|
What's
elliott?
About elliott
Contact us
t o p i c s
Business
Commentary
Destinations
Help
Leisure
Technology
Vault
Read
back issues. Like what you
see? Now you can become an underwriter.
a l s o
Referring sites
Public relations
Visit Tripso
Home
s e a r c h
Find a story.
Copyright Elliott Publishing. All rights reserved. For more information,
call (305) 453-4781 or send e-mail
to us.
|
|
Who's
to Blame for a Bad Year?
The
Travel Critic · December
29, 1997
Looking
for someone to blame for a miserable year? Try Robert L. Crandall, Leo
F. Mullin or John A. Edwardson.
You may not know these men, but you know their airlines. As the executives
calling the shots at American, Delta and United, respectively, they're
the most influential personalities in their business.
I don't think I'm going out on a limb by suggesting that these three are
responsible for giving us a truly horrible year. Consider:
-Booking fees were up. In September, United announced it would reduce
commissions to travel agents to 8 percent from 10 percent and placed a
$50 cap on commissions paid for a round-trip ticket. The other airlines
followed in short order, prompting many travel agents to start charging
booking fees of about $10 per ticket to make up for lost revenue.
-More flights were sold out. The strong economy helped fill most seats
and airlines unloaded the few remaining spots by aggressively selling
discounted tickets online. American's recently redesigned Web site and
its Travelocity booking engine were just two of many Internet destinations
where extra seats were dumped on incidental tourists. (By the way, Delta
takes the award for cramming in the most passengers on its flights this
year. It handled more than 100 million passengers in 1997, the first time
any airline has flown so many people.)
-Carry-on baggage was restricted. Fuller flights meant less overhead compartment
space. Airlines responded by forcing us to choose between lugging the
laptop or the overnight bag on board. The Federal Aviation Administration
proposed new guidelines for carry-on baggage, too, but the fate of that
initiative is uncertain as 1997 winds down.
-Back-to-back tickets went the way of the dodo. Well, almost. Carriers
cracked down on a time-honored business travel tradition of buying cheaper
tickets meant for vacationers. The tactic involves buying two round-trip
tickets and using them to evade Saturday-night stay requirements by flying
one leg of each ticket. Travelers trying to elude sky-high business travel
fares were punished-and so were their travel agents. Airlines billed offending
retailers as much as $100,000, and gate agents confiscated tickets from
passengers who failed to use both legs of their round trips or made them
pay the difference in fare.
And while we suffered, the nation's top three carriers partied.
United posted what it termed a "stellar" third quarter in October-$499
million in net income, up 5 percent from the third quarter in 1996 and
the highest quarterly earnings the carrier had ever racked up. Delta enjoyed
a record fiscal year. AMR Corp., American's parent company, earned $323
million in its latest quarter, compared with $282 million a year earlier.
"We had a very good quarter," boasted Robert L. Crandall, AMR's chairman
and chief executive.
Does this make you as crabby as it makes me? It should. But instead of
getting mad at these robber barons of the skies who led their airlines
to higher profits at our expense, let us turn or attention on ways of
getting even in 1998.
Christopher
Elliott is a travel commentator and author of A
Bridge to Nowhere: A Year in the Florida Keys. All e-mailed questions
may be edited, condensed or republished at the site's discretion.
|
|
|