Why I'm rooting for American Airlines to improve service
Jeff ToisterCustomer service at American Airlines generally leaves a lot to be desired, but I'm rooting for them to improve. A stronger American Airlines creates more competition and can bring some much needed stability to a battered industry. This should result in better overall service from the airlines, even if you aren't flying American.
Competition is Good
The airlines may be much maligned for their overall service, but their industry score on the 2012 American Customer Satisfaction Index (ACSI) was the highest its been since 2003 (see the results here). The traditional carriers like American, Delta, and United continue to lag in service quality, but newer airlines such as JetBlue and Southwest Airlines have picked up the slack considerably.
Without competition, things can get ugly. Look at what happened to Continental Airlines after merging with United. Their ACSI score was 18 percent higher than United in 2010. Two years later, the combined airline's ACSI score declined 13 percent. It will probably get worse since they were responsible for a whopping 33.6 percent of passenger complaints filed with the Department of Transportation in the first half of 2012 (source: The Consumerist).
Competition in the airline industry often comes down to where you fly.
I'm based in San Diego, which isn't a hub for any airline, so my options vary depending on where I'm going. If I want to fly nonstop to San Francisco, I can shop three airlines for the best combination of fare and service. On the other hand, when I travel to Dallas in October to speak at the 2012 ICMI Call Center Conference and Demo, I am literally going two hours out of my way to avoid flying American even though they are my only option for a nonstop flight. I instead chose better fares and service at Southwest Airlines.
Taxing on the runway at DFW
Stability is Needed
Customer service often suffers when businesses struggle. It might start with employee discontent, where employees' concerns over their own jobs create a distraction that negatively impacts their service. This has been happening at American Airlines for quite some time, though their flight attendant union ratified a new labor contract on Sunday which might improve things a bit (see the story here).
Service gets worse when companies start making radical moves in an effort to turn things around. American Airlines is actively considering a merger with another airline, most likely US Airways. Recent history suggests that won't bode well for customers, as evidenced by the United-Continental merger and even the recent decline in service at Southwest Airlines as they merge with Air Tran (see Five Reasons Why Ratings Are Down at Southwest Airlines).
Perhaps worst of all is when an airline goes completely out of business. In March 2008, Aloha Airlines filed for bankruptcy and then abruptly cancelled all of their flights. Ten days later, ATA Airlines (another airline that primarily served Hawaii) followed suit. The result was thousands of stranded passengers and a temporary spike in air fares to and from Hawaii that made it difficult for many people to even get home.
What's Next?
I really don't know, but I fear the worst. Do any airline industry experts care to handicap their chances of turning things around?
Reader Comments (4)
I'm certainly not an airline expert, so I'm just chiming in here to say that I hear you on avoiding American Airlines while rooting for them to improve.
I only wish I'd learned the lesson to avoid them. They have repeatedly stranded and delayed me over the years, but I'm a sucker for non-stop.
Maybe this post of yours will help me remember that changing planes can sometimes be the better option!
Grace -- it's an interesting question of pragmatism, and one that I know you've raised before in other venues. Do you go out of your way to not do business with a company?
I struggle with that as a customer, but as a consultant I wish more companies would ask themselves, "How do we get customers to go out of their way to do business with us?"
I like your question: "How do we get customers to go out of their way to do business with us?"
But I wonder if the real question is, "How do we go out of our way to make it easy for customers to do business with us?"
As for me, when I find myself consistently irritated or frustrated by my encounters with a particular company, then it seems to me that it's less a question of going out of my way to not do business with them, versus honoring my experience by finding other companies to do business with that don't irritate me.
Grace - I realized my error. When corrected, our questions aren't mutually exclusive.
My question *SHOULD* have read:
"How do we get customers to WANT to go out of our way to do business with us?"
Your question, about making it easy, is spot on.