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Overbooking: How Airlines Decide By How Much  
User currently offlineSampa737 From Brazil, joined May 2005, 637 posts, RR: 1
Posted (6 years 3 months 3 weeks 2 days 10 hours ago) and read 8744 times:

Simple question with a follow-up, how do airlines decide how many seats to overbook?

And then for international overbooking, how do airlines break even when they give passengers vouchers, hotel rooms, meals and transportation expenses for putting people up for the night?

I recently flew DL, GRU-ATL and it was overbooked by 44. On the way back on DL, ATL-GRU, DL was giving out $200 vouchers but you had to fly ATL-EZE-GRU. So then don't they also have to buy tickets on other airlines? I understand airlines have agreements with each other.

Is it really that much cheaper to do all this instead of empty seats? I guess I just answered my own question, didn't I? Or, did I?  Smile

25 replies: All unread, showing first 25:
 
User currently offlineNWDLstepson From , joined Dec 1969, posts, RR:
Reply 1, posted (6 years 3 months 3 weeks 2 days 9 hours ago) and read 8731 times:

Someone correct me if I'm mistaken....but at NWA they tend to traditionally overbook by a known "historic" no show percentage on a certain route. That way the try to fill the plane to 100%. I think the airlines believe if there is a traditional 5% no show factor on a route that they will book a flight to 105% and when the traditional 5% no shows the plane will be full. Does that sound logical?
I've seen some of NWA's Asian flights overbooked by 60 or so and thought "I don't wanna be that gate agent!" then the flight leaves with open seats.
As for your question about reaccom over to another airline, I don't have alot of experience on this and am uncertain about the financial revenue accounting side after the fact.


User currently offlineSampa737 From Brazil, joined May 2005, 637 posts, RR: 1
Reply 2, posted (6 years 3 months 3 weeks 2 days 9 hours ago) and read 8717 times:

My flight to Atlanta which was overbooked has many empty seats in Business Elite. I understand perhaps those passengers who pay to fly Biz Elite or use Skymiles. But would it not save money by bumping passengers instead of putting up in a hotel overnight?

I'm just watching from the sidelines, not a professional, but this is what frequent flyers like me see.


User currently onlineUnited1 From United States of America, joined Oct 2003, 6127 posts, RR: 9
Reply 3, posted (6 years 3 months 3 weeks 2 days 9 hours ago) and read 8714 times:



Quoting NWDLstepson (Reply 1):
Someone correct me if I'm mistaken....but at NWA they tend to traditionally overbook by a known "historic" no show percentage on a certain route.

That is pretty much how every airlines does it, based off historical information for the flight...I remember reading somewhere about how WN doesn't overbook newly introduced flights untill they figure out what percentage of passengers no-show. I'm sure most carriers do something along those lines.



Semper Fi - PowerPoint makes us stupid.
User currently offlineEghansen From , joined Dec 1969, posts, RR:
Reply 4, posted (6 years 3 months 3 weeks 2 days 9 hours ago) and read 8671 times:

Someone at Continental once told me that flights from LGA were overbooked by 30-40 seats because New Yorkers were notorious for making reservations not showing up. The probably think every flight is the DCA-LGA shuttle.

On the other hand, flights from Omaha were never overbooked by more than 1 or 2, because people in Nebraska always showed up for flights.

Quoting Sampa737 (Thread starter):
On the way back on DL, ATL-GRU, DL was giving out $200 vouchers but you had to fly ATL-EZE-GRU.

It doesn't sound like this was a serious overbooking. I have seen airlines offer $600-$800 or two free passes to be used within the next year.


User currently offlinePhelpsie87 From United States of America, joined Apr 2006, 498 posts, RR: 2
Reply 5, posted (6 years 3 months 3 weeks 2 days 7 hours ago) and read 8576 times:



Quoting Eghansen (Reply 4):
Someone at Continental once told me that flights from LGA were overbooked by 30-40 seats because New Yorkers were notorious for making reservations not showing up. The probably think every flight is the DCA-LGA shuttle.

