Originally Posted by
channa
That certainly could be part of it. Another part may be the ability to reaccommodate effectively. A cheap bump may be fine if the reaccommodation is good (e.g., minimal delay, quality seat on rebook, etc.).
However, I have seen a number of lowball offers from COdbaUA that are for $200 for an overnight. While it may work in some cases, it may not work so well in others.
IDB compensation is regulated, and in many cases is more than the VDB compensation offered. I've heard many stories from GAs where they are writing significant checks, sometimes $1,000 or more, for IDBs.
According to this link:
http://boardingarea.com/blogs/freque...ion-explained/
The IDB costs are very high, and much higher than typical VDB offers that I think we would agree are in the $200-600 range.
So, if CO is paying more in IDB fees than what they're offering in VDB, it seems to me, there is a sweet spot to increase VDB offers and still pay less than they're paying in IDB.
In other words, it seems like they are screwing themselves.
This doesn't make sense ... usually we're the ones getting screwed.
There must be something missing here ...