Case
Teaching Notes
Abstract
A frequent and potentially annoying occurrence in airline travel is the overbooking or “bumping” of passengers from flights that in turn affects customer satisfaction. Overbooking policies and the way overbooking is dealt with differs from one airline to another, from the United States to the European Union and beyond. Compensation, either monetary or another form of reimbursement, may ensure higher customer acceptance for overbooking problems. However, communicating overbooking situations, denied booking, and compensation policies in a timely and effective way could be an alternative solution. This case study suggests that customers may not always react negatively to overbooking, and airlines should revisit communication practices and draft new policies to offer customers a transparent procedure and an overall less stressful experience.
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