We live in a technological age dominated by the computer. Mobile phones evolved into hand held computers and virtually everyone in the western world owns one. Thanks to the Internet, humans can do just about anything online and web sites cater for this demand.
There is a term called GIGO in IT which stands for “garbage in, garbage out”. As perfect as technology is, it is only as good as the information entered into it and humans are responsible for any errors. This leads me to the question – is it right to benefit from computer mistakes?
Yes, of course!
The biggest goal of a frequent flyer is to hear about a mistake fare, book it and then have it honoured by the airline. A few years ago, Etihad mistakenly offered flights for $187 between New York and Abu Dhabi with connections as low as $277. Word spread like wildfire and many people booked the tickets.
Happily, Etihad honoured the fare and people were able to travel. There have been other instances where the fares have been honoured and some instances where they have not. It is purely a decision made by the company depending on the situation.
The vast majority of people would probably agree with this. After all, who in their right mind will call their airline or whomever to report you just got something for nothing?
No, it is not right!
Interestingly, many of the people who are first to crow about taking advantage of an error in their favour are also the first to squeal like a stuck pig when they are short changed in any way.
When frequent flyer points post incorrectly, what do you do? You contact the airline and demand that the missing points be reinstated. Any kind of overcharge is charged back or disputed directly with the travel provider. The age of the customer is always right means they’re not only right, but can also happily enjoy any errors in their favour and sit back and reap the benefits.
It’s only right as consumers are allowed to return or dispute any errors made the other way. Isn’t it?
Overall Thoughts
Companies are in a lose-lose situation here. Accidentally load a mistake fare into a computer or award extra miles by accident and you are doomed. Any attempt to cancel or reverse this will results in a consumer backlash and loss of goodwill. By comparison, accidentally over charge or have a problem delivering an advertised product and you have to pay for it. The customer is king! What do you think?
Thanks for reading and if you have any comments or questions, please leave them below!
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I have consulted with large companies for decades, helping them implement business processes and IT systems, including the avoidance of errors like this. Companies have a choice to either invest in processes/systems to prevent errors – or take the risk of errors and pay for them. It’s a pure business calculation whether it’s cheaper to put the controls in and avoid errors or not put them in and pay the cost of errors. So, there is no such thing as an “honest mistake” in business…
Once a purchase of an air fare or hotel rate is complete, you have a contract and companies are accountable to deliver on that contract. If they didn’t put in the process/system to prevent an error, they have to live with the consequences. That’s how business and the law work. A contract is a contract and once you allow one side to withdraw unilaterally, you take away the very trust and foundation how business is done.
In addition, in a time when low-cost carriers frequently offer fares that are almost all taxes & fees with only a few bucks for the base-fare and airfare pricing is so complex, a consumer can’t be expected to know whether a deal is “good marketing” that attracted the right number of passengers, “bad marketing” that attracted too much attention or poor business process/IT systems that resulted in an unintended deal…
I really appreciate you taking the time to make this comment. It is a really informative read and the points you make are completely valid and have added a new dimension to my thinking. You are correct when it comes to the cost/benefit analysis and the risks involved. Some risks are clearly factored in to the way business is done and becomes acceptable risk as a result.
The points you make take me back to business law in college and are completely valid. I really liked the fact that you mention the fact that it is very difficult to determine whether something is or is not a “sale” fare or a “mistake” – the onus shouldn’t be on the consumer to determine that. Once an invitation to treat has been made then if that is accepted it should be honoured. Again, great comment – really! Thanks very much!
I think there is nothing wrong for a company to correct an honest data entry error and revoke mistake fares – as long as it was clearly an honest mistake. This is no different than if they accidentally under credited or over credited someone’s account for a service provided.
If a clear, honest data entry error mistake is made, it is completely fair to fix it without having to honor it, especially when those who try to take advantage of this mistake know full well that it was probably a mistake.
Anyone who complains about a company revoking a sale that was caused by a data entry error is unfair and trying to take unfair advantage of a simple honest mistake.
I don’t work for any airline, or even a big company, I just think that we should be fair with everyone we deal with.
I like the way you think, because I also have that philosophy of being fair where possible in all situations. I agree with everything you’re saying here because human error does happen and no-one should really be penalised by it be it a company or an individual. There are cases where both things have happened – scandalously low fares have not been honoured by the airline and in some cases where it has. I guess it comes down to damage limitation at the end of the day. Thanks for the comment!