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British Airways will offer compensation to fat-finger customers

October 7, 2009

balogoIf you booked a British Airways ticket from North America to India between 6:30 p.m. and 8:30 p.m. last Friday evening, you already know the bad news: Your trip has been canceled.

But this morning, there’s some good news. The airline is planning to compensate customers who were affected by this fare error, and at least one online travel agency is offering more than just an apology.

British Airways customers began receiving the following notices yesterday:

On Friday October 2, 2009, British Airways updated its air fares between North America and India.

Unfortunately there was an error and the fares that resulted were incorrect. This error was corrected within a few hours.

Due to the error, British Airways is unable to honour your booking.

If your credit card was charged, British Airways will refund in full the cost of your ticket and apologies for any inconvenience.

That pretty much sums up the problem. I have a few more details here.

The incident triggered something of an ethics debate. I argued that occasional passengers who did not see the ridiculously low $40 base fare, and didn’t know any better, were the real victims of this fare error. But those who were aware that this was a likely mistake and took advantage of it by buying dozens of tickets and betting they could pressure BA to honor them — I believe their behavior was inexcusable and immoral.

So I have mixed feelings about the decision to compensate affected passengers. Some deserve it, some don’t. (And I’m not sure if it will be enough for people who had already made their vacation plans, only to find their flights canceled.)

A British Airways spokesman on Tuesday evening said the airline will make amends. “We are going to try and resolve this with some kind of compensation to those affected,” he told me. “Watch this space.”

Meanwhile, Orbitz last night began sending vouchers to those affected by the fare error. “As a gesture of gratitude, Orbitz will offer impacted customers $100 off next hotel or package booking, good for 3 night stay minimum,” a spokesman told me.

Here are the exact terms:

Book a qualifying hotel or flight + hotel package between October 7, 2009, and March 31, 2010, for 3 or more nights for travel between October 7, 2009, and December 31, 2010, via Orbitz and instantly receive $100 off your booking through the use of the promotion code. Limit one discount per hotel room and one promotion code per booking. Discounts are not redeemable for cash for any reason.

I have checked with other online agencies to see what their policies are, and will update this post when I have that information.

We still don’t know how many travelers were affected by this fat-finger fare. I’ve asked BA numerous times, and it says it is still trying to determine the exact number. Orbitz is said to have sent more than 1,000 of these offers to customers with confirmed tickets and requested reservations.

This is an unfortunate situation, and I might be tempted to end this post by saying that if a fare looks too good to be true, it probably is. But for those of you who paid more than $500 for these tickets, after taxes and fees, that wouldn’t have helped.

To be honest, I’m not sure if this could have been avoided at all.

One final note: Many of you have pointed out that if the tables were turned — if a passenger had made an honest mistake while booking a ticket — then BA wouldn’t have been as lenient. In fact, it would have imposed a change fee at best or made the customer pay for an unusable ticket, at worst. This is completely true. It is also utterly unfair.

Update (10 a.m.) Priceline plans no compensation. “It was a BA pricing error,” a spokesman tells me. “And we would, of course, cancel any hotel rooms booked along with the tix.”

Update (11 a.m.) From Travelocity: “We still haven’t decided what we’re going to do.”

Update (5 p.m.) Here’s what Orbitz has sent to customers who made a reservation request and weren’t ticketed –

Dear Orbitz Customer,

We’re contacting you about a British Airways flight to India that you booked on Orbitz on October 2, 2009.

British Airways canceled the reservation, after discovering it had provided an invalid fare. We are issuing a refund that should post to your account within 21 days. Any insurance policies will be refunded too.

If you need a refund for a hotel, attraction or service that was part of your reservation — or just have further questions — please call 1-888-656-4546. If you are outside of the US, please call 001-312-416-0018.

We apologize for the inconvenience, and you should expect to receive an e-mail with details about a discount for future travel on Orbitz.

We look forward to assisting with your travel plans.

