Airline Overbooking

Background:

Historically, airlines know that only a certain percentage of passengers who have made reservations on a particular flight will actually take that flight. Consequently, most airlines overbook-that is, they take more reservations than the capacity of the aircraft. Occasionally, more passengers will want to take a flight than the capacity of the plane leading to one or more passengers being bumped and thus unable to take the flight for which they had reservations.

Airlines deal with bumped passengers in various ways. Some are given nothing, some are booked on later flights on other airlines, and some are given some kind of cash or airline ticket incentive.