Flight overbooked? Here’s what it means and how to avoid it.

Overbooking is a common practice among airlines that involves selling more tickets than there are seats available on a flight. While it may seem surprising, this strategy is perfectly legal and is based on statistics indicating that approximately a percentage of passengers do not show up for boarding.

But while it is a rare phenomenon, it is important to know what to do if you find yourself involved. Airlines use algorithms and statistical data to predict no-show rates and, in the event of overbooking, initially seek volunteers willing to give up their seats in exchange for compensation.

Let’s explore together the meaning of overbooking, passenger rights, and, above all, how to avoid this situation before departure.

What is overbooking and why is it practiced?

The term overbooking has deep roots in the airline industry, representing a planned commercial strategy rather than an organizational error. This practice, used by numerous airlines, deserves an in-depth analysis to understand its functioning and its reasons.

Composed of the terms "over" (beyond, above) and "book" (to register), it refers to:

the commercial technique by which available seats are sold in greater numbers than actually exist.

The technical definition refers to the situation in which the available seats on an aircraft are fewer than the number of confirmed reservations and tickets issued for a given flight. This practice is, therefore, a deliberate commercial strategy, not an accident or a system error.

Why airlines sell more tickets than available seats

The economic motivations behind overbooking are multiple. First, airlines use this strategy to protect themselves from possible cancellations or changes to reservations. Statistically, close to 5% of booked passengers do not show up for their flights, creating potential financial losses for airlines.

Airline companies rely on what is called the "no-show rate," developing complex and proprietary algorithms to estimate how many passengers will not show up for each flight. These calculations allow them to sell more tickets than are actually available.

Furthermore, through overbooking, airlines can:

• maximize revenue and keep costs relatively low;
• offer cheaper tickets to a greater number of passengers;
• cover losses with surplus bookings;
• earning additional revenue through cancellation penalties.

The largest airlines manage to earn hundreds of millions of euros more each year thanks to this practice. A full plane is significantly more profitable than one with empty seats, thus justifying the calculated risk of having to manage occasional overcrowding.

Difference between airline and hotel overbooking

Overbooking is not exclusive to airlines but is also used in other sectors, such as the hotel and transportation sectors in general. However, there are significant differences in its application.

In the airline industry, overbooking is different from waitlisting, where the passenger is informed of the situation and agrees to be placed on the queue. In the hotel sector, however, the practice is used to protect against variables such as last-minute cancellations, early check-outs, or adverse weather conditions.

An important distinction concerns the consequences: while a "stranded" air passenger suffers significant inconvenience, potentially compromising their entire trip, in the hotel industry there is greater flexibility in re-routing to alternative accommodations. In both cases, however, overbooking is legal, although airlines must remedy the inconvenience by directly or indirectly compensating the affected traveler.

What happens if your flight is overbooked

When all passengers show up to board an overbooked flight, a standardized procedure begins that airlines must follow in accordance with current regulations. EC Regulation 261/2004 establishes precise guidelines for managing these situations, protecting the rights of the affected travelers.

Denied Boarding: How It Happens and Who Gets Selected

Denied boarding occurs when a passenger, despite having a valid airline ticket, shows up for boarding within the specified timeframe but is still denied boarding. While this can occur for security reasons or inadequate documentation, in most cases it is due to overbooking.

Each airline uses different criteria to select who is left behind. Factors generally considered include:

• booking class (economy class passengers often have lower priority);
• check-in order (last-arrive passengers are at greater risk);
• status in the airline’s frequent flyer program;
• the presence of families with children, who typically have higher priority.

Volunteers and compensation offered by the airline

First, the airline is required to ask passengers at the gate if anyone is willing to voluntarily give up their seat. Those who voluntarily give up their seat can receive:

• a refund of their ticket within 7 days;
• boarding on the first available alternative flight;
• assistance at the airport while waiting.

The benefits must be agreed upon directly with the airline and may include travel vouchers, partial or full refunds, and sometimes even upgrades for future flights. Therefore, in some cases, overbooking can turn into a profitable opportunity for flexible passengers.

What happens if there are no volunteers? Refunds and assistance for "grounded passengers"

If no one volunteers, or if there are not enough volunteers, the airline will decide who to board and who to leave stranded. In this case, non-consenting passengers are entitled to various services and assistance. What happens with european regulations?

• Monetary compensation based on the flight distance:
  • €250 for flights up to 1,500 km
  • €400 for intra-EU flights over 1,500 km and for non-EU flights between 1,500 and 3,500 km
  • €600 for non-EU flights over 3,500 km
• A choice between:
  • Full refund of the ticket
  • Boarding on an alternative flight as soon as possible
  • Boarding on an alternative flight at a later, more convenient date
• Assistance including:
  • Meals and refreshments depending on the delay
  • Hotel accommodation and transfers, if necessary
  • Two telephone calls or emails

It is advisable to obtain written confirmation from the airline that the flight has been cancelled. Overbooked flights should be checked and all receipts for expenses incurred should be retained to request reimbursement later.

How to Avoid Overbooking Before Departure

Although overbooking is legal, there are several effective strategies to significantly reduce the risk of falling victim to it. With a few preventative measures, passengers can increase their chances of flying as scheduled.

Early Online Check-in and Priority Boarding

Timing is crucial to avoiding overbooking. Checking in as early as possible is the most effective strategy, as a numeric sequence is printed on boarding passes indicating the chronological order of check-in. Passengers with higher numbers (the last to check in) are generally the first to be left behind in the event of overbooking.

First and foremost, it is advisable to:

• Check in online as soon as it becomes available (7 days to 24 hours before departure);
• Purchase a ticket with priority boarding, which offers greater guarantees;
• Show up at the gate well in advance.

Punctuality is crucial: many airlines automatically consider customers who arrive late to the gate or are last to check in as prime candidates for overbooking.

Enrollment in frequent flyer programs

Enrollment in airline loyalty programs is an excellent protection against overbooking. Airlines tend not to leave their loyal customers stranded, especially those with high status. Frequent flyers enjoy:

• Priority on boarding lists in the event of overbooking;
• Exclusive benefits such as lounge access and upgrades;
• Specific protection in critical situations.

The highest levels of these programs (usually called Gold or similar) often include explicit exclusion from overbooking among their benefits.

Avoid flights at peak times or on airlines with a history

Statistically, some flights are more likely to be overbooked. Morning flights, especially very early ones, are less likely to be overbooked than evening or peak-time flights. This is because fewer people choose to travel early in the day.

Furthermore, delays and cancellations throughout the day create a ripple effect that increases demand for seats on later flights. It’s also advisable to avoid the cheapest tickets, as they are the first to be overbooked, while those purchasing higher fares are generally less likely to be left behind.

Original article published on Money.it Italy. Original title: Volo in overbooking? Ecco cosa significa e come evitarlo