Help! A rescheduled flight itinerary almost sunk our cruise

It looked like smooth sailing for the DellaPenna family’s Alaska cruise. The airline tickets were booked and the seats confirmed. But just a day before they were to leave, United Airlines almost scuttled their vacation.

A printout of their flight itinerary revealed several members of the party was now scheduled to return from Seattle to Washington before the cruise ended.

What now?

United’s contract of carriage, its legal agreement between you and the carrier, promises a prompt refund when a flight schedule is changed.

Rosemarie DellaPenna was shocked.

Suppose we had gone to the check in on Friday as planned — what would we have done at that point? I’m appalled they they would change our schedules three days ahead of departure with no notification and expect us to pay additional costs, without a fuss.

DellaPenna tried to get United to fix the itinerary, but no seats were available. So she paid $4,382 for new tickets on Continental and US Airways. She phone United, asking for a refund.

At first, United said they were non-refundable tickets, but I argued and said they should pay the increased amount. The young lady said I will see. But I got an e-mail that said they would refund the United fares.

A refund is the bare minimum United could do to make this right. But calling the airline is also one of the least efficient ways of communicating with United. I suggested she send a brief, polite email to United, explaining her problem.

A United representative contacted her immediately.

She was instrumental in my receiving full credit for the new tickets that we had to purchase and also issued a credit for us to use in the future year.

I really didn’t think that anything like this would happen. It helps to renew my faith in mankind. Again, thank you.

So what’s the takeaway from this?

My travel agents friends will almost certainly say, “She should have used an agent.” And it’s probably true that a good agent would have been able to notify her the moment the schedule change took place and found a suitable replacement flight.

I also noticed that DellaPenna spent a lot of time on the phone with United. I might have done more writing than talking. A paper trail can be extremely helpful and a far quicker way of resolving a problem.

(Photo: davco 9200/Flickr Creative Commons)

  • http://www.cruises.co.uk Cruises

    I would have also suggested that maybe when they where booking the cruise they should have also booked the flights together with the airline to make it a fly cruise package. That way it is always the cruise lines responsibility to get you back safely and the transfers are always included as well.

  • Jake

    Maybe a better solution would be to put the airlines on the hook for any increases in fare resulting in changes made by them a week or two before a flight? It seems like I read about situations such as this quite often, where an airline changes things at the last minute and the only recourse to the passenger is receiving a refund of their deeply discounted, planned fare while they must pay a much higher, last minute fare out of pocket – doesn’t seem fair.

  • SirWired

    I would also file a complaint with the FAA. The airline not honoring its CoC by initially refusing a refund due to a schedule change is unacceptable and illegal. Yes, they paid up, (and eventually covered the new tickets), but it should not have taken even talking to a supervisor to at least get the refund.

    Also, I suspect that the contact information was missing/inaccurate/out-of-date in the ticket record, as the airlines are usually pretty good about contacting you due to a schedule change. I am fairly certain that the change was made months in advance… I’ve seen online travel agents neglect to put the customer’s contact information in the ticket record; I often have to do it myself on the airline website.

  • Franci

    We were once delayed by several hours on a cruise into Vancouver. We arrived a couple hours later than scheduled and then Customs wasn’t prepared to deal w/us when we arrived, so we were held on the ship for almost 3 hours after we arrived.

    My husband & I were only taking a ferry to Victoria, so we missed our afternoon in Victoria, but not much more. The people w/flights were all frantic. Yelling @ the crew of the ship; arguing w/airlines over the phone. The only really calm ones were the people who had booked air travel with the cruise line in conjunction with their cruise. They were accommodated, no questions asked. I decided right there that the next cruise, we’d book our air along with the cruise because those people were very well taken care of by the cruise line. If Rosemarie had booked her air w/the cruise line, they would have monitored any flight changes and re-booked if necessary.

    Isn’t it uncommon for a reschedule to be that drastic a change from the original time? How much time did Rosemarie allow between the arrival of the ship and the departure of the flight? I suspect she probably cut it too short to begin with and the schedule change just made it worse. Also, I’ve never had a UA flight change by even a couple minutes that I was not notified by email (or telephone in the dark days before email.) Was she paying attention to notices from the airline? I can’t help but think there is more to this than we’ve been told.

    Glad to hear UA stepped up though.

  • Wrona

    Cruise air can be okay, but it’s not always the best answer. When I missed a flight after a cruise (booked through the cruiseline), I was told by a cruiseline rep to ask my airline for help because he didn’t have time to help me. And it can also mean less than optimal flight times and schedules (early morning departures, multiple connections, etc).

    Instead my advice would be to monitor your airline reservations regularly (no matter where you book) – don’t rely on the airline to contact you if there is a schedule change, you won’t necessarily get a call or email notifying you of every change. The second you notice a schedule change call and get reaccommodated. Most likely this schedule change happened at least a 6 weeks in advance (that’s generally when airlines firm up their flight schedules). If it had been noticed then, United probably would’ve been able to reaccommodate them – without extra money spent on their part.

  • Sarah Di

    If they had booked air with the cruiseline, they also might have been flown in on the most inconvenient routing/schedule. I much prefer to book my own so that I can arrive a day early and book flights with plenty of time after, usually for much less than the cruise air.

    The probably wasn’t booking direct with United. United messed up by not notifying them of the schedule change, making a schedule change that didn’t make sense, and not fixing the schedule when asked or offering a refund. Changing a scheduled flight to leave three days before the original reservation obviously is going to be a problem. If somebody wanted to leave on that date, they would have booked for that date and not 3 days later.

  • http://www.singleparenttravel.net John Frenaye

    Cruise lines are not responsible for fouled up air connections when purchased through them. They are merely agents of the airlines like Orbitz or your local agency.

    Yes, if they can reaccomodate you, they will. And their buying power offers then some clout, but the CoC for all cruise lines specifically says that it is not their baby.

    Do not think they will hold a ship for you either.

