Here's the Real Reason American Consumers Don't Feel Grateful this Thanksgiving

Here's the Real Reason American Consumers Don't Feel Grateful this Thanksgiving

In this season of gratitude, American consumers are feeling left out in the cold.

And with good reason.

Businesses seem to be amping up customer-unfriendly policies. The latest corporate mega-merger is unfolding, and it's likely to be green-lighted by an incoming administration that kneels at the altar of an unregulated free market.

The poster child for customer unfriendliness is United Airlines' new basic economy class fare, announced last week. The fare removes many essential amenities passengers have always taken for granted, including advance seat assignments, the ability to upgrade, and collecting loyalty points.

RelatedNeed to fix any consumer problem fast? Try these frequently asked questions for a fast and fair resolution.

In a twist, United's basic fares also limits carry-ons to one personal item. In other words, you'll have to check your luggage -- and pay United for the privilege.

No one wanted it and no one likes it, except maybe United's shareholders.

"This new fare will be a [expletive] of awesome dimensions, and I literally mean riots," predicts Tom Harriman, an attorney and frequent traveler from Clarksville, Md. "Can you imagine the chaos such a fare is going to cause and how much time and energy United will waste?"

No, but we'll just have to wait until United's new "basic" fare debut next year.

Interestingly, not one of my readers -- not a one -- has ever asked me why United doesn't offer a Spirit- or Allegiant-like cut-rate fare like this, stripped of basic human dignity. They always assumed, as did I, that as a full-service legacy carrier, United would go the other way and try to make its product better than its discount competitors.

How naive of us to believe any airline could compete on service.

But wait, there's more! The oddsmakers are now saying that under a business-friendly Trump administration, the proposed $85.4 billion merger between AT&T and Time Warner is a slam dunk.

Will it be? Who knows?

But consumers ought to be worried. Neither of these companies has a reputation for stellar service. Take AT&T Mobility, which scores a 71 out of 100 in the American Customer Satisfaction Index, which is the average score for a wireless company. DirecTV, now owned by AT&T, received a 68 in the subscription TV category, two points above average. Time Warner, the media company which owns CNN, HBO, and Warner Bros. (not the cable company, which belongs to Charter Communications), isn't rated in a comparable way.

I have more analysis in this story, but a lot has changed since I filed that report. The Democrats, who were favored to win the last presidential election, and would have probably been lukewarm to the merger, lost. And while this isn't a political site, there are implications for consumers -- and they go far beyond a single merger.

Will the incoming Trump administration stop any merger? Something tells me the answer is a hard "no."

But then, with Sen. Jeff Sessions being tapped as attorney general, it's clear that mergers will be the least of the Department of Justice's problems.

By the way, it took a while for me to find that last link to the Sessions appointment that was neutral and somewhat objective. If you want to read some of the less flattering stories, just run a search for "Jeff Sessions" and "Department of Justice." After reading some of the things they're saying about this guy, you might be concerned about the future of the republic. But I digress.

So this Thanksgiving, while a handful of elites throw a party to usher in the return of unrestrained greed, American consumers might not have a reason to feel so thankful. Corporate America is bulldozing its way into our pocketbooks with anti-consumer policies and mergers that will almost certainly hurt service. And the next administration, if it's true to its word, will stand by and nod approvingly.

Happy Thanksgiving.

After you've left a comment here, let's continue the discussion on my consumer advocacy site or on TwitterFacebook and Google. I also have a newsletter and you'll definitely want to order my new, amazingly helpful and subversive book called How to Be the World's Smartest Traveler (and Save Time, Money, and Hassle).


Khurram Shahzad

MBA - SUPPLY CHAIN MANAGEMENT

7 年

d +

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Everyone blames the corporations. But as consumers we have the power to change things and we don't. Take this Thanksgiving - there was such an outcry from consumers because retailers open on Thanksgiving and employees can't be with their families. So several retailers made the decision to close. And what happened? These same consumers who were so outraged just shopped at the ones who decided to remain open. Businesses can't function without money and every one of us can decide where we choose to put ours. Unfortunately, it may take some sacrifice on our part, something many are not willing to do.

David Sigal

Owner, CTS Services LLC

8 年

for a short time VS still does not participate in such garbage neither B6 or AS. Let's see.

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Etith Carambo

intellectuall property class chez Corporal Estetics Medicina Estética y Antiaging

8 年

is it to be fully knowing of forlost image

回复

The same reason Globalism isn't working for America is the same reason technology and bottom line focus is not working for Consumer Satisfaction. Companies have strayed to far and have to reel it in.

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