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patio11's profile
Patrick McKenzie
Patrick McKenzie
Patrick McKenzie
@patio11

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Patrick McKenzie

@patio11

I work for the Internet, at @stripe, mostly on accelerating startups. Opinions here are my own.

東京都 Tokyo
kalzumeus.com
Joined February 2009

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    1. Patrick McKenzie‏ @patio11 23 Mar 2019
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      Overheard at airport, at an overbooked flight. Man #1: “I’d give up a seat for $500.” #2: “$500?!? I’d do it for le...” #1: “Bro do you see anyone else up here. They need two seats. (To agent) He will do it for $500.” I like this guy.

      9 replies 85 retweets 1,180 likes
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    2. Patrick McKenzie‏ @patio11 23 Mar 2019
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      I would have liked him even more if he had Googled the maximum amount the gate agent can authorize without needing to call a supervisor, but at least he anchored relatively high.

      7 replies 2 retweets 198 likes
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    3. Patrick McKenzie‏ @patio11 23 Mar 2019
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      Oh there might be folks who don’t know what is happening here. Airlines typically overbook flights, selling more seats than physically exist such that the flight flies full even when some folks miss it. Sometimes more people show up than can physically board. Then this happens:

      3 replies 2 retweets 84 likes
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    4. Patrick McKenzie‏ @patio11 23 Mar 2019
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      1) The airline asks for volunteers for folks who will board a later flight, in return for “compensation of the airline’s choosing.” 2) If they can’t get all the seats they need from #1, they have to involuntarily deny boarding. This is regulated: https://www.transportation.gov/individuals/aviation-consumer-protection/bumping-oversales …

      2 replies 2 retweets 62 likes
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    5. Patrick McKenzie‏ @patio11 23 Mar 2019
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      Business practices for #1 differ, but at the airlines I use, the usual mechanism is to conduct a reverse auction at the gate: offering (depends on airline) a voucher for future travel or a generally-useful gift card at lowest prices required to induce volunteers.

      1 reply 1 retweet 56 likes
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    6. Patrick McKenzie‏ @patio11 23 Mar 2019
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      Because the damage to an airline from a delay is far greater than the prices typically discussed here, the gate agent generally has discretionary authority up to $X, for a higher X than most people would believe they can negotiate in two sentences.

      2 replies 6 retweets 92 likes
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      Patrick McKenzie‏ @patio11 23 Mar 2019
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      At the risk of stating the obvious: gate agents don’t give a fig what the company spends to buy those last N seats back. It isn’t their money. This is an edge case and they are not compensated on cost control. Also stating obvious: of course there is a spreadsheet here.

      9:13 AM - 23 Mar 2019
      • 4 Retweets
      • 182 Likes
      • lakshmi Adrian Mihailov Daniel Bechaz Hugo Pacheco Nathan Broadbent Jason McCandless Alyssa Miller (Speaking @ RSA Conference - APJ) meowy catgirl Pierre Phaneuf
      11 replies 4 retweets 182 likes
        1. andrew thorp no e‏ @andrewpthorp 24 Mar 2019
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          Replying to @patio11

          I saw $2,200 today. It started at $400 and went up $200 every 30 seconds or so. At $2,200 the dam broke and 5 people raced to the front. Everyone was waiting on someone else to make the first move.

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        2. Michael  🏃🏻‍♂️ 🛫 McDonald‏ @asciimike 23 Mar 2019
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          Replying to @patio11

          Gate agents have an insane amount of power. Upgrades/seat changes, boarding order, etc.

          1 reply 0 retweets 0 likes
        3. Andrew Lee‏ @startupandrew 23 Mar 2019
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          Replying to @asciimike @patio11

          So, to be clear, your definition of “insane power” is determining where and when people sit? Mindblowing 😛

          1 reply 0 retweets 2 likes
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        1. Kenton Kivestu  🤔 🤔 🤔‏ @kivestu 23 Mar 2019
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          Two years ago, was coming from home a ski weekend & the offer reached $10k 😬😬

          0 replies 0 retweets 2 likes
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        1. Vibhor  😷‏ @vibhor_chhabra 23 Mar 2019
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          Replying to @patio11

          Agree. It’s a demand supply game. I have given up my seat twice for $1,000 each while only suffering a net ~2 hour delay in reaching my destination

          0 replies 0 retweets 1 like
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        1. Chris Nicoll‏ @beepily 23 Mar 2019
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          Replying to @patio11

          Besides, if you're in Canada, the airline can later switch the compensation the gate agent baited you with. https://www.cbc.ca/1.4998780 

          0 replies 0 retweets 1 like
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        1. Daniel and 10 others‏ @techwraith 23 Mar 2019
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          Replying to @patio11

          Where there is a spreadsheet there is a side project/startup/lifestyle business. Someone should build a thing that keeps these numbers current. At the very least, if it catches on, ad revenue could at least support it. There are probably even better business models for this too.

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        1. Awad Sayeed‏ @awadsayeed 24 Mar 2019
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          Replying to @patio11

          S. R. E. A. M. Spreadsheets rule everything around me

          0 replies 0 retweets 1 like
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        1. Hardy Farrow‏ @farrowhardy1 23 Mar 2019
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          Replying to @patio11

          Why do you think there’s never been a startup to address how long it takes to get luggage in baggage claim? I feel like same frustration applies.

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        1. mike‏ @sea_local 23 Mar 2019
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          Replying to @patio11

          And a seating chart - two people have reserved the same seat. That’s a fun programming problem.

          0 replies 0 retweets 0 likes
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