There are times of the day that are very desirable. If you are a businessman who is flying out to headquarters for a week, you want to go out early on Monday, and go home around 5 or 6 in the evening on Friday (as one example).
This means the seats can be booked weeks in advance. In order to guarantee that you have a seat, sometimes a wealthy person will book two or three seats in case they get bumped (there may be two planes going to the same destination during a popular time/day).
Sometimes someone who has made a reservation simply has a car accident, or a heart attack, or changes their mind. For a variety of reasons, a seat will open up, and the airlines wants to fill that seat. The incentive for someone to wait for a standby seat is that the price is cheaper.
But…what if everyone shows up, and there are no standby seats? You sit in the airport until there is a seat, which can be until 11 O’Clock at night.
You can even make a reservation for 12:00 noon, but you show up at 6:00 AM in case a cheaper seat opens up, so then you cancel your 12:00 seat.
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