Airlines are to take some measures at least to minimize the negative consequences of overbooking. Hence, they often face the choice of the right action under certain conditions. Initially, the company is to decide whether it will use the overbooking practice or not. If it chooses to follow this strategy, it faces several problems, the first of which is the choice of a mechanism on the basis of which passengers are selected to be removed from the flight. The most popular options are either to bump passengers with the cheapest tickets or those who are the last check-in or to use a computer program that randomly determines these customers. The next challenge is determining the amount of boarding compensation. The airline may follow the rules contained in the laws and government reports or increase the amount payable. The latter option will help to reduce customer dissatisfaction, and therefore increase the company’s credibility and welfare.
What strategic choices do airlines need to make in regards to overbooking?
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Academic.Tips. (2022) 'What strategic choices do airlines need to make in regards to overbooking'. 14 January.
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Academic.Tips. (2022, January 14). What strategic choices do airlines need to make in regards to overbooking? https://academic.tips/question/what-strategic-choices-do-airlines-need-to-make-in-regards-to-overbooking/
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Academic.Tips. 2022. "What strategic choices do airlines need to make in regards to overbooking?" January 14, 2022. https://academic.tips/question/what-strategic-choices-do-airlines-need-to-make-in-regards-to-overbooking/.
1. Academic.Tips. "What strategic choices do airlines need to make in regards to overbooking?" January 14, 2022. https://academic.tips/question/what-strategic-choices-do-airlines-need-to-make-in-regards-to-overbooking/.
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Academic.Tips. "What strategic choices do airlines need to make in regards to overbooking?" January 14, 2022. https://academic.tips/question/what-strategic-choices-do-airlines-need-to-make-in-regards-to-overbooking/.
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"What strategic choices do airlines need to make in regards to overbooking?" Academic.Tips, 14 Jan. 2022, academic.tips/question/what-strategic-choices-do-airlines-need-to-make-in-regards-to-overbooking/.