Many air travelers are understandably annoyed when they get bumped from a flight because the airline has overbooked.
But it has become a necessary way of life, and it actually reduces the cost of flying for everyone.
Air Canada and other airlines offer refundable tickets.
This gives passengers the freedom to change their tickets and almost 10% of them never show up for their flights.
The airlines use ingenious software to help predict who the no-shows will be and where they will be flying.
Business passengers are the number one no-shows, while people on holiday will almost always show up at the gate.
Other common no-shows are people who over-sleep, or can’t get to the airport because of poor weather.
Costs are high and profit margins are very slim in the airline business.
Air Canada pays out a billion dollars a year in airport and navigation fees alone.
Overbooking has proven to be an effective way of maximizing revenue and staying competitive.
And by no means does everyone complain about overbooking.
For every unhappy traveler, there are nine others who will gladly volunteer to forgo their tickets in exchange for compensation.
I’m Roger Currie. Join us again next week for more thoughts on the Frontier.
For more on travel and transportation, visit our website www.fcpp.org.
