Re: Not so fast Joel
Posted by Peter Patricelli on 2013-02-25 22:44:56
in reply to Re: Not so fast Joel posted by Jim Williams on 2013-02-25 16:33:36
The fact that your experience with travel insurance was poor is of great interest to me. My wife just got stranded (IN the US...IN a major city) travelling with her elderly parents, and travel insurance absolutely saved 5-10K.
"Typically the lowest fare is a non-refundable ticket. The fact that they will transfer you to a different flight for $100.00 + the change in ticket price is actually more than they would have to do...... but when you reflect on it down the road I think you'll realize there wasn't another option."
And that explains why Southwest, without baggage fees and rebooking fees, is one of the more profitable airline in the current climate and is continuing to grow and prosper??
A "penalty charge" as a profit generator is different than a charge to cover actual additional overhead or losses from the business.
In my naivete I fail to see where "rebooking" alone, if done reasonably ahead of time OR at a time when flights are full to overbooked anyway and ONLINE, costs an airline more than a few pennies to run their computers.
Hertz potentially collected double for re-renting my early returned, non-reimbursed car. Hotwire will never see my business again.
When the "profitable" business model is predicated upon jumping on the slightest irregularity, taking merciless advantage of a traveler who has experienced a mishap and is stretched out over a drum, the time is ticking for those businesses. Put 2 or 3 people in a car and driving starts to look good again, or a SW airlines starts undercutting others by offering reasonable service and flexibility.... again. The better question is whether these odious practices bring in more money than the people they drive away. It is an absolute rule that as long as they do, the busnesses will push more and more "penalty" profits until the equation shifts...at which point they will go under because of bad name reputation will follow them longer than a reversal to "play nice" again. Interestingly, every airline that has treated me pooorly to the point I swore I would never fly with them again....has gone under. Certainly it was not MY business that was critical, but screwing (lots of) people and driving (lots of) them away... has (BIG) consequences.
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