Why do airlines sell too many tickets?

Have you ever sat in a doctor’s office for hours, despite having an appointment? Has a hotel turned down your reservation because it’s full? Have you been bumped off a flight that you paid for? These are all symptoms of overbooking, a practice where businesses sell or book more than their capacity. So why do they do it? Nina Klietsch explains the math behind this frustrating practice.

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Picture of ringmaster54 achievements

+2 1. ringmaster commented 4 years ago

The real costs should be much higher. People booking hotels etc in addition to the ticket itself. And the penalty for not showing up also should be higher, denying people their journeys etc needlessly.
Picture of gadgetfreak41 achievements

+1 2. gadgetfreak commented 4 years ago

#1 With a non refundable ticket the penalty for not showing up is enough high, its 100%! (except tax and airport fees, which are always refundable, but the airline doesnt have to pay them for a no-show either!)