How do airlines make any money when they offer you hotel, next day ticket first thing in the morning and more to give up your seat on an overbooked flight?

It's a chance they take on losing money when they overbook. I know people who get to take them up on those offers quite often and it usally works out fine. Wish I could do it when traveling, but I'm always on such a set schedule.

Have you ever watched your local news when their are airport problems. Seems to me many are not offered over night lodging for their inconvenience. I was bumped from a direct flight on Alitalia to a connecting flight that took me into another airport completely. I was at my destination 5-6 hours later and was in no way compensated.

SSS:<BR><BR>I think what you are referring to is weather cancellations and delays which throw off a whole airport's schedule, rather than one overbooked flight. <BR><BR>In the case of overbooking a flight, most major airlines in the US allow very good compensation for people who will voluntarily give up their seats and make alternate arrangements to reach their destination.<BR><BR>I agree, though, that there can be times when airlines do not compensate passengers for severe inconveniences in travel due to other circumstances. I've had it happen, too.<BR><BR>

We've done really well with bump offers over the past few years, gaining thousands of dollars in flight credit and free tix. The reason the airlines can do that is because when a flight is overbooked, you can bet it was done with some top-dollar fares on the margin that put it over the top. To compensate a few passengers with a few hundred dollars worth in trade to ensure a loaded flight with plenty of premium fares on board works out just fine for the airline. Simply put, you can make a lot more money by overbooking than you can by underbooking -- even after compensating for some bumps.

The airlines have discount deals with hotels, usually used for flight crew laying over, but also used to put up bumped passengers.<BR><BR>Also they announce to volunteers the next available flight, not necessarily the first flight in the morning which could also be sold out.<BR><BR>Travel tips:<BR>http://members.aol.com/ajaynejr/travel.htm<BR>

When it's an oversold flights, most airlines try to get you to your final destination that same day, even on another carrier, to save them from paying for a hotel room. Mechanical delays and cancellations will result in you possibly getting a hotel room.<BR><BR>But to answer your question, it costs airlines a lot of money. Putting you up in a hotel room costs them money, and putting you on another airline costs them money too. They hate to do it, but they also hate flying with empty seats.