he US Department of Transportation announced more regulation on the airline business this week and it has me a bit confused. The airline industry is already one of the most regulated industries in the US and some of these new rules just seem silly. Let’s take a look at them one by one:
Lost Bag Means Bag Fee Refund
I actually like the concept of this — it makes sense to me. If I am paying an airline money to handle my bag, it makes sense that I be refunded that fee if the bag is lost at no fault of my own. However, I am not to keen on the government forcing airlines to do this.
Tarmac Delay Rule to Include International Flights
Even though I love flying, I hate being stuck on the tarmac. I can sit on a plane for 15 hours while flying and be fine since I am making progress. However just sitting on the tarmac going no where just bites. The DOT already has regulated domestic flights cannot be sitting on the tarmac for more than three hours and now extends that to international flights. I am already not a fan of the domestic three hour tarmac rule and even more against international flights.
Not all airports can handle international flights the same. If a flight needs to be diverted to an airport that normally doesn’t handle international flights, it is going to take time to get the proper personnel there.
Now that airlines could face huge fines with international flights to the US, they will be more likely to cancel them. Unlike many domestic flights, which have multiple flights per day, many international flights will only have a few flights per week. That means you could be stranded in another country for days versus being stranded on the tarmac in the US for a few hours.
More Money for Bumped Passengers
Over booking flights always makes sense on paper, but is super annoying when you are the person that gets bumped.
When an airline knows that on average there will be a certain percentage of people that won’t show up for a flight, so they oversell, that makes good business sense. Good business sense doesn’t always means good customer service. The fees will be increased from $400 to $650 for short delays and $800 to $1,300 for longer ones.
It does annoy me that many airlines do not seem to do the right thing when it comes to bumping passengers and quite a few have been fined. Out of all the rules imposed by the DOT, this is the one actually angers me the least.
Disclose All Fees
This seems to duplicate what airlines already do. Maybe I have missed something, but every airline I have ever booked with clearly states on their website what they charge for. Sure some might be a little more tricky than others, but many businesses operate the same way. Have you ever tried to buy a car and get additional fees? Of course.
What is really bothersome is the government is looking to regulate how airlines show their fees. Why does the government feel the need to force airlines to do this, but not other industries?
Add Taxes and Government Fees to Advertised Fares
This one makes the least sense. What other industry is required by the government to include taxes and government fees to their advertised prices?
Most states have tax and people know they will pay tax. Can I walk into a dollar store with $1 and buy something? Nope, where I live I will need $1.09 and I know that. I think this goes to show that the airline business is treated unfairly and “consumer protection” groups are going too far to discriminate against airlines. I just wish the government wouldn’t play along.
http://www.airlinereporter.com/2011/04/government-adds-new-rules-to-airlines-the-winners-and-losers/
Friday, April 22, 2011
Check This: Traveler Sentiment Falls Amid Airline Fee Free-For-All
March 24, 2011
When it comes to air travel, U.S. travelers increasingly feel like they are being taken for a ride, according to a new PhoCusWright report. While traveler attitudes toward airlines are lukewarm overall, consumers report feeling worse about their airline experiences versus a few years ago.
Heat from the Middle Seat: The U.S. Consumer Perspective on Air Travel reveals that less than half of U.S. air travelers feel positive about their airline experiences. A quarter of fliers feel negatively, while three in 10 are neutral. The results translate to an average score of 3.29 on a scale of 1 to 5.
"Fliers are essentially giving airlines a grade of C+, which is barely above satisfactory," said Carroll Rheem, director, research. "But even more concerning for airlines is that their most valuable customers – business travelers and those with higher annual household incomes – are even less happy than the average."
Both business travelers and affluent travelers (i.e., those with an annual household income of US$100,000 or more) are less likely to have positive sentiments toward their flying experiences and more likely to have negative sentiments. The trend is particularly pronounced for affluent travelers, who are nearly twice as likely as travelers with annual household incomes of $50,000 to have slightly or very negative sentiments.
Consumer attitudes towards their air travel experiences have soured over the same period that airlines have added baggage fees and other new charges. Thirty-eight percent of leisure-only U.S. travelers feel slightly or substantially worse about their airline experiences compared to a few years ago, while just 13% feel slightly or substantially better. Four in ten business travelers feel their experiences have gotten worse.