Sincerely,

Orbitz Customer Care

Update (5:30 p.m.) Here’s the letter BA has sent to travel agents:

On Friday October 2, 2009, an error occurred during the updating of British Airways fares between North America and India. In a two-hour time frame, World Traveller (economy class) fares from all cities in the US to all cities in India were displayed on reservation systems incorrectly. (At $40 to $100 round-trip, excluding government taxes, fees, and surcharges) BA immediately moved to correct these fares. However, because the system update is not immediate, these incorrect fares were available for approximately two hours in some reservations systems. As a result many bookings were made using the incorrect fares.

As the fares were so clearly below the normal fare levels, British Airways is unable to honor these bookings. We have cancelled all affected bookings made during this two-hour window, and will make a full refund for any paid for and issued ticket. (In addition, we will refund any fees associated with the rebooking of other airline segments that may have been part of the same reservation and issued on BA stock)

We ask that you please take the necessary steps to contact any of your clients booked under these fares and advise them of the error and the cancellation of their booking. The cancelled bookings have been queued back through your GDS system for your action.

You will be able to process refunds on any of these affected tickets issued on BA stock yourself, or BA can refund for you within the usual 7 day turnover time. Debit memos will not be issued on any affected non-refundable tickets that may have been issued.

We sincerely apologize for this error and the inconvenience it has caused both you and your clients.

Update: (Thursday, 6 p.m.) Travelocity has matched Orbitz’ offer –

As you know, BA canceled those reservations and will refund the passengers. We’re still waiting to hear if BA is going to offer these passengers additional compensation. In the meantime, in the spirit of the Travelocity Guarantee, we have decided to offer our customers who booked one of these fares a $100 promo code that can be redeemed the next time they book a GoodBuy Hotel or vacation package (2 night minimum) with us. We’ll be sending those passengers an email shortly.

(Photo: mattingham/Flickr Creative Commons)

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

33 comments

  • AKT

    I am only an observer of this mess and not affected in any way. However, I have three comments: (1) Your continuing to promote the airline fiction of $40 fare only confuses the issue. Nobody got any booking for $40. It was several hundred dollars in every case. (2) We’ll have to see what BA comes up with. (3) Orbitz’s offer is disingenuous as it forces you to book a hotel in order to receive your compensation. For someone who had only booked a flight, say for family visit, this is more like a marketing gimmick than honest compensation. Even as an observer, I am losing confidence in Orbitz as a fair player and would probably not be doing business with them after watching this.

  • Christopher Elliott

    @AKT, I appreciate your comments.

    I’ve gone to great lengths to point out that the $40 base fare would have only been seen by people with insider knowledge. Garden-variety travelers saw, and paid, about $500.

    That’s a great fare — but not too good to be true.

    The folks who saw the $40 base fare must have known this was a mistake, and if they booked a dozen flights in the hopes that the fare would be honored, they are trying to steal from British Airways.

    I think that’s a valid point.

    The only readers who appear to be upset about me making this distinction are the bottom-feeders who have nothing better to do with their time than hang out in chat rooms for frequent fliers.

    (An update to this comment, if I may: Some have interpreted the above statement as a slam against all members of a popular online forum, of which I happen to also be a member. That’s absurd. When I referred to “the bottom-feeders who have nothing better to do with their time than hang out in chat rooms for frequent fliers,” it was in the context of criticizing those who trolled forums and chat rooms, looking for obvious fare errors to exploit.)

  • SKC

    I am one of the affected customers. My airfare was $628 and I thought it is a good deal since I am getting tickets for abt $1100. it is about 45% off the regular price which is not unusual. I am curious to see how BA responds back.

  • David Z

    For someone who had only booked a flight, say for family visit, this is more like a marketing gimmick than honest compensation.

    That’s one way to look at it. Another is Orbitz is making some form of amends, even if others don’t consider it enough.

    Chris, perhaps you can close comments on your other post about it so people can post here as a followup instead? :)

  • http://www.acouplethings.com/blog Scholar in Training

    Chris, “bottom feeders?” Really? Nice way to alienate your readership. These bottom feeders are the ones that click on your ads. You should be more respectful of your readers.

