Have you ever been bumped from a flight that was over? capacity?
It’s a drama that plays out at departure gates every day in
airports around the world.? Typically, gate agents on overbooked
flights embark on? last-minute negotiations with passengers who
might be willing to take a later plane. The agents broadcast their
offers—vouchers worth $200-$400—and keep ratcheting up the price
until enough passengers accept. Customers involuntarily bumped get
an? $800 voucher?(which the Transportation Dept. is proposing to
raise to? $1,300).

With? 541,000 U.S. passengers bumped in the 1st 9 months of
2010? (53,000 involuntarily), there must be a better way to manage
revenue. According to this? article, Delta Air Lines thinks it has
the answer. ?Delta’s high-tech new system asks passengers who check
in online or at kiosks before going through? security, what dollar
amount they would accept to be bumped from their? (overbooked)
flight. Delta can then accept the lowest? bids, eliminating a lot
of uncertainty early. Not only does this give Delta a negotiating
edgelong dash—passengers ?won’t know how low others are willing to
golong dash—?but, according to? Delta, “saving 3 or 4 minutes at
the gate has a big operational? impact.” Delta calls it a?
“win-win” for both consumers and the airline.

Is this good customer? service, or do you even expect customer
service when we? fly? Note that? 8-10% of passengers with
reservations do not show for their flights.

Questions?

1. Being bumped from a flight occurs because

A. the flight was overbooked.

B. too many people showed up at the last second.

C. people are bringing too much baggage on board.

D. airlines want to resell the seats at a higher price.

2. The number of passengers bumped in the 1st 9 months of 2010
in the U.S. was

A. well over? 800,000.

B. ?541,000.

C. 53,000.

D. under? 250,000.

3.? Delta’s new system works because

A. it is arranged at the? check-in kiosk.

B. it saves? 3-4 minutes at the gate.

C. passengers? don’t know how low others will bid.

D. All of the above.

4. What options do airlines have to better control capacity and?
demand?

A. They can use multiple pricing structures.

B. They can create financial penalties for? no-shows.

C. They can add more planes and seats.

D. All of the above.