But, in the sand box, irregular passengers signal their conditionality by buying or selling frequent flyer miles. The airline knows not to overbook when frequent flyer mile prices are going up. The key is to offer an S&L pit for the frequent flyer miles. To queue is to price.
LONDON/BERLIN (Reuters) - Being offered cash at the gate to take a later flight because of overbooking may become a rarity if technology being examined by major airlines such as British Airways (ICAG.L), JetBlue (JBLU.O) and Qantas (QAN.AX) catches on.The forceful removal of a passenger from an overbooked United Airlines flight last year sparked an online backlash last year and U.S. carriers pledged to revise their policies.
Many airlines still routinely overbook flights because a small number of passengers do not show up. If planes are overloaded, they seek volunteers to change flights before boarding, usually in exchange for cash.A platform developed by Atlanta-based travel technology company Volantio will identify passengers most likely to be flexible about their flights and enable airlines to contact them in the days before they are due to depart.The carrier can then offer an alternative seat plus incentives such as an upgrade or travel vouchers.Volantio CEO Azim Barodawala said anyone who opts in to its system can be contacted. Machine learning algorithms will use data such as information available on the flight list to help determine which types of passengers might be ready to change.
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