June 09, 2015
Soaring Fees & Declining Airline Service Do More Than Disempower Customers
While I’m not a 100,000 mile gal, I spend a lot of time on planes throughout the course of a year. When it comes to flying these days, I think we can all agree -- it's a far cry from fun. Barely tolerable is what comes to mind.
Photo credit: Outsidethebeltway.com.
The saddening reality is that airlines worldwide brought in $31.5 billion in non-ticket revenue in 2013 -- including passenger fees -- which is MORE than 11 times their non-ticket revenue six years prior, adjusted for inflation according to CNN Money. Unfortunately, there's little that we can do about it. There's no plea here and our voices go unnoticed....otherwise, the price increases wouldn't continue to soar year after year, not to mention new fees being added for incredulous things.
Photo credit: Dave Granlund.com.
Customer feedback no longer matters since it's become an industry that treats people more like helpless cattle in tow than worthful customers they care about "serving." Truth be told, I haven't had a memorable and rewarding experience flying coach in about 8 or 9 years and it's getting worse.
The smile comes on the video screen welcoming you prior to take off and if a video isn't enough to make the whole experience feel less personal, I saw a recent clip where an unnamed airline actually replaced people with avatars.
During that "happy" video, you're reminded that if you didn't bring your own headset, you can get one from them for a mere $5 and that's before you have to pay for the in-flight entertainment, no longer free. I'm old enough to remember when all of the "now" perks were just part of your normal travel experience -- the headsets, the meals, the movie, changing your flight date or time and hell, American used to give away pens and decks of cards.
Meals in coach used real napkins laid out on the side of your plate and silverware -- I'm not sure how I'm going to take a pilot down with a butter knife and silver fork, but hey, clearly they're still worried about it. If it’s domestic, I oscillate between my two favorite U.S. carriers – Delta and American and if it’s international, I try to use one of their partners for the mileage points although frankly, it's becoming less compelling by the day since it's a helluva lot of work to get "status" points and once you've killed yourself on god awful flights to get them, your perks and benefits get set back to zero before you have an opportunity to relish in boarding ten minutes early and that one bag free perk.
I avoid United as they remain as anti-customer as Comcast does on the corporate brand list....the two companies should do joint seminars on how to piss off a customer the most in a one hour period.
Photo credit: www.thefinancialbrand.com
If I don't have a choice to go with a preferred airline partner for international flights, I choose an airline that is known for its service and simplifies traveling for me at a minimum, or in the rare case, doesn't penny pinch me for everything. Virgin of course is the best known in this category stateside and they just came out with a credit card deal that allows you to change your flights for no fee. Remember those days? How bliss: "Customer-driven" decisions like that make me not want to ever fly another airline. When you purchase a car, design, color and safety matter a whole lot, but at the end of the day, the emotional reason for the purpose is how great you feel when you’re driving it.
Does it add to your experience and do you enjoy getting to your destination? The same applies to an airline experience. Too many airlines think they’re in the transportation business when they're in the hospitality, service and customer experience industry, even more than a 5 star resort is and frankly, I'd argue than any other business.
That might surprise you but in a 5 star resort, I’m not counting on service non-stop for anywhere from 3 to 24 hours like I am on a flight. From movies, wine, blankets, headsets, your bag, to a fee for the privilege of sitting in a middle seat towards the front of plane or boarding a few minutes early in a line that is now longer than the regular one. I've even heard rumors that American is going to charge extra if you want to sit next to someone else, even if there are plenty of empty seats available. WTF?
In 2012, airlines raked in around $6 billion according to USA Today, and airlines made over $20 BILLION with my least favorite airline leading the way - United ($5.4 Billion) according to CNN Money. Australia's Qantas Airways made $56.21 per customer -- the highest amount in that particular survey. Apparently the revenue came mostly through selling frequent flier points to partners such as hotel chains and car rental companies.
Airlines that made the most from baggage fees in order of milking you dry (from a 2014 Marketwatch article), include Delta, United, US Air, America and Spirit. Airline fees have risen from $2.8 BILLION in 2007 to over $30 BILLION in 2013 according to CNN Money. Below is a chart pulled from the same piece - original link below the image.
