Someone in KLM had one too many “Cookies”
KLM accidentally sells $40 fares to Europe
January 19, 2009 – 12:13PMhttp://www.smh.com.au/travel/klm-accidentally-sells-40-fares-to-europe-20090119-7kc0.html
Nearly 650 New Zealanders snapped up super cheap airfares as low as $NZ50 ($A40) for flights to Europe in September after a data inputting error on the website of KLM Royal Dutch Airlines, a report says.
But the lucky travellers may have to fork out more money for their flights after KLM cancelled the bookings and began issuing refunds.
A watchdog – the NZ Commerce Commission – rebuked the airline for taking more than four hours to correct the mistake and said it should have better systems in place.
KLM advised the travel industry on September 25 that it was increasing its airfares by $NZ50 ($A40) for economy class flights and $NZ100 ($A80) for business class, Adrian Sparrow, the commission’s fair trading director, said in a statement.
“However, a data inputting error in Amsterdam resulted in the intended price increases becoming the total fare prices on the KLM website and travel fare databases.”
Sparrow said that when the error was discovered, KLM notified the travel industry of the mistake and subsequently cancelled bookings and began issuing refunds.
“However, during the several hours it took for the problem to be rectified, KLM sold 649 tickets through its website at the incorrect prices.”
Sparrow said there was evidence that many who bought tickets were connected with the travel industry and made bookings after the mistake had been announced.
Many travellers also knew or suspected that they were taking advantage of an error, he said.
Sparrow said the commission was not prosecuting KLM, but consumers could take private legal action under the Fair Trading Act or through the Disputes Tribunal.
AAP
By: tenthije - 19th January 2009 at 12:26
Purely from a legal point of view KLM can (at least by Dutch law) revoke the tickets. There is a law to protect companies from precisely such pricing errors. This law does point out that the customer should have been able to know this was a mistake. This does lead to a large grey area though, as the law does not mention specific percentages and/or numerical values. In this case however I feel confident that KLM could easily prove beyond reasonable doubt that the customers could have known that the price was in error. Especially considering that, according to the article, a statement was send out prior to the mistake that the prices would be increased with 40 to 80 NZ$.
Of course revoking the purchase will lead to bad publicity. Therefor more often then not a company will still agree to the original price. This could even lead to some good publicity. For instance through consumer watchdog TV and print media.
KLM claims that a lot of these bookings where made after the error was announced, mainly by industry insiders. If that where indeed to be the case I would revoke those tickets. However, I would keep the tickets purchased prior to the announcement, as well as tickets purchased by people outside the industry valid. Perhaps increase them a bit to cover the taxes and surcharges which after all are mandated (and verifiable!), but no more.
By: rdc1000 - 19th January 2009 at 12:09
I have a friend who got return bmi flights from MAN to ORD for £0 business class for the same reasons. bmi honoured it too!
Sign In
January 19, 2009 at 12:00 pm