Here’s a broken business model: Entice your best customers into an affinity club with discounts and goodies. Then, when you have them corralled, mistreat them so badly they will hate dealing with you. Such is United Airlines. And their Star Alliance partners, too.
Trying to book vacation flights has landed me in a nightmare worthy of Franz Kafka. After a mere four hours juggling schedules, fares that shifted by the minute, oddball airlines, and mismatched timing, I purchased three economy-class tickets from San Francisco to Oslo and then Warsaw back to San Francisco on Swiss Air.
“Can I upgrade these tickets to Business Class?” I asked the Swiss Air rep. “No problem, sir, you just call United for that.” I asked again just to make sure. No problem.
I got the e-tickets and called United. An agent named Kunal told me I was ineligible for upgrades to Business Class. I had “Q” tickets, but I needed “B” tickets. There was nothing he could do; his system was “restricted.”
I called Swiss Air back and explained the situation to Lorna. “You ordered these tickets through a travel agent?” No, I explained. I purchased them from Swiss Air and was assured I could upgrade them. Long pause. I would need to pay an additional $1,193 per ticket to change them from Q to B. Wow. The original tickets had cost only $1,736 per person. I explained that I didn’t feel very good about this because Swiss Air had misinformed me to begin with. There was nothing she could do; I had non-refundable tickets. I handed over my credit card number and paid $3,579 for what I thought I had already purchased.
I called United’s Mileage Plus to upgrade. This is a manual process; you do it one step at a time. San Francisco to Zurich, 25,000 miles per passenger, check. Zurich to Oslo, 10,000 miles per passenger, check. “Hold it! You’re charging me for each segment? I’m flying from San Francisco to Oslo. Isn’t that one flight?” No, upgrades are per segment.
I explained that I would run out of miles at this rate. Let’s apply my miles to the long segments, San Francisco to Zurich and Zurich to San Francisco. Miranda said I could not do that. She had already upgraded our Zurich to Oslo segment. The only way to take back an upgrade would be to cancel the tickets with Swiss Air, buy new ones, and reapply the upgrades. I figured the odds of that working were less than 50-50. What if my miles went down some bureaucratic rathole?
“Okay, Miranda, I have only 65,000 frequent flier miles left. Let’s upgrade two of the Zurich to San Francisco return flights.” She said that was not possible. Since three of us were flying together, the choice was to upgrade all three or none. (Show me where that monkey wrench is documented on the UAL site.)
I’m halfway there and am now searching for ways to amass another 10,000 miles. If I have to, I’ll just buy them.
Ah ha! I have a plan. My wife flew to Europe with me in May and to the East Coast with me in July. We’ll grab her Frequent Flier miles. We called United, got her Frequent Flier number, and set up a new profile. I gathered the flight numbers. First, the trip to Europe on Swiss, an Alliance Partner. It was turned down; I know not why.
We’re not done yet. I went to the UAL Mileage Plus site and entered a claim for our US Air flight to the East Coast.
Okay. I’m beat. United wins a pyrrhic victory. I broke down and bought the 10,000 miles I needed. There’s a hitch. The Milage Plus website warns that I needed to wait 48 hours for the miles I purchased to show up in my account. In fact the site asked me to acknowledge that…
- I understand that it will take 48 hours for the miles to post to my account. We cannot honor any requests to expedite mileage posting – no exceptions will be made.
- I agree that this is a non-refundable purchase – no refunds will be granted.
Geez, guys, I’m just trying to buy from you.
I received an email from United at 9:11 pm yesterday, August 18, that the miles I had purchased had been credited to my account. I immediately called Mileage Plus to upgrade our return flights to business class. I could not do it; business class was sold out.
First thing the next morning I called Swiss Air. Were there three seats in business class from Zurich to SFO the previous day? No. The day before that? No. How much would it cost me to cancel all three of these tickets? I would receive a refund of $1,250 per person. What? With the status upgrade, I have paid $2,925.57 for each of these tickets. What would it cost to change the return flight? The line went dead.
I called United. If I cancel flights that have been upgraded, when do I receive the miles back? I would receive them as soon as I paid $150/person to “replenish” my Mileage Plus account.
Now what? I called Swiss Air back to double-check on their penalties for canceling our flights. Mary at Swiss Air told me if I cancelled the tickets, I would I receive a refund of $315 (for tickets for which I paid  tickets $2,925 apiece.) $1,190 of that ticket price was an upgrade to a class that was eligible for upgrade to Business Class even though it turns out Business Class is full for the return portion of the flight. I have given up on the idea of getting what I’d wanted and paid extra for.
We will sit in cattle-car class on the 14-hour flight from Zurich back to San Francisco. This was supposed to be a fun vacation.
WTF? Airlines offer Frequent Flier miles as an incentive to fly with them. Then they put these byzantine restrictions in place. For international redemptions, everything’s manual. It’s a time waster. It’s inefficient. The whole deal has me royally pissed off. Is this any way to run an airline? I wish JetBlue or Southwest flew to Europe.
