Why Do Airlines Sell Too Many Tickets?

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Why Do Airlines Sell Too Many Tickets?

Why Do Airlines Sell Too Many Tickets?
Why Do Airlines Sell Too Many Tickets?




If you were ever bumped off a flight, you most definitely had just one question in mind – Why do airlines sell too many tickets? Well, look no further for the answer you have been looking for because TED Ed will guide you through the process of overbooking. Step by step, one logical explanation at a time.

Most airlines overbook their seats to increase their profits. It’s that simple! How could they risk something like this? What if everybody shows up? Don’t airlines lose money if all the people show up to the flight?

In order to answer all of your questions, airlines use statistics to overbook their seats and this way they can maximize their profits while minimizing their loses. Just remember, it rarely happens to have all the people show up to their booked flight.

Airlines know this and they count on every person that oversleeps, on every single one of us that got stuck in traffic and on every other one of their clients that simply decided to make other plans. Every booked ticket has a 90% chance of actually being used. Based on this percentage, every airline around the world makes calculations to see just how much they can overbook a flight and not be caught off guard, no matter how many passengers show up.

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Watch this video created by TED Ed – Lessons Worth Sharing and you can decide if overbooking is an ethical practice or not. Let us know your thoughts in the comments. We’re interested in your opinion on overbooking.