Airplane has 100 seats. Airline sells all 100 seats for $200 each. Full plane. Airline makes $20,000.
Airplane has 100 seats. Airline sells seats all 100 for $200 each. Airline sells 5 additional seats to people who really, really want on the flight (business traveler closing the big deal, someone wanting to visit grandma on her death bed) for $1,000 each.
Oh, no. We have only 100 seats but 105 passengers. Let’s wait to see if someone doesn’t show up …. time to fly 3 people didn’t check in on time, sucks to be them, we’ll stick them on the 11pm flight that routes through Atlanta.
Now, we have 102 passengers but only 100 seats. Hmmm, hey passengers! Anyone want to take the next flight in 2 hours? We’ll give you a gift certificate for $200. 2 people take the deal.
Full plane. Airline makes $24,000 – $400 gift certificates that passengers have to use on your airline. That’s $3,600 extra. They’d be crazy not to oversell.
Latest Answers