What is the Cost of Lousy Service?

Mar

5

By Ed Heil | Categories Client Service, Our Blog

Ed Heil

Flying home from Chicago last week I arrived to the airport earlier than expected and in plenty of time to catch an earlier flight home. I asked the gate agent whether there was room on the earlier flight and if I might be able to make the switch she said that I could do it, but it would be a $50 change fee.

Now, as someone who flies from time to time, though not regularly, I realized I would probably get the answer that I got. Yet I walked away wondering what it costs Delta to let me jump on an earlier flight that has the space to accommodate an additional passenger. Certainly there must be an expense since they wanted to charge the $50 change fee. Is it the cost of the gate attendant making the change in the computer? Do they need to stock one extra soda? An extra bag of peanuts? Not really knowing the airline business, I assume there are no real costs, but that they are simply charging passengers for great customer service and for being nice and accommodating.

If you have knowledge about the real reasons for these types of changes, please help educate me. From my vantage it seems that the airline industry does things like this because they need to make an extra buck. Imagine if you were the “nice guy airline,” or the “common sense airline,” and said, “hey, if I can help a customer out and not lose money, let’s do it.” Would that make customers like you or dislike you more? Would you be more or less willing to use that airline again?

Disclosure: I know the airlines have been hurting and that it’s an extremely challenging and difficult business. While it used to be a luxury to fly and transportation reserved for “the wealthy,” planes are now, as a pilot buddy of mine says, “like a bus with wings.” Unfortunately, the service level of many airlines has also been reduced to bus station status.

Certainly, it costs big money to run major airline carriers, but how much does it cost to treat people well? What does it cost to smile and act friendly? How much dough is the airline spilling by trying to help ticketed customers get home a little earlier? Sadly, I think many airlines are understanding the expense in the form of unsatisfied passengers and unexceptional customer service.

Ed Heil is the owner and president of StoryTeller Media & Communications an inbound marketing and public relations agency and video production company based in the Twin Cities of Minneapolis and St. Paul. Ed blogs on topics related to inbound marketing, social media, media relations, news media, video production and crisis communications.

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2 Comments to What is the Cost of Lousy Service?

DL
March 8, 2010

My guess is change fees aren’t necessarily to cover a cost, it’s to prevent costs. You’re right, it doesn’t cost much for them to provide good customer service to one person. But if everyone decided to change their flights on a whim it would be costly and cause all sorts of logistical issues. Charging the fee forces people to think twice before they alter their plans.

P.S. If you buy a full-fare ticket, there is no fee to change your flight. But hardly anyone does that anymore.

Denny
March 25, 2010

I recently had an experience where I was able to get to the airport 3 hours before my flight. My business meetings had all gone on time, but I had banked extra time in case it was needed for longer meetings. I arrived at the gate for an earlier flight and inquired. I was told that the only seats left were 1st class and that if i wanted to upgrade the cost would be 780.00. This was for a one way from Las Vegas!! yikes. I politely thanked them and said no-obviously. As I turned around to walk off the gate agent called a name from the standby list to come up to get their boarding pass. I turned around, waited to see if that person showed, noticed there were no others waiting to board, and re-approached the gate. I said, if Mr. Johnson doesn’t show up, I’ll take his seat. The agent quickly informed me that Mr Johnson was an airline employee (hmmmm, first class seat left on plane, willing paid traveler in the Que,) a thought ran through my head from the teaching of Jesus, if you want to be first put yourself last) so I chalked it off to low level customer service, didn’t blame the gate agent as i figured it was company policy, smiled and said -OK well thanks anyway. It must have been an epiphany for the agent as i walked away I heard her call me back, “sir, sir!,” she said, and then presented me with a coach seat on the window 8 rows in. So I guess they moved a passenger to 1st class, i got that seat and everyone was happy, except for the airline that wanted to sell that seat for 780 dollars.
All companies need to remind themselves that what your employees do while representing the company is a reflection of the company culture. If a company treats the employee with respect, it serves to reason that the employee will be happier and will treat customers with respect. In this particular case i found a person willing to go the extra mile to accommodate me.I believe that it was partly because of an exposed awkward situation, and the fact that I didnt over react and get irate. Keeping a calm and respectful manner works for customers too. not always, but overall its a better world if we all try harder to respect one another. Airlines have been under attack for their lack of concern for the client for years, however there are those people within each organization that rise above the muck and present great customer service to clients sometimes working between the lines to get a customer some satisfaction. Business travelers are used to the change fee’s and typically make that a business expense unless their company policy doesn’t allow for it. Most company’s rarely give any grief to the “road warrior” for the occasional change fee. In the same sense of this matter, the road warriors feel a little compassion from their company when a small perk like this isn’t an issue. So, the airlines know that they can get the business traveler on a regular basis because this is how the game is played. The tighter economy will most likely change the game again and those companies that trip over nickles to make pennies will suffer.

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