On the other hand, flights from Omaha were never overbooked by more than 1 or 2, because people in Nebraska always showed up for flights.

Well, that's somewhat correct. I wouldn't go so far to say that it has to do with the type of persons in populations, more so the size. Its very easy to miss a flight in a major city thanks to unexpected traffic conditions, long lines at the airport, and long distances from terminal to gate. Moreover, obviously, traffic shouldn't effect one's ability to make their flight in a city such as FSD, GFK, FAR, OMA, etc. although it does happen.

Quoting Eghansen (Reply 4):
It doesn't sound like this was a serious overbooking. I have seen airlines offer $600-$800 or two free passes to be used within the next year.

Many airlines start small and build on it if they have too. Most of the time, the initial offer will get the volunteers you need, if it doesn't then you offer a bit more. However, if they do not receive the number of volunteers they need, then the airline will start Involuntary Deny Boarding which is based off different circumstances such as time of check-in, ticket price, etc.

Quoting United1 (Reply 3):
That is pretty much how every airlines does it, based off historical information for the flight...I remember reading somewhere about how WN doesn't overbook newly introduced flights untill they figure out what percentage of passengers no-show. I'm sure most carriers do something along those lines.

Exactly. At my airline, our "no-show factor" directly effects how many seats they sell for each particular flight. Unfortunately, a few fellow agents have been known to "sell" a seat on the day of departure so another airline does not oversell us in the event of weather, or if another flight we are operating is delayed and we need to reroute pax. If these reservations are not removed, they go into our "no-show pool" which then turns into being oversold. At one point, I think our airline was overselling us by 7 pax on a CRJ.


User currently offlineRidgid727 From United States of America, joined Jul 2008, 1242 posts, RR: 0
Reply 6, posted (6 years 3 months 3 weeks 2 days 7 hours ago) and read 8522 times:



Quoting Eghansen (Reply 4):
Someone at Continental once told me that flights from LGA were overbooked by 30-40 seats because New Yorkers were notorious for making reservations not showing up. The probably think every flight is the DCA-LGA shuttle.

I work at CO, and I can assure you this is not at all true. The # of seats to oversell is based on a running average over a certain period of time. It is not based on the city or state you live in, or what others claim as notorious no-shows. LGA uses the same factor as MSP, OMA or SEA


User currently offline474218 From United States of America, joined Oct 2005, 6340 posts, RR: 9
Reply 7, posted (6 years 3 months 3 weeks 2 days 6 hours ago) and read 8465 times:



Quoting Sampa737 (Thread starter):
Simple question with a follow-up, how do airlines decide how many seats to overbook?

The airlines have analysts that study each flight checking the number of reservation made, the number of seats pre-sold and the actual number of passengers that show up for the flight. They do this a continual basis.

So they know that on a average Tuesday afternoon in March a flight, JFK to MIA with 180 seats, will get 200 reservations, pre-sell 160 tickets and the flight will depart with 175 passengers.

They have a formula like this for every flight.


User currently offlineBigSaabowski From United States of America, joined Jul 2008, 160 posts, RR: 0
Reply 8, posted (6 years 3 months 3 weeks 2 days 6 hours ago) and read 8445 times:



Quoting Eghansen (Reply 4):
Someone at Continental once told me that flights from LGA were overbooked by 30-40 seats because New Yorkers were notorious for making reservations not showing up. The probably think every flight is the DCA-LGA shuttle.

On the other hand, flights from Omaha were never overbooked by more than 1 or 2, because people in Nebraska always showed up for flights.

What if a person from New York is flying out of Omaha?  wink 
New York flights have a high percentage of business travelers flying on unrestricted fares. When a traveler's plans change, they call to rebook with no penalty, or just show up for a later flight.
Also, the first flight of the day out of a hub is usually overbooked by more seats than the following flights due to people not making it to the airport/through security on time, and a lower number of misconnected passengers that have to be accommodated on that flight.


