Auctioning your airline seat...

Delta replaces bumping with auction for seats | Chicago Breaking Business: "For decades airlines have overbooked flights to avoid taking off with empty seats when passengers with reservations don’t show up at the airport for a flight. Between 8 percent to 10 percent of passengers with reservations for a particular flight typically don’t show up, according to Peter Belobaba, the director of MIT’s Global Airline Industry Program.

When too many people show up, airline-gate agents embark on last-minute negotiations with passengers who might be willing to take a later flight in return for a financial incentive.

Delta’s new system, which has been up and running since last month, replaces that often-chaotic system with a silent auction that asks passengers to name their price electronically before they arrive at the departure gate if it looks as though there may not be enough seats on a flight.

Passengers who check in with Delta online before leaving for the airport or at kiosks before going through security can type in the dollar amount they would accept from the airline to be bumped from their flight. Delta can then accept the lowest bids, eliminating a lot of the uncertainty early."