  • Jeff

    When I went on an Alaskan cruise the cruise line wanted $950 a ticket if I booked airfare with them. They also could not tell me what times my flights were and if I had any connections. I booked the airtravel my self and got good nonstop flights times for $300 less a ticket.

  • Bill

    I just thought of a new options airlines could sell – a “cruise link” option. For an extra fee, the airline will monitor your ship arrival and make sure that you can take another flight if you are delayed by circumstances beyond your control such as the cruise arriving late.. That would remove the need to book with the cruise line.

  • Thalassa

    I have to admit, I truly don’t understand situations like this. I’m a veteran flyer, and I’ve never had my schedule changed by days! Is this actually common that an airline will suddenly, arbitrarily, decide to move someone to a flight several days before the one they scheduled?

  • Denise, NC

    This is the Denise Smith that Chris wrote about a few weeks ago… the one who had the problem with United involuntarily bumping her husband from a flight. I had promised that if everything went well on the flight using the compensatory voucher I was going to write United a very complimentary letter. As it stands, my family will never fly United again, no matter how cheap their tickets are. Although they were able to get my husband to his destination without any troubles, on the morning of his return flight they made a robocall to his cellphone telling him that his flight was canceled and his return trip would be delayed by FIFTEEN hours with no explanation!

    They couldn’t be bothered to have an agent actually call him and find out if this was acceptable. They didn’t consider that making him stay an extra night in a distant city would cost extra money he didn’t have. They didn’t think about how he was supposed to actually *get* to the airport when his transportation was already turned in. They just arbitrarily booked him on a flight the next day and informed him with a recording. No mention of compensation for the delay and no chance to protest the new arrangements because the robocall didn’t provide an option to speak to a live representative, either.

    Instead of going rounds with the phone reps I went to my local airport (an option for me since it’s only 15 minutes away). In ten minutes the agent at the counter, Tiffany Steele, had my husband scheduled on a Delta flight out on the same day. She even let me use her personal cellphone to call him and tell him about the new itinerary. But regardless of how well the one agent treated us, the general disregard for a traveler in a strange city puts us completely off of using United again.

  • cjr

    Exactly what Sarah Di said. Getting your flights with your cruise is about the same as getting them through a Travelocity: you may not like what you’re going to get. Nor does it guarantee that you won’t have problems should the airline change your itinerary. Nor would a travel agent necessary solve all your problems.

    One of the biggest things to focus on here should be the absurdity that United would move somebody’s flight date up 3 days.

    “A paper trail can be extremely helpful and a far quicker way of resolving a problem.”

    Maybe, maybe not. There’s no guarantee that if you turn to e-mail, that you’ll get a prompt response. And when this kind of change is made only a day before you’re leaving home, you cannot wait around to see if United will bother to respond to an e-mail.

  • Arizona Road Warrior

    @ Franci – “Also, I’ve never had a UA flight change by even a couple minutes that I was not notified by email (or telephone in the dark days before email.)”
    - – - – - – - – - – - – - — – - — – -
    My last two reservations with UA, there was a flight change (the time of departure changed by 5 minutes) for each reservation. I was notified by e-mails both times (one was five days in advance – purchased the tickets seven days in advance…the other one was 6 weeks in advance – purchased the tickets eight weeks in advance).

    @ Franci – “Was she paying attention to notices from the airline? I can’t help but think there is more to this than we’ve been told.”
    - – - – - – - – - – - – - — – - — – -
    I agree with you that there could have more to this story. It could have been a last minute change by UA but I think we didn’t hear the whole story.

    @ Sarah Di – “If they had booked air with the cruiseline, they also might have been flown in on the most inconvenient routing/schedule. I much prefer to book my own so that I can arrive a day early and book flights with plenty of time after, usually for much less than the cruise air.”
    - – - – - – - – - – - -
    I agree…we typically will arrive two to five days before the start of a land tour or cruise as well as will depart two to five days after the end of a land tour or cruise. One reason for this schedule is if we have problems with our flights, we won’t miss our tour or cruise. Another reason is for us to do explore the city; do things on our own; etc. before or after the tour\cruise.

    I can’t speak for cruises but I am aware of several tours that if you booked your airline tickets with them, you won’t receive FF miles for the flights; can’t use miles to upgrades; can’t upgrade by status; etc. IF that is important for you. For me. if I am going to fly 5,000 miles, 10,000 miles, etc. on an airline that I am a FF, I want these miles to my account.

    @ Sarah Di – “United messed up by not notifying them of the schedule change…”
    - – - – - – - – - – - -
    We don’t know that. Was her e-mail address with the record? Her telephone number? I have been always notified by UA for a schedule change. Back in 2007, there was a change in our itinerary for an international trip that we were taking. US sent me an e-mail asking me to confirm the change as well as they called me to make me aware of the change.

    @ Sarah Di – “…making a schedule change that didn’t make sense, and not fixing the schedule when asked or offering a refund.”
    - – - – - – - – - – - -
    To be blunt, customer service from most companies sucks because the American public doesn’t want to pay for it. They want cheap fares in case of airline travel. I call it the big box syndrome (i.e. Wal-Mart, Home Depot, Lowes, etc). This doesn’t excuse UA but the consumers need to be informed of their rights, know the rules, how to ask, etc. IF they are doing it alone. Don’t expect UA or other companies to take care of you; do right; look at for your best interest; etc. If you can’t do it by yourself then purchase your airline tickets from a travel agent.

    It is my guess that Mrs. DellaPenna spoke to the UA call center in Philippine. Based upon my experiences with the UA call center in the PI, those individuals are worthless.

    “Our reservations were changed from departing on xday to -3xday…that is a problem since we will be on a cruise ship out on the ocean. Can you change our flight to a later flight on the same day? A flight on another airline? A flight on the next day?(if this was an option for the DellaPenna clan)” It is hard for me to buy that UA won’t accomdate the DellaPenna clan by putting them on another airline if their flights were full.

    “No refund” – This didn’t surprise me because I am sure that the CSR in the PI probably wasn’t trained, didn’t know the policy, etc. However, if you are going to purchase your own tickets, you need to know the CoC because most of the call centers for the US-based airlines have been outsourced to India or the PI.