In addition to checked baggage fees, airlines are aiming to increase sales of optional services like preferred seating and priority boarding. These new products and packages represent a tremendous opportunity for airlines. However, the decline in traveler satisfaction could limit their ability to fully realize that opportunity.
"Consumers are inherently reluctant to buy more services from companies they feel are taking advantage of them – and unfortunately, many feel that way about airlines today," said Rheem. "Airlines have therefore put a ceiling of their own creation on the potential success of optional services. If they focus on repairing relationships with their passengers, airlines have the ability to break that ceiling. Whether or not they have the inclination remains to be seen."
Heat from the Middle Seat: The U.S. Consumer Perspective on Air Travel provides insight into key issues that shape travelers' relationships with airlines, and analyzes how those relationships impact the leisure air travel landscape. The report studies air shopping and booking behavior among U.S. travelers, measures consumer sentiment toward airlines, and examines the factors impacting traveler loyalty. Key topics include:
When it comes to air travel, U.S. travelers increasingly feel like they are being taken for a ride, according to a new PhoCusWright report. While traveler attitudes toward airlines are lukewarm overall, consumers report feeling worse about their airline experiences versus a few years ago.
Heat from the Middle Seat: The U.S. Consumer Perspective on Air Travel reveals that less than half of U.S. air travelers feel positive about their airline experiences. A quarter of fliers feel negatively, while three in 10 are neutral. The results translate to an average score of 3.29 on a scale of 1 to 5.
"Fliers are essentially giving airlines a grade of C+, which is barely above satisfactory," said Carroll Rheem, director, research. "But even more concerning for airlines is that their most valuable customers – business travelers and those with higher annual household incomes – are even less happy than the average."
Both business travelers and affluent travelers (i.e., those with an annual household income of US$100,000 or more) are less likely to have positive sentiments toward their flying experiences and more likely to have negative sentiments. The trend is particularly pronounced for affluent travelers, who are nearly twice as likely as travelers with annual household incomes of $50,000 to have slightly or very negative sentiments.
Consumer attitudes towards their air travel experiences have soured over the same period that airlines have added baggage fees and other new charges. Thirty-eight percent of leisure-only U.S. travelers feel slightly or substantially worse about their airline experiences compared to a few years ago, while just 13% feel slightly or substantially better. Four in ten business travelers feel their experiences have gotten worse.
In addition to checked baggage fees, airlines are aiming to increase sales of optional services like preferred seating and priority boarding. These new products and packages represent a tremendous opportunity for airlines. However, the decline in traveler satisfaction could limit their ability to fully realize that opportunity.
"Consumers are inherently reluctant to buy more services from companies they feel are taking advantage of them – and unfortunately, many feel that way about airlines today," said Rheem. "Airlines have therefore put a ceiling of their own creation on the potential success of optional services. If they focus on repairing relationships with their passengers, airlines have the ability to break that ceiling. Whether or not they have the inclination remains to be seen."
Heat from the Middle Seat: The U.S. Consumer Perspective on Air Travel provides insight into key issues that shape travelers' relationships with airlines, and analyzes how those relationships impact the leisure air travel landscape. The report studies air shopping and booking behavior among U.S. travelers, measures consumer sentiment toward airlines, and examines the factors impacting traveler loyalty. Key topics include:
- The role of intermediaries in the air shopping process
- Traveler interest in ancillary products
- Traveler attitudes towards airlines, and trends over time
- Attitudes and behaviors of airlines' most valuable customers, including business travelers and those with high annual travel spend
- Incidence of behavioral loyalty toward airlines, impact on booking channel and loyalty drivers
This report, a derivative of PhoCusWright's Consumer Travel Report Third Edition (forthcoming), is essential reading for travel companies throughout the air distribution chain. As airlines seek to minimize distribution costs and boost earnings with new, bundled services, the consumer perspective remains a crucial – but often overlooked – success factor. Heat from the Middle Seat: The U.S. Consumer Perspective on Air Travel (US$695) tracks the most important traveler trends impacting air travel sales and distribution.
http://www.phocuswright.com/library/fyi/1585
Study shows increase in negative sentiments toward airlines
Less than half of U.S. air travelers feel positive about their airline experiences, while a quarter of U.S. fliers feel negative, according to a new report from PhoCusWright.
