In recent months media has covered a number of unfortunate incidents involving passengers being bumped out overbooked flights by airline representatives. These events cause damage to airline reputation and its marketing image, thus, hurting sales and company’s market value as it happened to United. Clearly, overbooked flights present a serious issue both for passengers and carriers, especially if the fact of overbooking is discovered during boarding like it happened to David Dao in April. The presented business idea will solve the problem of overbooked flights.

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The proposed business will develop, distribute, and support a new software system that prevents overbooking from happening. It will aim at preventing overbooking all together. However, it will also focus on not allowing for incidents of overbooking to be discovered during the time of boarding to prevent using physical force for removing passengers from the flight. The offered software should help airlines avoid issues of this nature altogether.

New software product will be targeted at domestic airlines as they usually sell tickets for journeys from point A to point B, and not seats in specific flights as it is often the case with international flights. Further, large share of their revenues come from flexible business fliers who have the privilege of changing their destination or preferred departure time last minute, thus creating the risk of overbooking certain flights. The offered software system will take all this velocity into account and still prevent overbooking from happening.

Signing up for the offered software system will assist domestic airlines with protecting their reputation from the negative influences of instances of flight overbooking; it will also help maintain positive relationship with customers. This will create great marketing value, reduce conflict resolution and reputation restoring costs, as well as attract more revenue by retaining clients and building customer loyalty. Hence, adopting this software is expected to widen specific airline’s market share and increase its profits.