  • Arizona Road Warrior

    @ SirWired – “I would also file a complaint with the FAA. The airline not honoring its CoC by initially refusing a refund due to a schedule change is unacceptable and illegal.”
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    I totally agreed.

  • Jason

    I always get a phone call from United informing of any schedule changes, even if there is only change in the flight number. I also always monitor my itineraries on the airline website few days prior to departure. In the past, I had a change on United that would had a missed connection, when I called reservations, I insisted and was rebooked on Continental at no extra charge since there was not alternative United flight available. And lastly, I completely agree with above posts, if you go on a cruise, book a package with a cruise operator or a travel agent. And if you are trying to save and found a cheaper flight on your own at least give an extra day before and after, because things happen, and not just schedule changes, but also weather, security issues, traffic control etc.

  • Arizona Road Warrior

    @ Denise, NC – “This is the Denise Smith that Chris wrote about a few weeks ago… the one who had the problem with United involuntarily bumping her husband from a flight.”
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    Could you post a link to that article? I couldn’t find that article when doing a quick search of the archives.

    @ Denise, NC – “As it stands, my family will never fly United again, no matter how cheap their tickets are.”
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    That is the problem. How can UA or other airlines provide outstanding customer service without charging for it? Fares today are lower than the fares 10, 15 and 20 years ago. Why do you think that UA, other airlines as well as other companies moved their call centers to India or the Philippines? The monthly salary is $ 300 USD to $ 400 USD for a call center employee who works for a company that has been contracted to take customer service calls for UA.

    It is cost money to provide outstanding customer service. One can argue that bad customer service cost a company money. However, the American public has voted with their wallets. They want cheap fares.

    @ Denise, NC – “Although they were able to get my husband to his destination without any troubles, on the morning of his return flight they made a robocall to his cellphone telling him that his flight was canceled and his return trip would be delayed by FIFTEEN hours with no explanation!”
    - – - – - – - – - — -
    Last week, I received eleven (11) e-mails to my e-mail account on my Blackberry as well as 11 e-mails to another e-mail account when my flight from ORD to PHX on UA was delayed (I used two e-mails accounts if my Blackberry is down, service isn’t available or can’t access the Internet; if my laptop is down or can’t access the Internet; and if one of my e-mail account is down) . I went to the UA website to see the reason for the delay.

    @ Denise, NC – “They couldn’t be bothered to have an agent actually call him and find out if this was acceptable. “
    - – - – - – - – - – —
    If fares were 2x to 4x higher than the current fare then UA and other airlines could have someone to call everyone. How about people that don’t put their phone number in their reservation or use a home phone number for the reservation, how could they be contacted? Automated phone calls and automated e-mails are the fastest ways to communicate with customers when they are delays.

    When I travel, I have the telephone numbers for the airline, hotel(s) and rental car in my company provided BlackBerry, my personal cell phone; Outlook and a paper copy. Why couldn’t your husband call UA to find out the problem and see if he could get on an earlier flight or another airline?

    @ Denise, NC – “They didn’t consider that making him stay an extra night in a distant city would cost extra money he didn’t have. They didn’t think about how he was supposed to actually *get* to the airport when his transportation was already turned in. “
    - – - – - – - – - – —
    If the reason for the cancellation of the flight was mechanical, your husband would have received a voucher for food, hotel and transportation. If the reason for the cancellation was weather related or etc., then your husband would have been on your own. That is the reason why I purchased an annual travel insurance policy for trip delays due to inclement weather; strike or other job action by employees; etc. Please be advise that some travel insurance doesn’t cover short-delays (under 24 hours).

    If it was a weather delay, it is unreasonable to expect UA or other airlines to put up 1,000’s of passengers at their expense.

    @ Denise, NC – “They just arbitrarily booked him on a flight the next day and informed him with a recording. No mention of compensation for the delay and no chance to protest the new arrangements because the robocall didn’t provide an option to speak to a live representative, either.”
    - – - – - – - – - – - – - – - – - –
    It is standard for the airlines to automatically rebook passengers on the next available. It is common for the airlines to rebook their First Class passengers first then their elite FF passengers then their non-elite FF passengers then non-FF passengers then non-revenue passengers. It is my understanding that your husband was using a complimentary ticket so he was a non-revenue passenger so he was probably at the bottom of the list for rebooking.

    They may have hundreds or even thousands of passengers to call that day due to weather delays and etc so it is very unreasonable to expect UA to provide a long-winded phone call. I have received phone calls or e-mails about flight changes. I just call the airline to find out the reasons, the details, etc. or went to their website or do both or let my travel agent handle it (if the reservation was made by my travel agent). Why couldn’t your husband call UA or go to their website?

    To be blunt, customer service from most companies sucks because the American public doesn’t want to pay for it. They want cheap fares in case of airline travel. I call it the big box syndrome (i.e. Wal-Mart, Home Depot, Lowes, etc). This doesn’t excuse UA but the consumers need to be informed of their rights, know the rules, how to ask, etc. IF they are doing it alone. Don’t expect UA or other companies to take care of you; do the right thing; look at for your best interest; etc. If you can’t do it by yourself then purchase your airline tickets from a travel agent.

    @ Denise, NC – “Instead of going rounds with the phone reps I went to my local airport (an option for me since it’s only 15 minutes away). In ten minutes the agent at the counter, Tiffany Steele, had my husband scheduled on a Delta flight out on the same day.”
    - – - – - – - – - – - — — – - – - – - – - – -
    That was a smart move. If your husband went to the airport and asked to be put on an earlier flight or a flight on another airline, it probably would have been done. We will never know since you went to your local airport to ask that your husband to be put on an earlier flight either UA or other carrier. It has been my experiences that if you insisted to be rebooked on an earlier flight and/or other airline (if there are no alternative flight on the airline that you are flying), they will do it.

    If I was Chris Elliott, I will spend more time in the columns\articles teaching the public to be better consumers so that they know what to ask for, what to say, etc. since most of the public do not want to deal with a brick & mortar travel agent.