Photo credit: From CNNMoney.
Years later, I still hear arguments that they have to continue to rake us through the coals because of 9/11 and they'll also argue that gas prices have gone up so they need to compensate for that too.
While that may be true, gas has also oscillated and while it was extremely high a couple of years ago, we paid $1.77 a gallon in America's Midwest this past January. And, let's be honest, ticket prices have also gone up and flights are fuller than they've ever been before - it's very rare that I have an empty seat next to me and usually I'm sharing my paid seat with someone else when they can't fit that comfortably in their own. (this happens a lot btw)
It takes the fun and the pleasure out of traveling. Travelaholics or business travelers who hang their hat on airlines frequently will admit that if we could skip the airline process to get to their destination, they would. In other words, it's the worse part of the travel process -- getting from A to B is NOT about transportation, it's about the experience you have on the way.
This is why people smile when you mention the word Virgin -- it's because Richard Branson gets it. I also had the opportunity to meet Richard's CEO of Virgin Produced Jason Felts at Idea Festival last year and he is one of the most down-to-earth souls you'll meet sitting that high at the helm -- authentic and fun! His persona and energy gives you the feeling that he actually "cares" about their customers and I'll take it a step further, their experience of the world -- inside Virgin and out.
When I fly coach, it's such an uncomfortable experience that it's often difficult to imagine the joy I'll have when I finally get Italy, South Africa, Japan or wherever my journey might be taking me. Who doesn’t want to feel great on the journey there?
The problem is that most of us haven’t felt “great” on a journey to their destination in….well, years. We've all become accustomed to airline mediocrity, being treated as cattle (harsh, but true) and nickeling and diming every object we want to use and every move we want to make. As one woman put it who was standing in the security line before me at JFK recently, “now, it’s cattle in, cattle out, and no extra brownie points for being nice to the agent even when they were rude to you."
Most airlines have lost the essence of what matters to customers and forgotten what business they’re in. Virgin gets it right most of the time even though they were forced by competition to follow suit with with some of those ridiculous charges. That said, Richard Branson understands that he’s in the “travel experience” business -- my tagline, not theirs. It makes more sense for entrepreneurs who have successfully run high end theme parks or "high touch" resorts to run an airline since their approach to service and delivering an extraordinary experience are both so far beyond the mentality of most airlines, that their airline would likely very quickly stand out as the "Purple Cow".
Branson realized he had to build in “aha” moments into the Virgin flying experience, from check in to behind the doors of the Virgin lounge and ultimately the on-board service.
There are a few airlines who can get away with being in the transportation business like Ryan Air, where service and quality matters a whole lot less since you're paying so little for such a short flight. In a short flight scenario where the best deal is the order of the day, that free cushioned blanket and not paying for that tasteless processed meal isn't your top priority.
Travel is all about the emotions and memories you have during your journey, whether it's the journey of getting to a destination or an activity at a destination itself. Think about it. The Eiffel Tower is just a structure – a very large and beautiful structure, but a structure in the middle of a city nevertheless. People have come to associate romance with this structure and as a result, there have been hundreds of proposals in front of it. The emotion that is associated with this structure is significant for many. Paris exudes romance and restaurants and hotels embrace it - it's part of the French culture.
Exceptional service and including standards like a checked bag and more than just peanuts and pretzels on longer flights MUST BE the airline industry’s romance. Service and over the top customer care is to airlines what that memorable romantic experience is to Paris and why so many people flock to this popular European city.
While 9/11 was used as the primary reason airlines started tacking on additional charges, let's face it -- that was a long time ago and business & finance sites have reported how just how well the industry is doing. The additional charges have gone from annoying to ridiculous in some cases, outlandishly absurd in others. Rather than look for ways to innovate around customer service, they have looked for more ways to nickel and dime without creating more value and "high touch" moments for the customer.
Airline service used to be amazing however frequent flyers can attest that the "lack of caring” started before 9/11. And, it's not as if airlines have been at the forefront of innovation. The same inflight magazines and barf bags line the back of the seats together with the traditional safety cards we had so many moons ago. And let’s be honest, the tray tables are cheap and flimsy and really not suitable for drinks. I remember useful cup holders on the back of some airline seats but haven't seen those in years. There's no place to put that cuppa coffee while you’re working on your laptop or even reading a book.
