Garbage in Garbage out - NA Passenger Survey

Unfortunately this may be a case of garbage in and garbage out.

Passengers don’t care if the airline labels itself as a Low Cost or network carrier. The passenger is everything. The rating score however clearly shows that setting expectations and then meeting/exceeding them is more important than the actual number and quality of services. Of course this does not take into consideration the process of the price paid vs the prices available.

The old story of “you are only as good as your last flight” or more accurately you only rate if you can delivery the bag timely at the other end hold true. Given that the airlines in the USA have done an OUTSTANDING job at finding ways to blame everyone else for their ills from the TSA to the Pension Review Board – I see no change in behavior. It was and is an oligopoly business run as a club.

Cheers

Timothy

People and processes, not peanuts and pillows, make a difference when it comes to satisfying airline passengers, according to the JD Power and Associates 2006 North America Airline Satisfaction Study. - (7/3/2006)

During a period of major cost-cutting by many carriers, increasing ticket prices and overbooked flights, the study finds that airlines focusing on their people and processes have the highest passenger satisfaction.

The study is based on responses from 9,334 passengers who flew on a major North American airline between January and May 2006. Overall customer satisfaction is measured based on performance in seven factors (in order of importance): cost and fees; flight crew; in-flight services; check-in; boarding/deplaning/baggage; aircraft; and flight reservation.

“All of the airlines are struggling operationally, but that doesn’t mean that passengers have to suffer too,” said Linda Hirneise, executive director of the travel practice at JD Power and Associates.

“The airlines that have high passenger satisfaction have two things in common: They have processes in place to ensure a consistent, positive travel experience, and they have the right people working for them, who make the flying experience a pleasurable one for their passengers,” said Hirneise.

The study finds that “process” factors, such as check-in, how passengers board the plane and how baggage is delivered at the destination; and “people” factors, such as hiring the right people and training and enabling them to be successful, are what differentiate carriers in the eyes of passengers.

As per the findings, JetBlue Airways ranks highest in customer satisfaction among low-cost carriers-defined as airlines that operate single-cabin aircraft with typically low fares. JetBlue receives top ratings across all seven customer satisfaction factors, but performs particularly well in those factors pertaining to people and processes. JetBlue achieves an overall satisfaction index score of 820 of a possible 1,000 points-81 points above the segment average. Southwest Airlines follows JetBlue in the low-cost airlines rankings.

Continental Airlines, which ranks highest in the traditional network airlines segment-airlines that operate multi-cabin aircraft and use multiple airport hubs-excels in the check-in, in-flight service, and cost and fees factors. Continental performs particularly well satisfying business passengers, in part due to the perks of its OnePass frequent flyer program. Delta Airlines closely follows Continental in the segment, while American Airlines ranks third, it was stated.

“The traditional network airlines have had a particularly difficult time connecting with passengers the past few years, struggling with increasing fuel costs, competition from discounters, massive layoffs and dramatic cost cutting,” said Hirneise. “However, these carriers still have a strong base of customers who value the flexibility of flight legs and additional cabin classes traditional airlines offer. The challenges for the traditional carriers are to manage customer expectations as amenities that used to be expected on such carriers have either disappeared or now require a fee. These carriers also must work to keep employees motivated in the wake of painful cost cutting.”

The study finds that passengers who book their reservations online through the airline’s website report higher satisfaction than those who book at an independent travel website or over the phone. In addition, passengers who check in for their flight online or at electronic check-in kiosks at the airport have higher satisfaction levels and save more time during the check-in process than those who use the ticket counter or curbside check-in.

Overall airline satisfaction index scores (based on a 1000-point scale) –

· Traditional network carrier segment

Continental Airlines (697); Delta Airlines (695); American Airlines (682);

· Traditional network airline segment average 675

Alaska Airlines (672); US Airways (659); United Airlines (658); Northwest Airlines (656); Air Canada (655).

· Low-cost carrier segment JetBlue Airways (820).

· Low-cost airline segment average 739
Southwest Airlines (735); AirTran Airways (722); Frontier Airlines (716).

Timothy J O'Neil-Dunne
Managing Partner - T2Impact Ltd
Global Travel eBusiness
Tel (US) +1 425 836 4770
Mobile (US) +1 425 785 4457

Mobile (International) +44 7770 33 81 75
Fax +1 815 377 1583
www.t2impact.com