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Why Airlines Sell More Seats Than They Have
Video

Why Airlines Sell More Seats Than They Have


audio autogenerado
audio autogenerado

Editorial Rating

8

Qualities

  • Applicable
  • Eye Opening
  • Overview

Recommendation

Selling a single product or service to more than one buyer is considered fraudulent in most sectors, but in the airline industry, the practice of “overbooking” – issuing tickets in excess of the space available – is a norm. Why do airlines pursue such double-dealing, and is it legal? getAbstract recommends Wendover Productions’ pithy presentation to anyone who wants to understand the economics of travel or to avoid getting bumped from a flight.

Take-Aways

  • Airlines routinely sell more tickets than seats available aboard their aircraft to maximize their profits and minimize the number of empty seats.
  • Passengers inevitably miss flights. Airlines use predictive models to estimate the “no-show rate” for each flight to figure out how many tickets they can safely overbook.
  • No-show rates are typically greater in major hubs where many arriving passengers rush to connect to outgoing flights. No-show rates are lower on Sundays when passengers are attempting to travel to work destinations.

About the Speaker

Wendover Productions publishes short educational videos that aim to explain how the world works.


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