Rather than provide a memorable experience, what I’m left with today is a series of inconveniences, thanks to a direction that some operations head at one of the airlines started and others followed. Let’s look at a series of pissy moments I didn’t have to endure two decades ago, most of which defy logic and are nothing short of infuriating for a customer. That said, they have become so common that outlandish fees have become the status quo and we now live in a world where each trip is more painful than the last.
Photo credit: FareCompare.com.
Booking a ticket: booking through an airline rep or agent on the phone now cost a fee - not the case 20 years ago. Since when did charging for a phone call to SPEND money with a company become okay? Imagine Macy’s charging you extra to make a purchase with a live person.
Booking a ticket online: while in theory, booking online has made things easier since you can jump online at 2 in the morning and purchase a ticket which I've done often, you incur fees and all sorts of cancellation policies that now get applied to the booking site as well as the airline.
Case in point is a ticket I booked through Expedia with Delta last year. When an emergency came up, I needed to change the ticket date and time from a flight from JFK to San Francisco. Expedia informed me that I needed to pay a fee to them as well as a fee to Delta for the change fee, on top of whatever the difference in fare was. After a whole lotta digging, I learned that the very same flight at the very same time 5 days later had many more seats than the original flight I was on, however the change fee for my $318 flight was slated to be $298.
When I looked at booking a new flight for that same route, there was only $14 difference in fare, and yet what I would be faced with was cost of a brand new ticket.
Blankets: Seriously? I once had a stewardess on United slip me a blanket saying she couldn’t bear to charge me because she found it so insidious. While I’m not a United fan, be assured that I have never forgotten that magic moment. Even though I still won’t choose to fly United because of so many previous bad experiences, she was a standout and her "out-of-the-box" attitude should be applauded, a rarity in the airline business today. Imagine a hotel charging for blanket and pillow use?
Headphone Charges: See above. Are you kidding? It is any wonder that there's hundreds of articles out there begging the question, “what’s next on the nickel and dime me menu? Toilet paper or the privilege to use the bathroom?” Oh yeah, lest not forget I can keep them, like I need 25 flimsy plastic headsets at home. At the very least, they don't charge you for using your own though it's probably on someone's list.
Change Fees: In the “we still care about customer service” days, we never had to pay for standby for same day flights if a seat was available in your class. Today, regardless of availability or the situation (see bullet 2 for an example of defying logic), you pay a change fee plus the difference in fare – same day, different day or anything in between. Bravo to Virgin for nuking that rule if you sign up for their latest credit card - oh so very smart! Doesn't it just warm your heart to hear that?
Additional Leg Room Charges: Remember the days when you could move to a better seat if space was available on the plane? Even if something is open in the emergency row or a preferred section (which it never is anymore), you can no longer sit there without incurring an additional $50 fee. Shouldn't seat leg room (and chair room) be ample to sit comfortably for a long haul?
Seats Are Getting Smaller And Yet: See above. It’s so politically incorrect to ask, but have the seats gotten smaller or are too many of us getting larger and larger? When I've raised this issue to other travelers and travel writers, they all agree that I shouldn't publicly bring this up because of the sensitivity around it.
Even if that's the case, if we don't discuss it openly, how can we come to a politically correct resolution? If someone is so large that I have to share part of my space with them in a way that is uncomfortable, then I no longer have a full seat even if I paid extra for that seat in Economy Plus. If I should be forced to pay more for a seat that is simply closer to the front of the plane, shouldn’t I pay less for less than a full seat? It may sound insensitive, but we need to figure out politically correct ways to handle this moving forward, sensitive or not.
More $$$ To Sit Closer to the Front: See above. Beyond absurd, they have created a "class" that applies to sitting closer to the front of the plane even if it's a middle seat – yes a middle seat with no additional leg room.
Paying More for a So Called Better Seat -- What About Paying Less For A Lousy One? If the airline thinks that sitting in a middle seat closer to the front should cost more, what about charging less for the aisle seat right next to the toilet or galley?
