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Travel Industry Travel News

Airline Efficiency Rates At All-Time High

One of the challenges or frustrations felt by frequent business and leisure travelers is having their flight leave on time, or worse yet, cancelled. However, things may be looking up. It seems years of hard work for the airlines are finally coming to fruition. Reviewing the month of November 2016, typically the brunt holiday traffic, we saw the highest rate airline efficiency in decades.

According to the Department of Transportation, 86.6 percent of flights in the U.S. arrived on time during the month of November 2016. That’s a significant improvement from the previous year. In regards to cancellations, less than one-third of 1 percent from the busiest airlines had domestic flight cancellations. Making it the lowest rate since the DOT started keeping records in 1995! Also, the number of bags lost, damaged or delayed by the airlines was the lowest since the beginning of this record keeping in 1978.

Which airlines had the best scores

  • One-time arrival
    • Delta Airlines posted the best rates for on-time arrivals.
    • Hawaiian Airlines compared favorably at over 90 percent.
    • Southwest Airlines ranked seventh, with 86.1 percent of its flights arriving on time.
    • American Airlines had the eighth-best performance with 85.4 percent.
    • The lowest on the list was Virgin America at 81.4 percent.
  • Regarding cancellation of flights,
    • Delta had no cancelled flights during the month of November, but instead diverted flights to other airports.
    • Alaska, Frontier, Hawaiian and Virgin America canceled fewer than 20 flights each with far fewer diversions than Delta last November.
  • Lost/Damaged bags
    • Overall the airlines reported approximately two mishandled bags for every 1,000 passengers.
    • Virgin America and Alaska had the best rates of bag handling.
    • ExpressJet and Frontier had the worst rates.
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Travel Industry Travel News

Delta Air Lines Continues To Innovate

Here at Christopherson Business Travel, we’re pretty big fans of Delta Air Lines. Their continual innovation and commitment to fliers is inspiring. Earlier this year, our management team had an opportunity to hear some of Delta’s top leaders speak. One of those industry leaders was Tim Mapes, Senior Vice President – Chief Marketing Officer of Delta.  With a company that is consistently pioneering, we valued the opportunity to understand the message behind the brand.

How Delta continually innovates

During the meeting, Mapes said, “If the world is changing faster on the outside than you’re changing on the inside, then your company is dying”.  Sound business advice, it dawned on me how hard Delta strives to be on the cutting edge.  For example, their revolutionary new baggage ticketing system released this year. Or how their Gift Back Project cultivated altruism by recognizing selfless individuals. Mapes also explained the three pillars of their brand:

  • Thoughtful ? Always be warm and caring.
  • Reliable ? Get our passengers home on-time, safely, and with their bags.
  • Innovative ? Strive to be the first in the industry to make a change, and then continually innovate.

Delta Air Lines continues to deliver on their reliability brand promise. Their hard work and dedication lead to great accolades. For example, this November Delta was named the most punctual airline in North America. Hearing Mapes speak about the foundation of the Delta brand and recognize it in their recent updates was inspiring.

Christopherson Business Travel is an award-winning corporate travel management company. We help busy companies book, manage, and expense their business travel, so they can get back to what’s important to them. Contact us if you are interested in learning how we can simplify your company’s travel.

 

 

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Travel Industry Travel News

Feeling The Shift In Airline Commoditization

It’s kind of funny. As technology continually advances, our expectations also change. We are living in an interesting age of requiring immediate results and instant buyer satisfaction. If we don’t see what we want, we can find it somewhere else. It might not surprise you that this is prominent in the travel industry. As consumers, we have any hotel and their reservation system at our fingertips. There is complete control over when and where we stay, and usually with some persuading discount. Same can be true with flights. We can decide when, where, negotiate on price and even pick our exact seat. However, some people believe there is still room for improvement.

The everyday traveler mainly uses travel booking websites to research and book future itineraries. We decide when we want to travel and where; and these sites help us find the cheapest fare. The search functions are primarily price and date. You decide when you want to travel and they find the best deal. But what if we want more? Robert Albert from RouteHappy wonders if perhaps consumers want more options. Albert explained during the Skift Global Forum in New York City last September that this commoditization is a big problem with airlines.

For example, think of that last flight you had with a low-price, low-value airline. Yes, your original booking price was low, but factor in the carry-on luggage fee, food and drink fee, and the minuscule leg room and you were left feeling cheated. Yes, it’s the best price, but was it worth feeling used and spit out? Not likely. And more and more people are seeing this.

