I would look at this as a positive difference from the airline rather than a race to the bottom we currently are witnessing.
I have suffered the consequences of overbooking twice in the last 6 months.
In both cases the airline basically said. "Welcome to long haul flying - everyone does it so it is OK" and gave an insultingly low level of compensation.
In my experience, it is possible for volunteers to negotiate some pretty generous benefits in return for rebooking, especially on long-haul routes (e.g. round the world flights in first class, cash compensation, &c.).
I asked the airlines in question why they didn't warn me at the time of booking - they didn't reply just stated it keeps fares low.
I agree that they should do this if they have an overbooking policy. That being said, there's probably something buried in the Terms and Conditions somewhere - after all, everyone reads the small print before ticking the box, don't they?
I asked why I can't purchase a ticket at a higher price and get what I have paid for? - Declined to answer.
Many airlines will offer guaranteed travel as a frequent flyer perk.
I believe Cathay Pacific will actually book a top-tier frequent flyer onto a sold-out flight (including any overbooking) and bump someone else off.
If airline A - charge £1000 and you would get what you have paid for I would use them over airline B which charges £850 and overbooks. I am sure if airlines were more honest with overbooking rates (1:3 passengers were off-loaded in my first example) then I am sure it would hit thier pocket. The CAA say most people take it on the chin.
I suppose it depends on how flexible each passenger can be. Very few people have to travel on a specific flight. It's just inconvenient to change plans at the last minute.
I suspect more people would be willing to wait for the next flight if there was greater awareness of the mandatory compensation provisions (when flying from an EU airport or on an EU carrier) and the airline offers more than the legal minimum to volunteers.
By way of example, if the long-haul flight is over 3,500km and the delay will be more than four hours, the legal minimum for forcible denied boarding is 600. If an airline offers to upgrade me to First Class on the rebooked flight and gives me a couple of free return tickets to use in the future than I'd probably prefer that to the cash!
But I don't understand why airlines can't base a service on quality, rather than the race to the bottom with in my personal experinence I 1 in 3 chance of getting offloaded.
My experience.
Flight 1 - return journey overbooked - 33% of passengers offloaded.
Flight 2 - return journey overbooked - 20% of passengers offloaded.
These are both in the last 6 months - surely long haul flying doesn't need to be that unpleaseent? Would I use either airline agian - no? But then as everyone is doing it will the next airline treat me any better. The reason I won't use them again is because they just said you need to accept this as part of travelling with us.
That degree of overbooking is particularly high, I may say.
Even more reason to wring them for every penny in return for voluntary rebooking! They'd be gasping for volunteers, because it turns a bad PR moment into a success:
"We were overbooked, but they put us up in a hotel for the night, booked us on the next flight, upgraded us to Business Class and gave us £500 compensation. They handled it really well; nobody got dragged off the plane kicking and screaming."