compensation Archives - TravelSkills

Like Delta, United to implement bump auctions

September 22, 2017

When checking in for your next United flight, you might get a surprise in October (Image: United)

Starting in October, when you check in for your United flight online or at a kiosk, you might be asked how much you’d be willing to take to give up your seat.

Following Delta’s lead (again), United is set to implement a new bidding process for bumps.

So when you check in for an overbooked flight, you’ll be asked if you are interested in being put on a list of potential volunteers– and if so, for how much. You’ll then be offered three different dollar amounts (in travel credits, not cash) to volunteer your seat.

If United is forced to involuntarily bump passengers, it will choose from the list of lowest bidders. But don’t get your hopes up for much of a jackpot. After the David Dao dragging incident, involuntary bumpings are down at United (and all carriers).

This week Brian Sumers from the Skift travel website tweeted an image of what that screen could look like:

(Image: Brian Sumers)

This probably sounds like deja vu to Delta fliers who know that the airline rolled out a similar plan six years ago.

Here’s what we wrote on TravelSkills about the introduction of Delta’s bidding for bumps process way back in 2011:

Have you tried Delta’s new bidding for bumps process at check in? Instead of the old process where Delta would ask for volunteers and start the bidding over the PA system at the gate, the carrier now asks passengers as they check in (online or at kiosks) if they’d be willing to give up their seat and take a later flight. Once you say yes, you are then asked for the minimum amount you’d be willing to accept in exchange for your seat.

Your offer is then sent to gate agents and added to a list of other volunteers, with the lowest bids at the top. If your bid is accepted, gate agents will call you to the podium to discuss the flight options they can offer (standby or confirmed), as well as extras like meal vouchers or upgrades. At that point, you can accept or refuse their offer. If you refuse, they just move on to the next lowest bidder (if there is one).

Delta has had bump auctions in place since 2011 (Image: JohnnyJet)

Last April, PBS News Hour did a special report on How Delta Masters the Game of Overbooking Flights, which could have been the impetus for United to get on board with a similar plan.

What’s the most money (or credit) you’ve ever scored from a voluntary or involuntary bumping? Please leave it in the comments.

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Travelers’ rights: Involuntary bumping & the United drama

April 10, 2017

United E175 similar to the one used to fly Louisville-Chicago (Image: United)

FOR UPDATES: scroll to the bottom of this post>>

The internet is abuzz with chatter about a United Airlines passenger forcibly removed from a recent Chicago-Louisville flight. The videos posted by passengers onboard (below) are shocking and appalling.

Awful, yes, but here’s the deal: Passengers agree to a “contract of carriage” when buying airline tickets. Included in that contract is the airline’s right to refuse to transport you for any reason. Also included in that contract is the compensation that the government requires airlines pay passengers who are involuntarily bumped.

In a nutshell the airline does not have to pay any compensation if it can get the involuntarily bumped passenger to his/her destination within one hour of the originally scheduled arrival time. If the passenger is more than two hours late, the airline must pay 200% of the one way fare in cash as compensation. If more than four hours late, it must pay 400% of the one way fare.

It’s important to note that government rules kick on only in involuntary bumping situations. Voluntary bumping compensation is determined by the free market.

In an overbooking situation, airlines will typically ask for volunteers, as United did in this case. According to various reports, it first offered $400 to volunteers, then increased it to $800 plus pay for an overnight hotel stay, with no takers. (It appears that this was the last flight of the day between Chicago and Louisville.)

Usually this negotiation is done before the plane boards, but it appears that in this case, United boarded the plane and THEN decided to seek volunteers. When it could not find them, even at $800 + hotel, it randomly chose four passengers to be involuntarily bumped off the plane.

One of those passengers refused to get off, and here’s what happened

This video below was taken by another passenger- somehow, the passenger who was removed got back on the plane mumbling “just kill me just kill me”:

#flythefriendlyskies @united no words. This poor man!! pic.twitter.com/rn0rbeckwT
— Kaylyn Davis (@kaylyn_davis) April 10, 2017

According to various reports, United needed the seats to transport a crew to Louisville for a Monday morning flight. When one passenger refused the captain’s orders to get off, the airline called in local police to do the dirty work.

At first, United released only the following statement: “Flight 3411 from Chicago to Louisville was overbooked. After our team looked for volunteers, one customer refused to leave the aircraft voluntarily and law enforcement was asked to come to the gate. We apologize for the overbook situation.”

After this incident lit up the internet, United CEO Oscar Munoz released a broader statement:

Here is more information about the flight from The Louisville Courier Journal

My take: As abhorrent and sickening as this video is, passengers should know what they agree to when buying an airline tickets, including the possibility of getting bumped. They also should know that when onboard a plane, the captain has the final word– his or her word is the law. If he or she tells you to get off the plane, you obey.

Could the airline crew members have handled this differently? The police? The passenger? United’s PR department? I say yes to all these questions. It will be interesting to see how this all shakes out as we get more details about exactly what happened. We’ll provide updates to this post (or future posts) as they roll in… stay tuned!

What do you think? Please leave your comments below.

