Airline Name Change Arbitrage: How A Loophole Lets Travelers Resell Unused Tickets

There’s an online marketplace that lets passengers sell their airline tickets, called OffFly. They arbitrage airline ticket name change rules to match passengers who want to fly with those who already have tickets, and whose names are close enough.

The idea behind the website is simple. We compare your name and surname with other users’ names and surnames. Since most airlines allow changes to up to three letters for free, we match users with similar names so they can reuse tickets. For example, with the surnames ‘Frank’ and ‘Zhang,’ you only need to change three letters, so you can do this for free!

It’s a little more complicated than this, I think.

  • The particular degree of flexibility with name changes will vary by airline
  • You may have challenges or extra scrutiny changing both the name on a ticket and secure flight information like passenger date of birth. Doing both makes it look like you’re transferring the ticket!
  • You are also breaking airline rules by doing this, if they find out you can expect the tickets to be cancelled (and there could be consequences for your frequent flyer account).

Airlines make it difficult to change the name on a ticket because they don’t want you selling your ticket.

  • People might buy cheap fares far in advance (like they’re a leisure traveler) and sell last minute (for emergency or business travelers usually asked to pay more).

  • The airline needs to enforce their fare gating in order to price discriminate, charging some people more than others. If ticket sales between passengers were permitted, it’s the passengers rather than airlines who might capture the difference in revenue between cheap and expensive tickets.

  • So it was mighty convenient when the government started enforcing ID requirements for security – mandating that a traveler’s ID match the ticket is necessary to prevent one person traveling on a ticket issued to someone else and that’s crucial to the the whole price discrimination system. (The government didn’t impose an airline ID requirement until 1996 as a way of looking like they were ‘doing something’ after the TWA flight 800 accident that some at the time thought might have been terrorism-related.)

However there are times you need to fix the name on a ticket, and times you need to change the name on a ticket altogether. Here’s the latest guidance from American Airlines on how to make this happen.

Basically they will agree to name changes as long as travel is entirely on their own flights, that they have sold directly, and where you can convince them it’s still you… and not a ticket being sold.

You might get married, change the name on your passport, but realize you already had booked tickets that need to change. Your name might not match your ID, because you’re booked based on your middle name or what you’re called rather than the name on your ID (maybe someone else did this for you).

Naturally someone has figured out that this flexibility can be used for other purposes, too…!

(HT: ukassz)

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. If it benefits consumers, I am for it; if it creates a scalpers ‘black market’ that inflates prices and ultimately harms average consumers, I’m certainly against it. I’d imagine airlines are against it for different reasons, like, they prefer to make that profit, not others. Am I reading this right?

  2. So you pay this site for a discounted ticket and you hope like hell to get away with it. What happens when you show up at the airport and find the ticket was voided by the airline? Do you get your money back? Really, just spend the extra $25 to $50 for a real ticket.

  3. This makes no sense at all. The odds do not stack up.
    Basically you need to have 2 people with similar names flying on the same route in or around the same time/date. Then one needs to want to cancel in the same window that the other is willing to purchase, and then both need to know about this site. All this for probably a 10% saving + the risk that it all goes wrong.

    That is stacked probabilities, better to buy a lottery ticket and use the winnings to pay for the flight.

    This is likely a scam

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