Originally Posted by
moorw003
How often does IDB actually happen though? We hear sporadic stories in the media, but how many flights actually end up with no one willing to get off?
What usually happens in overbooking scenarios I've seen is they ask for volunteers, and people volunteer.
Industry-wide (US) IDB is rare; I think the numbers were dug up elsewhere recently because of recent events.
Originally Posted by
IluvSQ
I was thinking more in terms of Ma and Pa Parker, who fly once in 25 years,
perhaps to take their lifetime dream cruise, or to see their parents on their
deathbeds. They buy a specified flight, and give up their option to change or cancel,
and live with the consequences of that decision. Why should they be the first to be bumped?
They shouldn't.
They have the ability to appeal to the other 200 pax at the gate for sympathy, or entice with money, or entice the airline with money... The fear with the last option it would be in the airline's interest to excessively overbook.
Originally Posted by
Jumper Jack
Rent Seeking : Lowest Fare gets IDB/VDB
Are you sure not "lowest LTV gets IDB" VDB is Voluntary and actually as an SE I remember being asked FIRST if I wanted the voucher.
Originally Posted by
Jumper Jack
Pareto Inefficiency : Random Selection IDB/VDB
Pareto Improvement ：Triple current IDB Limit, Fine to airline 4X pax ticket price, Warning if >0.01% IDB, Ban overselling for six month if >0.05% IDB
Pareto Optimality : Outlaw IDB, VDB no limit, Cancellation due to lack of VDB volunteers outlawed. EU 261 like policy mandated on all flights from and to Canada.
The issue is obviously that pax are in competition with each other, the airline plays market maker. Just like when I line up at McD's I'm in competition with others; social convention is to form a queue for priority, however that's only peaceful convention. If I order the last BigMac in stock, guy behind gets screwed. McD's doesn't have a long-standing loyalty program though, which in ALL accounts is merely a discount program... they do have temporary programs, such as buy 2 meals get a discount, etc... coupons essentially.
Buy 95 segments, get some cheaper J... same crap.
Originally Posted by
MSPeconomist
.....and avoid traveling with a carrier on which you do not have status. However, this makes your demand for a ticket on a particular airline somewhat price inelastic as you no longer just buy the cheapest ticket (or best schedule, etc.).
I can confirm that SE had that effect on me. Loyalty myopia was real, at least for me.