Study

Overbooking

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