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The Three Dollar Bargain

Thursday, January 28, 2010 by Slaughter Development

The Methodology Blog has covered the topic of disrupted travel due to faulty processes on several occasions; however, nothing so far can compare to the bungle made just last week by China Eastern Airlines.

Though the average cost of a one-way flight from Nanchang to Beijing is 2,000 yuan (approximately $323 USD), three hundred lucky customers purchased it for the ultimate bargain price of 20 yuan ($2.90 USD)! According to the airline, the tickets will indeed be honored since the mistake was a direct result of their system.

The company acknowledged the computer error and said it would honour the tickets, even though some of them were sold for travel during the peak-demand Lunar New Year holidays in February, when fares normally jump.

Of course we can only speculate as to how such a malfunction could have even occurred, but one thing is quite clear: this detrimental mistake is what happens when success depends solely on one system. As can be seen, one malfunction, minor or not, can cost thousands of dollars in business revenue.

In a nutshell, no matter how much time is spent creating and updating a program, it can never be totally error-proof. No matter how long a system has been in place, its course of action is always evolving.  No matter how familiar a person is with the inter-workings of a operation, there is always something new to learn and adapt to. Business is a living and thriving thing. Its components should never remain stagnant, not been updated or left untested —a lesson China Eastern Airlines has surely learned.

On a positive note however, we’d like to point out that though the airline is suffering a major failure, it has succeeded in keeping their customers happy. Their immediate response and fair assertion will boost their customer satisfaction and perhaps even increase their flight sales due to the honorable reputation.

Failure and success are the cycle of business. Processes must be built, studied and improved. For more information on how Slaughter Development can assist your companies in avoiding both large and small process errors, contact us today!

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Like this post? Here are some related entries from The Methodology Blog you might enjoy:

Baggage and Jet Fuel - To keep passengers in the skies, airlines will do just about anything. That’s why United Airlines is now offering a new “deal” for checked bags. Read on »
Billion Dollar Quest - Today we have a fun riddle: What’s the best way to make a billion dollars? Read on »
Fired For Customer Service - Customer service, or lack thereof, is an enormous part of thriving in business today. Yet, as one airline employee discovered, people must be cautious with how they respond to frustrated consumers. Otherwise, they may get fired. Read on »
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