It's an
It's an auction, so they start low until they get a response. Vast majority of the time they only get to the low hundred $$. I fly a fair amount and I've seen it get up to $1k only once. This really doesn't change much. airlines are increasingly becoming credit card companies - something like half their income from credit cards, so this change will have zero effect on price of a seat.
So now Delta and United have announced that they will increase their payout for people being bumped to up to 10k. Does this mean that everyone will now hold out for the full 10k? For example, United announces they need a seat, any volunteers for $500? Who is going to say, yes, I will take $500 when they could potentially make $10k? Does this mean that everyone is going to have to pay higher ticket prices to make up for this? According to a recent news story, “A total of 40,629 passengers were denied boarding involuntarily on domestic flights in 2016”
Does this mean airlines will have to come up with $406,290,000 more each year? I know not all airlines have announced the bump in price, but maybe I am extropilating too much.
It's an auction, so they start low until they get a response. Vast majority of the time they only get to the low hundred $$. I fly a fair amount and I've seen it get up to $1k only once. This really doesn't change much. airlines are increasingly becoming credit card companies - something like half their income from credit cards, so this change will have zero effect on price of a seat.
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