While airlines improved their customer satisfaction scores for a second consecutive year, they still lag far behind most other industries in that department according to the American Customer Satisfaction Index (ACSI) report released today.
Air travel remains an uncomfortable and costly experience for most passengers, according to the report. Despite gaining 3% to an ACSI benchmark of 69, airlines rated only ahead of subscription TV service (68) and Internet service providers (65) regarding customer satisfaction.
"Crowded seating, rising ticket prices, extra fees and poor service all contribute to a rather dreary travel experience," Claes Fornell, ACSI founder and Chairman, said in a press release. "Airlines continue to improve service for business travelers, which is important since they are the most profitable customer group. Still, their satisfaction remains at a level slightly below that of other passengers."
The ACSI's June report covers customer satisfaction with airlines, hotels, full-service restaurants, fast food chains, consumer shipping, and the mail services of the U.S. Postal Service (USPS).
Low-cost carrier JetBlue leads the airline industry for a second straight year, rising 2% to an ACSI benchmark of 83, while Southwest earned a 5% gain in passenger satisfaction following a difficult stretch after its merger with AirTran.
"As operations are combined and consolidated, airline mergers are not without significant problems and passenger dissatisfaction is usually one of them," Fornell explained. "Sometimes these are short-term problems that eventually get solved, which seems to be the case here. Not only are passengers pleased, investors are as well. Southwest's stock is up 50% over the past year."
The rest of the major airlines received scores well below JetBlue and Southwest -- with the aggregate of smaller airlines (such as Alaska Air, Frontier and Spirit) garnering the third spot at 72. Delta rose 5% to 68, which marks its highest level in more than a decade. American Airlines and US Airways remain in the mid-60s, while United Airlines is flat at 62.
Airline passengers gave good grade to certain aspects of travel. They are quite pleased with check-in and reservations, timeliness of flights and courtesy of flight crew. Conversely, seat comfort and virtually all in-flight services receive failing grades.
Guest satisfaction for hotels remained flat at 77 for the third straight year. While customer satisfaction has stabilized in this category, it does so at a reasonably high level -- well above the industry's ACSI low of 71 from 2007.
"Hotels continue to rely on perks like free Wi-Fi, breakfast buffets and loyalty discounts to encourage repeat business, but higher levels of customer satisfaction over the past few years also boost loyalty," ACSI Director David VanAmburg said. “Similar to the airline industry, hotels are seeing a rise in customer satisfaction for a crucial business segment, as business traveler satisfaction now matches that of leisure guests."
Marriott tops the list with a score of 82 – reflecting a 5% rise. Marriott is followed by Hilton (80), Best Western, Hyatt, and Starwood. At 72, budget brand Wyndham trails the field in spite of a 3% improvement.
Guests give very high marks to hotels for ease of both check-in and making reservations, with staff courtesy and professionalism almost at the same level. But customers said hotel food service needs to improve and restaurants, room service, and mini-bars were deemed low in quality and high on price.
Two Darden-owned brands top the full-service restaurant category with ACSI scores of 83: Olive Garden and Red Lobster. Olive Garden has improved 4% compared to a year ago. Applebee’s increased 6%, up to 82.
In the fast food department, Subway remains strong at 83 (+1%). Pizza makers Papa John's and Little Caesar hold steady at 82, with Pizza Hut checking in at 80 (+3%). Domino's efforts appear to be paying off reflected by strong sales and a 5% ACSI increase.
Starbucks jumped 5% to match lower-price coffee rival Dunkin' Donuts at 80 (+1%). Taco Bell dropped 4%, to 74 and McDonald's stays in last place with a score of 73. KFC soared with an 8% increase, to 81.
Both sit-down and fast food restaurants received high grades on most dining aspects, and sit-down chains received a top rating for order accuracy. But speed of table service needs improvement. Fast food also received its highest mark for accuracy.
In the area of shipping, both FedEx and UPS enjoyed high levels of customer satisfaction. FedEx climbed 4%, to an ACSI score of 85, just a point above UPS, up 4% to 84. Both carriers beat U.S. Postal Service Express/Priority Mail, which fell 5%, to 77. The regular mail services of the U.S. Postal Service improved 2.7%, to a new ACSI high of 77.
Customers rate all major elements of shipping service as top-notch, from speed of delivery to courtesy of staff. The industry received excellent ratings for delivery--including physical condition of packages and package tracking. While website satisfaction is a bit lower, it surpasses the ACSI average for all websites by a wide margin.