Overbooking is used
A) As a way to increase prices for those customers who make late reservations.
B) Recover revenues lost when customers with reservations do not show up.
C) As an alternative to yield management.
D) As a way to improve the service quality for passengers bumped.

Question

Quizplus · Accepted Answer

Overbooking is a strategy used by airlines and other service providers to compensate for the loss of revenue from no-shows by selling more reservations than there are available spots, under the assumption that not all customers will show up.

Overbooking Is Used