amtrakmichigan said:
Can one of you guys explain to me how in the world an all reserved train can be overbooked ? Obviously with a high tech computer reservation system this should never ever happen. How hard is it to program a computer to only sell as many seats a train has and no more? I was reading someones trip report that told about an overbooked train and made me think of this problem. I have encountered myself once or twice over the years. This also seems to be a problem in the airline industry too. I guess I just don't understand how it's even possible.
It is possible because it is done intentionally. Flights are overbooked based on an established history of ticketed passengers not showing up. The no-shows are often passengers who have booked multiple flights with the intention of flying only one.
If a flight has 120 seats and the airline knows that, on average, 10% of the confirmed passengers will not fly, then they will oversell the flight by 5% to help ensure a full or nearly full plane. If everyone actually shows up, the flight is overbooked and seats must be freed by either voluntary or involuntary bumping (no standees or lounge sitters on a plane). They will offer credits and vouchers and sometimes even cash to entice passengers to take a later flight to free-up seats. If all that fails, then they will deny boarding for some ticketed passengers. The DOT prescribes specific rules for compensation for any airline passenger holding a confirmed reservation that is denied boarding. It is quite lucrative for the bumped passenger.
Airline overbooking has dropped as the popularity of non-refundable tickets has increased. Without the ability to get a refund, and with the application of reticketing fees of $100 or more, there is a major financial penalty to book multiple flights so the number of no-shows drops and the need to overbook likewise is reduced.
Amtrak does the same thing. I witnessed it on Acela Express and reports indicate it happens on Silver Service as well. In Amtrak’s case, they do not really bump passengers. They simply have them stand, or sit in the lounge, or ride in the baggage car (only kidding): whatever they feel like. Unlike the airlines, Amtrak has no mandated compensation for these inconvenienced passengers. So, if you end up sitting 10 hours in a Amcafe because Amtrak could not seat you despite holding a ticket for a reserved coach seat, you can only ask or beg for compensation. Amtrak is under no obligation to provide anything.
In Amtrak’s defense, I am sure that no-shows are a major problem, particularly on Acela. All Acela fares are fully refundable, so there is no penalty for someone who is returning from New York to Boston in late afternoon to simply book the 4pm, 5pm, and 6pm trains, use the one ticket for the train he actually rides, and then turn in the two unused tickets for a full refund without penalty. Doing that, he (or she) is protected from trying to rebook at the last minute and finding the desired train is sold out. But, for Amtrak, that one rider represents one occupied seat and two empty, no revenue seats. So, to protect against empty seats, Amtrak might sell 330 seats for the 300 seat train and hope for the best. Amtrak is pretty stingy with operational stats, but I am willing to bet they have a 20% or higher no-show rate on Acela, particularly during the peak hour, most popular time slots.