How Qantas Turned a $20,000 Mistake into a PR Opportunity
summary
Qantas, the Australian airline, recently encountered a coding error that resulted in the sale of first-class tickets at an 85% discount. The mistake allowed approximately 300 customers to purchase return flights between Australia and the US at a significantly reduced price, costing only a few thousand Australian dollars compared to the usual $20,000 fee. The fares remained on the website for about eight hours before the error was identified.
Under Qantas's terms and conditions, the airline has the right to cancel bookings if a pricing error is evident. Instead of outright cancellations, Qantas decided to rebook affected customers in business class at no extra cost or offer a full refund. The airline stated this decision as a "gesture of goodwill," aiming to maintain customer satisfaction. Although customers will not receive the full first-class experience, they will still enjoy business-class services at a significantly reduced cost, approximately 65% less than normal.
This incident isn't unique to Qantas; other airlines have faced similar situations. In 2019, Cathay Pacific honoured business-class tickets mistakenly sold for a fraction of their value. Conversely, British Airways canceled tickets sold for £1 instead of the correct fare. These differing responses highlight the challenges airlines face when handling pricing errors and maintaining customer trust.
Your key takeaways
Implement robust error-checking: Businesses should use advanced systems to detect pricing mistakes and prevent costly errors. For example, implementing software that flags unusual price changes can reduce risks.
Have clear terms and conditions: Well-defined policies help protect companies from legal issues when errors occur. Explicitly stating rights regarding pricing mistakes helps manage expectations and offers legal protection.
Focus on customer service: Offering alternatives or compensation when mistakes happen can maintain trust and mitigate negative publicity. Qantas’s decision to rebook customers in business class is a good example.
Respond quickly and communicate clearly: Prompt communication with customers about errors and their options is crucial for minimising backlash and maintaining reputation. A swift response strategy helps contain the impact of mistakes.
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