Qantas customers scrambled to purchase first-class tickets from the airline last week after it mistakenly listed the exclusive flights at a drastic discount.
A Dream Flight
For many travelers, flying in first class for a long-haul flight is just a dream, because tickets usually go for well over $10,000 per ticket. But last week, that dream almost became a discounted reality for more than 300 Qantas customers.
A Major Reduction in Price
Customers searching for flights between Australia and the United States were stunned to find that the price of a first-class ticket was below AUD 5000 ($3,400 USD), compared to its usual price of more than AUD 13,000 to 20,000.
85% Lower Than Normal
Not only were these prices 85% lower than the usual price on average, they were even 65% lower than the typical business class fare for the same flight.
300 Customers Purchased Tickets
During the 8-hour period that these flights were listed on the Qantas website, approximately 300 customers jumped on the chance to grab a majorly discounted trip to the US.
News Spread
These numbers are far higher than the usual purchase rates for Qantas first-class tickets because news of the heavily discounted tickets was quickly circulated online
Finding Out via OzBargain
Many of the customers heard about the discount through OzBargain, an online Australian bargain-hunting community, and scrambled to secure tickets of their own.
“Too Good to Be True”
While some assumed it was just a spot of good luck, Qantas later confirmed in a company statement that it was “a case where the fare was actually too good to be true.”
All Due to a Coding Error
The airline confirmed that it was a “coding error” on behalf of the airline. Fortunately – for the company, at least – Qantas’ terms and conditions have protected it from cases like this, by stipulating that the airline can withdraw flight offers when “an error or mistake that is reasonably obvious”.
Tickets Voided
Now, the coding error has been fixed and the airline’s first-class flights have been returned to their original price. Now, Qantas has the awkward job of informing all 300 customers that their $5000 flights are not valid.
Full Refund or Business Class
In their place, the airline is offering to fully refund or rebook their tickets as a business class seat.
“A Gesture of Goodwill”
“As a gesture of goodwill, we’re rebooking customers in business class at no additional cost,” the company statement added. “Customers also have the option of a full refund.”
Emails to Customers
Qantas also sent out separate emails to all 300 customers, informing them of the update. “We have identified that your booking was affected by this error and are contacting you with an important update about your booking. We sincerely apologize for this error,” it said.
A Lawful Response
While some customers will no doubt be disgruntled that the airline is not honoring the initial price, airlines are usually not required to follow through with incorrect pricing.
The ACCC Weighs in
The Australian Competition and Consumer Commission has also commented on the first-class pricing error in a statement to The Guardian, where it acknowledged that “mistakes can happen” when it comes to pricing and advertising, but Australian businesses are not required to honor those mistakes.
Under Law
“Under the Australian Consumer Law (ACL) a business should not engage in conduct that is false or misleading in the sale or marketing of goods and services,” the ACCC statement reads.
They Don’t Have to Honor Incorrect Advertisements
“Businesses are entitled to withdraw an offer or product from sale to correct inaccurate pricing or other incorrect information,” it continued. “The ACL doesn’t require businesses to honor incorrectly advertised offers.”
An Appropriate Remedy
The ACCC acknowledged that Qantas had done the right thing to “remedy” the situation by offering a refund to affected customers.
Still Saving in Business Class
If the 300 customers choose to accept a business class ticket they will still be making significant savings on the flight, but they’ll miss out on some of the biggest perks of first-class such as sommelier-recommended champagne and comfortable bedding for the long flight.
Some Satisfied Customers
Some customers are more than happy with the option of business class. One of the 300 customers told news.com.au: “I’m excited. It’s a great price for business; it would have been an unbelievable price for first class.”
No Further Response
The company has not responded to any further requests for comment on the matter, but in its statement, it reiterated that it “did not delay communicating with our passengers for commercial gain” and that “mistakes were made.”
Featured Image Credit: Shutterstock / Ryan Fletcher.
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