The Growing Value of Voluntary Bumping
Airlines regularly overbook flights to compensate for expected no-shows, but when more passengers arrive than seats are available, carriers must find volunteers willing to take later flights. What was once a modest compensation offering has apparently escalated to significant sums in certain situations. The $10,000 figure represents an extraordinary case in the spectrum of compensation. Still, it highlights how airlines are increasingly willing to pay premium amounts to avoid the public relations damage and regulatory penalties associated with involuntarily bumping passengers.How the Process Works
When flights are overbooked, airlines typically announce the situation at the gate and request volunteers to give up their seats. The compensation process usually follows these steps:- Gate agents announce the need for volunteers
- Initial compensation offers are made, often starting at a few hundred dollars
- If insufficient volunteers come forward, the offer increases incrementally
- Passengers who accept receive compensation in the form of airline vouchers or, increasingly, cash payments