Let’s be honest - these are lousy seats, from dealing with the foul smell from the bathroom to the noise and chaos around the bathroom from the door constantly opening and closing. If they’re so hell bent on charging more for a middle seat closer to the front with no added leg space, why not charge less for a crappy seat where you can’t sleep or get any work done or if you get stuck in the back?
Wifi: Seriously, $30 for a flight? For those of you have used the various services know, wifi is rarely reliable for the entire flight. I have had so many touch and go issues with GoGo that I've been too frustrated to write about it yet. The codes either don't work or when they do work, I'm connected but then thrown off 15 minutes or an hour later.
Meals: The worse thing about meals on airlines today isn't even the extra charges even though we never paid for food 20 years ago either. Most of the food is processed or junk food (chips, nuts, processed meat and cheese and candy bars) and they charge a lot of money for the privilege of eating packaged food infused with sucralose, high fructose corn syrup, sugar and too many other unmentionables not worth naming.
For those who eat healthy and eating healthy is an important and integral part of your life, eating on airplanes today is a non-starter unless you're in First Class or bring your own meal on board. Europe still “gets it” and hasn’t dropped to American airline food “flight” standards, at least not yet….
Drinks: Most airlines now charge more for a beer or glass of wine than at a pub or bar, even from an expensive city. And, the prices for the cheap labels they serve keep going up.
Baggage Fees: Fees, fees and more fees. Now of course, you can often get your first bag for free if you gladly hand $100 or more a year for the privilege of spending money on their credit card.
Inflight Entertainment: Now, not only do we have to pay to see movies, but we often have to pay for each movie. The same applies to television. I was on a recent flight whose airline name I’ll omit, and on the TV menu, I had to pay $4-6 per episode.
TV used to be free for unlimited viewing and you never had to pay for a movie or the fee for a cheap plastic headset. In some cases, you can buy a bundle deal for a longer flight, but it's not cheap, especially if you have fidgety children at your side.
Arguing with Airline Staff About Why X is Wrong or Some Hidden Fee: while we may have add to endure a frustrating moment when our flight was cancelled, delayed or we were re-routed, airlines used to sort it out and even apologize profusely for the inconvenience.
Even when it wasn’t a technical issue, you were sent to a nearby hotel and given a meal voucher – in other words, you felt understood and cared for, and that they felt sorry for the situation, which can sometimes result in missing a family reunion, an important birthday gathering, wedding, business meeting or worse. I chatted with about a dozen people on a recent flight who were over 35 but under 60 (it was a long delay) and I was disheartened by their countless horror airline stories.
Perhaps there should be an "Airline Stress Tax" that gets reimbursed to the flyer? The toxic stress you often endure from flying is significant and has a price and yet airlines don’t seem to put a value on it. Trust me, frequent flyers do and, they are, but sadly there are few options today if any that make flyers feel empowered as a customer.
As extreme as you might think my bullets are, I’m simply trying to prove a point. These insidious add-ons have become so commonplace that we forget how emotional taxing each and every one is and how the combination of all of them has moved us out of an era of great service, something America was once notorious for, and into an era which focuses solely on increasing corporate profits over customer joy. A couple of exceptions are worth noting, something that would have been a normal airline customer experience in the past.
Sometime in the last six months, I ended a business meeting early in New York and wanted to get back to the west coast early. The thought of enduring the “fee” process or even calling to find out how ridiculous the additional charge would be, I decided not to make the call because of the stress involved in doing so, so simply headed to the airport instead. An odd thing happened. I was interjected in the queue by an overly friendly Delta representative who asked what flight I was waiting to check in for and when I explained that I had hoped to get on an earlier flight but wasn’t optimistic for all the reasons outlined above, he opened up a closed gate which led me immediately to a private area.
When I reached the service agent, I was checked into the earlier flight (4 hours before my original one) without getting out my wallet. A new boarding pass printed out with an aisle seat (my preferred choice) very close to the front on the 1 pm. No fee or some saga story about "it's our policy, I don't make the rules." What happened? I pinched myself not believing it was real and that I had somehow been transported back in time to a more formidable time.
