ABSTRACT
Airlines routinely overbook flights to compensate for no-shows: people who reschedule or opt not to fly. An empty seat on a plane means a loss of revenue to an airline. Bumping occurs when there are more passengers with confirmed reservations who show up for a flight than there are seats on the plane. Typically, the initial amount offered is based on two factors: the length of the flight, and how long the volunteer must wait in order to be rescheduled on a later flight. Airlines know that only a certain percentage of passengers who have made reservations on a particular flight will actually take that flight. Airlines deal with bumped passengers in various ways in order to try to compensate them. They will be allowed to fly on a later flight, and they may be given some kind of cash settlement or vouchers for free plane tickets.
