Why do airlines sell too many tickets? - Nina Klietsch
View full lesson on ed.ted.com: http://ed.ted.com/lessons/why-do-airlines-sell-too-many-tickets-nina-klietsch Have you ever sat in a doctor's office for hours, despite having an appointment?...
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Have you ever sat in a doctor's office for hours despite having an appointment at a specific time? Has a hotel turned down your reservation because it's full? Or have you been bumped off a flight that you paid for? These are all symptoms of overbooking, a practice where businesses and institutions sell or book more than their full capacity. While often infuriating for the customer, overbooking happens because it increases profits while also letting businesses optimize their resources. They know that not everyone will show up to their appointments, reservations, and flights, so they make more available than they actually have to offer. Airlines are the classical example, partially because it happens so often. About 50,000 people get bumped off...
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Have you ever sat in a doctor's office for hours despite having an appointment at a specific time? Has a hotel turned down your reservation because it's full? Or have you been bumped off a flight that you paid for? These are all symptoms of overbooking, a practice where businesses and institutions sell or book more than their full capacity. While often infuriating for the customer, overbooking happens because it increases profits while also letting businesses optimize their resources. They know that not everyone will show up to their appointments, reservations, and flights, so they make more available than they actually have to offer. Airlines are the classical example, partially because it happens so often. About 50,000 people get bumped off...
