Dotcom making waves with travel offer
Only time will tell, but the Internet startup is achieving the notoriety it sought with its offer of cash guarantees to travelers who fall victim to all sorts of inconveniences, from flight delays to the wrong meal service.
Industry insiders are skeptical about the so-called Biztravel Guarantee and say it's a promotion that won't last. But company officials maintain the offer will remain available indefinitely, describing it as part of their effort to deliver customer support to small business.
"Customers should be compensated when a provider fails to deliver a service, and according to our customers they prefer cash compensation," said spokesman Justin Shaw.
Industry observers agree that service is an important component. But they say business travelers are more interesting in arriving at a destination on time than receiving cash awards.
"A company that has a reputation for good service should want to convey that service as a competitive advantage. By differentiating by price they aren't doing it," said Joshua Friedman, senior research analyst for IDC.
Still, Biztravel.com says the initial customer response to the offer has been strong, with a rush of e-mail messages coming in every day.
Biztravel.com said it is diverting up to 75 percent of its advertising budget to help cover the guarantee.
The five airlines were chosen based on the geographic locations of a majority of Biztravel.com's customers, as well as the company's level of confidence in the airlines' service. Biztravel.com has no arrangements with the airline carriers so the carriers have no obligation to Biztravel.com's customers as a result of the guarantee.
Biztravel.com is not planning to extend the service to other airlines but may offer similar refunds with other travel suppliers such as hotels and car rental companies.
Biztravel.com is offering a $100 refund for flights delayed more than 30 minutes; $200 for flights more than an hour late; and a complete refund for flights more than two hours late. Canceled flights on the day of departure will also result in a complete refund. A seat assignment or meal request that is not honored will result in a $25 refund. If your baggage is lost and you need to purchase necessities, you will be reimbursed for up to $200.
The payments don't stop there; the company also offers refunds for any inconveniences while making travel arrangements on Biztravel.com. Users are refunded $10 for waiting on hold for more than 90 seconds; for not receiving a response to an e-mail request within two hours; for not connecting to an associate from an online chat; or for not receiving a call back. Unprofessional service or no resolution from customer service gets you $50, and if you don't receive your ticket you'll get $25.
Biztravel.com will police these refunds by trusting the word of their customers. In order to collect the refunds, customers must call an 800 number or visit the company's Web site. Payments will be mailed out three weeks after filing. The company believes less than 10 percent of ticket buyers will file for a refund. The service won't cover flight cancellations due to aircraft mechanical problems.