Why do airlines overbook and what should you do then?


It is a very common practice within the airline industry to overbook. As a seasoned traveller, you have likely come across the term “overbooking.”

Why do airlines overbook their flights?

Airlines want to maximise their revenue by filling up their flights to 100% capacity. To do that, they need to overbook their flights before the flight departure date, well beyond 100% and expect the booking level will drop and land nicely at 100% of the flight capacity.

What! The Booking Level Drops???

Yes, and there are several reasons.

Ticket Change: Airline bookings are usually made well in advance, and some of the ticket changes (especially of business travellers) may happen very close to the departure date.

No-Show: Some travellers just do not turn up for their business flights to Australia (say). Maybe they have changed the ticket itinerary or they are just late.

Therefore overbooking is a technique, airlines use to keep their flights full even when ticket changes or no shows happen. This allows them to earn more revenue from their flights.

How Do Airlines Manage Overbooking if everyone turns up?

To begin with, airlines will usually try the following so as to not upset anyone.

Upgrading or Downgrading is the most common practice. Very often, overbooking happens only ineconomy classand seats are available in business/first class. In this case upgrade from premium economy flights to Brisbane to business/first class happens. But in some cases, passengers may also be downgraded, with some compensation, of course.

Offering an Earlier/Alternative Flight to early passengers if they are willing to take the earlier flight; is another way to solve the problem.

Airlines Look for Volunteers who are willing to be offloaded during check-in in exchange for decent compensation; such as upgrade on the next business flights to Perth. Depending on the airline, the compensation package differs.

Denying boarding is the last resort to usually the last passengers to show up at check-in unless they’re gold-card frequent-flyer members. In such cases, airlines deny boarding to those without any status instead.

What Should You Do If Your Flight Is Overbooked

The best way is to prevent being denied boarding by checking in and picking seats early online (24-28 hours before departure) for your business class to Melbourne flights (for example).

If that couldn’t happen, then:

  • Know Your Rights: If you are denied boarding, it is your right to ask for compensation and a reasonable alternative flight option to get you to your destination. If you are flying out of the EU or on a European airline, familiarise yourself with the EU261 and know what you are entitled to.
  • Be Polite: Screaming and shouting at staff won’t help your cause. By the time the decision is made, it is usually final. If you are in a desperate situation, let the airline staff know your circumstances and see what they can do. Compassionate travellers are known to give up their seats to people who need to travel for serious reasons.

Otherwise, good luck!