I had my doubts about this until it happened to me recently. On a return trip from Seattle to Baltimore, I was told at check-in that the flight was overbooked and I might not be able to get a seat on that flight. After a few minutes of standing there talking to myself, I wandered to my gate and told the attendant who I was and that I was supposely on standby. The attendant told me that yes, the flight was overbooked and if I was willing to come back the next night that I would receive a free round-trip ticket for my troubles. Unfortunately, I really had to get back the next day or I would have gladly taken advantage of the offer. Afterwards, he made an announcement of the offer, and a young lady quickly stepped up to take advantage of it.
If you're flexible with your flight plans and would like to take advantage of these type of deals, let the customer rep. at the terminal know that you are willing to be 'bumped', and you may be able to take your next flight on the airline.
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