(no title)
jhulla | 9 years ago
This is a global optimization problem that can be easily solved - but there are many cases where on the ground discretion is required [last minute aircraft change, weather delay]. Poorly paid, under trained and under motivated staff will always drop the ball in this situation.
The solution for United here is two fold 1) Increase training, comp, authority and motivation of gate agents to solve problems with minimal disruption. This used to be the case a bankruptcy ago. This setup is not likely to return due to a simple reason: cost. United in bankruptcy blew up the pension promises to some of their most experienced staff. They left.
2) The best outcome for United is to reduce the complexity of their product so that customer expectations of service align with the company's ability to deliver.
tl;dr: United's service is too complex for their gate agents to deliver. Service should be simplified.
imgabe|9 years ago
x1798DE|9 years ago
It's a pretty low cost to customers (I've never met anyone who was unhappy that they got bumped, because the kind of people who don't want to get bumped don't opt-in) and it actually delivers returns in the form of lower ticket prices, since if they were underutilizing the space in the planes, it would be more costly to operate.
It seems to me that the problem with this situation was not overbooking, it was that for whatever reason they did not use the generally well-received bidding system to allow the people who were going to be bumped to select themselves. On a full plane, what are the chances that you can't find 4 people willing to give up their seats for $1000 (or even less)?
jhulla|9 years ago
dragontamer|9 years ago
jamie_ca|9 years ago
The problem here was not detecting that the flight was _now_ overbooked after reducing the available seats.
e40|9 years ago