Alex at Marginal Revolution shared a photo of what Delta’s been doing to figure out how to compensate bumped passengers – they’re having customers bid when they check in. Gone are the days when they try to guess… throwing out free flights, $300 vouchers, $500 vouchers, etc. Now they’ll just pick the cheapest and work their way up.
Blind auctions are one of the best types of auctions because the participants don’t know what others are bidding. That means they’ll generally go as high as they personally would go (or as low, in this case). You do lose a bit of the competitive factor, as people bid higher than they would otherwise go in order to “win,” but this “auction” is a little different in that people are waiting to win something they know is available.
Either way, very clever move Delta.