Independence Air iClub - Happy Bags Service Promise

I just thought that this announcement deserved its own thread, instead of piggy backing on other threads...
So, what's the overall opinion? ^ or :td:

http://biz.yahoo.com/prnews/050502/dcm030.html?.v=7

DULLES, Va., May 2 /PRNewswire-FirstCall/ -- As a way to highlight its growing reputation for excellence in customer service and operational performance, low-fare airline Independence Air (Nasdaq: FLYI - News) is proud to announce a new service promise unlike anything that has ever been offered in the U.S. airline industry:

In the rare event that a customer's checked bag does not arrive at their final destination when they do, Independence Air will gladly offer a credit for future travel in the amount of the one-way fare paid for that flight, to be used by the customer any time within the next year.

As a way to kick off the new service promise, Independence Air is also introducing a new promotion today called the "Happy Bags(SM) Instant Win Game" that will run for at least the next month. Every checked bag on all Independence Air flights will be tagged with a special game piece. 500 winners will receive a grand prize of a roundtrip flight to any Independence Air destination. All other game pieces will contain a discount coupon for future travel. Full details and limitations of the "Happy Bags Instant Win Game" and the Independence Air baggage delivery service promise can be found at FLYi.com.

I just thought that this announcement deserved its own thread, instead of piggy backing on other threads...
So, what's the overall opinion? ^ or :td:

http://biz.yahoo.com/prnews/050502/dcm030.html?.v=7
.

^ for the idea, but :td: when it comes to being something that will "revolutionize" anything with other airlines.
After all, supposedly the bags aren't gonna get lot anyway, on any airline. So what, is this gonna make people root for their bags to be lost? Is it gonna make up for the bags not getting there any more than the other airlines do? I dunno--it just doesn't seem like that big a deal, certainly not enough of one that it would cause me to change my behavior (like, by buying a flyI ticket, which I've never done). I feel like that's what they need to be spending on, in order to survive.

But the instant win-promotion is nice, I suppose. THAT would make me change my behavior from carry-on to checking bags, were I flying the i :)

Anyone know what the terms are for the $20 discount coupon on the happy bags checked luggage tags? $20 off a future flight per checked bag sounds pretty incredible.

Nice idea, but how about giving everyone the coupon? Why make us check bags?

Nice idea, but how about giving everyone the coupon? Why make us check bags?

I'm pretty sure you will be able to sweet-talk the FLYI staff at check-in to get a coupon. After all, they aren't really giving you the coupon as a reward for checking the bag... its an incentive to fly DH again, whether you check bags or not.

Nice idea, but how about giving everyone the coupon? Why make us check bags?
go to flyi.com and click on the happy bags tab. after that, click on the instant game rules. there is an address to write in for a free game piece. how about them apples?

The biggest flaw I see in this campaign is that Independence Air underestimates the actual hassle (and negative customer impact) of a lost bag. Refunding the fare and hoping the customer will come back after a bad experience is a gamble. Although every airline works to minimize lost bags, all you need to do is do the math - multiply the number of lost bags each fixed time period and multiply it by the amount Independence Air will refund. Even if lost bag rates were the lowest in the industry, Independence Air stands to lose substantial revenue - precious revenue that it cannot afford to lose.

The unknown variable is how likely a refunded ticket due to a lost bag will lead disserviced customers to fly with Independence Air again. Is there incremental revenue to be had with this? I'm not too sure about that given that it's not likely that by refunding the fare as a credit, that you will get 100% of disserviced passengers back.

The unknown variable is how likely a refunded ticket due to a lost bag will lead disserviced customers to fly with Independence Air again. Is there incremental revenue to be had with this? I'm not too sure about that given that it's not likely that by refunding the fare as a credit, that you will get 100% of disserviced passengers back.

That is a good point; however, I believe most will come back... especially if they have a free segment credited to their account. Probably everyone in here has had an airline lose a bag, and even without a free flight have gone right back to the same airline... because you can pretty much expect the same thing at most airlines. Probably the deciding factor on whether a person flys an airline again after having their bag lost is how they are treated after the fact.
Whether the service generates revenue will have to be seen, but I think the chances are good. First, everyone gets a coupon for future travel... so sales should be boosted by that. Second, according to the DOT numbers DH has a 99.7% baggage match number, so for every 1000 passengers that fly, DH will only have to credit 3 segments. Third, DH isn't really refunding anything... they are crediting your account with a free flight segment for use up to one year from when your bag was lost. So no money actually goes out, however since most people don't fly one-way segments there will probably be revenue generated from the purchase of another one-way segment for the person to get back. Also, there will be that small percentage that don't fill out the request for a credit form, or who never use the credit.

go to flyi.com and click on the happy bags tab. after that, click on the instant game rules. there is an address to write in for a free game piece. how about them apples? Sweet! Specially since next time I flyI I know who to contact to make sure my flight is protected. :D

Whether the service generates revenue will have to be seen, but I think the chances are good. First, everyone gets a coupon for future travel... so sales should be boosted by that.

Except one thing to consider is whether or not this is incremental revenue or not. Assuming that you get a credit for $200, you will likely use it up (which is Independence Air's expectation and assumption) in the future, but what's to say that it's $200 that they would have gotten in addition in the future? Therefore, instead of getting $200 + $200 for two separate trips, they're actually getting only $200 for two separate trips because the first trip was refunded as a credit.