  • HMC

    How exactly is it a $40 base? It’s $40 + fuel surcharge + taxes = $500. The fuel surcharge (which is about $360) goes right into BA’s pockets. So BA got about $400 per ticket here. While it’s a good deal, it’s hardly a trivial sum.

    By continuing to quote a ficticous “$40 base,” you’re essentially legitimizing the airlines’ practicde of having absurdly low “base fares” in an attempt to advertise something lower than it really is.

    So really you should point out it’s a $400 (10 times the $40 you keep quoting) base fare on the tickets that BA is invalidating.

  • http://www.jasonsteele.com Jason

    Isn’t both the airline and the passenger bound by the contract of carriage? How can the airline just cancel the contract by saying it made a mistake?

  • Tom

    Don’t feel too angry about the ‘vultures’ making ‘out like bandits’ at the expense of the ‘poor airlines’

    This ‘compensation’ is close to a general offer being offered to ANYONE on orbitz.

    $150 off 5nt package: ORBITZOT150 [book & stay by 12/27/09]
    $50 off 3nt package: ORBITZOT50

  • Dave

    So, If I make a mistake, an airline will charge me $100 + to correct it. But if they make a mistake, they can unilaterally cancel my ticket . . .

  • T.S.Babu

    I appreciate your efforts to get this resolved. While I understand BA’s decision, I don’t think it’s fair that they can cancel after 3 days without any explanation. What happens if they cancel after few more days? Customers have no right to protest this? I bought the ticket on 2nd octber. They cancelled the ticket on 7th october.They have already charged my Credit Card with $596.98. I can see the ticket number and the travel details. I have not seen any refund yet there. I only stumbled on this fare. I thought it is a sale price and i’m not a frequent flier to know, it is mistake or not. I called travelocity after receiving an email from them about the cancellation. They are simply saying “BA cancelled your ticket not us”. Is this fair? While i planned my vacaction and now i have to look for fares on other airlines. As you have mentioned if the tables are turned around? why the customer has to suffer all the time. They have all the rules/conditions on the ticket. As a customer we have to adhere to those conditions but not BA. Is this fair? Even if i beg they won’t let me off the hook for a change, but BA can simply cancel. The travel web site has all the price guarrenttee/promise. None of those are in play. It is simply unfair for the customer to suffer.

  • belynch

    I think your definition of stealing is different than that of our judicial system. BA offered goods for a price, which they (accidentally) set. Consumers purchased it.

    The definition of stealing is to take property (good or service) without right or permission. BA set up the channel, and executed the transaction and therefore gave right and permission and even set-up the contract and controlled the transaction. Their legal recourse is about 0.

    BA simply chose to not honor the tickets (which I don’t fault them for). But to say that consumers who purchased the tickets did so with malicious or unethical motivations is a jump in logic that’s a bit too great to make if you want to be taken seriously.

    By your theory, every person that buy something at below cost is stealing. If that were the case we’d all be in jail and every company’s balance sheet would be a lot worse than it already is.

  • MeanMeosh

    “The folks who saw the $40 base fare must have known this was a mistake, and if they booked a dozen flights in the hopes that the fare would be honored, they are trying to steal from British Airways.”

    Chris, with all due respect, I think that’s a bit of a stretch on your part. I’d argue that anyone who follows airfares closely, especially by foreign carriers, knows that most “base fares” are bogus, and instead focus on total price with fees and taxes. You’re always seeing stuff like 1 pound base fares on Ryannair, 1 rupee or even zero rupee base fares on Indian carriers, etc. I wouldn’t have automatically considered a $40 base a pricing error; I would have more seen it as your typical European/Asian carrier marketing gimmick. I certainly don’t hold myself out as an airfare expert, but I would surely think that those who are would be thinking the same way.

  • Christopher Elliott

    @Scholar, I’m surprised that you’re offended by my statement. I didn’t take you for someone who would take advantage of a company, or to side with those who do.

  • Scott

    @Chris I think to state that it is illegal is a bit off base; stating it’s of poor moral character in your opinion is fine, we all have our own opinions, but there is nothing illegal about it.

