Airlines Overfill Customers Beyond Their Seating Capacity in Order to Compensate

question 75

Multiple Choice

Airlines overfill customers beyond their seating capacity in order to compensate for customers who cancel their booking.This technique is an illustration of which of the following yield management strategies?

• A)overbooking
• B)adjusting prices to augment demand
• C)annualized hours strategy
• D)using different fare classes to partition demand

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Definitions:

Satisfactory Financing

Obtaining a loan or financial backing on terms acceptable to the party or parties involved, typically within a certain timeframe.

Void for Uncertainty

A legal term for a contract or clause that is unenforceable due to its terms being too vague or ambiguous to be understood.

Invitation To Treat

An invitation to engage in the bargaining process.

Breach Of Contract

The failure to perform as explicitly stated or implied within the terms of a contractual agreement.