    @ Denise, NC – “regardless of how well the one agent treated us, the general disregard for a traveler in a strange city puts us completely off of using United again.”
    - – - – - – - – - – - – - – - – -
    I travel every week for business and be doing it since the 90’s. I go to ‘strange’ cities all of the time. I don’t expect my airline to be my travel agent. Over the years, my mother has asked me several times how I can go to a city that I never been to; find things; don’t get lost, how to get around, etc. My mother has never flown (she has a fear of flying) nor does she travel long-distance by car. I told my mother how I prepare for a trip such as getting maps (pre-GPS days but I still do paper maps if the GPS service is down or etc); talking to my customers about the area; Google Earth; putting the addresses into my GPS; running MapPoint and Street & Trips; do research on the Internet on the airport layout if I haven’t been to that airport before; etc.

    Based upon your comments and not reading the article that Chris wrote about you\your husband, it seems to me that you have unreasonable expectations when it comes to travel. I think that you will be best served by using a brick & mortar travel agent.

  • Jason

    @ Denise Smith

    Your husband is lucky he received an automated message on his phone and you were able to sort things out before his scheduled flight. Many other airlines are not going to call you, and you will only find out of cancellation after you get to the airport. Believe me, it is more of the inconvenience compare to finding out ahead. I can give you an example with Delta: a flight was oversold by 23, gate agents solicited 21 volunteers. A couple was bumped involuntarily. That couple received a phone call from Delta representative hours before the flight and asked if they could change to a different flight/day. They did not agree because they had to travel that day. Also according to that couple they were guaranteed by the agent on the phone to fly on that flight. Even they were guaranteed they still did not take that flight. They argued with a supervisor and whoever was available, but still no one from Delta got another two people off the plane, nor rebooked the couple on a different airline. So, you have someone who spoke with a person when issue came up, and did not agree to an alternative solution and still not be able to take scheduled flight.

  • Meg

    Boy, after reading this blog for a while I’ve realized that in a perfect travel world, we’d all be the Arizona Road Warrior where we know the perfect thing to do at all times. But in reality, we’re all just regular shmucks trying to get from point A to point B. So, alas, Chris is still in business.

    @ Arizona Road Warrior “If I was Chris Elliott, I will spend more time in the columns\articles teaching the public to be better consumers so that they know what to ask for, what to say, etc. since most of the public do not want to deal with a brick & mortar travel agent.”
    —–
    Sounds like you should hang your own shingle and enlighten us poor regular shmucks.

  • http://www.royle-safaris.co.uk Wildlife Holidays

    I agree with SirWired the contact information is out dated and misleading. I am please other people feel strongly about this problem and hopefully we can sort something out for the future

  • Mike Z

    @Arizona Road Warrior Not everyone travels for business or gets paid for their research with customers. Also, it is unreasonable for you to expect your average traveller to have a GPS and Blackberry. In fact, I would say that it’s pretty silly expecting printing out maps of the airport unless maybe you are travelling out of country. This is why airports have signage and all carriers have signs alerting passengers where to check in.

    Also, “It is cost money to provide outstanding customer service. One can argue that bad customer service cost a company money. However, the American public has voted with their wallets. They want cheap fares.”

    I call pure BS here and I’ll repeat what I’ve said in past posts. This is what the industry would like you to think. The large national chains like HD went with lower paid employees and lower CS because they have a few hundred employees in each of a few thousand stores, and the new CEO in charge wanted immediate dividend increases, vs long term growth. (typical large business these days) A call center for an airline can be centralized. When you consider how many millions of people fly each year and how many employees it would take to staff a call center, I would imagine that the average ticket price *might* go up by $.50. When you have over 500 million people flying each year, that $.50 adds up to more than $250 million for dedicated US based customer service. (That’s over 6,000 employees making a total compensation of over $40k a year) Are you trying to tell me that two hundred and fifty million dollars, in addition to what is already being spent could not handle CS issues domestically? Are you honestly trying to tell me that people would object to a $.50 difference in ticket price, when they are already paying hundreds for a ticket and possibly another hundred for checked bags, meals, beverages, etc???? If anything, the fact that airlines are now charging so much extra for all these services means that the public NEEDS CS more local and able to accomodate the paying travelling public.

  • cjr

    Just to give a counter to Denise’s situation with United: Last December, my wife and I took a Disney cruise. Disney has an agreement with United regarding luggage, where if you take a Disney cruise or stay at a Disney resort, Disney will take your luggage to the airport for you. We’ve used that in the past with no problems.

    This time, however, there was a problem. When we got off the cruise, we were going straight to the airport. Our luggage should have as well, but for whatever reason, did not. We received a call from Disney while at the gate for our flight saying that our luggage was sitting at the Disney lost and found – somehow the identifying tag got removed from our luggage, so they had no idea what they were supposed to do with it.

    We had about three hours until our flight, so there was a good chance that they could get the luggage to the airport, and even though it would mean I would have to go back to near the ticket counter to pick it up and check it in myself, everything could still end up ok… but it didn’t.

    The luggage didn’t show up until the time the plane started boarding. By this point, my wife was forced to join me at the ticket counter, because she wasn’t about to board a flight without me. Which meant both of us missed our flight, since it was then too late to check our luggage for the flight.

    We talked to United about it and the next flight wasn’t until the next day. But what did United do in this situation, even though this problem was of Disney’s making? The ticket agent went ahead and booked us on another airline for a flight leaving in a couple of hours time, something she told us she really wasn’t allowed to do.

    Have I had my problems with United? Yes. I’ve had them cut a trip short by 6 hours due to canceling flights and forcing me to fly much earlier in the day (and I couldn’t have flown the next day any ways). That’s probably going to happen to everybody sooner or later, much like I fully expect that one of these trips the airline is going to lose my luggage.

    But with every airline cramming the planes full and cutting back on routes and numbers of flights, the situation you described, Denise, can happen to pretty much any regular flier on any airline. If you think simply avoiding United will mean this won’t happen again, you’re being naive.

