seats becomes yet another expense. And if we all did pay those higher fares on those “better” airlines, do you think they would later lower their prices? They wouldn’t, so we would then have a continuing high cost of travel – and the others would raise their prices. You say “all” we have to do is take connecting flights on other airlines and then they’ll get the message; that sounds like cutting out noses to spite our faces. “Just” add 2-3 more hours (or more) to our travel day to show those darn airlines!

    KG2V says to drive or take the Amtrak. Yeah, siting in a car for 2, 3, 4, or more hours sure beats standing to stretch when you need to, or using the rest-room when necessary. Oh yes, certainly I must mention freeway accidents, road construction, stoplights, bad weather, etc. as great alternatives to flying. But Amtrak surely is the answer, right? At least 6 out of 10 times I take Amtrak, it’s late or cancelled. And crowded; i.e. no seats. Sure seems like a better alternative to me! Want a refund from Amtrak? They’ll charge you 10% unless you accept a voucher.

    I’m a strong believer in writing any company who disappoints me with their produce (service, quality, cost, etc.), and have been pleasantly surprised over the years with many of their responses. Even the big legacy airlines. And Levi-Strauss. And Motorola. etc. Everybody tries to limit their costs – you and Joe F admitted it in your choice of certain cars – companies are no different. Writing them tells them what you dislike – and like – and sometimes they change based on how many letters they get about the same issue. Sometimes they don’t.

  • Ronda

    i think costumers expect to much but i also think that airlines need to clean up they’re act. quite honestly costumers on almost every airline right now are treated worse then animals. people pay a hell of a lot of money to fly on airlines, and over the years they’ve gotten less and less for they’re money.
    what really gets me is that airlines are all going bankrupt and they dont do anything to change that. the way i see it, is if they were to start paying they’re employees properly, the employees are going to be a lot happier, and happy flight attendents and agents, and other employees make for happy costumers which makes for a good flight experiance even if things mess up like cancelled flights.
    another thing that airlines shouldnt do is surcharges. people want to know how much they’re paying when they get they’re tickets and they dont want to deal with a kazillion surcharges (that goes for hotels and car rental places too) i personally would be fine with paying a higher fare. but i find it insulting to hide in surcharges after i’m done paying for my ticket/room/car rental.