User currently offlineFly2CHC From , joined Dec 1969, posts, RR:
Reply 9, posted (6 years 3 months 3 weeks 1 day 18 hours ago) and read 8169 times:

There are actually some quite complex algorithims which predict anticipated flight loads to a reasonably good level of accuracy based on historic trends.

As a regular stand by traveller I feel they should tighten up no-show penalties or refund conditions and not overbook at all, but obviously the commercial aviation side of me knows that does not maximise revenue.

Low cost airlines have a simple philosophy. You pay for a seat and it's yours. You don't show up, you lose the ticket.


User currently offlineFlyglobal From Germany, joined Mar 2008, 602 posts, RR: 3
Reply 10, posted (6 years 3 months 3 weeks 1 day 18 hours ago) and read 8146 times:



Quoting Ridgid727 (Reply 6):
I work at CO, and I can assure you this is not at all true. The # of seats to oversell is based on a running average over a certain period of time. It is not based on the city or state you live in, or what others claim as notorious no-shows. LGA uses the same factor as MSP, OMA or SE

Then I may assume that your overselling program isn't top notch.

Without being from an airline or such, just a flying customer, but asked to do such a program I would use:
The average no show rate, the destination related now show rate (per booking class - it will be higher with full fare and business tickets then with discounted I would guess) and the season.
E.g. I would assume that at Christmas and around thanksgiving, holiday season or such the now show rate is way lower then on an ordinary business day.
With more thoughts I may find other factors.

greetings

Flyglobal


User currently offlineAirzim From Zimbabwe, joined Jun 2001, 1237 posts, RR: 1
Reply 11, posted (6 years 3 months 3 weeks 1 day 17 hours ago) and read 8081 times:

There are actually multiple factors at play in forecasting overbooking limits on flights. The two main ones are pre-departure cancellation and day of departure no shows. Pre departure cancellations are normally forecasted at the booking class level. Day of Departure no shows, are usually at the cabin level (generally speaking it is difficult to get accurate data from all stations Departure Control Systems at the class level)

Using historical demand and advanced booking information, the data is run nightly through multiple statistical models to determine which forecast has the lowest statistical error. Carriers can adjust the models based on seasonal trends, day of week, holiday periods, group bookings, competitive information, government regulations, etc.

All US carriers and most overseas carriers spend a great deal of time forecasting flights. One thing is for certain, the forecast will be wrong, the goal is to figure out by how much.

This is not "finger in the wind" guess work. The airlines take this very seriously. There are of course exceptions when everyone shows up, but generally speaking they do a pretty good job.


User currently offlineTristarSteve From Sweden, joined Nov 2005, 4064 posts, RR: 33
Reply 12, posted (6 years 3 months 3 weeks 1 day 15 hours ago) and read 7996 times:

On BA European flights the overbooking has dropped considerably in the last 5 years. We operate with 2 cabins, Economy and Business. In the economy cabin nearly all seats are non transferable., i.e. if you book the seat, and don't show up, you lose your money. So there is no planned overbooking in this cabin as all the seats are paid for. In Business some seats are sold on this basis, and some are flexible, i.e. if you don't show up you keep your money and can go on the next flight at no extra cost.
Because the restrictions in Economy have mainly gone away, the old Saturday night rule is long gone, many more people travel Economy nowadays.
5 years ago I would see a 180 seat aircraft regularly overbooked with 20, and go with empty seats. Nowadays it is overbooked with 2.

Quoting 474218 (Reply 7):
So they know that on a average Tuesday afternoon in March a flight, JFK to MIA with 180 seats, will get 200 reservations, pre-sell 160 tickets and the flight will depart with 175 passengers.

Does this mean you are allowed to reserve a seat, and not pat until you arrive at the airport? We can't do that here.


