Overbooking - what is it? History of origin and development

We can not afford to go on vacation abroad, as much as we would like. Nevertheless, unforeseen circumstances may arise , which will not allow it to take place. How to behave in a situation where the flight is canceled is still understandable. But what should I do if there is an overbooking? What this word is and what its meaning is, not everyone understands.

Definition

The word "overbooking" comes from English overbooking and literally means "relocation, resale." The system of selling services or goods, as well as an instrument for the effective management of the company's revenues, is overbooking. What is this system? The meaning of it is that the seller or supplier takes on his responsibility more obligations relating to the provision of goods or services than he can actually take. The fact is that according to the statistics, not all obligations will be fulfilled, but only a large part of them. So, for example, airlines count on the fact that some passengers who bought tickets will refuse transportation.

History of the occurrence of the overbooking system

Initially began to apply the system of "overbooking" airlines from the United States.

The sense of this marketing policy was that passengers were allowed to refuse purchased air tickets and get paid for them without penalty even in situations when they were late for the flight or just before the flight. However, for some airlines this system was unprofitable, as the planes flew empty because of the refused passengers.

After such a sad experience, overbooking came to replace this system. The number of tickets sold exceeded the number of seats in the cabin. This was done on the basis that not all passengers will be registered.

Often there were situations when all passengers who bought tickets came in time to the check-in counter. At such a confluence of circumstances, representatives of companies offered passengers to refuse voluntarily from the flight. In exchange, they were offered a whole range of services absolutely free of charge - accommodation in the hotel until the next flight, upgrade of the class of service, and a food voucher. The cost of such services for airlines was much less than the losses it would have incurred in the event of the same passenger refusing to fly. As a rule, "volunteers" are enough.

What is overbooking?

There are only four types of overbooking:

• Scheduled - not all passengers pass through the boarding gate, therefore more tickets are sold than there are seats on the aircraft.
• Situational - occurs when the aircraft is replaced by a smaller capacity for technical reasons.
• In one class of service - the number of air tickets sold in one class exceeds the number of seats in it, although the aircraft remains full.
• Gold - there are passengers, for example, often flying or VIP, which the airline can not refuse to transport even to the detriment of other commercial passengers.

The actions of the airline in case of overbooking

It is necessary to know, speaking about the marketing policy of "overbooking", that it is not only the resale of air tickets. It includes certain activities carried out by the airline staff.

If in the process of registration it turns out that this situation has arisen, representatives of the company are included in the work, who begin activities to find passengers willing to fly by another flight. This search is carried out by interviewing passengers or by means of a general announcement in the registration room. Volunteers are fast, as the reward is a pretty decent amount.

Also, there may be a situation where passengers are forced to increase from the economic to the business class. But such cases are rare.

Overbooking in Russia

The practice of reselling air tickets has existed for a long time. The basis for it was the statistical data collected for many years by passengers who did not appear on the flight. The percentage of resale is determined individually for each airline. For example, European carriers, such as LuftHansa, EasyJet, it is about 5%. He has much more Russian carriers. Overbending Aeroflot - about 10-15%.

The percentage ratio of passengers who did not show up for boarding is the internal business of the air carrier. But the regulation of marketing policy is the competence of the legislative power.

In Europe and North America, there are laws that regulate the rights and responsibilities of both passengers and airlines. Overbooking of air tickets in Russia for a long time has no legislative base. Officially, it was not banned, but was used behind the scenes, which created certain risks. The airlines were threatened with litigation, while the passengers could only hope for a favorable coincidence.

In June of this year, the Ministry of Transport completed the development of a bill regulating overbooking of air tickets. The law, according to preliminary information, will come into force next year.

Overbooking in times of crisis

It was in the most difficult for the country crisis period, air carriers, above all Aeroflot, recalled that overbooking is not regulated in any way by law. What explains this increased interest?

Airlines, especially regional ones, now do not have confidence in the future. The decline in passenger traffic is a consequence of the economic crisis.

Overbooking is one of the most effective and cost-effective ways to increase the occupancy of aircraft, improving the financial position of the carrier. If it is legalized, the revenue will increase.

Arguments against overbooking

Opponents of the legalization of overbooking are organizations that protect the rights of passengers. They argue that such a resale policy negatively affects the airline's image and further overloads the staff.

Opponents of overbooking also assure that air carriers overstate statistical data on unidentified passengers.

Most domestic domestic flights are not carried out every day, and some even once a week. Therefore, passengers in anticipation of the next plane can spend a few days, and if they have further along the route of docking, then, most likely, they will miss them.

Foreign experience

How does overbooking work abroad? What is this system in foreign airlines? When more passengers enter the check-in than stated seats in the plane for them, the airline staff must find those who are ready to fly by another flight. They are offered a number of bonuses in the form of flight in the business class, discounts on tickets, additional miles for a frequent flyer card, invitations to a luxury lounge, a hotel for waiting time.

If the passengers who are ready to refuse the flight are not located, the carrier terminates the contract with one of the passengers. But the full cost of the air ticket is returned to him and compensation is paid. According to statistics, such cases occur with one of 10,000 passengers.

How to avoid overbooking: blitz tips

Overbooking can be planned or unplanned. How can you avoid an unpleasant situation?

1. Come to the airport on time - the seats in the cabin end near the end of registration.
2. Prefer online check-in (luggage can be delivered at the airport at special racks).
3. The direction should not be the most demanded.
4. Avoid early flights.

Few Russian air passengers are familiar with the concept of "air ticket overbooking". What it is? This is the so-called reselling of tickets for a flight, that is, actually wanting to fly is more than the seats in the cabin of the aircraft. Such a marketing policy for the sale of air tickets was borrowed from Western carriers. Abroad, overbooking is legalized, while in Russia this process does not yet have a legislative base. If you are a victim of this combination of circumstances, do not despair and remain calm. In this situation, you will receive additional benefits, as the air carrier will provide the most comfortable conditions for waiting and provide a good compensation in the form of a flight in the first class of service.