Industry self-harm through consumer vulnerability in travel sector
In the midst of the coronavirus crisis, Klaus Müller, Germany's top consumer advocate, has criticised the airline industry for causing trouble for travellers. He described this situation as a scandal, with consumer centres still receiving complaints about paid flights that were cancelled but not refunded by southwest airlines, delta airlines, united airlines, and even google flights.
Müller believes that some of the difficulties faced by the travel industry during the pandemic are self-inflicted. He stated that companies wanted to pass the costs of the crisis on to consumers one-to-one, which he considered a strategic mistake.
The travel industry, according to Müller, relied on mandatory vouchers for canceled trips during the pandemic. However, he suggested that setting up a travel security fund in spring would have been more than necessary to provide liquidity to companies.
The head of the Federation of German Consumer Organizations (VZBV) also stated that the situation for the travel industry is bleak. Müller, as the head of the same organisation, shared this sentiment.
Notably, Lufthansa caused significant customer problems with flight cancellations during the COVID-19 pandemic. The airline annulled many flights and charged extra fees for rebooking replacement flights, which was ruled a violation of EU passenger rights regulations by the German Federal Court of Justice in 2023.
Complaints about trips and flights increased by twentyfold at consumer centres during the peak of the pandemic compared to the previous year, highlighting the extent of the issue.
However, there's a glimmer of hope now that the travel industry is gradually rethinking its consumer-unfriendly cancellation practices. Müller expressed optimism that the industry will move towards more consumer-friendly policies in the future.
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