Fees Lead LCCs to Lose in Public Evaluation; More News

Add-on fees have led to a change in public attitudes toward low-cost carriers in Europe, according to a research company that tracks such things. Kaizo Advocacy Index surveys found that passengers no longer view low-cost carriers as less expensive alternatives to legacy carriers once they add in the fees that have been imposed.

What is interesting about this research is the fact that European carriers were the leading edge of imposing ancillary fees on customers, a move enthusiastically embraced by U.S. legacies. The findings should give solace to JetBlue and Southwest that have stubbornly resisted over burdening passengers with fees. The two airlines have been roundly criticized by analysts who contend they are leaving good money on the table.

The online reputation of budget airlines has nose-dived in recent months as disquiet grows among customers about misleading charges. The Research into the best online brands reveals Virgin as the best carrier, with budget companies such as Ryanair performing appallingly.

The latest Kaizo Advocacy Index - a twice yearly assessment of online reputations - saw Virgin Atlantic as the sole airline to emerge with a positive score (67%), the fourth consecutive time they have claimed the top spot. Budget airlines fared badly with Easyjet dropping 32 percentage points to -23% and Ryanair falling 46 points to -62%.

The nndex looks at 20 leading brands across four industry sectors. It found that disgruntled passengers are becoming increasingly vocal with their criticism over budget carriers' hidden charges and poor complaints handling.

"When things go wrong, the internet provides an easy platform for people to vent their frustrations. Brands need to monitor closely and react quickly to negative comments online,” said the managing director of Kaizo. "Social networks such as Facebook and Twitter are providing an ever-growing platform for consumers to register dissatisfaction, allowing firms who collate fares from a number of different sources (such as DialAFlight) to keep tabs on public reaction to the specifics of a particular service.

“One of the major bugbears for the customer is the tendency for companies to avoid direct contact with their market,” the company continued. "Brands that openly engage with customers online will find themselves promoted more often than those that hide behind streams of corporate news. The sheer volume of information also means brands need to work hard to be heard online. Identifying what consumers are saying and where they are saying it is an important first step to working out where to focus proactive online communication."

“These airlines are no longer low cost,” said the company Dial-a-Flight, a leading UK travel companies.. “They are simply no frills. We are now seeing a big demand from people who have been booking flights directly online for the last couple of years. They've suddenly realized that once you have added all the online check-in charges, baggage charges, seating charges and so on, then scheduled flights are often cheaper and you get treated like a human being!'

Despite the findings, the recession-fuelled bookings decrease shows signs of slowing, according to DialAFlight. The beginning of the year showed sales were down 16% from last year, while the last 6 months shows only an 8% decrease.

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