Have you ever arrived at the airport, excited for your long-awaited vacation, only to hear the dreaded announcement: “This flight is overbooked.” Your seat, which you thought was secured, might no longer be available. Frustrating, right? But have you ever wondered why airlines overbook flights in the first place? And what happens if a flight is overbooked?
Flight overbooking is a calculated strategy airlines use to improve their operations. While it may seem counterintuitive, this practice is deeply rooted in the economics of the airline industry.
Nevertheless, not all overbooking experiences are negative. Many passengers voluntarily give up their seats for hefty compensation or travel perks. Let’s break down how overbooking works, why airlines continue to do it, and what it means for you.
Why Do Airlines Overbook Flights?
Many passengers don’t realize what is flight overbooking and that it is standard practice until they experience it. Overbooking isn’t a random act of inconvenience. It’s a strategic move backed by data. Airlines rely on historical data to predict passenger behavior.
Here’s why they do it:
- No-Show Passengers : Every flight has a certain percentage of passengers who don’t show up due to last-minute cancellations, missed connections, or plan changes. To avoid flying with empty seats, airlines overbook.
- Maximizing Revenue : Airline margins are notoriously slim. Overbooking helps ensure that every seat generates revenue, even if some passengers fail to show up.
- Dynamic Pricing Models : Airlines use overbooking to counter the effects of discounted fares. When they oversell, the likelihood of filling all seats increases, ensuring they maximize profit.
How Does Overbooking Work?
Overbooking starts long before you even think about booking a flight. Here’s how the process unfolds:
- Predictive Analysis : Airlines analyze years of passenger data to estimate how many no-shows a particular route might have. For instance, a Monday morning flight might have fewer no-shows than a Saturday night flight.
- Overselling Seats : Based on these estimates, airlines sell more tickets than seats available. For example, on a plane with 150 seats, they might sell 155 tickets, assuming at least five passengers won’t show up.
- Day-of Adjustments : If more passengers arrive at the airport than expected, the airline offers compensation to encourage volunteers to give up their seats.
What Happens If a Flight Is Overbooked?
When overbooking turns into overcapacity, airlines have a few methods to manage the situation:
1. Voluntary Denied Boarding (VDB):
Airlines first ask for volunteers willing to give up their seats in exchange for compensation. This could include:
- Monetary rewards (cash or vouchers)
- Free hotel stays and meals
- Rebooking on the next available flight
- Upgrades on future flights
Passengers often negotiate these offers, especially if the delay is significant.
2. Involuntary Denied Boarding (IDB):
If not enough volunteers step forward, airlines may deny boarding to passengers against their will. These passengers are usually selected based on factors like:
- Check-in time (latecomers are more likely to be bumped)
- Ticket class (economy passengers might be prioritized for denial over business class)
- Loyalty program status (frequent flyers are less likely to be bumped)
What Compensation Are You Entitled To?
If you’re denied boarding due to overbooking, you’re not powerless. Compensation varies depending on the region and airline policy. Regardless, you must check what is airline overbooking policy before booking your ticket.
According to the U.S. Department of Transportation:
- If you’re rebooked and delayed by 1-2 hours (domestic) or 1-4 hours (international), you’re entitled to 200% of your one-way fare (up to $775).
- If the delay exceeds these limits, you’re entitled to 400% of your fare (up to $1,550).
Is Flight Overbooking Legal?
Yes, overbooking is legal. Regulations in most countries allow airlines to oversell flights as long as they provide compensation for passengers affected. However, there are strict guidelines they must follow to ensure fairness.
Overbooking Data July-September 2024
(Details taken from Air Travel Consumer Report 2024)
| Rank | Carrier | Voluntary Denied Boardings (DBs) | Involuntary Denied Boardings (DBs) | Enplaned Passengers | Involuntary DBs per 10,000 Passengers |
| 1 | Delta Air Lines Network | 34,232 | 0 | 48,143,997 | 0.00 |
| – Delta Air Lines | 20,064 | 0 | 40,179,599 | 0.00 | |
| – Branded Codeshare Partners | 14,168 | 0 | 7,964,398 | 0.00 | |
| 2 | Allegiant Air | 223 | 0 | 4,256,249 | 0.00 |
| 3 | Hawaiian Airlines | 84 | 4 | 2,745,911 | 0.01 |
| 4 | Southwest Airlines | 8,576 | 130 | 44,349,033 | 0.03 |
| 5 | United Airlines Network | 11,158 | 201 | 40,110,753 | 0.05 |
| – United Airlines | 6,961 | 120 | 31,704,357 | 0.04 | |
| – Branded Codeshare Partners | 4,197 | 81 | 8,406,396 | 0.10 | |
| 6 | JetBlue Airways | 1,350 | 77 | 8,926,584 | 0.09 |
| 7 | Alaska Airlines Network | 3,498 | 121 | 12,519,295 | 0.10 |
| – Alaska Airlines | 2,119 | 76 | 9,753,590 | 0.08 | |
| – Branded Codeshare Partners | 1,379 | 45 | 2,765,705 | 0.16 | |
| 8 | Spirit Airlines | 4,520 | 432 | 10,925,102 | 0.40 |
| 9 | American Airlines Network | 17,822 | 3,832 | 53,524,166 | 0.72 |
| – American Airlines | 11,505 | 2,358 | 39,908,663 | 0.59 | |
| – Branded Codeshare Partners | 6,317 | 1,474 | 13,615,503 | 1.08 | |
| 10 | Frontier Airlines | 1,283 | 1,781 | 8,621,022 | 2.07 |
| Total | 82,746 | 6,578 | 234,122,112 | 0.28 |
How to Avoid Being Bumped from an Overbooked Flight?
While overbooking isn’t entirely avoidable, there are steps you can take to reduce your chances of being bumped:
- Check-in Early: Passengers who check in late are likely to be denied boarding.
- Join Loyalty Programs: Airlines often prioritize frequent flyers over occasional travelers.
- Book Directly with the Airline: Third-party bookings might make you a lower priority.
- Avoid Basic Economy Tickets: These often come with fewer protections against bumping.
- Confirm Your Seat: Some airlines allow you to reserve a specific seat, reducing your chances of being moved.
What Should You Do If You’re Bumped?
The controversial practice of what is airline overbooking continues to frustrate travelers worldwide. If you find yourself bumped from a flight, follow these steps:
- Stay Calm: Airline staff are more likely to help cooperative passengers.
- Know Your Rights: Familiarize yourself with compensation rules before you travel.
- Negotiate: Never hesitate to ask for better compensation, especially if the delay is lengthy.
- Get Everything in Writing: Ensure any compensation offers are documented.
- File a Complaint: If you’re unsatisfied, escalate your complaint to the airline or regulatory authorities.
Do Not Panic if Your Flight Gets Overbooked!
Flight overbooking might seem unnecessary, but it’s a practice rooted in economic necessity. While it can sometimes disrupt your travel plans, it also offers opportunities for savvy travelers to earn compensation or perks.
Now that you know what happens if a flight is overbooked and what is flight overbooking, you can confidently navigate overbooking scenarios.
So the next time you hear, “This flight is overbooked,” you’ll be armed with the knowledge to turn the situation to your advantage—or at least ensure you’re fairly compensated for the inconvenience.