UPDATES Tuesday April 11:

>United CEO Oscar Munoz apologizes, promises “full review” of passenger dragging incident by April 30

>Airplanes are dictatorships (Wall Street Journal)

Scott McCartney in the Wall Street Journal

>United: Flight was “sold out” not “overbooked (USA Today)

>United stock took a tumble early Tuesday, but is creeping back up in early afternoon trading (monitor here):

CLICK for latest update

>Details emerge in Louisville about the doctor removed from the United flight –

David Dao, passenger removed from United flight, a doctor with troubled past (Louisville Post Courier)

Dragged doctor convicted of trading drugs for sex (NY Post) Also: TMZ, Heavy

Updates: April 10:

Chicago Police statement regarding the incident:

Chicago Department of Aviation statement:

Even though it’s a PR disaster, this debacle does not appear to be a financial one- United stock closed up for the day:

United CEO Oscar Munoz letter to employees regarding the incident:

United CEO Oscar Munoz sent this letter to staff: “While I deeply regret this situation arose, I also emphatically stand behind all of you.” pic.twitter.com/gq6L7fFX2V

— Jon Ostrower (@jonostrower) April 10, 2017

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DOT to airlines: Pay up for damaged luggage

November 30, 2015

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Don’t let airlines get away with damaging your checked bag and not compensating you. (Image: Jim Glab)

With the year-end holiday period coming up fast, many business travelers will no doubt be making personal trips to see family and friends — and to accommodate winter clothes and presents, you might have to (horrors!) check a bag.

After your bag hits the carousel at your destination, be sure to check it for damage (just like you would check a rental car before driving off in it). If something’s amiss, be sure to file a claim with the airline. The U.S. Transportation Department says that some carriers have been trying to shirk their responsibility for such damage, and it has just put them on notice that it will be watching them.

DOT said recent airport inspections by its Enforcement Division found that “certain airlines routinely exclude liability for damage to specific parts of luggage,” and won’t even accept passenger claim reports. The inspections took place in September at 16 U.S. airports; both domestic and foreign airlines were included.

The agency said it has put airlines on notice that they must revise their checked baggage policies to make sure they conform to federal regulations. Specifically, DOT said, airlines “are required to compensate passengers for damage to wheels, straps, zippers, handles and other protruding parts of checked baggage beyond normal wear and tear,” and they are required to accept reports of mishandled baggage from passengers even if the airlines believe they are not liable.

DOT said it will begin to take enforcement action starting January 9, 2016 against airlines not in compliance.

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United, American test consumer-friendly initiatives

November 3, 2015

United’s airport staffers are using travel certificates to sweeten the customer experience. (Image: United)

Since it switched CEOs recently, United has been promising to be more attentive to customers’ concerns, and it has launched a new airport program to do just that. Meanwhile, American is testing a plan that allows customers to hold their reservations for up to a week without buying a ticket — but for a price.

In United’s program, passengers at the airport who have a grievance against the airline could receive a travel certificate worth as much as $125 as the airline’s way of saying “we’re sorry” according to the BrianSumers blog.

The certificates have been distributed to the carrier’s airport staff, with instructions to use them as compensation when customers encounter rude treatment, or when they have to wait a long time for a bag to be delivered, or when a customer does something that makes the employee’s life easier, like giving up a seat upon request.

Premium cabin flyers and top-tier elites (Global Services/1K) could get a coupon worth up to $125; Platinum and Gold elites can get $50 to $100 vouchers; and the ceiling for economy passengers is $50.

American’s new “extended hold” gives customers the option of putting a “hold” of three, five or seven days on a reservation before they buy a ticket, locking in the quoted fare. Like United’s FareLock, it is only available in select markets; when it is offered, the customer will see a drop-down menu on the booking screen with the extended hold options.

All airlines are required to give customers the right to hold a booking for 24 hours at no cost before buying or cancel within 24 hours for no penalty. The new American options are not free, however; the prices to hold a reservation longer than a day are $7.99 (3 days), $9.99 (5 days) and $11.99 (one week) — and those fees are non-refundable.

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Bidding for bump compensation at Delta

January 13, 2011

What do you think? Is this a stroke of genius on Delta’s part? How has the new system worked for you? Have you seen it in action yet?

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Silver lining for weather-weary travelers

January 12, 2011

The new “three-hour rule” that forbids holding passengers on board grounded aircraft for more than three hours is forcing airlines to change the way they deal with winter storms.

In the past, airlines hesitated to cancel flights hoping that weather might quickly change for the better and allow them to resume operations.

But with the threat of heavy fines for holding passengers on planes over three hours (now $27,500 per passenger) or having them stuck at the airport, airlines are now much more likely to cancel flights hours or even days ahead of time. Affected passengers are instructed to stay away from the airport until operations are up and running.

I think this is a good thing, because with ample warning, fewer passengers are likely to be marooned at airports for hours waiting for flights to take off. When airlines pre-cancel thousands of flights, as they’ve done during recent winter storms, they’ve done a relatively good job of letting affected passengers know to just stay home and stay warm.

Early notification of flight cancellations is also allowing more travelers to take advantage of an option airlines rarely trumpet: that passengers on canceled flights can opt out of any alternatives the airlines offer and get a FULL REFUND. That’s right. For example, let’s say you were booked on a flight from SFO to New York this past Monday for a Tuesday meeting, returning on Wednesday. If your flight was canceled on Monday and it no longer made sense to go to New York at all, you could refuse alternate flights and get a full refund.

The downside of this is that airline websites are still rather weak when it comes to handling the re-booking process, forcing many travelers to phone overburdened call centers and wait endlessly on hold. As a result of this weakness, I expect airlines to double up on current efforts to develop and roll out mobile applications that will allow passengers to re-book themselves on canceled flights from their smart phones.

Overall, despite all the recent bad weather and delays, there’s good new for air travelers here. I’d rather wait out a storm at home or in a hotel rather than at the airport. Plus, I’d be willing to accept a slightly longer delay to do so.

What about you?