The report, "Heat from the Middle Seat: The U.S. Consumer Perspective in Air Travel," finds that consumers feel worse about their airline experiences now versus a few years ago, coinciding with the same period that airlines have added baggage fees and other charges.
PhoCusWright found that 38% percent of leisure-only U.S. travelers feel slightly or substantially worse about their airline experiences compared to a few years ago, while just 13% feel slightly or substantially better. Among business travelers, 40% feel their experiences have gotten worse.
"Fliers are essentially giving airlines a grade of C+, which is barely above satisfactory," said Carroll Rheem, PhoCusWright director of research. "But even more concerning for airlines is that their most valuable customers — business travelers and those with higher annual household incomes — are even less happy than the average."
The report found that affluent travelers (those with an annual household income of $100,000 or more) are nearly twice as likely as less affluent travelers (those with annual household incomes of $50,000) to have slightly or very negative sentiments.
In addition, both business travelers and affluent travelers are less likely to have positive sentiments toward their flying experiences and more likely to have negative sentiments, the report found.
PhoCusWright said that in addition to baggage fees, airlines are aiming to increase sales of optional services like preferred seating and priority boarding.
Those fees represent "a tremendous opportunity for airlines," PhoCusWright said, but one that could be difficult to realize with the decline in traveler satisfaction.
"Consumers are inherently reluctant to buy more services from companies they feel are taking advantage of them — and unfortunately, many feel that way about airlines today," Rheem said.
"Airlines have therefore put a ceiling of their own creation on the potential success of optional services. If they focus on repairing relationships with their passengers, airlines have the ability to break that ceiling. Whether or not they have the inclination remains to be seen."
The report, "Heat from the Middle Seat: The U.S. Consumer Perspective in Air Travel," finds that consumers feel worse about their airline experiences now versus a few years ago, coinciding with the same period that airlines have added baggage fees and other charges.
PhoCusWright found that 38% percent of leisure-only U.S. travelers feel slightly or substantially worse about their airline experiences compared to a few years ago, while just 13% feel slightly or substantially better. Among business travelers, 40% feel their experiences have gotten worse.
"Fliers are essentially giving airlines a grade of C+, which is barely above satisfactory," said Carroll Rheem, PhoCusWright director of research. "But even more concerning for airlines is that their most valuable customers — business travelers and those with higher annual household incomes — are even less happy than the average."
The report found that affluent travelers (those with an annual household income of $100,000 or more) are nearly twice as likely as less affluent travelers (those with annual household incomes of $50,000) to have slightly or very negative sentiments.
In addition, both business travelers and affluent travelers are less likely to have positive sentiments toward their flying experiences and more likely to have negative sentiments, the report found.
PhoCusWright said that in addition to baggage fees, airlines are aiming to increase sales of optional services like preferred seating and priority boarding.
Those fees represent "a tremendous opportunity for airlines," PhoCusWright said, but one that could be difficult to realize with the decline in traveler satisfaction.
"Consumers are inherently reluctant to buy more services from companies they feel are taking advantage of them — and unfortunately, many feel that way about airlines today," Rheem said.
"Airlines have therefore put a ceiling of their own creation on the potential success of optional services. If they focus on repairing relationships with their passengers, airlines have the ability to break that ceiling. Whether or not they have the inclination remains to be seen."
http://www.travelweekly.com/Travel-News/Travel-Agent-Issues/Study-shows-increase-in-negative-sentiments-toward-airlines/
Saturday, April 16, 2011
ICAO CAPSCA:
Contains materials like:
http://www.capsca.org/CAPSCARefs.html
- Convention Articles, Assembly Resolutions, Council Decisions and Declarations & Press Releases
- SARPs & Guidelines
- Forms
http://www.capsca.org/CAPSCARefs.html
Friday, April 8, 2011
TTG Asia: Taking off in clear skies
The gloom and doom is over as ASEAN flag carriers grow revenue and spread their wings this year
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