As our buyer behavior and expectations continue to evolve, our expectations become more defined. While other industries, like hotels, have design overhauls to capture emerging buyers, shifting airline brand messaging or selling points is harder to do. It’s easier for a boutique hotel to pinpoint a demographic niche and jump on it, than the mammoth airline industry. In essence, there this room for opportunity to capture the growing needs of demanding airline passengers, but the industry may be too far behind to catch up.

As Albert said in his Skift Forum presentation, the biggest trend in the airline industry right now is the focus on ‘commoditize to differentiated.’ It most likely started with offering checked baggage options. Cabin upgrades came next. But is it enough?  Albert found an interesting niche in the travel booking world. Why have online travel booking be based solely on price? He has found that consumers are willing to pay extra for these upgrades. Flyers no longer want the cheapest price, but would rather see the value in the money they spend. Try booking based on amenities, travelers scores, plane type, legroom, and duration of flight. It’s an innovative look at travel booking in a seemly stagnant industry.

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Business Travel Travel Industry

What Happens To Lost Luggage?

Luggage lost by the airlines has to end up somewhere, right? I don’t know about you, but this is a question that pops up out of nowhere in the middle of the night when I can’t sleep. Or, as I’m anxiously waiting at the carousel in baggage claim while the bags are circling. The thought of possibly having my checked baggage lost or delayed while traveling on business often leads me to just bring a carry-on. While I’m sure I’ll always have that fear, at least now I know where the luggage may possibly end up.

What happens to Lost Luggage

The Numbers

According to the U.S. Department of Transportation, only 3.68 bags of every 1,000 pieces of luggage goes unclaimed. Of those, nearly 98 percent of the luggage finds its owner within the next week. Within the next three months, half of the remaining luggage is returned. After the 90-period, the tiny remaining fraction of luggage legally becomes the property of the airlines. By this time, claims have been filed on the lost luggage and the flyer is compensated. So, what does the airline do with the luggage? They sell it!

Your Luggage’s Final Home

The Unclaimed Baggage Center (UBC), located in Scottsboro, Alabama buys the lost luggage  and then unpacks, cleans, organizes and sells the contents to shoppers. Jewelry and artwork are appraised and electronic devices are wiped clean. Even with appraisals, a few great finds have been found over the years. Including a painting priced at $60, but actually worth $20,000 and rare relics and oddities.

The UBC started in 1970 by a man named Doyle Owens. He had the ingenious idea to borrow a pickup truck, drive to Washington D.C. and took out a $300 loan to buy his first load of unclaimed luggage from airlines. Since that first truckload, the business has forged relationships with many different airlines, and hauls luggage from all across America. The Unclaimed Baggage Center building is the size of a city block and has over a million visitors every year. It also claims to be one of the top tourist attractions in Alabama.

Returns, Please?

Unfortunately, don’t expect to turn to them for your lost luggage. In regards to the question on their website, they say ‘Regrettably, “No”. . . After this point, claims have been paid out and the items are sent with no identifying information to Unclaimed Baggage to be repurposed or sold.’ So feel free to go shopping  at the UBC (aka, my new bucket list addition), but don’t get your hopes up in finding your own bag. 
Read next from our blog:

Finally, Refunds For Delayed Checked Baggage

What Is The Right Size For Carry-On Luggage?

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Travel Industry Travel News

Best and Worst Airlines: According to Consumer Reports

Consumer Reports is always where I go to find product ratings and best buy recommendations. So this month when Consumer Reports rated the best and worst airlines, I took notice.

Consumer reports rated eleven major carriers based on information from almost 17,000 subscribers. They analyzed ease of check-in, cabin/crew service, cabin cleanliness, baggage handling, seating comfort, and in-flight entertainment.

Virgin America made its debut at the top of the list while Spirit Airlines ranked the worst. One traveler said of Virgin America’s coach seats, “The leather seat cushions are so nice in coach, there’s no reason to fly first class.” Virgin American says it emphasizes “top-notch services and a host of innovative amenities.”

On the other end of the spectrum, Spirit Airlines received the lowest overall scores for any company rated by Consumer Reports. Their airfare costs may be 90% less than other carriers, but the airline charges a wide array of fees, including $3 for a soda, juice, or bag of M&Ms. Plus their carry-on fee can range from $35 to $100 per bag. Here are the readers’ scores in order:

  1. Virgin America – 89
  2. Southwest Airlines – 85
  3. JetBlue Airways – 85
  4. Hawaiian Airlines – 82
  5. Alaska Airlines – 81
  6. Frontier Airlines – 78
  7. Delta Airlines – 71
  8. US Airways – 66
  9. American Airlines – 66
  10. United Airlines – 63
  11. Spirit Airlines – 50