{"id":46470,"date":"2023-08-11T12:30:00","date_gmt":"2023-08-11T17:30:00","guid":{"rendered":"https:\/\/www.rosehosting.com\/blog\/?p=46470"},"modified":"2024-05-08T07:15:50","modified_gmt":"2024-05-08T12:15:50","slug":"overselling-hosting-industry","status":"publish","type":"post","link":"https:\/\/www.rosehosting.com\/blog\/overselling-hosting-industry\/","title":{"rendered":"What Is Overselling and How Does It Impact Your Website?"},"content":{"rendered":"
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Overselling describes the practice of companies selling more of something than what they have available. This is typically a calculated move with the expectation that a certain portion of customers simply won\u2019t use what they paid for based on historical data.<\/p>\n\n\n\n\n\n\n\n

Airlines, in particular, are notorious for this practice and will typically sell more seats for any given flight, understanding that certain passengers won\u2019t show up for their flight. As the costs of the flight are the same regardless of the number of passengers, flying with empty seats is simply money left on the table.<\/p>\n\n\n

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As overselling is an estimate based on previous flights on that particular route. Cases where more passengers show up than there are seats available do happen.<\/p>\n\n\n\n

In such circumstances, the airlines can offer incentives such as seat upgrades, additional flight credits, or even cash payouts for passengers willing to take a flight at a later time. While this might seem counterintuitive at first, the rate at which more people show up happens is more than compensated for by the number of no-shows, making overselling a smart economic business decision from the airline’s point of view. <\/p>\n\n\n\n

So long as they find travelers willing to take them up on an offer of an incentive for a delayed fly-out time, the passengers are also happy and the plane flies full.<\/p>\n\n\n\n

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