    Orbitz has still done nothing for customers who purchased non-refundable hotel. They refuse to respond to emails or deal with that issue.

    Do these companies need to post a disclaimer that states, “DO NOT book any onward travel, hotel, car for 72 hours or longer while we decide if the fare you purchased is legitimate.”

    Maybe all airlines need to give customers 24 hours to cancel their ticket with no charge and they have 24 hours to correct any fare mistake, after that period both sides are stuck with the tickets.

  • Christopher Elliott

    @Scott, on reflection, I think you’re right. Changed to “immoral.”

  • Sumeeet Gupta

    @Chris, I too am surprised by your “bottom feeder” comment. These people, who have “nothing better to do with their time” than chat on frequent flyer forums, are very similar (if not the same) to the kind of people who read your blog.

    Let me tell you something more about these bottom feeders. Many of them are more passionate about going back home for a visit than about travelling itself. Such visits cost a lot more than the cost of airfare, are much more significant than say a vacation to Hawaii, and involve considerable amount of planning from the get-go. So, do me a favor, and let them at least be upset about having their entire plans thrown into a disarray after 3 days without communication o warning and by an airline that wouldn’t even take a moment to sincerely apologize. Speaking on behalf of these bottom feeders, I can tell you that there’s a right and wrong way to go about doing this. If it was done in the right way, I would consider sucking it up but, since it is being handled in such an abrasive way, BA will have to answer a judge as to why they think they don’t have to honor a contract. By the way, BA must know that that’s a rhetorical question.

  • Abhi

    I am not really affected by the current situation and made my peace with not ever traveling by BA long time ago. But from the looks of it, I am sure some of those affected people would be using legal resources to get back their deal that BA is cancelling. I have been a victim of BA cancellations in the past in addition to our agent’s uncaring and rather unfair response. Back then in 2003, I was just a 20 year old student who had arrived in US for not more than a year and had no clue about Chris or his blog. In August 03, we booked our tickets through an agent in Chicago at @ $1100 each for Dec 03, who sent us paper tickets for AA / BA combination itinerary via Chicago – Heathrow – Mumbai. Come November 03, BA cancelled their Heathrow – Mumbai connection. AA would not refund the money without cancellation charges and the agent made us buy another 5 stop itinerary via Chicago/Washington DC/ Frankfurt/ Cairo/ Bahrain on United/Lufthansa/Gulf Air. Neither United nor Gulf had any better service than a Greyhound. It took us over 60 hours and $1400 ($300 extra) each for the mistake of trusting BA then. Till this date, I do not feel like flying any of those airlines. Looking at the present scenario, I remain convinced of my opinion of BA being correct. I wish I had known about Chris and the help he provides back then. I really wish someone finds a solution that helps customers this time, than showing a soft corner for airlines.

  • Ronda

    @David Z

    Of course its a marketing gimmick! BA doesnt give too hoots about these poeples issues with they’re tickets. They just dont want to seem like jerks. But to the people who were effected, as long as they’re able to get they’re money back, what does it matter?
    From the sounds of it, the travel industry is trying to get back into everyones good books. they know if they dont they go bankrupt. So They’re trying to make up for they’re lousyness by making themselves seem like an awesome company that cares about its costomers.
    I’m noticing it alot. the last few weeks, alot of problems have been fixed with little to no influence from Christ Elliott… one or two times, probably a fluke, but happening alot, like it has been, its a new trend. Now alot of the airlines that have been in here in the past few weeks. seem to have employees that realize that if they dont change they’re act they can kiss they’re jobs goodbye, so they seem to have a new apprieciation for they’re costomers and are working alot harder to fix they’re legitimate issues… but it also looks like alot of other airlines are just jumping onto the bandwagon of trying to look like the good guys.

  • Christopher Elliott

    Look, what people may or may not be writing about my blog posts on some fringe chat room is of absolutely no interest to me.

