United Continental Holdings Inc (NYSE:UAL) has unveiled a new overbooking policy.
Here are nine things to know about it:
- The Flex Schedule Program by United Airlines is designed to keep its customers happy, instead of kicking them off flights while they are already seated.
- The airline will offer money to passengers willing to postpone an oversold flight up to five days in advanced.
- The company benefits from the move too as it gives it an opportunity to re-sell your ticket for a wider profit margin.
- United Airlines customers will get travel vouchers of $250 in exchange for bumping themselves off the flight.
- The airline will promote this initiative with help from third-party aviation technology startup Volantio with messages such as “Are You Flexible with Your Travels to Los Angeles?”
- The company will only ask passengers to move their flight to an earlier or later time, and will not ask them to change dates or airports.
- You need to book your flight through United.com and mark the checkbox that makes you eligible to receive marketing messages, but this does not guarantee the company will send these messages to you.
- The airline will keep your seat preferences, but there will be rare occasions of downgrades, and even rarer situations where you’ll get an upgrade.
- Dave Bartels, vice president for pricing and revenue management at United Airlines, said the Flex Schedule Program does not mean that the company will overbook more flights.
UAL stock fell 0.1% Thursday.
