Chapter 1431： Solve the oversell problem

Delta Air Lines’ overbooking has always been a big problem, and there has never been a good solution. Not only a few days ago, Delta Air Lines caused troubles due to overbooking. Not only was it reported and complained by passengers, but it was also a Twitter fan. I was eyeing it, and a series of videos and soft texts created a crisis for Delta Airlines.

As a result, Delta Air Lines' stock price fell by nearly 10% in nearly a week, and the loss was not disastrous.

For this matter, Yang Cheng did not get upset, and made a lot of calls to pressure the executives without much improvement.

In the end, money was spent to solve the problem. The big V lion who was messing up opened his mouth and asked for a $1 million hush fee. If he wanted to reverse the public opinion, he had to add another $1 million.

Moreover, this guy is a ghost, and does not give Delta a chance to find loopholes. Want to sue him for blackmail? No doors~

In any case, the money has finally seen the effect, at least the public opinion crisis has passed temporarily, and the lost stock price will hardly rise back in a short period of time, unless the major shareholders protect the market.

However, Yang Cheng has no spare money to stimulate the stock price recently. He can only force the management of Delta Air Lines to come up with a practical reform plan to completely solve the problem of oversell from the source.

Burns seems to be very concerned about this issue. Delta Air Lines is a big gas consumer. Although the proportion of jet fuel purchased by ExonMobil has been reduced because of North Sea Oil, it is still a major customer. Burns doesn’t want all of it. Lost.

Yang Cheng spread out her hand, "The management thought of a way that was not a solution and took cash compensation."

Abramovich is undoubtedly more concerned than Burns, and blames him for being busy with things in the UK recently, not paying much attention to Delta Air Lines news, anyway, he purchases a lot of crude oil every month, he has not been too worried, who thought There was such a drama.

"How to compensate? Full refund?"

Yang Cheng nodded, "Almost, when the flight is overbooked, Delta will let passengers decide how much compensation is acceptable.

For example, if you take a flight from Minneapolis to Philadelphia, you may encounter overbooking when checking in online.

It depends on how many cash coupons you are willing to accept to change the itinerary, take a later flight, 500, 300, $200, or less~

If you choose 500 greedily, we will also refuse the transaction because it exceeds the compensation range.

Of course, you can try your luck, check in at the airport early, and take up your seat first, hoping that a certain passenger cannot board the plane for some reason. "

Burns and Abu looked at each other, obviously not understanding. Yang Cheng wondered if he was speaking Chinese just now?

I had no choice but to reorganize the language and say, "Probably when passengers check in for overbooked flights online or at the airport self-service check-in machine, the system will automatically ask the guests how much compensation they are willing to accept and become volunteers for overbooked flights. , Thus giving up your reservation.

There will also be a reminder that Delta will accept volunteers with low bids first.

Then when you arrive at the boarding gate, the boarding gate staff will pass a passenger list that has been prepared and announce that there are passengers who are willing to wait on the list.

In other words, if you bid low enough, you will be on the list.

By allowing passengers to voluntarily bid on their own reservations, it is basically guaranteed that volunteers who give up their seats can be found at the lowest price every time. This price is likely to be the floor price. "

Abu couldn't help but vomit, "Passenger's brain is short-circuited? Why accept such an unfair bid?"

Burns immediately said, "If the passengers reach an agreement, it will be 300, what do you do?"

Yang Orange smiled, "This assumption does not exist. You can cooperate with your friends, but can you reach a consensus with a hundred passengers? I think it is very difficult.

Also, wouldn’t it be better to let the guests decide the value of their time?

From the perspective of human nature, people who are already on the plane must hope that the time is the most flexible, and the least affected guests will take the initiative to give up their seats when they get off the plane. Do not delay the normal take-off of the plane. People's time is of different value. People must have a clear understanding of this value.

This is a comprehensive approach that we obtained after referring to the solutions of multiple airlines. When United Airlines employees use loud speakers to request a certain number of volunteers at the boarding gate, it is very easy to see. It is better for the passengers of United Airlines to rush to the gate counter, or it is better for the passengers of Delta to wait for the flight to board with a satisfactory compensation. "

Burns seems to be able to understand the benefits of this system, but Abramovich still doesn’t quite understand. In his opinion, why people should take the initiative to give up their fair seats and delay the valuables for a worthless compensation. Time?

Seeing his puzzled face, Burns smiled and said, "I think this is a pretty good way. By extension, people can even use Delta’s system to measure the value of time. What is your loss for the flight?

