- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
Comments (7)
Print
Save/ShareOverbooking flights is common, and usually goes unnoticed because there are enough no-shows to leave open seats for any passenger who wants one. But when too many ticketed passengers check in, airlines ask for volunteers to switch to a later flight. By federal law, you're guaranteed some compensation—but it's up to the airline how much. The typical airline will offer a voucher worth a few hundred dollars to your next flight.
The bad news is that naive fliers may settle for too little money. As Gadling puts it, if airlines like Delta get enough suckers to settle for less than $100, they could save a fortune in vouchers.
If no one volunteers, gate agents must pick some passengers to be bumped against their will. Federal law sets compensation guidelines, and fliers could get as much as $400 or $800, depending on the circumstances. (See our earlier post, "Government slams airlines for bumping passengers.")
A better idea for travelers is Optiontown's Flexibility Reward Option, available for selected Air Canada and Air Baltic fligths. For a couple of years now, those airlines have allowed passengers to visit the site Optiontown and volunteer in advance to be bumped—for a guaranteed cash reward.
Here's how it works: Pick an alternate flight you'll be fine with flying, and receive a reward of up to $7 right away. If the airline does switch you to that alternate flight because of overbooking, you will receive $50. While the amount is small, you have the reassurance of being placed on a specific flight you know you'll like, and you get at least some cash in hand no matter what happens.
Don't want to be bumped at all? Try and check in as early as possible for your flight.
[Delta explains the new system on its blog. Readers of the blog Marginal Revolution were the first to notice this program, and our friends at The Consumerist wrote about it yesterday.]
MORE FROM BUDGET TRAVEL
"Government slams airlines for bumping passengers."
User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.
Optiontown's Flexibility Reward Option sounds like a good system since it allows you to see your options upfront.
For Delta I wonder how they will handle situations where I am the only bidder with a bid of $1,500? Will they turn it into a live auction at the gate, or just ignore my bid and offer the public the standard $400 voucher, or would they be obligated to accept my bid?
Posted By Iolaire McFadden on January 7, 2011, 12:26 PM
if everyone buds 5000.....
Posted By eagertraveler on January 7, 2011, 7:21 PM
Nice try, guys.
But the airline sets the rules of the game. It won't let you rob it.
Max bid is $400. Delta's system won't let you bid more. But even if the airline did let you bid more, remember: They're looking for the *lowest* bid, and they're not obliged to take what customers offer. If passengers somehow got together and only made high bids of, say, $2,000 or more, the airline would simply switch to involuntary bumping and use the federally mandated caps which are lower than that.
Posted By Sean O' on January 10, 2011, 6:29 AM
I find it interesting Delta is the airline doing this. By EU law they owe me 600 Euros for canceling a flight and they are fighting tooth and nail not to pay it.
Posted By Karen on January 10, 2011, 2:43 PM
Delta's use of reverse auctions is part of an emerging trend where the buyer is getting consumers to drive the price down by competing to sell something to the buyer (in this case their rights to certain compensation for giving up a seat). I see an emerging buying revolution where consumers get access to online reverse auction sites where they can get suppliers such as painters, roofers, and other contractors to compete. (A good example of such a site is sourcingfactory.com.) It will be interesting to see if the airlines get passengers to compete in a last minute reverse auction at the gate using laptops and smart phones.
Posted By Jay 2011 on January 25, 2011, 5:12 PM
Very Interesting Information! Thank You For Thi Blog!
Posted By losygoopaus on April 19, 2011, 2:58 PM
Hahahahhahahahahahahahaa! White girls are sooooo stupid! Thanks for making my day!
Posted By Babalau Georgica on May 6, 2012, 6:41 AM