Earlier quoted context omitted.
I just want to note that pretty much all airlines and travel credit cards and other similar services offer travel insurance products that deliver this exact “take care of every travel risk” coverage if you want it. You just have to pay for the real cost of that service. However, your airline ticket alone is not that. It’s just a contract to carry you from point A to point B, and that will happen at a scheduled time i…
> I just want to note that pretty much all airlines and travel credit cards and other similar services offer travel insurance products that deliver this exact “take care of every travel risk” coverage if you want it. And that's wrong. Same as warranties on products being far, far below reasonably expected working lifetime but with the option to have an added warranty. That sort of behavior is very common in our socie…
I would be in agreement with you that more customer protections are usually a good thing and that most jurisdictions on this planet really don’t have enough of them. Certainly I would agree that airlines shouldn’t be allowed to engage in as many anti-consumer games as they play in the status quo.
That said, I think we can both understand that there has to be a limit at some point to the risk internalization that a business can be reasonably expected to bear just to exist and sell products. Otherwise, it pushes costs higher for everyone and makes competition more difficult to come by.
It also limits product choice because many consumers prefer to choose higher risk options specifically to save on cost.
If airlines have to charge 10% more now because they have to compensate everyone’s hotel, car rental, and wasted DisneyWorld tickets for every canceled/delayed flight (I’m not saying you are advocating for such a thing, just a hypothetical), and I’m a customer who has a flexible schedule and never utilizes those compensations, now I’m just paying 10% more to get no additional protection for me personally.
This concept is essentially imposing a risk tax on all of society to normalize risks, and it might be argued that such a tax is not very progressive or productive.
Regardless of where we decided to specifically draw the line, any increase in compensatory duties imposed on airlines will increase pricing for their services. The airline industry is the perfect case study for that idea because it’s essentially a zero-margin business. Almost every US airline loses money flying and makes up for those losses with credit card programs. So if they have to start compensating for more scenarios, our ticket prices are going up, guaranteed. It’s not like Apple where imposing mandatory replaceable batteries or a 2 year warranty would barely change the economics of their business and greatly benefit consumers.
My main idea was not to bring up a bunch of irrelevant strawman examples, they were more to point out the fact that acceptable harm or risk is something of a universal concept in commerce. It’s not reasonable to ask beer companies to pay for every health complication of alcoholics just like it’s not reasonable to ask airlines to pay for every consequence of a delayed flight. This is because the level of risk was already agreed to by society: everyone knows that beer is bad for your health[1] just like everyone knows flights sometimes get delayed or canceled.
[1] The only reason the tobacco industry got into legal trouble is because they lied about their knowledge of its unhealthiness and addictive qualities.