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Overbooking
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What main question does the text end with?
Where is the line between smart business and unfair treatment?
Why do some people think overbooking is unethical?
Because the same seat is sold to two people
What tools do airlines use to decide how many extra tickets to sell?
Probabilities and computer models
Why do airlines sell extra tickets?
It usually increases their total profit
How much does one ticket cost in the example?
$250
How much money does the airline lose for bumping one passenger in the example?
$800
What does “bumping a passenger” mean?
Removing someone from a flight they paid for
If the airline sells 180 tickets, how many passengers will probably board?
how many passengers will probably board?
What percentage of passengers usually show up in the example?
90%
How many seats are in the example airplane?
180
What happens if airlines sell too many tickets?
They must pay compensation
What happens if airlines sell too few tickets?
Some seats stay empty and they lose money
Why are airlines not surprised when people get bumped?
They use statistics and past data
How many people get bumped from flights each year?
About 50,000
Which industry is the most common example of overbooking?
Airlines
Do companies expect everyone to show up?
No
Why do companies overbook?
To make more money
Why does overbooking make customers angry?
Because they lose their place or have to wait
What does overbooking mean?
Selling more spots than a business really has
What is the main topic of the text?
Overbooking
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