UNITED AIRLINES
How to Avoid a $140 Million Lawsuit
by Unlocking Personalized Incentives
The $140 Million Problem
In 2017, United Airlines faced a PR catastrophe when a passenger was forcibly removed from an oversold flight. The fallout resulted in a $140 million lawsuit and widespread reputational damage, highlighting the urgent need for change in how oversold flight situations (OVS) are handled. Despite the customer experience concerns, OVS sales generated over $10 million annually, making it a profitable practice that could not be easily eliminated.
In 2021, the Chief Customer Officer (CCO) tasked my team with an ambitious goal:
eliminate involuntary bumps while maintaining the OVS revenue stream.
As the Lead UX Researcher, I spearheaded a foundational research program to explore the science of incentives and motivation to create irresistible offers that would encourage voluntary bumps, reducing the risk of further negative outcomes.
The Cost of Inconvenience
To prevent involuntary bumps, we needed to answer one key question:
What is the cost of inconvenience to a traveler?
In other words, what level of compensation would make a traveler willingly volunteer to give up their seat?
Our objective was to identify this incentive sweet spot by calculating the perceived cost of inconvenience and delivering personalized, compelling offers to increase volunteer rates.
My Role +
Key Responsibilities
As the Lead UX Researcher, I directed a cross-functional initiative that included:
Designing the Strategic Qualitative Research + Quantitative Data Program
I created a multi-method research plan combining quantitative and qualitative insights to build a comprehensive understanding of traveler behavior.
Stakeholder +
Executive Alignment
I facilitated workshops with senior leadership, ensuring the research was aligned with business objectives and key operational challenges. This included coordinating with the Chief Customer Officer (CCO) and Chief Operating Officer (COO) for executive buy-in.
Cross-functional Project Management + Facilitation
I led a team of researchers, data analysts, and design teams to integrate our insights into the final product and process redesign.
A Multi-Method Approach to a Strategically Personalized Experience
Our research employed a combination of methods to provide multi-dimensional insights into user behavior and motivations:
QUANT
QUAL
SECONDARY
Traveler and Gate Agent Surveys
I fielded two separate surveys using Qualtrics—one for travelers and one for gate agents—to gather insights on attitudes toward OVS scenarios. We surveyed 1,000 OVS takers, 1,000 OVS non-takers, and 150 gate agents to understand incentive preferences and what would drive participation.
Historical Traveler and Volunteer Data
We used OVS-specific data to identify key behaviors during oversold flight scenarios. This allowed us to map the decision points where passengers were likely to volunteer or resist giving up their seat.
Social Listening
We analyzed over 1,500 social media posts, forums, and travel blogs (e.g., Reddit, The Points Guy) to capture real-world traveler frustrations and preferences regarding oversold flights.
PRIMARY
Customer Service Call Analysis
I worked with customer service teams to analyze call logs related to OVS scenarios. This helped us understand the triggers that led to customer dissatisfaction and how they responded to compensation offers.
User Interviews (Guerilla-style Intercepts)
I conducted in-field intercept interviews at O’Hare International Airport, engaging with passengers to understand why they did or did not volunteer, along with their experiences in real-time. We captured the motivations behind their decisions and compared it to their learned behaviors from past flights.
Key Insights & Findings
Our research uncovered several critical insights that informed the incentive redesign:
Perceived Cost of Inconvenience
The current offers did not align with travelers' perceived costs of inconvenience. For business travelers or those with tight schedules, the monetary offers often seemed insufficient to outweigh the disruption.
Instant Gratification vs. Dollar Value
Travelers placed higher value on instant access to compensation (e.g., meal vouchers, hotel stays, or upgrades) over cash offers. The ability to use perks immediately increased perceived value, even if the total dollar amount was lower.
Agent Variability
Inconsistencies in how gate agents handled OVS bidding created confusion for travelers. Senior gate agents tended to distribute higher compensation, leading to escalating bidding wars, especially among business travelers.
Personalization Drives Behavior
Different traveler types (e.g., solo vs. group, business vs. leisure) responded differently to various incentive structures. Personalized bundles tailored to the traveler’s profile were far more effective than generic offers.
Digital, Service and Hybrid Design Recommendations
Based on these insights, we made the following strategic design recommendations to improve the OVS process and increase volunteer rates:
Real-Time Digital Bidding
We recommended replacing the in-person gate bidding process with a blind, digital bidding system available via mobile apps, text, and email. This allowed travelers to receive offers immediately after overselling was confirmed, reducing the need for gate agents to manage the process manually.
Incentive Gamification & Recognition
We introduced gamification elements that celebrated volunteers with recognition and perks on their next flight, increasing the perceived value of volunteering.
Personalized Incentive Bundles
We introduced a dynamic incentive system that tailored offers based on traveler profiles and urgency. For instance, business travelers with tight schedules received higher compensation, while leisure travelers or frequent fliers were offered perks like upgrades, vouchers, and mileage boosts. These bundles reduced the cost-per-volunteer by $250, resulting in a projected annual savings of $3.5 million.
Eliminating the Gate Bottleneck
By shifting the bidding process away from the gate and enabling passengers to volunteer via digital channels, we decreased gate congestion and allowed agents to focus on boarding tasks. This reduced OVS-related departure delays by up to 50 minutes.
Business Impact & Results
Our research and recommendations led to significant improvements in United Airlines' OVS management process:
46% increase in voluntary participation in oversold situations, particularly when personalized bundles were offered.
$3.5 million in projected annual savings due to more efficient use of incentives.
Reduced gate bidding times and overselling-related delays by 50 minutes on average.
No involuntary bumps (or lawsuits!) since implementing the new incentive structure, avoiding further PR disasters.
Lessons Learned
Stakeholder Alignment is Crucial
Throughout the project, aligning the research with business goals and ensuring executive buy-in from the CCO and COO was critical to the success of the initiative.
Personalization is Key to Behavior Change
Understanding the varying needs of different traveler types allowed us to craft tailored solutions that were far more effective than generic offers.
Cross-Functional Collaboration
By leading a cross-functional team that included data analysts, UX designers, and customer service leaders, we were able to integrate insights and deliver a solution that worked both operationally and strategically.