Airlines score record customer satisfaction, new report says

Travelers are more satisfied with airlines than they have been in over two decades, thanks to a flurry of investment that has led to updated cabins and better amenities in flight, according to a report released Tuesday.

Fliers gave U.S. carriers 72 out of 100 points, a peak matched only one other time in 1994, according to the 2016 American Customer Satisfaction Index.

“Lower fuel costs mean both cheaper fares and more amenities as airlines are investing some of their record profits back into the business,’’ ACSI Managing Director David VanAmburg said in an email. “This creates both an incrementally better flying experience and a better value for the money.’’

Fuel, which can consume roughly 1/3 of an airline’s total revenues, has plummeted in price, helping to make 2015 the industry’s most profitable year in decades. In the midst of another strong first quarter, the federal Bureau of Transportation Statistics says the average price paid by airlines for a gallon of jet fuel fell from $2.31 in February, 2015 to $1.21 a gallon in February of this year - the lowest monthly cost since August, 2004.

Airlines have used some of their new-found profits to buy new planes, spiff up terminals, and improve in-flight entertainment. United and American have even restored free snacks in their coach cabins.  (Southwest, JetBlue and Delta never got rid of theirs.)

While JetBlue and Southwest were the top scorers, each garnering 80 out of 100 points, United and American saw dramatic improvement in their rankings. United leaped 13% to a score of 68, its biggest year to year uptick, while American’s score rose 9% to 72 points.

Still, to some passengers, value may matter even more than comfort. Ultra low-cost carriers Frontier and Spirit had much lower scores than their larger, more perk-filled peers, yet saw marked improvement in how they were perceived by passengers. Frontier’s score jumped to 66, a 14% increase, while Spirit experienced a 15% bump up to 62 points.

"Ultra-low-cost carriers benefit the most from the industry-wide drop in fare prices,'' VanAmburg says. "Since air travelers who choose these airlines typically do so solely on the basis of their low prices, discounting fares has a larger impact on passenger satisfaction with these low cost carriers.  Yet because they offer little besides a low price, their ceiling for further improvement is probably rather low."

Despite its record-reaching score, the airline industry continues to trail all but 6 of the 42 other industries tracked by the index. Those include credit unions, with a score of 81, cars with a score of 79, and even other travel-related sectors such as online travel sites and hotels. The top-rated categories in the index, with a score of 82 points, were Televisions and video players and Full-service restaurants. With 63 points, the lowest was a tie between Internet service providers and Subscription television service.

“Even at lower prices and with improved amenities, like more entertainment choices and snacks, the flying experience itself is not a very comfortable one for most passengers,’’ VanAmburg says. “Basic seat comfort remains the lowest scoring and yet most important element of the air travel experience.’’

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Online travel sites rose 1.3% from last year to a score of 79, the industry's highest ever. Priceline was tops, rising 8% to a score of 81 points.

But hotels saw a 1.3% dip to a score of 74. “A large drop in smaller hotels, including everything from chains such as Red Roof Inn and Radisson, to individual casino hotels and bed and breakfasts is behind the small dip in satisfaction across the hotel industry,’’ VanAmburg says.

Hilton got the top score of 81 points, while Marriott and Hyatt were right behind with scores of 80 and 79 respectively. Starwood, which is tying up with Marriott in a $13.3 billion deal that will create the largest hotel chain in the world, saw a 3% boost over last year in customer satisfaction, leading to a score of 78 points.

The ACSI Travel Report, which focused specifically on hotels, online travel sites and the airline industry, was based on a survey of 6,913 consumers taken between March 5 and March 31 of this year.