Here’s dysfunctional marketing in action: Cull out your best customers, the repeaters who make the airline profitable. Then throw obstacles in their path, demonstrate your inefficiencies, put in surprise restrictions, and do your best to drive those good customers away. I fly a lot but I’m going to avoid United at all costs. In fact, I’m going to cancel my Business Class reservations from SFO to Rio the first week in October right now. And I’ll advise the sponsor of my flight to Portugal not to utilize United. Maybe I should write a song, “United Breaks Relationships.”
See Untied for more about United screw-ups
Related posts:









{ 9 comments… read them below or add one }
Jay… such a saga! Hard to believe these companies can remain in business. The information systems and arcane rules they devise to implement their marketing campaigns are incredible. You are a warrior for even attempting to make it work. I gave up years ago. I no longer expect “loyalty programs” to provide rewards. I get a few bucks through my credit cards and ignore any service provider other than the best quality at the best price despite loyalty pay-off claims. I don’t know if I am any further ahead, but at least I’m less bothered by the “system” of marketing smoke and mirrors.
Oh Jay, been there, done that.
Not only does it cost money, think of all the time and aggravation.
These partnerships aren’t really partnerships. They don’t like each other. They don’t observe each other’s rules. They don’t bridge or create positive experiences for us when we must move between these “partners.” I’ve run into this with Lufthansa and United; Air Singapore and United; and a few others I can’t remember.
What they say is that their computer systems do not communicate with each other. But what I think is that their people don’t, won’t.
Somehow this craziness serves them (look at the money you spent). Guess it does in the short term. But in the long term, not so much.
Hope this pain prior to the trip buys you a pleasant, hassle free trip.
Hi Jay,
Whilst I empathise with the struggle you have experienced with this service (and I use that word very loosely) provider, please don’t forget that you are still going on what sounds like a wonderful holiday, one that my family and I will only ever be able to dream about.
As for the reference to ‘cattle class’, if I ever *do* manage to go on an overseas holiday then that is the class that I will be travelling in, along with many other decent, hardworking folk.
Be sure to stop by my seat and say “Hi”
Been there, done that. Had a flight to Oz, but couldn’t upgrade to Biz with my miles without upgrading ticket first. Same things with hotel points. Have a bunch, couldn’t use them on a family trip to Europe, no rooms available.
I’m hooked on the flying perks of membership, but I wish the travel perks were better. End up paying the full miles for tickets/rooms (not the touted ‘discount’ quantities), and upgrading is a joke. Couldn’t even take all my family on the Economy Plus seats, only two of the four seats were eligible.
Certainly toying with notion of blowing my miles quickly, and then flying best overall deal (Virgin gets kudos from all I hear, and Emirates is excellent). Glad I’m not tall is all I can say.
email sent:
David A Coltman
Senior Vice President, Marketing
United Air Lines
Chicago, Illinois
David,
I hate to bug you, but your outfit is an example of anti-marketing.
Can you do anything about this? Or is that just life in the airline business these days?
http://www.internettime.com/2011/08/united-breaks-relationships
jay
Jay Cross, HBS 1974
Damn. Another dead email address. These airline guys turn over quickly.
Charles M. Duncan
VP Transatlantic, Middle East & India
United Air Lines
Chicago, Illinois
Dear Charles,
I hate to bug you, but your outfit is an example of anti-marketing.
Can you do anything about this? Or is that just life in the airline business these days?
http://www.internettime.com/2011/08/united-breaks-relationships
jay
Jay Cross, HBS 1974
email sent:
Gordon Mason Bethune
Chairman and CEO
Continental Airlines
Houston Texas
Gordon,
This is not what they taught us at HBS:
http://www.internettime.com/2011/08/united-breaks-relationships
I know the other guys have their name plate over the door, but can you do anything about this? Or is that just life in the airline business these days?
This email bounced. I also found out that Bethune stepped down from Continental in 2004. Interesting guy. The Seattle Times had reported, “Renowned for collecting traffic tickets while racing his Porsche around Seattle during his five-year Boeing stint, Gordon Mason Bethune is clearly a man addicted to speed. Bethune, 56, said the car is well-engineered and meant to go fast, like his favorite airplane, the Boeing 757. Now chairman and chief executive of Continental Airlines, a Boeing customer, Bethune often pilots 757s and 767s on delivery flights from Seattle to Continental’s headquarters in Houston to get speed kicks.”
Doesn’t sound like he’d have the patience that UAL/Swiss are putting me through.
Holden E. Shannon
Senior Vice President
Continental Airlines
Houston, Texas
Holden,
This is not what they taught us at HBS:
http://www.internettime.com/2011/08/united-breaks-relationships
I know the other guys have their name plate over the door, but can you do anything about this? Or is that just life in the airline business these days?
Thanks.
jay
Jay Cross
HBS MBA ’74
P.S. This one bounced, too.
Hi Jay. I hear you loud and clear on this situation. When we were booking our flights to our destination, we found the same thing happened to us when we asked to be upgraded to business class. They said we can not use our air miles and boy do we have a lot of them – we would have to pay additional cost and the upgrade was almost the same price as the original tickets.
So needless to say. “Never again”
{ 1 trackback }