User currently offlineBA747400 From United States of America, joined Feb 2004, 428 posts, RR: 3
Reply 13, posted (6 years 3 months 3 weeks 1 day 15 hours ago) and read 7962 times:

I was always against overbooking; until i worked in the aviation industry that is. Though my airline never overbooked its flights, we consistantly saw 5-10 PAX pull a no show....almost like clockwork. Looking at it from a business standpoint, i CAN understand now why airlines do it, when everyone shows up, however, thats a different story.

User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 14, posted (6 years 3 months 3 weeks 1 day 8 hours ago) and read 7798 times:

Ideally, every passenger would show up and if they didn't they would lose their fare. Unfortunately, business passengers are reluctant to buy non-refundable fares because there is some variability in their schedules. Airlines that don't offer refundable/changeable flights risk losing some business traffic.

Overbooking on a US network airline can generate more than $100M in additional revenue per year.

Some markets have very high no-show factors. In addition to variability regarding passenger show-up behavior (which might be rooted in the percentage of passengers in each booking class) there are sometimes cultural and technology issues... some passengers book through multiple travel agents, don't use the return as the ticket is issued, etc.

There is automation used to minimize no-shows such as cancelling return flights if the origin was not used and looking for duplicate reservations but there will always be some variability in no-show behavior.

Revenue management systems attempt to forecast no-show rates and fill every seat by overbooking because a flight that departs with an empty seat has forever lost a certain amount of revenue.

Airlines have different levels of tolerance for risk on no-shows and it varies by how easily it is to protect the passenger in the event of a no-show. Markets that are served less than daily are the most expensive for denied boarding costs while a market with hourly service might be very easy to cover DBs.. esp.. in the a.m., even during the most peak periods.

Airlines usually reduce oversale risk during holidays and special events (political conventions, sporting events) because show up is usually more firm.

Some airlines overbook fairly aggressively and are willing to incur costs such as rerouting on another airline in order to ensure every seat is full but others don't want the hassle of handling passengers who are denied boarding. Several governments including the US and EU have regulations regarding denied boardings and involuntary denied boardings can be quite expensive if you can't get the passenger to his destination pretty quickly.


User currently offlineAV8ORWALK From United States of America, joined Nov 2006, 187 posts, RR: 0
Reply 15, posted (6 years 3 months 3 weeks 1 day 8 hours ago) and read 7786 times:

I think it also depends on the city pair. I remember working a LAS flight over the holidays that was booked to 206. (This was when I worked for WN, 137 seater.) The flight left with 103 on board. Exactly half of the reservations no-showed!

Cheers
Drew MCO



The safest place to be in an airplane crash is on the ground.
User currently offlineLincoln From United States of America, joined Nov 2004, 3887 posts, RR: 8
Reply 16, posted (6 years 3 months 3 weeks 1 day 8 hours ago) and read 7780 times:



Quoting Phelpsie87 (Reply 5):
At one point, I think our airline was overselling us by 7 pax on a CRJ.

As I related in another thread, once an ERJ flight I was (revenue) standing by for was booked to 60 people of 50 possible seats. 58 of those people had checked in by the time I got added to the standby list (About :45 prior to departure), and there were, IIRC, 5 people ahead of me on the standby list).

I thought "Ah hell, there's no way I'm getting on this flight" and got very comfortable waiting for the later flight that I had a positive space reservation on and seat assignment for (which was also overbooked by some margin).

About 5 minutes before the door closed they cleared all of the ticketed passengers, and all of the standbys -- including me. Once I got on and the door closed there were still two open seats...

Quoting Flyglobal (Reply 10):
Then I may assume that your overselling program isn't top notch.

I would agree! Airlines were pioneers in data mining and have literally decades of information that they can (could) mine -- from booked to actual no-shows on a general level to specific routes, seasons, time of day and buying patterns.