I just read about this promotion and I think it's a great idea. It's nice to have an airline promise something to you, and take actions for their responsibilities. I give them credit.. I don't think any other airline has promised anything like this before?

I flew yesterday and checked two bags to get the happy bags coupons. The $20 off coupon is applied at the end of the booking as a form of payment, and it appears to be combinable with other discounts that are accessed by a special link to the flyi site (i.e. the 20% off corporate fares and student fares). The coupon says purchase by 6/30 and fly before 8/1, but I am not sure if the fly-before is enforced by the web site.

I flew yesterday and checked two bags to get the happy bags coupons. The $20 off coupon is applied at the end of the booking as a form of payment, and it appears to be combinable with other discounts that are accessed by a special link to the flyi site (i.e. the 20% off corporate fares and student fares). The coupon says purchase by 6/30 and fly before 8/1, but I am not sure if the fly-before is enforced by the web site.

Oh that's cool you can combine discounts. i feel like they never let you combine coupons or whatever - especially when you go shopping. So did you book another flight? $20 off is not a bad deal - covers part of the taxes at least!

well I flew Independence for the first time this week:

BNA-IAD followed a day later by IAD to White Plains then a day later IAD-BNA

Somehow they managed to forget my checked rollaboard on the way home. Thankfully the golf clubs DID make it!

The local IFLY employee tried to convince me that I was SOL since IAD hasa 45 minute bag check in policy. But I checked in 49 Min. before the flight. The poor gal who also missed her bag checked in a 44 minutes before the fliight.

They gave me a form to mail in to get the credit.

hersh

So they are crediting that portion of your trip?

The local IFLY employee tried to convince me that I was SOL since IAD hasa 45 minute bag check in policy.

I do not use Dulles that much because I absolutely hate that airport. But since when is there a 45 minute bag check limit? Is that an Independence thing? The last time I used Dulles was this past fall and I had no problems checking bags with United right at the 30 minute mark.

I do not use Dulles that much because I absolutely hate that airport. But since when is there a 45 minute bag check limit? Is that an Independence thing? The last time I used Dulles was this past fall and I had no problems checking bags with United right at the 30 minute mark.
when i worked for UAL at IAD there was a 45min cut off for checked bags

I do not use Dulles that much because I absolutely hate that airport. But since when is there a 45 minute bag check limit? Is that an Independence thing? The last time I used Dulles was this past fall and I had no problems checking bags with United right at the 30 minute mark.


I would assume that the 45 minutes is so that there is enough time for TSA to scan the bag and get it back to the airline.

Baggage handling statistics for April were posted, which is the month before Happy Bags, but still interesting. These are from John McCorkle's newsletter.

MISHANDLED BAGGAGE:
(Reports per 1,000 passengers - best to worst)
1- Hawaiian ... 2.90
2- Independence ... 2.91
3- Continental ... 3.05
4- United ... 3.08
5- JetBlue ... 3.10
6- Southwest ... 3.25
7- Alaska ... 3.31
8- America West ... 3.39
9- ATA ... 3.58
10- AirTran ... 3.63
11- Northwest ... 3.72
12- American ... 4.69
13- ExpressJet ... 5.19
14- Delta ... 6.51
15- American Eagle ... 7.67
16- Skywest ... 8.26
17- Comair ... 9.83
18- US Airways ... 10.91 (never underestimate the power of US)
19- Atlantic Southeast ... 15.75
(Average: 5.18 reports per 1,000 passengers)

Looks like they're heading in the right direction. May numbers will be interesting.

Even more impressive when you consider that Hawaiian Airlines has an advantage in that they have very few weather delays and not nearly as many connectors. If all factors were equal I think FLYI would have a good shot at being at the top of the list.
^

Looks like thier efforts are paying off! And to think, they have only been around for a year, yet are ahead of all of their competitors.

May Numbers, and these also include adding service to SFO, SJC, SEA, and LAX on 1 May (SAN had been in in operation for two weeks of April):MISHANDLED BAGGAGE:
(reports per 1,000 passengers - best to worst)
1- Hawaiian Airlines ... 2.78
2- ATA ... 3.00
3- JetBlue ... 3.16
4- Independence Air ... 3.20
5- America West ... 3.27
6- Continental ... 3.30
7- Southwest ... 3.46
8- Northwest ... 3.58
9- AirTran ... 3.59
10- United ... 4.00
11- American ... 4.58
12- Frontier ... 4.60
13- ExpressJet ... 5.10
14- Alaska ... 5.32
15- Delta ... 6.21
16- American Eagle ... 7.89
17- Skywest ... 8.11
18- Comair ... 8.37
19- US Airways ... 9.73
20- Atlantic Southeast ... 14.50
(Average: 5.12)
With "Happy Bags" increasing the number of people that would report and the increased checked baggage during the promo, I'm surprised how well things held up. To add the west coast stories on top of that, they must be doing really well along the east coast.

Wow - this is great and such a relief..Losing your bags is the worst thing ever, seriously. Ruins your whole trip. It's good to know that an airline is doing something about it and succeeding. Thanks for posting that!