This is a very worthy number!

For a father who is preparing to attend the wedding of his daughter, Delta's estimated compensation will not allow him to actively change his itinerary.

But for a college student returning home from the summer vacation, the extra hours spent at the airport newsstand is basically negligible.

Delta's auction system, which is invisible to travelers, will definitely not allow such college students to bid higher than other travelers who are unwilling to be volunteers.

However, what if no one is willing to bid, or if some reasons force the airline to switch to small aircraft for flights? "

Yang Cheng said without hesitation, “Delta still needs to make a request to the guests at the last minute. Usually, we will reach a consensus with the guests as early as possible.

Take the trouble we encountered this time as an example. Delta encountered a severe shortage of seats due to a week-long storm at its main hub Atlanta Airport.

If our internal bidding system can be put on the shelves, we can formulate three levels of compensation of 800, 1000, 1350, and give passengers who voluntarily give up their seats, and then cooperate with Express Bank and Best Buy to give away some shopping vouchers or discount activities, etc. I believe that we can solve the problem of passenger backlog with a very calm attitude. "

Burns nodded with admiration, "Great concept and design. I can't wait to see this system go on sale soon. This will greatly improve the quality of operations. You earn a little bit more, and we will also enjoy it, if necessary. , I am willing to help you promote this system across the United States."

Yang Cheng would naturally not refuse, and readily agreed, "We will discuss it in detail when we return to the United States.

However, we have internally predicted that if this system is successfully launched, Delta's performance in passenger handling will be much better than other competitors such as United Airlines. Delta's passenger waiting rate will increase, rather than involuntary endorsement rate. Will be much lower than competitors.

According to statistics in the past few years, about 96 out of every 100,000 passengers in Delta have to sign for late flights because of overbooking of aircraft, United Airlines has 95/100,000 and American Airlines has 100,000. 50/50.

We are confident to reduce the number of involuntary endorsements per 100,000 passengers of Delta to single digits. In this way, Delta can allow thousands of guests to voluntarily endorse subsequent flights rather than involuntarily endorse them. There are thousands of fewer people than competitors. "

Abu asked, "Is it important to have a low involuntary endorsement rate?"

Yang Cheng said categorically, "Of course, this will not only allow airlines to maintain a better reputation and passenger satisfaction, but also avoid a lot of costs.

When an airline needs to involuntarily endorse a guest, according to the regulations of the US Department of Transportation, the guest needs to compensate the guest up to four times the fare, which is much higher than the airline's voluntary change of the guest.

Also, the compensation we give to voluntarily changed guests is the company's cash vouchers instead of direct cash compensation. The cost is much smaller!

Although the unit price does not seem to be much different, it is calculated from the base number of tens of thousands of passengers who involuntarily change their bookings every year, because the cost of overbooking may reach tens of millions of dollars in losses.

However, the new system we developed to find passengers waiting at the lowest price is our original creation, and it can also save the company tens of millions of dollars in annual losses. "

Burns was able to become the first CEO of the top 500 black women. His thinking is indeed unusual. Then Yang Cheng gave his own opinions, "Delta’s bidding system, I think it not only saves them. Large expenditures, as well as immeasurable costs of silence.

Think about it, the willingness of passengers to give up their seats before arriving at the boarding gate. This requires a lot of saliva and time to communicate, especially when negotiating with passengers to the gate staff before the gate closes at the last minute. Compared with the cost of causing flight delays and causing inconvenience to all guests who have boarded, the savings through cash coupons is nothing at all.

Let the employees at the gate reduce their workload as much as possible so that they can complete their work and release the aircraft on time, which will cause a lot of positive effects.

The higher the flight regularity rate, the lower the fuel costs, the cost of missing transit connections for passengers, the cost of overtime work by employees, and many other costs that I am not clear about.

In the final analysis, punctual flight is very important. "

Yang Cheng slapped his hands and said, "Awesome, if it weren't for ExonMobil, I would definitely not let anyone go. I really want to dig you into the CEO of American Airlines, Ms. Burns!

I can disclose an internal message. Delta has already started testing a program that helps passengers load their luggage before boarding the plane, so that passengers can get rid of the embarrassing scene of crowding in the aisle and stuffing luggage into the luggage rack.

This will greatly reduce the boarding time. In addition, Delta Air Lines has connected to the big data system of New Age Media. Using supercomputing and big data technology to improve operational efficiency is what we will pursue in the future. "

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