Lincoln



CO Is My Airline of Choice || Baggage Claim is an airline's last chance to disappoint a customer || Next flts in profile
User currently offlineJoeljack From United States of America, joined Feb 2005, 953 posts, RR: 0
Reply 17, posted (6 years 3 months 3 weeks 1 day 8 hours ago) and read 7759 times:



Quoting Eghansen (Reply 4):
On the other hand, flights from Omaha were never overbooked by more than 1 or 2, because people in Nebraska always showed up for flights.

I once read that OMA has that lowest no show percent out of the 100 biggest airports in the nation. I don't know if this is still true but if it still is, I could see why they would overbook by less out of OMA than other places.


User currently offline757MDE From Colombia, joined Sep 2004, 1753 posts, RR: 6
Reply 18, posted (6 years 3 months 3 weeks 1 day 8 hours ago) and read 7747 times:



Quoting Phelpsie87 (Reply 5):
However, if they do not receive the number of volunteers they need, then the airline will start Involuntary Deny Boarding which is based off different circumstances such as time of check-in, ticket price, etc.

In this case how would the passenger be compensated?



I gladly accept donations to pay for flight hours! This thing draws man...
User currently offlineBSBIsland From Brazil, joined Jul 2005, 379 posts, RR: 1
Reply 19, posted (6 years 3 months 3 weeks 1 day 8 hours ago) and read 7729 times:

Some interesting info taken from a study of Yoshinori Suzuki from Iowa State University

"It is well known that about 10–15% of travelers with confirmed reservations do not show up for their flights without giving prior notice to airlines"

"The benefit of airline overbooking is well documented in the literature. Alstrup et al. (1989)claim that, for a typical major airline, no-shows can cause a direct loss of about $50 million per year, and that overbooking can reduce such losses substantially. Curry (1990) mentions that overbooking can generate an additional 3–10% of gross passenger revenues for airlines. Davis (1994) reports that the revenue management tools such as overbooking saved American Airlines an estimated $1.4 billion over a three-year period, and that the airline expects to generate, by using these tools, at least $500 million additional revenues annually in the future."

This study was published in 2004.

As was already said, the airline does it considering historical data for each route/flight, and see the probability of no-shows and overbook the flight considering this.


User currently offlinePhelpsie87 From United States of America, joined Apr 2006, 498 posts, RR: 2
Reply 20, posted (6 years 3 months 3 weeks 1 day 7 hours ago) and read 7707 times:



Quoting 757MDE (Reply 18):
In this case how would the passenger be compensated?

Depends on the airline, but generally, all the passenger really gets is a confirmed seat on a later flight, or a reroute through another city and/or another carrier.

Of course, this doesn't make a happy passenger. I usually try my best to let passengers know, if I do not get volunteers, then I will start picking my IDB's by the means already stated.

Quoting Lincoln (Reply 16):
About 5 minutes before the door closed they cleared all of the ticketed passengers, and all of the standbys -- including me. Once I got on and the door closed there were still two open seats...

Yeah, I do love when this happens. I see mostly on our inbounds. The other day, my ORD RON was oversold by 12...CRJ booked to 62, not including the 6 NRSA standbys!! Ridiculous...anyway, the aircraft departed with only 45 revenue pax. Come to find out a group of 8 and a family of 6 had an up-line delay and missed the flight. Got to love misconnects!


User currently offlineUnmlobo From United States of America, joined Apr 2004, 210 posts, RR: 1
Reply 21, posted (6 years 3 months 3 weeks 1 day 7 hours ago) and read 7697 times:

As others have said the overbooking formula is based on historical data of the number of no-shows. The number of seats an airline overbooks takes into account the historical probability that a passenger won't show and compares the cost of overselling, with everyone showing up, and the cost of not taking a reservation and the seat going out empty.

