On the first leg of my flight back from my conference in California a little over a week ago, I was informed by the ticket agent that the flight I was on was overbooked and overweight. They offered me a $250 travel voucher, good for one year in the US, for me or a family member or friend, if I voluntarily bumped myself from the flight. They'd get me on another flight from a different airport and I'd make the rest of my flight as planned.
I didn't take them up on it. “Deals” like this are nowhere near as good as they're pitched because:
- A $250 voucher costs them less than $250 even if it's used. $250 in retail goods costs the company less than $250, assuming it's profitable. (Though this is an airline …)
- The voucher has an expiration date. If it expires, it cost the company nothing to issue the voucher (except maybe the cost of a piece of paper or some small amount of labor).
- There are restrictions. I wouldn't hear all of them from the ticket agent, but do you think that these vouchers will be easy to redeem the Wednesday before Thanksgiving?
- They're offering it to me, which means a priori that it's a better deal for them than it is for me. Companies don't offer stuff to you for your benefit. They offered it to me because they played the odds (made more reservations than seats) and lost (everyone showed up), not because they really want to thank me.
- It's just a voucher, with limited negotiability. It's not legally binding. They can cancel it for whatever reason they choose. What recourse would I have?
The only way I would inconvenience myself like this is if there was a clear mechanism to get cash, preferably cold and hard, for my trouble. Now, if they slipped me a Benjamin instead of a near-useless $250 voucher, I'm all with that! There are some travel vouchers available on eBay, but there would be no guarantee that I could sell mine.
Just give me cash, guys!
I have a voucher, but did not see any limit use in the terms on the voucher. I always jump at the vouchers, and have never had a problem using them (though I am uncertain if I've ever tried to fly with one on a holiday). I imagine if voucher seating is limited, taking a red-eye would improve your odds.
I don't think of what the voucher costs the airline. If I used my voucher and filled what would have been an empty seat on the plane anyway, their additional costs (with my weight, luggage weight and handling, and the tiny bag of peanuts and can of coke) is negligible. But to me, a $400 voucher means a free plane ticket. So it still has a great value to me.
Also, $250? That's a bit of a discount, but if the normal prices is $800, not much of a deal.
While the voucher may cost the airline less than $250, that doesn't matter. The question is what is its value to you?
Assuming it can be used as easily as cash for the purchase of an airline ticket and you travel on that airline a fair bit, personally I'd peg the value at $200 or so.
If the next flight is convenient, I'd take the offer. It seems pretty bizarre that they wanted you to change airports though. That's not worth $200 to me.
I think, by the way, that your fourth point is pretty silly (no offense intended). If that were truly how you felt you could never take part in any transaction, ever.
Why must flying be such a trial?
Hmm… that's an interesting way to look at it. I agree — whatever companies offer you is first and foremost a deal for them. But if you know you'll be flying again soon, or would like too but knew you wouldn't have the cash, then the voucher could help you do that.
I've been on flights where they'd offer people vouchers to take another flight and I never volunteer. I'd rather jut go home when I planned!
Thanks for all of the comments!
I thought I mentioned in the post that I don't really travel much (I may have edited it out), so I'd have a hard time using a voucher within a year.
Samerwriter, no offense taken. 😉 These "bump yourself for a prize" deals are so common it's now part of their business practice. It's clear a lot of research went into this process of deliberate overbooking to increase the percentage of full flights. I heard attendants call for passengers to bump themselves SIX TIMES before they found people to do it, so I don't think I'm the only one who doesn't buy that this reward is a bonanza. My point was they'll have to work harder to get me to bite.
Calculating how much airlines should over book for is a relatively common question in beginning statistics courses.
I would take the voucher if I was planning on flying soon although I prefer the bump yourself off this flight and we'll upgrade you offer that I was unable to take up out of LAX.
I fly frequently, at least 4 times a year for personal travel, and almost always take a voucher if it doesn't change my arrival time by more than a few hours. As the third commenter said, it's the value to you that is important. And regarding holiday travel, I don't think it applies, as the tickets can be very expensive in the first place. Therefore I just won't fly then. I'd rather wait a week or two and pay normal prices instead of the inflated prices during the holiday. The nice thing about this is that my vouchers work as well.
One time I took three vouchers in a row (all for free round-trip tickets, no $ value) and my arrival time was just an hour later. I eventually was put on a direct flight with a first class ticket. Yes, the hour of my time was deffinetely worth it.
Flying with my family (two young children) is another story.