Getting home earlier that day transformed my week given the grueling schedule I had gone through the previous ten days. I remember a time when it was simply a standard protocol for how an airline took care of their customers, an era where we weren’t nickeled and dimed for every transaction and every move, an era where we felt as if we mattered and our repeat business mattered.
A similar situation happened with American Airlines a week later when my baggage was 5 pounds overweight and the gleeful service agent let it slide. I was stressed about it for two days before my flight knowing that my bag for that trip would be heavier than most since I was heading to Vermont to review a ski resort and the temperatures were slated to be in the teens.
Most of the time, my bag weighs in at between 35 and 42 pounds, so why shouldn’t that one trip with a slightly heavier bag slide? In the above two cases, both service reps decided to let "policy" slide which resulted in memorable airline moments and a more loyal customer.
Maybe the Delta rep saw how exhausted I was and maybe the American Airline ticket counter agent liked my smile or saw that I had just taken an American flight three days prior, OR maybe they are just rare individuals who don’t think of their roles as airline employees but as vehicles for customer happiness. (Note my current frequent flyer status on Delta is significantly higher than American)
There is a huge value to be placed on a happy customer, a loyal one who will not just come back again and again but sing their praises when they're not flying. Most airlines have lost sight of who and what they represent as a business. When brands have been around for awhile, they can become complacent. Look at how god awful United’s brand was for years and while avid travelers still complain about them, their image has somewhat improved, but only marginally so.
Most people know the story of Canadian musician David Carroll whose guitar was broken by United -- on YouTube as of writing this, his protest song has received nearly 15 million views.
As for soaring fees and service going down the drain, it appears that customers are powerless at changing the current status quo. The first shot in the war over bag fees came in May of 2008, when American Airlines announced it would be the first legacy carrier to impose a “first checked-bag” fee (Spirit and Allegiant had such a fee at least as early as 2007 from the research I've dug up).
According to a useful article on airline fees from Christopher Elliott (link below under useful resources), the North American airline industry collected an estimated $8.2 billion last year for just fees for items such as checked baggage, premium seat assignments and early boarding privileges — a $700 million increase from 2013.
Isn't it time that these rules got reversed?
A question to the airlines heads making these “fee” decisions at home base: do you want to be seen as a transportation company that gets a customer painfully from A to B or would you like to be in the “ultimate experience” business, creating memorable moments for your customers in the way that Zappos has done so successfully over the years? The airline who truly figures this out will transform the travel experience forever.
Useful Articles on Airline Fees
- How Refundable Are Airline Fees from Elliot.org: http://elliott.org/the-navigator/refundable-airline-fees-not-much/#more-35966
- Airline Fees Are Out of Control But Who Can Stop Them: http://elliott.org/blog/airline-fees-are-out-of-control-but-who-can-stop-them/
- Are Airline Fees Being Properly Disclosed? http://elliott.org/blog/are-airline-fees-being-fairly-disclosed/
- Are Airline Fees Anti-Family? http://elliott.org/blog/are-new-airline-fees-anti-family/
- Maybe we should stop calling them Airline Tickets: http://elliott.org/is-this-a-scam/maybe-we-should-stop-calling-them-airline-tickets/
- 2010: Spirit Airlines breaks a new bag barrier by imposing a carry on bag fee (something Rick Seaney predicted one of the airlines might do, nearly a year before it happened)
- 2008: In August, JetBlue announces it will charge $7 for a pillow and blanket (but you can keep them, like I really want 25 of these at home after a year's tally of flights)
- 2008: US Airways begins a highly criticized practice: charging for all drinks (including water, coffee, and soda)
- 2009: US Airways stops charging for all drinks (mainly because no other airline dared join them)
- 2009: Airlines began adding surcharges to tickets for “peak travel days” in September of ’09; originally this surcharge was imposed on the Thanksgiving, Christmas and New Year’s holiday periods.
- A great article on airline fees across most airlines from AirFareWatchDog: http://www.airfarewatchdog.com/blog/3801087/airline-fee-chart.html
- Airline Fees Ultimate Guide (another great resource from SMARTER TRAVEL -- you can even download as a PDF): http://www.smartertravel.com/blogs/today-in-travel/airline-fees-the-ultimate-guide.html?id=2623262