  • Arizona Road Warrior

    @ Mike Z – “Not everyone travels for business or gets paid for their research with customers.”
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    That is true but the Internet has tons of stuff that an inexperienced traveler can use to learn to have a better travel experience, learn to avoid mistakes, etc.

    @ Mike Z – “Also, it is unreasonable for you to expect your average traveller to have a GPS and Blackberry.”
    - – - – - – - – - – -
    You can rent a GPS unit from most rental car companies. There are several cell phones and Blackberries that have built in GPS. Most cell phones in the US can receive a text message. The Nokia cell phone that I purchased from AT&T in 2001 could receive text messages. Recently, I went to the AT&T store to replace my old Motorola Razor cell phone but I didn’t because they had a very small selections of ‘regular’ cell phones that I didn’t like…most of their phones were Blackberries, iPhones, Internet-data enabled cell phones, etc.

    @ Mike Z – “In fact, I would say that it’s pretty silly expecting printing out maps of the airport unless maybe you are travelling out of country.”
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    I didn’t write that I print out maps of airports. I wrote that I print out maps\instructions as back-up to my GPS. Sometimes the rental car companies are located underground or in parking garages making it nearly impossible to pick up the GPS satellites. Also, if it is raining hard and/or a heavy overcast day, it might take five to ten minutes to pick up the GPS.

    In regards to airport, I wrote that I go to the airport website to check out layout of the airport. I only do it if the airport is large and if I am making a connection. If I am arriving at Gate 25 in Terminal A and my connecting flight departs from Gate 100 in Terminal Z, I want to know how long of a hike that I have in case if I have a close connection time.

    In some airports, you have to leave security from one terminal\concourse then go through security again to go to another terminal\concourse. Again, this is important to know if you have a close connection time.

    @ Mike Z – “The large national chains like HD went with lower paid employees and lower CS because they have a few hundred employees in each of a few thousand stores…”
    - – - – - – - – - – - – - –
    The three Home Depots that I go to on a regular basis, it is nearly impossible to find an associate. If you find an associate, there is a line of people waiting to ask questions or if you ask a question (i.e. what aisle are your XYZ located?), they don’t know the answer. If I need no service and the lowest price, I go to Home Depot. If I need service, I go to my Ace Hardware.

    @ Mike Z – “A call center for an airline can be centralized.”
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    In theory, Yes but in reality, it is a different story. Can you find enough ‘qualified’ customer service employees in one location without forcing up the demand for CSRs thus forcing up salaries, etc?

    @ Mike Z – “When you have over 500 million people flying each year, that $.50 adds up to more than $250 million for dedicated US based customer service. (That’s over 6,000 employees making a total compensation of over $40k a year).”
    - – - – - – - – - – - -
    If an employee has a total compensation of $ 40,000 per your example, the total cost to an employer is a minimum of $ 52,000 to $ 60,000 (using a factor of 1.3 to 1.5…it could be higher given the benefits program, a pension, etc.). Please remember that employers have to pay the FICA and Medicare employer taxes (7.65%), Federal unemployment tax, state unemployment tax, workmen compensation tax, the company paid, health insurance premiums, etc. Looking at my wife’s compensation annual report from her employer and my compensation from my employer, our respective employers are paying additional 60% over our salaries. Unless you own a company (I have) or run a company (I have), most people are unaware of the actual cost for an employee or what how much a company pays for an employee.

    Please remember that an airline needs to staff their call centers 24 hours a day – 7 days a week. It is very common that employees working the second and/or third shifts as well as weekend shifts usually make more money than the Monday to Friday 1st Shift employees. That can be another 10 to 15% costs. The airlines will need to hire supervisors and managers and that skill set is going to cost more than a regular CSR.

    You totally left out the costs for office space; hardware (i.e. desks, computers, etc.); technology (i.e. software); training; hiring; insurance (i.e. liability, building, etc.); communications (i.e. telephone costs); the costs to give miles, waive fees, award free tickets, etc; etc. We are talking about millions of dollars here.

    I think that your statement that to have dedicated US based customer service will only add $ 0.50 to a price of ticket is inaccurate. If you can provide a proof-source and/or white paper that can prove that an US-based airline can have US-based customer service for $ 0.50 a ticket, please provide the link.

  • Arizona Road Warrior

    @ Meg – “Boy, after reading this blog for a while I’ve realized that in a perfect travel world, we’d all be the Arizona Road Warrior where we know the perfect thing to do at all times.”
    - – - – - – - – - – - -
    I used to use the services of a travel agent until I gained experience that I could book my own travel. I still use the services of a travel agent when making my travel plans for complex and complicated international travel. My point is that if an inexperienced traveler is not going to use the services of a travel agent then the inexperienced traveler needs to research before the trip instead of writing to Chris after the trip. There are several forums, websites, etc. that an inexperienced traveler can research to gain knowledge, etc.

  • Joe Farrell

    If ANY large company actually started to provide people with real 1950′s level customer service, they would capture a market so thoroughly that there would be no competition left.

    Imagine if [insert name of airline] completely revamped its procedures and said:

    “We will charge you $20 more each way that the lowest fare you get from on competitors on the same day. For that $20 additional fare, you will get:

    1. 1 checked bag per passenger
    2. 1 change of time or date of flight or correction of name – you must pay any additional fare if the price goes up;
    3. Proactive Reaccomodation efforts on our or other airlines in the event of ATC or weather delays.
    4. Respect.
    5. Trained employees paid a living wage with benefits who understand their job and who do not hate you;
    6. A meal or snack that contains healthy natural food from all three food groups, a salad choice, free beverages excluding alcohol and meals and snacks on all flights longer than 45 hour – our flight attendants hustle.

    Ah, one can dream. I dunno about you, but I’d pay it. That means an additional two BILLION dollars a year for American Airlines- if they used that to fund their baggage fee and hire better people and reinvigorate their coach meal program? Could be done.- and it would be a money maker.

