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Case Code: OPER126
Case Length: 4 Pages 
Period: 2018-2019      
Pub Date: 2018
Teaching Note: Available
Price:Rs.200
Organization : -
Industry : Airlines
Countries : US
Themes: Business Statistics/Quantitative Methods/  Operations research
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Analytics of Overbooking

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BACKGROUND NOTE

 
Overbooking was a common practice in the airline industry. Airlines sold more tickets than there were seats. It was a strategy to ensure a full plane and maximize profits in case passengers did not turn up for a flight. When they did, airlines typically offered them travel vouchers to encourage some passengers to give up their seats. Each airline had its own system and procedure for deciding whom to bump. Some airlines chose to bump the passengers who paid the lowest fares, while some chose the last passengers to check in..
 
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