
Ask HN: Why are airlines overselling tickets? - davidhariri
In the wake of the United debacle, I wonder why overselling tickets for flights is seemingly common practice for airlines... Is this just bad software or is this an intentional practice?
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nabla9
It's common practice for airlines overbook flights. It's low margin business.
Statistically speaking few passengers will always cancel at the last minute. I
don't see nothing wrong with this. It's just that United handled it wrong.

There are two economic solutions:

* They should have been raising the offered compensation until they get somebody to volunteer. Auctioning who leaves makes everybody happy.

* Another solution is reverse auction during ticket sale. Customers gives the sum for witch he or shie is willing to take later flight when they buy a ticket.

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spcelzrd
Because people don't show up for the flight.

Arlines know a certain percentage of people will miss their connection, fly
standby on an earlier flight, or reschedule. Margins are so unbelievable thin
(airlines make more money selling food than seats) that they want every flight
to go off full. There's nothing wrong with this practice. It's efficient. The
problem was how United handled it.

That said, the United flight wasn't oversold. They needed seats to transport
the crew for a different flight.

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DocTomoe
No, that's intentional.

A certain percentage of every flight is no-show - they bought a ticket, but
never showed up for the flight. So by overselling, you actually get a fuller
plane and more tickets sold.

This starts to break down when the no-show ratio drops for single flights,
though.

