Frequent fliers: Mad as hell and not taking it anymore?
Posted
Mar 26 2009, 02:28 PM
by
Minyanville
Rating:
The airlines are struggling these days, much like everyone else.
In its effort to provide essential business and economic news and information to Minyans the world over, Minyanville.com has already covered the most critical trends, such as Ryanair (RYAAY) contemplating the first pay toilets inside commercial airliners.
As a frequent flier on US Air (LCC), I received a notice saying they were no longer going to charge for soda and water. Holy catfish. Not only is US Air unpopular with geese, they apparently wanted to antagonize the entire population (good thing they're stopping).
But what grotesquely overpaid executive thought up the idea of charging for soda and water in the first place? Probably the same executive who thought up in-flight pay toilets, which makes me suspect this advice could be coming from roaming consultants.
This is the kind of stuff you just can’t make up. The severity of the economic pinch on airlines is no secret. But some of this is getting ridiculous.
I recently flew from New York to the West Coast and back on United. As I checked in, they charged me $25 each for the bags under my eyes. When I got through security and saw the enormous commercial airliners taxiing outside, I couldn’t help but notice “Your Name Here” painted on the tail of the Northwest Airlines jets. The whole trip was an intensive study on cost-saving measures.
OK, I made that last stuff up. But what everyone in the airline industry except Southwest seems to be missing is the heightened opportunity to bond with customers during tough times. Instead of cutting back on nickel-and-dime stuff like not serving 0.5 ounces of pretzels in flight, why not spend a few nickels and dimes to send the message that “We’re all in this together” and “We’ll do everything we can to make your experience as comfortable as possible?”
Unfortunately, much of what I experience and witness at Alaska (ALK), United (UAUA), Delta (DAL), American (AMR), Northwest and Continental (CAL), et al, sends the opposite message. This isn't to say that most airline personnel aren't courteous and extremely helpful. They are. I think that's the rule, and the surly, at-the-end-of-their-rope types are the exceptions. Yet we know from the research that it takes 50 positive impressions to equal one negative experience. And with air travel, the negative impressions can be ugly.
I was behind a lady in line at the gate check-in counter trying to get a seat assignment. She had gone online 16 hours before and wasn’t allowed to select a seat. She was at the airport three hours early and wasn’t allowed to select a seat. The ticket agent started giving her lame excuses like, “Well, you know that many people like to pick out particular seats.” The irate passenger essentially retorted, “Say something intelligent if you’re going to attempt an explanation.”
After several Q&As back and forth, with the airline line getting weaker and weaker and dumber and dumber, the ticket agent finally just stared back at the passenger, who finally gave up and walked away saying, “I’ll never fly United again.” The agent just stared in silence. I could almost hear her inner voice sarcastically, “Oh, no. She’ll never fly United again. How will I be able to sleep ever again?”
As a former revenue management consultant with Delta, I knew (as did the agent) that the reason the system wouldn’t allow the passenger to select a seat was because the flight was overbooked and all the seats were gone. Even though the passenger had a paid reservation, the system isn't about to show a seating chart with every seat full. Indeed, a few minutes later, that same ticket agent was offering free travel vouchers for volunteers willing to give up their seats.
I understand why airlines overbook. Nobody can blame them for trying to minimize financial consequences of passengers not showing up or missing their connections and thereby leaving seats empty. But, somebody in the airline industry -- in fact in many industries (like financial services) -- needs to realize that customers aren't their enemies.
My own trip was marred by a missed connection due to a two-hour late departure from Newark. I was stranded for the night -- a one-hour flight from my final destination. The agent greeting the flight on the other end was ready with the old “It was air traffic control’s fault” explanation, thus exempting the airline from paying for a hotel room. I’m a private pilot. I fly air traffic controllers around in my airplane. I talk to air traffic control every time I fly -- on the same frequency as Captain Frisbee in his Boeing 737 Heavy.
Air traffic control didn't put that flight in a two-hour gate hold anywhere in the system that day unless mechanical or staffing problems caused the delay. Neither did air-traffic control have them circle an airport for 2 hours waiting to land. Weather wasn't causing delays anywhere in the system that day, I checked.
But who can argue with, “It’s not our fault. You sleep in the airport for the next 6 hours or buy your own hotel room." When I (calmly) explained the bogusness of the air-traffic control excuse, the agent didn’t even bother with a weak or dumb retort. She immediately commenced to stare me down in silence, defying me to speak.
I just walked away. What could I say? I will fly her airline again. What choice do I have at the end of the day?
Jan Carlson, the man who turned Scandinavian Airlines around, did so in part by authorizing any agent to spend $2,000 to solve a customer’s problem -- even if it meant booking them on another airline. And those were 1975 dollars. He explained quite eloquently in his book, "Moments of Truth," that customer loyalty begins with demonstrations that you care about their problems -- not your quickness to deny responsibility. In fact, most travelers wouldn’t say things like, “I’ll never fly United Airlines again,” if they only felt as if the person behind the counter gave a damn about their problem.
My silent-treatment agent could have put me and about 19 more people in my predicament up for the night for about $2,000. Jet A is reasonably priced these days. The president is capping executive compensation. Yet, she and her airline failed their moment of truth with me, just like they did with the customer who only wanted to select a seat. Why? Because they’re paying an unbelievable burden in union pensions? Nobody saw that coming?
When times are tough, it’s time to bring pretzels and sodas into the waiting areas -- maybe a mariachi band or a mime. Airlines pioneered the concepts of feeding and entertaining customers to keep them happy. Now, especially during these challenging times, is when these customer-bonding techniques would buy the most customer loyalty. Instead, their policies pit beleaguered employees against passengers who aren't lavishly compensated executives.
“Where would the money come from to bring back pretzels?” you ask. Probably not from the retirement benefits that are crippling airlines, just like they are bankrupting auto manufacturers and city, county, state and federal agencies. How about, contributions from executive compensation packages? There’s the ticket.
From a public-perception standpoint, I predict a great deal of pure, unadulterated hatred and vitriol toward executive compensation could be mitigated if it could be associated with even a modicum of concern for the suckers on the short end: the customers.
Some people get it. I predict Southwest (LUV), for example, will use some of its profits to advertise on Northwest's vertical stabilizers.
Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville contributor John Hoover.
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