Bumped flight compensation
Bumped flight compensation is the compensation passengers receive when they are denied boarding a flight due to overbooking. Airlines may overbook flights to account for no-shows, but if more passengers arrive than there are available seats, some may be “bumped” from the flight.
To address this inconvenience, bumped flight compensation is provided to cover the costs of delays, alternative travel arrangements, or accommodations.
Airlines typically start by asking for volunteers who are willing to give up their seats in exchange for vouchers for future flights, meals, or hotel stays. If not enough volunteers come forward, the airline has to involuntarily bump passengers, who are then entitled to compensation.
Airlines may also help provide alternative means for passengers to reach their destination, such as a seat on a later flight or even a seat on a different airline.