Why is overbooking an ethical issue?

Because overbooking involves the intentional and deliberate act of promising more rooms than are actually available, the practice must therefore be associated with a number of ethical and moral dilemmas.



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The purposeful and deliberate act of overbooking runs counter to any acceptable standard of ethical business practice. In addition to the practice being ripe with serious legal, contractual and consumer protection violations, overbooking forces hospitality personnel into making conscious immoral and unethical choices.

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Overbooking = more profit, but often = unhappy customers. Airlines use statistics to avoid overbooking, resulting in 50k people getting bumped off flights annually. Airlines use data to predict the number of passengers boarding a flight.

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Overbooking is a device that most airlines use to maximize their profits. Unfilled seats mean lost revenues. This means that some people will inevitably be bumped from flights. But in the airline's economic calculus, this is deemed an acceptable trade-off.

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Potential poor publicity If your hotel overbooking strategy fails, you could get bad reviews. Many potential visitors to your hotel will be sure to check reviews to know what people are saying about your hotel before they make reservations.

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The purposeful and deliberate act of overbooking runs counter to any acceptable standard of ethical business practice. In addition to the practice being ripe with serious legal, contractual and consumer protection violations, overbooking forces hospitality personnel into making conscious immoral and unethical choices.

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Bumping, also known as “denied boarding,” happens when there are more passengers scheduled to fly on an airplane than available seats. The business practice of bumping is not illegal. Airlines oversell their scheduled flights to a certain extent in order to compensate for “no-shows.”

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While it is legal for airlines to involuntarily bump passengers from an oversold flight when there are not enough volunteers, it is the airline's responsibility to determine its own fair boarding priorities.

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Here's the complete list:
  • Taking shortcuts / shoddy work: 72%
  • Lying to hide mistakes: 72%
  • Badmouthing colleagues: 68%
  • Passing the buck (when you don't get your work done): 67%
  • Slacking off when no one is watching: 64%
  • Lying to hide your colleagues' mistakes: 63%
  • Taking credit for other colleagues' work: 57%


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Overbooking is a way for airlines to manage their revenues and maximize profits, simply by taking in more bookings for a flight than there are seats. This is to avoid planes flying out with empty seats, because once those planes take off there's no way for the airline to recover any revenue from that empty seat.

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Overbooking, also known as overselling, is the practice of accepting more reservations than rooms you have available. The term can also refer to overbooked flights - we've all been offered vouchers to leave behind a confirmed reservation or airline ticket and the concept is very similar in hotels.

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Harassment and discrimination are arguably the largest ethical issues that impact business owners today.

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