JetBlue Almost Never Bumps Passengers—and That's Bad for Business
#1
Used to be 'FTcadence'
Original Poster
Join Date: Oct 2012
Location: SAN
Posts: 432
JetBlue Almost Never Bumps Passengers—and That's Bad for Business
The airline has shunned the idea of bumping passengers for the last 14 years yet very few passengers are aware of this. Should the airline monetize on it?
While other airlines make more money than they offer up to bump volunteers in future travel vouchers, JetBlue has the lowest rate of involuntary denied bookings...
http://www.businessweek.com/articles...d-for-business
While other airlines make more money than they offer up to bump volunteers in future travel vouchers, JetBlue has the lowest rate of involuntary denied bookings...
only 18 people out of 21.3 million passengers through the first three quarters of 2013
#2
Join Date: May 2013
Location: YYZ/YTZ/YUL
Programs: BA Gold, TK Elite
Posts: 1,558
I don't understand - how do airlines make money by bumping volunteers? Alternatively, if you're saying they're making more money by overbooking, how do you quantify that?
#3
Join Date: May 2008
Location: new york
Programs: trueblue ,mileageplus skymiles, hilton honors silver
Posts: 965
Bad for business
The airline has shunned the idea of bumping passengers for the last 14 years yet very few passengers are aware of this. Should the airline monetize on it?
While other airlines make more money than they offer up to bump volunteers in future travel vouchers, JetBlue has the lowest rate of involuntary denied bookings...
http://www.businessweek.com/articles...d-for-business
While other airlines make more money than they offer up to bump volunteers in future travel vouchers, JetBlue has the lowest rate of involuntary denied bookings...
http://www.businessweek.com/articles...d-for-business
#4
Join Date: Sep 2012
Location: NW London and NW Sydney
Programs: BA Diamond, Hilton Bronze, A3 Diamond, IHG *G
Posts: 6,343
The question I have is, if they don't overbook, do their planes fly slightly less full than other carriers or do they have fewer cancelations / no-shows etc.?
#5
Join Date: Jun 2011
Location: US of A
Programs: WN, Alaska, AA, Hilton, Marriott
Posts: 12
If there are not and they need to bump 2 passengers, even the cost of a couple 200 dollar vouchers puts them well ahead of where they would have been had they not sold the extra tickets.
#6
Join Date: Feb 2013
Programs: Marriott Titanium, National EE
Posts: 538
I think the legacy carriers with significantly more business travelers will have a lot more same day flight changes and no shows. JetBlue on the other hand is geared toward leisure travelers that are a lot more predictable that they will actually take the flight they booked.
#8
FlyerTalk Evangelist
Join Date: Feb 2003
Location: Denver, CO, USA
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I think the legacy carriers with significantly more business travelers will have a lot more same day flight changes and no shows. JetBlue on the other hand is geared toward leisure travelers that are a lot more predictable that they will actually take the flight they booked.
#9
Join Date: Jul 2003
Location: DFW
Programs: PLAT -- 2.7Million
Posts: 2,051
Because the last 20-30 percent of tickets they sell are the most profitable. So they oversell them by a few and hope there are some cancellations.
If there are not and they need to bump 2 passengers, even the cost of a couple 200 dollar vouchers puts them well ahead of where they would have been had they not sold the extra tickets.
If there are not and they need to bump 2 passengers, even the cost of a couple 200 dollar vouchers puts them well ahead of where they would have been had they not sold the extra tickets.
#10
Join Date: Mar 2013
Location: LBB
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Posts: 2,820
1) How many passengers mis-connect to that particular flight on average for that day of the week
2) How many passengers typically don't show for that particular flight on average for that day of the week (likely depends on whether it is holiday, business travel day, etc. etc.)
Even if the plane does over-sale on a given day, those last few tickets that were booked would have been in extremely lucrative fare classes (Y's, B's, M's), which may end up being twice or more the amount of the voucher that will be given out to a VDB.
I don't know the exact statistic, but I heard that more than half of vouchers for VDB's / IDB's go unused. If that truly is the case, the airlines win big by overselling.
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2014: UA CPU 5/8 DEN|SLC|CLE|GRR|MCI|ORD|BTV|EWR
#11
Join Date: Jun 2009
Location: Southern California
Programs: Alaska MVPG,AA EXP, SPG Gold, Hilton Gold, Hyatt Diamond
Posts: 50
The airline has shunned the idea of bumping passengers for the last 14 years yet very few passengers are aware of this. Should the airline monetize on it?
While other airlines make more money than they offer up to bump volunteers in future travel vouchers, JetBlue has the lowest rate of involuntary denied bookings...
http://www.businessweek.com/articles...d-for-business
While other airlines make more money than they offer up to bump volunteers in future travel vouchers, JetBlue has the lowest rate of involuntary denied bookings...
http://www.businessweek.com/articles...d-for-business
#12
Join Date: Dec 2006
Location: ORD
Programs: AA EXP,2MM, DL Gold,Starwood PLT
Posts: 3,876
This is crazy to say! I worked for Jetblue and the policy is to NEVER oversell a flight, think about it for compensation rule you have to give a pax on average 300 dollars and still get them to their destination. When one way tickets are barely going for 150 on average how would losing for example 300 make since..... More importantly do you want to be the pax that they bump? I wouldn't! Think about it.
#13
FlyerTalk Evangelist
Join Date: Feb 2003
Location: Denver, CO, USA
Programs: Sometimes known as [ARG:6 UNDEFINED]
Posts: 26,664
You don't really know what you're talking about. Since they have switched over to Sabre, RM analysts have the ability to set levels above capacity. It's true that the "official" policy is you don't overbook. In many cases that's true they don't. But it's common knowledge now some are overbooking to improve revenue numbers. You leave a lot of revenue on the table if you don't over book.
#14
Join Date: Jan 2005
Location: Earth
Posts: 912
You don't really know what you're talking about. Since they have switched over to Sabre, RM analysts have the ability to set levels above capacity. It's true that the "official" policy is you don't overbook. In many cases that's true they don't. But it's common knowledge now some are overbooking to improve revenue numbers. You leave a lot of revenue on the table if you don't over book.
#15
Join Date: Aug 2006
Programs: Trueblue, Skymiles, AAdvantage
Posts: 340
I think B6 should promote this better, honestly as a flier the fact that I am guaranteed a seat goes a long way in my book. I think this alone makes people feel a little better than the possibility of being bumped. I would think with the technology that rev mgmt has at their disposal they are pricing each seat accordingly.