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> Allowing airlines to oversell has the effect, in a competitive market, of reducing ticket prices for everyone else. No. You have to calculate for compensatio

> Allowing airlines to oversell has the effect, in a competitive market, of reducing ticket prices for everyone else. No. You have to calculate for compensations for the people who have to be left behind because the flight was oversold. As you can read in the comments, those compensations can come in quite expensive. And rebooking passengers to other flights means that you can't sell that specific seat at the right price. > Put another way: banning oversell would mean that airlines routinely travel with more empty seats. This inefficiency would show through in higher ticket prices. Again: No. You have 100 seats, you sell 100 tickets. People have to show up to fly with you, no refunds if you don't show up. If this type of calculation does not cover your costs as the airline, you have a bigger problem in general. > Fraud involves deception. This doesn't apply in a market environment where it is widely known that they oversell. I find it highly deceptive that somebody is trying to sell me a seat which he has already sold and is now hoping that one buyer does not show up. To be honest, selling the same good twice and only delivering once could very well be a definition of fraud. Try that on some kind of marketplace and you will find yourself in quite some trouble in no time.

rlpb 8y ago
> You have to calculate for compensations for the people who have to be left behind because the flight was oversold. Sure, but factor those in and you still end up being able to offer cheaper ticket prices by overselling. It is clear that this is true from existing market behaviour. > You have 100 seats, you sell 100 tickets. People have to show up to fly with you, no refunds if you don't show up. That is one way of running an airline. However, given that some proportion of passengers change their plans in practice, overselling will cause a reduction of ticket prices in a competitive environment. This is just textbook economics and I'm not sure how I can explain this concept better to you. > If this type of calculation does not cover your costs as the airline, you have a bigger problem in general. The airline industry disagrees with you. > I find it highly deceptive that somebody is trying to sell me a seat which he has already sold and is now hoping that one buyer does not show up. You can find it to be whatever you want, but it is legal and not fraud. Wishing it to be fraud doesn't make it so. You could seek to make overselling illegal. If this were to happen then it would be illegal, but still not fraud.
- majortennis 8y ago
  it's flagrant scamming , I don't know who's paying you to lobby for them but your goals aren't aligned with your fellow man
- yardie 8y ago
  > You can find it to be whatever you want, but it is legal and not fraud. It's fraud and it's legal. Which is why the EU cracks down on it pretty hard with large settlements, fines, and the passing of passenger bill of rights. In this thread alone you see passengers offered $100s - $1000s in compensation. Do you think those airlines wanted to pay out compensation? Those fines are statute according to the terms of passenger rights, which you will find printed on the back of every ticket. Just like speeding, most don't get caught. But just because they don't does not make it any less illegal.

rlpb 8y ago

> You have to calculate for compensations for the people who have to be left behind because the flight was oversold. Sure, but factor those in and you still end up being able to offer cheaper ticket prices by overselling. It is clear that this is true from existing market behaviour. > You have 100 seats, you sell 100 tickets. People have to show up to fly with you, no refunds if you don't show up. That is one way of running an airline. However, given that some proportion of passengers change their plans in practice, overselling will cause a reduction of ticket prices in a competitive environment. This is just textbook economics and I'm not sure how I can explain this concept better to you. > If this type of calculation does not cover your costs as the airline, you have a bigger problem in general. The airline industry disagrees with you. > I find it highly deceptive that somebody is trying to sell me a seat which he has already sold and is now hoping that one buyer does not show up. You can find it to be whatever you want, but it is legal and not fraud. Wishing it to be fraud doesn't make it so. You could seek to make overselling illegal. If this were to happen then it would be illegal, but still not fraud.

majortennis 8y ago
it's flagrant scamming , I don't know who's paying you to lobby for them but your goals aren't aligned with your fellow man
yardie 8y ago
> You can find it to be whatever you want, but it is legal and not fraud. It's fraud and it's legal. Which is why the EU cracks down on it pretty hard with large settlements, fines, and the passing of passenger bill of rights. In this thread alone you see passengers offered $100s - $1000s in compensation. Do you think those airlines wanted to pay out compensation? Those fines are statute according to the terms of passenger rights, which you will find printed on the back of every ticket. Just like speeding, most don't get caught. But just because they don't does not make it any less illegal.