atans1

Innovation is not juz for geeks

In Uncategorized on 13/01/2011 at 5:22 am

It’s in services.

Sumehow don’t see SIA doing this. SIA is fairer to customers.

Passengers checking in online or at airport kiosks are offered the chance to participate in what could be described as a sealed-bid multiple-unit reverse auction. Bidders enter a price they are willing to accept to be bumped, but are unaware of the extent to which their flight has been oversold and have no knowledge of the bids of other passengers. Bids are transmitted directly to gate agents, who take the lowest first and rebook passengers as necessary.

Delta’s move is very clever. Airlines currently have a weak bargaining position. Passengers know that if nobody steps forward, offers will escalate, and the statutory payment isn’t bad if airlines have to pull people off flights against their will.

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