    What I am interested in is getting this problem resolved to everyone’s satisfaction, and I’m working hard at doing just that. It looks like Travelocity and Expedia are still on the fence about compensation, and I’m hearing that BA hasn’t canceled all reservations, despite claims to the contrary.

    So there is hope.

    Re: My “bottom-feeder” comment. I’m really surprised so many of you thought I was talking about you. I probably wasn’t. But do you have a guilty conscience?

  • http://www.acouplethings.com/blog Scholar in Training

    Who were you talking about then, Chris? It seems obvious to me that your opinion on this matter is the minority perspective. Actually, I can’t find a single comment that backs up your way of thinking. Can you?

    Maybe you are the one who is wrong?

  • McKenzie

    @Chris When you say BA is offering compensation to affected passengers, are you referring to the full refund of the tickets or do you mean that they plan to do something more (as yet unannounced) for the passengers whose tickets were canceled?

  • http://www.acouplethings.com/blog Scholar in Training

    @Scott

    I think what this shows is that the airlines and booking agencies cannot be trusted with our credit cards until they are capable of delivering on their offers. Why should I have to give BA my credit card info before I am sold a product? The real lesson here may be that airlines should figure out if they can give what they offer first *and then* start asking for payment.

  • Nomad

    @ Chris – You’re entitled to your opinion, but you’re not entitled to the fact. And the fact is, the fare technically is not $40! Try $400 with surcharge added.

  • http://americaonline barbie45

    Chris with due respect; I am sure you receive many perk offers; also althoughIsuume you are always nice maybe your face and name recognition ; may i assume you recieve most favorite customer attention at times as in the case of your being put over 24 others on a wait list; also quite a bit of your traveling is business related thus tax deductible .Iam sure you do not need fat fingers , if there is such a thing in the travel world.

  • Christopher Elliott

    @McKenzie I’ve been in touch with BA, and I think that’s to be determined. I’ll have an update as soon as I know more.

    @Nomad I’ve repeatedly said that the base fare was $40 but that with taxes and fees, it came to more than $400. Please read carefully. Those are the facts.

    @Scholar I think we will just have to agree to disagree on this issue.

  • Carver Farrow

    I think I might have misread the original blog. I thought that the fare was advertised as $40. Had that been the case, then anyone would know that was an obvious error. The fact that some no frills airlines like ryanair offer super cheap fares is unpersuasive. British Airways and Ryanair are not the same type of airline. That like the person who tried to convince me tha the $2 per night fare at the Ritz was a believable nightly rate in New York. BS to the max.

    Now, having said that, I do believe that if someone makes an error and catches it in a reasonable time, then they should be able to fix it, whether its BA or the customer.

    American Airlines allows it, sort of. If you purchase a ticket, you have about 2 hours to cancel the purchase. I can’t speak for other airlines, but it take American Airlines a few hours to actually ticket the purchase. Until then the average agent can and will cancel and refund our money.

    On another subject, I disagree with Chris’s characterization of people who hang out in frequent flier websites as bottom feeders. But I understand why he choose those unfortunate words. Go over to Flyertalk.com. The mantra there is get whatever you can, regardless. For example, if there is a fat fingering fare, the protocol is to post it for the entire world to see. People will make multiple bookings in order to secure huge benefits at the expense of the hotel or airline. That’s hardly ethical behavior, but its the norm at some of these websites.

  • David Z

    Maybe all airlines need to give customers 24 hours to cancel their ticket with no charge and they have 24 hours to correct any fare mistake, after that period both sides are stuck with the tickets.

    Scott, many airlines actually do that. While not all advertise it, they allow people to cancel up to 8:59PM PST the night after the ticket was booked.

    Currently those I know that don’t are JetBlue and WestJet because they use different systems. Check with the airline in question if they allow such, but not all are required to do so.

  • Nomad

    @Chris – No, the fact is, besides the taxes, how much money is BA putting in their pocket? You and I know it’s not $40. So, if you repeatedly bringing up $40, then some of your uninformed readers may think that BA is only getting $40 out of it, when the fact is they are getting 10X that amount. At $554, it’s still a nice fare, but by no mean it’s a give away.

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