Nested booking limit

A nested booking limit is a booking rule that allows full-priced reservations to intrude upon the capacity block that had been set aside for reservations at a lower price. For example, an airline sets up a booking limit on a forthcoming flight, where 75 seats are priced at $100 each and 25 seats are priced at $200, with no refunds allowed for the $100 tickets. A business group promptly buys the entire block of full-priced seats. At this point, the airline can increase its revenue by using a nested booking limit rule, which allows it to continue selling tickets at $200 each; as each of these tickets is sold, the allocation for the $100 tickets declines in size. This approach reduces the accessibility of low-priced tickets while expanding higher-priced ticket sales.

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