For example if the probability that people won't show is 5%, then for every seat they overbook they will have to pay compensation 95% of the time. This probability is compared to the probability that the seat could be sold for a high fare (business traveler) at a later date. Say 50% of the time, any time they overbook they sell the overbooked seats to full-fare customers. The airline will "run the numbers" to see if the average cost compensation for a particular flight is greater than or less than the revenue they generate from overbooking.



The views expressed do not necessarily represent those of Southwest Airlines its Directors or its Employees
User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 22, posted (6 years 3 months 3 weeks 1 day 7 hours ago) and read 7697 times:



Quoting BSBIsland (Reply 19):
This study was published in 2004.

no show rates have been declining because of the increased use of electronic ticketing which makes it easier to determine if a passenger is ticketed as well as the type of fare the passenger is using.

On a domestic system, the US network carriers have no-show rates today of about 4-6%.

Overbooking is not as lucrative for low fare carriers because the difference in fare is not as great and therefore the additional incremental booking is worth less - and less likely to cover denied boarding costs.

LAS is a perfect example of high no-show rates. Most of the markets are low fare, high frequency markets and it is (usually) hard to decide it's time to leave. With low costs of booking on the next flight and lots of flight options, it's easy to decide to no-show.

Quoting Phelpsie87 (Reply 20):
Got to love misconnects!

if the misconnects happen sporadically they can be very problematic for revenue; if they happen regularly, they can be used to justify increasing the overbooking level - but usualliy customer service issues show up first - it is expensive to run an unreliable airline. Some airlines have revenue management systems that can track misconnected passengers and count them differently than true no shows in the overbooking calculations.


User currently offline757MDE From Colombia, joined Sep 2004, 1753 posts, RR: 6
Reply 23, posted (6 years 3 months 3 weeks 1 day 7 hours ago) and read 7662 times:



Quoting Phelpsie87 (Reply 20):
Depends on the airline, but generally, all the passenger really gets is a confirmed seat on a later flight, or a reroute through another city and/or another carrier.

I see... but if for example there's no other flight until the other day (and no possible re-route) and a passenger gets this IDB thing what would happen?.

I'm just trying to see the worst case scenario, would the passenger just have to find a comfy chair in the Airport to sleep in? Or would they at least give him food/hotel vouchers?

Thanks!



I gladly accept donations to pay for flight hours! This thing draws man...
User currently offlineLincoln From United States of America, joined Nov 2004, 3887 posts, RR: 8
Reply 24, posted (6 years 3 months 3 weeks 1 day 6 hours ago) and read 7640 times:



Quoting 757MDE (Reply 23):
I see... but if for example there's no other flight until the other day (and no possible re-route) and a passenger gets this IDB thing what would happen?.

I'm just trying to see the worst case scenario, would the passenger just have to find a comfy chair in the Airport to sleep in? Or would they at least give him food/hotel vouchers?

For travel in the US, here's the DOT's language from 14CFR250.9:

Quote:
(a) Every carrier shall furnish passengers who are denied boarding involuntarily from flights on which they hold confirmed reserved space immediately after the denied boarding occurs, a written statement explaining the terms, conditions, and limitations of denied boarding
compensation, and describing the carriers' boarding priority rules and criteria. The carrier shall also furnish the statement to any person upon request at all airport ticket selling positions which are in the charge of a person employed exclusively by the carrier, or by it jointly with another person or persons, and at all boarding locations being used by the carrier.
(b) The statement shall read as follows:

Compensation For Denied Boarding

If you have been denied a reserved seat on (name of air carrier), you are probably entitled to monetary compensation. This notice explains the airline's obligation and the passenger's rights in the case of an oversold flight, in accordance with regulations of the U.S. Civil Aeronautics Board.

Volunteers and Boarding Priorities

If a flight is oversold (more passengers hold confirmed reservations than there are seats available), no one may be denied boarding against his or her will until airline personnel first ask for volunteers who will give up their reservation willingly, in exchange for a payment of
the airline's choosing. If there are not enough volunteers, other passengers may be denied boarding involuntarily in accordance with the following boarding priority of (name of air carrier): (In this space carrier inserts its boarding priority rules or a summary thereof, in a manner to be understandable to the average passenger.)

