|
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.
|
|
Will Road
Warriors Return?
Opinion · September 13, 2002
Don't ask frequent
traveler Andrew deLivron to notice the silver lining around the once-friendly
skies that now hang ominously above business travelers.
His disillusionment with the travel industry - and especially the airlines
- erupted in raw anger recently when the major carriers, led by a bankrupt
US Airways, added new restrictions to their tickets and mileage awards.
"What the airlines are doing just doesn't make sense," said the product
manager for a truck parts manufacturer in Cedar Falls, Iowa. Upset by
new fees and higher fares, he's lost confidence in the travel industry.
Have the airlines, hotels, car rental companies serving business travelers
bothered to noticed the votes of no confidence from people such as deLivron?
Well, yes.
Hurt by a soft economy, hammered by bankruptcies and hassled by their
most loyal customers, the travel industry is making a quiet effort to
come clean with us. The efforts range from telling the truth about rates
to clarifying the meaning of words such as 'non-refundable" and "convenience."
The changes aren't meant to endear all of us to the industry; just the
big-spending business travelers on which these companies are pinning their
recovery hopes. Consider US Airways' decision to make its non-refundable
tickets non-refundable.
Last month, the airline shocked passengers and its competitors - who eventually
matched the move - when it announced that it its discounted advance-purchase
tickets will have no value once a flight has departed. Finally, a carrier
is saying that its non-refundable tickets are just that. Before a passenger
could show up late for a flight and catch the next plane by flying standby.
If your plans changed, you could also get credit toward a future flight,
often without paying a change fee. Not anymore.
It isn't just the airlines that are being more upfront with their customers.
Car rental companies have discovered that telling the truth about their
rates makes sense. A few years ago, the prices quoted by car rental companies
over their reservations phone numbers and through their Web sites didn't
include taxes and other surcharges, according to Jon LeSage, a researcher
for Abrams Travel Data in Long Beach, Calif. But recent customer pressure
has turned that trend around. "Disclosure has improved considerably,"
he says. "Companies are doing a much better job of estimating the actual
cost of your rental, which can be 20 or even 30% higher."
Sometimes the changes are small and semantic. Brian Talbot, a postal clerk
in Shelton, Conn., remembers booking a room at the Wyndham Casa Marina
in Key West, Fla., for a one-night stay recently. When he checked out,
he noticed a "convenience charge" of $11 a day to cover the cost of ice,
beach towel service, beach chair use, a mini-refrigerator and daily room
cleaning. "I was paying an exorbitant rack rate and the excess charge
was unjustifiable," he said. The Wyndham recently revamped the charge,
lowering it by $1 and renaming it a more appropriate "resort fee." Guests
still protest the surcharge, but at least the property isn't offending
its customers' intelligence by suggesting that the fee has anything to
do with their convenience.
Travel companies aren't being more upfront out of the kindness of their
hearts, says travel expert Anita Potter. Rather, they are calculated moves
that are meant to endear them to the customers that yield them the highest
revenues. "As travel companies struggle with how to make money, they may
end up being more truthful with their customers, especially business travelers,
than they ever thought they would be," said the editor of the website
AnitaVacation.com.
Will this honest approach work at attracting more business travelers?
It's been tried in travel before, but for different reasons. In 1999,
under the threat of government reregulation, the nation's airline industry
adopted a voluntary plan called "Customers First" which, among other things,
promised that carriers would be more straightforward about disclosing
low fares. But it wasn't done with a financial motive - the airline business
was flying high at the time.
In other industries, such as apparel and defense, efforts to restore customer
confidence in a time of financial distress have yielded better earnings.
A good example is footwear company, Nike, which instituted some of the
strictest disclosure rules about its manufacturing process after it was
criticized for using vendors which allegedly ran sweatshops. The bad publicity
was hurting its image and business. After it came clean, its revenues
climbed. The honesty-is-the-best-policy approach probably helped out.
But the travel business still has a way to go - a long way - before it
can reap the dividends of this new honesty. Road warriors continue to
gripe that airlines are less than forthcoming about delays, for example.
LeSage of Abrams Travel Data is quick to point out that some car rental
companies still fail to disclose all fees, and many don't make allowances
for fuel options or insurance in the rate quoted to travelers. Hotels
may have improved their disclosure of surcharges, but many properties
continue to hide the notification of these additional fees in small print
that no guest can be reasonably expected to read.
Is the travel industry's newfound frankness just a byproduct of hard times,
an experiment in honesty that will end once the economy rebounds? Or is
the change permanent? It may not matter. DeLivron, for his part, is switching
to no-frills Southwest Airlines and plans to stay in less pricey hotels
because they don't nickel-and-dime him the way full-service properties
do. That way, if he gets lied to, at least he won't be spending a lot,
too.
Christopher
Elliott is a travel commentator based in Key Largo, Fla. All e-mailed
questions may be edited, condensed or republished at the site's discretion.
|
|
|