What is flight overbooking and how to respond to this situation?

Were you a victim of overbooking? You're not alone!
Many travelers face this issue. Find out how to handle it and claim your rights!

What is overbooking?
Overbooking refers to the practice of airlines selling more tickets than available seats on a specific flight. It’s not an accident, it’s not an error, but a well-calculated strategy. Now you’re probably wondering: "Why would they do that?"

The answer is simple: profit. Airlines rely on the assumption that some passengers will not show up for boarding, allowing them to maximize their revenue and keep costs relatively low. A full plane is more profitable than one with empty seats. But what happens when all passengers show up for boarding?

The situation becomes complicated. Some of the ticketed passengers won’t be able to reach their destination. You could be that passenger who, despite having a ticket, doesn’t have a seat on the plane. This is where your rights come into play: your rights in case of denied boarding.

What is overbooking compensation?
Overbooking compensation refers to the compensation you can receive if you are denied boarding due to an overbooked flight. Compensation can vary depending on the distance you were supposed to travel and the delay caused.

Overbooking – a long-standing practice since 1978

Overbooking is an old practice, dating back to the 1940s in the United States. It emerged as a solution for reserved but unoccupied seats on planes, which were seen as losses for airlines. By 1950, the intentional sale of excess tickets became a widespread practice. Airlines sought to ensure that planes would be at maximum capacity at takeoff. Although it seemed like a clever strategy, it started generating dissatisfaction among passengers who had to delay their travels due to a lack of seats.

Overbooking regulation first appeared in 1978 when the U.S. Civil Aeronautics Board (CAB) required airlines to offer additional compensation to those who fell victim to this practice. In the European Union, overbooking regulation has existed since 2004 through EC Regulation 261, which provides compensation for denied boarding ranging from 250 to 600 euros for affected passengers.

Why are more tickets sold than seats on the plane?
Overbooking has mutual benefits, both for airlines and for you, the traveler.

For airlines, overbooking is an efficient way to reduce losses caused by unoccupied seats on a flight. Think of a flight with 200 seats, but only 180 are occupied. Those 20 empty seats represent a financial loss for the company. Through overbooking, airlines can compensate for these losses and keep ticket prices affordable for you, even for flights with more benefits.

But how is this calculated?

Airlines rely on what is called the “no-show rate,” which is the percentage of passengers who, despite having purchased a ticket, do not show up at the boarding gate. The reasons may vary: canceling the flight, not arriving at the airport on time, etc. By considering this percentage, airlines can sell more tickets than the available seats on the flight.

Determining the no-show rate is not a simple process and involves various factors. These factors may include:

• Historical data;
• Time of the year;
• Day of the week;
• Whether the flight is near a public holiday;
• The flight's destination.

Overbooking: the boarding lottery. How are you chosen to stay off the plane?
If all passengers honor their reservation, airlines first look for volunteers to give up their seat, in accordance with European regulations EC 261/2004. If you’re willing to be a volunteer, you may have the opportunity to negotiate additional benefits, besides those already offered by the airline. These can include:

• Refund of the ticket;
• Reservation on a later flight;
• Financial compensation.

It all depends on the negotiations between you and the airline, so don’t hesitate to ask for better conditions!

However, if there aren’t enough volunteers, the airline may deny boarding to some passengers. The selection criteria vary from one airline to another and are not always transparent. The most common criteria include:

• Check-in time;
• Ticket fare;
• Passenger status.

For example, those who check in later might be more likely to be affected by overbooking.

Is your flight overbooked? Here's what to do!

Let’s imagine you’re at the airport and find out that your flight is overbooked. What do you do? Don’t panic! Airlines are required to offer you rerouting options. This means you’ll be able to board the next available flight or reschedule your trip for a later date under similar transport conditions.

But what if the new flight doesn’t fit your plans? Well, you have the right to refuse the rerouting offer. In this case, the airline must fully refund your ticket within seven days. This applies both to the portion of the flight you completed and the one you didn’t.

If, due to overbooking, you experience delays of more than three hours from the scheduled departure time, you are entitled to additional compensation. The amount of compensation for flight delays varies depending on the distance traveled.

Denied boarding compensation – Get it with AirClaim!

  1. Check your eligibility!

Use our free online calculator to check your eligibility for compensation. All you need to do is enter your flight details, and our tool will immediately tell you if you are entitled to compensation for denied boarding.

  2. Submit your claim

If you are eligible for compensation, submit your claim using our simple online form.

  3. We take care of the rest

Once your claim is submitted, our team of experts will take over. We’ll contact the airline, represent you in all communications, and fight for your rights.

  4. Receive your compensation for denied boarding

If your claim is successful, you will receive the compensation directly into your bank account. We operate on a "No win, no fee" policy, which means you only pay us a commission if we successfully claim the compensation for you.