  • Joe Farrell

    @Mike – the $0.50 is only an incremental increase in the wage of the CSR. Remember, if 50 cents a pax generates $40k per CSR then you are spreading that wage increase over 4-5 people [what you need for 24/7 coverage] – so you are increasing the wage for EACH person by $8k. Now – if you take a call center in Mumbai where they $8-10k and bump that salary to $16-20k – that is a decent second job for an American family trying to move up the ladder or wanting a swing shift job or a college student wanting to work the graveyard.

    Increase the ticket price $1 – and NOW you can EASILY move every single CSR job back at least to the USA/Canada. I’d pay that $1.

  • MeanMeosh

    @ Joe Farrell – “If ANY large company actually started to provide people with real 1950′s level customer service, they would capture a market so thoroughly that there would be no competition left.”

    In your hypothetical example of a $20 fare increase each way for all the benefits you list, you’re sadly mistaken if you think people are going to pay for that. Americans have spoken. Maybe you’re willing to pay the extra $40, but the majority of travelers are not. Why do you think Wal-Mart has the market share that it does? You could buy a better dress shirt than what Wal-Mart sells at the men’s store on the courthouse square of the small town I used to live in, but because it costs $10 more than it does at Wal-Mart, nobody shops there anymore.

    “Now – if you take a call center in Mumbai where they $8-10k and bump that salary to $16-20k – that is a decent second job for an American family trying to move up the ladder or wanting a swing shift job or a college student wanting to work the graveyard.”

    I worked in India for 2 years. I can tell you that an entry level phone rep does not make anywhere close to $8-10k a year. It’s more like $4-5k, and that’s for a 10-12 hour shift. So if we take your example of a $16-20k job brought back to the states, you’re really talking about increasing the cost by 4-5x, not 2x.

    Even ignoring that, it’s not nearly as easy as you and Mike Z make it out to be – “just pay $1 more per ticket and we can move all those jobs back to the U.S.” First, the airlines would have to rent the facilities, and shut down their overseas facilities, which will cost money. Second, jobs brought back by airlines to the U.S. will likely be unionized. Paying a CSR $16-20k a year means minimum wage for an 8 hour shift, or maybe $15/hour for a part-time shift. Do you really think the unions are going to go for that? Even if these jobs don’t become unionized, you are also arguing that U.S-based employees should be paid a “living wage”. $16-20k for a full-time job is nowhere close to a living wage, even in ultra-low cost areas like Texas. You’ll have to at least double that salary. Not to mention, you’re going to have to provide benefits on top of that salary, even for part-timers (at a minimum, the soon-to-be-mandated health insurance, or an increase in salary to those workers can buy their own off the exchanges). It’s going to end up costing a lot more than $1 per flight to make all that work. Maybe you’re willing to pay it anyway. I’m willing to bet the majority of travelers out there aren’t.

  • Mike Z

    @Joe Farrell and Arizona Road Warrior,

    I found there were 630+ million travellers on domestic or international flights travelling in the US last year. My estimate was low, but with that half a dollar you would have roughly $315 million to spend for customer support. Ok Joe, so you change it to a buck and you get over $600 million a year for US based Customer service. Still a VERY SMALL price to pay for US jobs and decent levels of understandability of who you might be speaking with.

    Arizona, when I mentioned total compensation, I was referring to taxes and whatnot. You might have a salary range of maybe $30-$35k for these call centers which is a darn good salary for that type of work if you place it in the midwest. In NYC, heck no. In Iowa, yea thats a good bit of cash. Office rental is low these days and these call centers are like cattle pens. You can fit hundreds of workers into a 50k square foot building.

    I can just see it now. Airline #1 advertises a $39 fare from Chicago to Indianapolis and advertises that they use US based customer service. Airline #2 advertises a $38 fare and tells you it is saving you money because they outsource their CS to another nation halfway around the world. Take a guess as to what airline everyone is going to most likely pick, all other things being equal? (and most tickets are hundreds of dollars where a dollar isn’t going to mean a bit of difference to an individual customer)

  • Joe Farrell

    The thing you both miss is that you don’t NEED EVERY passenger to be willing to pay for either service, training or respect, you only need one in 10 or even 1 in 20 given the different airlines.

    You seem to forget that for every customer who buys at Walmart there are 2 or 3 who purchase their toothpaste at Target or even the local grocery store where prices are much higher than at Walmart.

    I COMPLETELY disagree that ‘everyone’ will choose to save a dollar. I think you seriously underestimate the intelligence and preferences of the American consumer. For everyone who buys their sheets and toiletries at Walmart there are dozens who CHOOSE another path, either to $1000 sheets or $100 sheets at a mall store.

    The reason you have a CHOICE of CHOOSING higher quality is that there are providers out there who offer the choice – the airline industry has , on its own, eliminated that choice. They have chased each other to the bottom mistakenly thinking that EVERYONE is out to spend the least amount of money and get the least amount of service. Then they point to the super premium first class only airlines that have failed and state that ‘people will not pay for quality.’ Its like if the only choice was Walmart or Rodeo Drive. Thats not how the world is – yet – in the airline industry everyone wants Walmart – thats no more true than it is in the market for toothpaste, sheets or yard equipment. If that argument was correct then no one would EVER buy a Cub Cadet or John Deere tractor and Murrary would be the only provider since they sell at Walmart.

    The only reason poor service exists in the airline industry is that the management ONLY looks at the cost side of the equation – no one has EVER tried to grow the top line income side with differentiation on the basis of service instead of chasing the spiral downward with every less-qualified employees and lower wages and decreased benefits. Quality follows money as inexorably as day follows night.

  • Arizona Road Warrior

    @ Joe Farrell – “Now – if you take a call center in Mumbai where they $8-10k and bump that salary to $16-20k – that is a decent second job for an American family trying to move up the ladder or wanting a swing shift job or a college student wanting to work the graveyard.”
    - – - – - – - -
    $ 16,000 divided by 52 weeks = $ 307.69 divided by 40 hours = $ 7.69. The federal minimum wage is $ 7.25 and in some states, it is higher. I don’t think that you are going to attract people with the proper skills set to be an outstanding CSR at $ 7.69 to $ 9.61 per hour. You are going to end up with the order takers that you encounter at fast food joints.

