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Entries in Customer Satisfaction (2)

Friday
Jun152012

Low-Cost Carriers Flying High in Customer Satisfaction

Scott Olson/Getty Images(NEW YORK) -- It’s no secret that low-cost carriers have won over the hearts of travelers everywhere.  But it may not be for the reason you think: When it comes to price, there’s typically not a whole lot of difference on routes where low-cost carriers compete with the legacy carriers.  Sometimes, the low-cost carriers actually cost more.

But a new survey from J.D. Power and Associates found that cost, as well as fees, are just two of the factors that led to higher customer satisfaction.  More than 70 percent of passenger satisfaction was driven by other parts of the overall experience, namely, a carrier’s policies and people.

The study measures overall customer satisfaction based on performance in seven categories (in order of importance): cost and fees; in-flight services; boarding/deplaning/baggage; flight crew; aircraft; check-in; and reservations.

Two low-cost airlines, JetBlue and Southwest, ranked highest and performed well in many categories that had nothing to do with price and fees.  JetBlue scored well for in-flight services and aircraft; Southwest for boarding/deplaning/baggage, check-in and reservations.

The absence of fees, however, does make a difference.  Satisfaction for airlines that charge for bags was 85 points lower, on average, than those that don’t.  Among traditional carriers, Air Canada, which also allows one free checked bag, performed well.  The two airlines that scored highest -- JetBlue at number one and Southwest at number two -- don’t charge for a first checked bag.  Southwest doesn’t even charge for a second checked bag.

Alaska Airlines came in first among traditional carriers for the fifth consecutive year.

Overall, satisfaction with low-cost carriers rose for the third consecutive year, while satisfaction with traditional carriers fell.  Among the traditional carriers, the only one that increased its satisfaction ranking was Delta.

“Despite the need for some carriers to charge unpopular fees, they can gain a competitive advantage by focusing their efforts on efficiency and positive interactions with the staff and crew,” said Jessica McGregor, senior manager of the global travel and hospitality practice at J.D. Power and Associates.

Here are the rankings for traditional carriers:

1. Alaska Airlines
2. Air Canada
3. Delta Airlines
4. Continental Airlines
5. American Airlines
6. United Airlines
7. US Airways

And those for low-cost carriers:

1. JetBlue Airways
2. Southwest Airlines
3. West Jet
4. AirTran Airways
5. Frontier

Copyright 2012 ABC News Radio

Wednesday
Dec282011

Gap, Overstock Biggest Losers in Online Customer Satisfaction

Hemera/Thinkstock/PRNewsFoto/Netflix/Gap/Overtsock.com(NEW YORK) -- With the end of the holiday season at hand, Gap.com and Overstock.com ranked at the bottom of a survey of customer satisfaction with online retailers. Amazon topped the list with previous winner, Netflix, dropping after a customer service blunder earlier this year.

Analytics company Foresee on Wednesday released the seventh annual results of its ForeSee Holiday Study.

Amazon gained two points to score 88 on the study's 100-point scale. Netflix fell 7 points to a score of 79. The movie-rental company lost 800,000 members of about 20 million after it announced a new pricing plan and streaming service in October. Netflix's stock price also took a tumble. The company and CEO Reed Hastings has since canceled its plans and apologized to customers.

The survey results are based on more than 8,500 responses from visitors to the top 40 e-retail websites, according to sales revenue as reported by Internet Retailer's Top 500 Guide.

In addition to Netflix, both Gap.com and Overstock.com had the largest declines in satisfaction, leaving them with scores at the bottom of the list. Gap.com fell 6 percent to a score of 73. Overstock.com was down 5 percent to 72.

Amazon, Gap and Netflix did not return a request for comment. Overstock declined to comment about the survey.

The largest gains in satisfaction went to TigerDirect.com, up 8 percent to 79, and JC Penney, up 6 percent to 83.

Copyright 2011 ABC News Radio







ABC News Radio