Exam 4: The Hospitality and Tourism Industry Context

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One example of a company that was negatively impacted by consumer confidence in their service is United Airlines. In 2017, a video went viral showing a passenger being forcibly removed from an overbooked flight, which led to widespread public outrage and a significant drop in United's stock price.

Internally, United Airlines faced backlash from their employees as well, with many feeling that the situation was mishandled and damaging to the company's reputation. Externally, the company initially struggled to address the situation, with CEO Oscar Munoz initially making statements that were seen as dismissive of the incident.

In response to the crisis, United Airlines took several steps to address the situation. They issued a public apology and reached a settlement with the passenger who was removed from the flight. Internally, the company conducted a thorough review of their policies and procedures regarding overbooking and passenger removal, and implemented changes to prevent similar incidents from occurring in the future.

To re-instill consumer confidence in the brand, United Airlines launched a marketing campaign focused on their commitment to customer service and announced a series of policy changes aimed at improving the passenger experience. These changes included increasing compensation for voluntary denied boarding, reducing overbooking, and providing better training for employees on how to handle difficult situations.

Overall, United Airlines' response to the incident was aimed at acknowledging their mistake, making amends with the affected passenger, and implementing changes to prevent similar incidents in the future. Through these efforts, the company sought to rebuild trust with consumers and demonstrate their commitment to providing a positive and respectful travel experience.