Compensation of Involuntary Denied Boarding

If you are denied boarding involuntarily, you are entitled to a payment of ''denied boarding compensation'' from the airline unless:
(1) You have not fully complied with the airline's ticketing, check-in, and reconfirmation requirements, or you are not acceptable for transportation under the airline's usual rules and practices, or (2) you are denied boarding because the flight is canceled; or (3) you are
denied boarding because a smaller capacity aircraft was substituted for safety or operational reasons; or (4) you are offered accommodations in a section of the aircraft other than specified in your ticket, at no extra charge, (a passenger seated in a section for which a lower fare is charged must be given an appropriate refund); or (5) the airline is able to place you on another flight or flights that are planned to reach your final destination within one hour of the scheduled arrival of your original flight.

Amount of Denied Boarding Compensation

Passengers who are eligible for denied boarding compensation must be offered a payment equal to the sum of the face values of their ticket coupons, with a $200 maximum. However, if the airline cannot arrange ''alternate transportation'' (see below) for the passenger, the compensation is doubled ($400 maximum). The ''value'' of a ticket coupon is the one-way fare for the flight shown on the coupon including any surcharge and air transportation tax, minus any applicable discount. All flight coupons, including connecting flights, to the passenger's final
destination or first 4-hour stopover are used to compute the compensation.

''Alternate transportation'' is air transportation (by an airline licensed by the CAB) or other transportation used by the passenger which, at the time the arrangement is made, is planned to arrive at the passenger's next scheduled stopover (of 4 hours or longer) or final destination no later than 2 hours (for flights within U.S. points, including territories and possessions) or 4 hours (for international flights) after the passenger's originally scheduled arrival time.

Method of Payment

The airline must give each passenger who qualifies for denied boarding compensation a payment by cash or check for the amount specified above, on the day and place the involuntary denied boarding occurs. However, if the airline arranges alternate transportation for the passenger's convenience that departs before the payment can be made, the payment will be sent to the passenger within 24 hours. The air carrier may offer free tickets in place of the cash payment. The passenger may, however, insist on the cash payment, or refuse all compensation and bring private legal action.

Passenger's Options

Acceptance of the compensation may relieve (name of air carrier) from any further liability to the passenger caused by its failure to honor the confirmed reservation. However, the passenger may decline the payment and seek to recover damages in a court of law or in some other
manner.




CO Is My Airline of Choice || Baggage Claim is an airline's last chance to disappoint a customer || Next flts in profile
User currently offlineTristarSteve From Sweden, joined Nov 2005, 4064 posts, RR: 33
Reply 25, posted (6 years 3 months 3 weeks 23 hours ago) and read 7512 times:



Quoting Unmlobo (Reply 21):
The airline will "run the numbers" to see if the average cost compensation for a particular flight is greater than or less than the revenue they generate from overbooking.

Agreed, and what has happened in Europe is that the compensation laid down by the EU is so high that it is usually cheaper to have empty seats than pay compensation. The airlines have tried to get as many people traveling on no refund tickets as possible to compensate.
We have the situation now where, when we have denied boardings, the volunteers are always the low fare pax who have paid 80 Euro for their ticket, and get 300 Euro compensation, And a seat on the next flight and dinner and/or hotel if required.
So the compensation is equivalent to 4 or 5 empty seats.
Empty seats are cheaper.

And I am still amazed by statements such as

Quoting WorldTraveler (Reply 22):
LAS is a perfect example of high no-show rates. Most of the markets are low fare, high frequency markets and it is (usually) hard to decide it's time to leave. With low costs of booking on the next flight and lots of flight options, it's easy to decide to no-show.

Maybe the American carriers should start charging for rebooking.


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