    IMHO, to attract the right people with the right skills set to be an outstanding CSR, the airline needs to pay $ 40,000 to $ 50,000 a year plus benefits.

  • Arizona Road Warrior

    @ Mike Z – “I found there were 630+ million travellers on domestic or international flights travelling in the US last year.”
    - – - – - – - – -

    According to the report published by the FAA (which you can download for free), there were 695,911,762 enplanements (i.e. passengers boarding planes).

    @ Mike Z – “Arizona, when I mentioned total compensation, I was referring to taxes and whatnot. You might have a salary range of maybe $30-$35k…”
    - – - – - – - – -
    Based upon my experiences (benefits consulting; selling compensation software; running companies; setting up software help desks; etc.), I think it will be very hard for employer to spend only $ 5,000 to $ 10,000 in employer costs. My wife’s employer spends $ 1,200 a month for their contribution to my wife’s health plan (family coverage…she pays $ 200 a month). Even at $ 500 a month, you are talking $ 6,000 a year that is before all of the taxes, etc.

    Also, I don’t think that you are going to attract the right people with the right skills set at $ 30,000 a year.

    @ Mike Z – “for these call centers which is a darn good salary for that type of work if you place it in the midwest. In NYC, heck no. In Iowa, yea thats a good bit of cash. Office rental is low these days and these call centers are like cattle pens. You can fit hundreds of workers into a 50k square foot building.”
    - – - – - – - – — – -
    The call centers need to be located in the hub cities of the airlines so that management and other can inspect the call center operations from time to time.

  • Joe Farrell

    @AZ – no one works 40 hours any more for one – the $16-20k is based on 50 cents per ticket. Change that to a $1 each way now you have your $35-40k and benefits added to the current cost. you want to discuss the reality of changing the way an industry operates or nitpick the difference between 50 cents and dollar?

  • Arizona Road Warrior

    @ Joe Farrell – I agree with you that not every traveler will choose the lowest air fare. However, I don’t think that the market is large enough to maintain or support even one of the current legacy airlines in their current mode of operations.

    I am willing to pay more for fares IF the service and benefits are there. I work for a company where our prices for our products and services are at least 50% if not 100% higher than our competitors and we are the market leader. We sell our unique value proposition of extraordinary service, lowest cost of ownership in the long term, etc. However, we do run across several customers that only care about price.

    The main reason for all of those ‘business-class’ only airlines that flew between the US and Europe went out of business is because there were not enough passengers…the market wasn’t there. Business travel is down as well as companies are looking to cut costs.

    I have doubts that companies are willing to spend more money on travel. As long as the economy is anemic, publicly traded companies need to cut their expenses in order to maintain the same profits with lower revenues. My previous employer was a public company that was traded on the NYSE. During the last two years, the management issued directives to reduce travel costs.

    I don’t think that the market is large enough for all of the legacies (AA, DL, UA-CO and US) to be a “Target”, “Macy” or “Nordstrom” to the “Wal-Marts” (AirTran, Spirit, Southwest). Also, I think that the legacy airlines have too much capacity, too much overhead to become a “Target” ”, “Macy” or “Nordstrom”. They will have to reduce flights, cut out services to some markets, get rid of planes (which could be difficult under their lease terms), lay off workers (probably against labor union contracts), etc. If the airline was starting up, they could be a “Target”, “Macy” or “Nordstrom” since the existing ‘infrastructure’ is not in place.

    “For everyone who buys their sheets and toiletries at Walmart there are dozens who CHOOSE another path, either to $1000 sheets or $100 sheets at a mall store.” This is true but there are tens of thousands that buy their sheets and toiletries at Wal-Mart compared to thousands that buy $ 100 sheets at a mall store and hundreds that buy $ 1,000 sheets at a specialty bedding store. With our current economy, a lot of people that never went to a ‘discounter’ or use coupons before are now going to the discounters instead of the mall; using coupons; etc.

    In 2009, there were 695,911,762 enplanements (the number of passengers boarding a flight, including origination, stopovers and connections) according to the FAA. In 2008, there were 735,032,434 enplanements. In 2007, there were 762,397,236 enplanements. In 2006, there were 738,256,862 enplanements. In 2005, there were 736,202,645 enplanements. In 2004, there were 705,306,663 enplanements. There are 66,400,000 less passengers from 2007…that is one airline (according to the US Airways website it flies approximately 60,000,000 passenger a year)

    It is my opinion that the legacy airlines are afraid to change their model to a “Target”, “Macy” or “Nordstrom” because there are 66.4 MM fewer passengers. They are going after all of the passengers and trying to be an airline for everyone.

  • Joe M

    Just as a counter point to those who feel that moving CSR jobs back to the US requires a physical call center, keep in mind that technology can take that right out of the picture.

    For example, dynamic phone routing systems route you to “the next available service representative” every day. Sure they’re usually within the same facility, but there’s no reason they have to be. US toll free numbers routing to India springs to mind as an example.

    Combine that with a modern VOIP system and you can have a supervisor in Philly listen in on a conversation going on between a CSR in San Fran and a customer in Kansas with a push of a button.

  • Steve

    @Arizona Road Warrior: “IMHO, to attract the right people with the right skills set to be an outstanding CSR, the airline needs to pay $ 40,000 to $ 50,000 a year plus benefits.”

    Perhaps. But I don’t think you’d have to pay $40k+ per year just to get significantly improved customer service compared to what you get from outsourced, overseas call centers.

    Moving call centers to the U.S., even if you staffed them with workers making minimum wage, would at least eliminate one of the biggest problems I run into when dealing with an overseas customer service representative: the language barrier. At least half the time I end up talking to someone with a very thick accent and I have to ask them to repeat most of what they say…plus I often get the impression they’re not 100% sure of what I’m saying to them.

    I also think a lot of the customer service problems could be solved if it was easier to get transferred to someone who was actually empowered to do something more than read from a script. It’s harder to quantify what those costs would be, and certainly hiring more supervisors and managers costs more than hiring front-line staff, but I suspect a decent amount of improvement would be possible at little cost.

    As someone else said, depending on where the call center is located, $30k a year might be a darn good salary. Of course, there are still the costs of having an employee, providing benefits, etc.

    Let’s say the estimate of the improved customer service costs was off by a factor of five, and it would add $2.50 to the price of a ticket instead of 50 cents. I still think it could be done. And I agree with Joe Farrell that no one’s really tried to do this kind of a thing (I might argue Southwest has); people point to the failures of all-business-class airlines and say “people don’t want to pay for quality.” Well, I agree that people don’t want to pay what it would cost to always fly in a business-class seat with business-class amenities and pampering; I disagree that people don’t want to pay a small percentage extra (ie, 1-2% or less) for a modicum of service.

  • Kevin M

    I actually have a bit of experience with call centers, so I can at least speak to this disagreement.

    As many have noted, $30,000 is a good living wage in many parts of the country; in even more, it’s a decent “second income”. There are many people qualified to do this sort of work in these non-mega-urban areas; in fact, historically, call centers were located in smaller markets precisely because they DON’T have to be close to the main centers of operation – ie, the big hub airports – to be effective. In those markets, the kind of real estate needed to house a call center is also cheap. Outside major urban areas, surface parking is usually plentiful and free, and the cost of living is much lower so employees don’t expect to make the kind of money needed to live in, say, New York or San Francisco or Phoenix or Chicago.

    Virtual call centers, too (as one poster pointed out) are one way operating costs can be reduced. JetBlue famously used this model for many of its reservation agents when it started up; my partner (who worked for call centers for several years earlier this decade) frequently was able to work from home simply by having calls routed to our second line and logging into the call center system via the internet.

    AZ, your figures about your and your wife’s employer’s costs for hiring a new employee may well be right. But based on your comments, I’m guessing you have a much higher level job than “call center operator”, and I’m also guessing you get a reasonably generous benefit package. Down here, for run-of-the-mill employees, the “off-the-cuff” calculation figures are:

    employee + employer taxes only = wages + 15%
    above plus benefits: wages + 40%

    Using really rough figures of 700,000,000 emplanements, and 50 cents per ticket, that’s $350 million additional dollars, on top of whatever’s being spent overseas. Even if you took the overseas money and spent it all on facilities (buildings, computers, electricity, etc.), the extra $350 million could pay for more than 8,000 people making $30,000 in base pay AND their benefits. A dollar per ticket would generate enough to pay for 12,500 people making $40,000 plus benefits.

    It’s not a question of whether people would pay the extra dollar. I think American travelers are savvy enough to have learned that incidental fees for everything under the sun make it impossible already to say that this airfare that’s $5 cheaper is actually less total money expended after the airline finishes picking your pocket. I’m pretty sure a reasonable number of people would pay.

    Finally, as someone else noted, airlines didn’t move those jobs overseas so they could offer the lowest fares. They did it so they could cut expenses enough to temporarily prop up their stock price so that when the executives making tens of millions of dollars running the airlines into the ground exercised their stock options to get even more cash out of the airlines, the price was 50 cents higher per share and they could add another Mercedes to the family garage. When you look at the money that Glenn Tilton and his ilk made over the years they were destroying all the equity in United (and stealing it for themselves out of bankruptcy), you can see where the money for operating US call centers went.

  • Joel Wechsler

    @Arizona Road Warrior I agree with everything you have said above with two exceptions: “Most of the public do not want to deasl with a brick and mortar travel agency>” This is not supported by the facts, which show that over 50% of airline tickets are still issued by brick and mortar agencies. If you add in cruise sales, tours etc. the percentage of travel spending with brick and mortars still remains high, and in fact has grown somewhat in the last couple of years as some travelers have become disenchanted with the likes of Expedia. The second thing to which I take exception is that a domestic call center needs to be in an airline’s hub city so that management can look in occasionally. They don’t have that ability in India or the Philippines, so why would they need it here? Furthermore, many travel companies have CSRs working from home so a central location is not required. However, if the airlines do not want to have CSRs in the U.S., there are alternatives that are better than the two countries mentioned above. For example, American moved a number of their CSR positions to Uruguay, where a combination of American transferees and local English speakers do a pretty good job.

  • http://www.clarkecomputer.com Charles Clarke

    @Kevin M
    By your numbers, 700M enplanements paying for 12.5K employees = 56K enplanements per employee. At 250 workdays per employee, that is 224 enplanements/employee/day. 8 hours/day means 28 enplanements/employee/hour. Assuming no overhead time that is 2 1/7 minutes allowed per enplanement. So, obviously we couldn’t have every enplanement need help and get good customer service.

    Not knowing industry averages – only my own personal experience, I would guess currently 10% of enplanements need customer service. That is over 21 minutes (or 10 minutes if we figure in 50% overhead). Maybe enough for good customer service. Obviously, the lower percentage of enplanements needing service, the better the numbers look.

    And remember that those enplanements/employees are spread over all the airlines so there is some internal fragmentation there also.

    Then we need to figure in the other costs of good customer service. How many empty seats need to be flown to allow room for weather, mechanical and other issues? I don’t have a clue.

    One area I have some knowledge in is that you can hire a reasonable “virtual assistant” (i.e. they need very specific instructions) in the Phillipines for $1.50/hour, no benefits or other extra costs. I would expect that the estimates of $30-$40k salaries with another $10k-20k overhead/benefits in a US call center are accurate(and I’m not always thrilled with US call centers also). So we’re talking about about 13x-20x difference in wages.

    To flip to the CEO’s side. Say your airline has 10% marketshare (about what US Airways has from the comment above). So your numbers are 10% of those above. $1/ticket means $70M. So, if I place these folks overseas, I can save the airline $70M/year. More than most airlines make in a year. Get myself a nice bonus or two and I’m set. People might complain, but then all we need to do is tack on a few fees and then I’ll retire in a few years… Yeah, yeah, I know…that would *never* happen. :-)