1. Chapter 5: Case study e-Commerce in passenger air transport
E-Commerce ©David Whiteley/McGraw-Hill, 2000

2. Airline booking systems
Developed in the late 1970s by some large airlines.
Notable examples are:
United
Apollo
American Airways
Sabre
Initially a competitive weapon for the owning airline.
Latterly developed as ‘unbiased markets’ to sell seats for any airline.
E-Commerce ©David Whiteley/McGraw-Hill, 2000

3. Airline booking systems
Currently three major e-Market airline booking systems:
Sabre
Galileo
Amadeus
E-Commerce ©David Whiteley/McGraw-Hill, 2000

4. Sabre Sabre (American Airlines): Started in the early 1960s
Installed first terminal in a travel agency in 1976
Provides web based access via travelocity.com
At the time of writing Sabre:
Is processing over 400 million bookings a year for over 440 airlines (about 40% of the world market);
Is linked to more than 210,000 terminals;
Uses 30 mainframe computers (US based);
Has peak processing exceeding 7,450 messages/second.
Checkout
E-Commerce ©David Whiteley/McGraw-Hill, 2000

5. Galileo Galileo (United + European Partners): Started in 1971
At the time of writing Galileo:
Is processing over 250 million bookings a year;
For over 530 airlines (about 30% of the world market);
Is linked to about 160,500 terminals;
Uses 21 mainframe computers (US + UK);
Has peak processing of about 5,000 messages/second.
Checkout
E-Commerce ©David Whiteley/McGraw-Hill, 2000

6. Amadeus Amadeus (Four European Partners): Founded in 1987
Continental joined in 1995
At the time of writing Amadeus:
Is processing for over 469 airlines;
Is linked to more than 190,000 terminals;
Is based in Germany.
Checkout
E-Commerce ©David Whiteley/McGraw-Hill, 2000

7. Competition and customer loyalty
Airline branding/customer loyalty:
Advertisement:
United ‘the friendly skies’
BA ‘the world’s favourite airline’
Hub operations/connections
Loyalty/frequent flyer programs
Alliances: Star Alliance/Our World
Competition:
De-regulation
Low cost/no frills carriers
E-Commerce ©David Whiteley/McGraw-Hill, 2000

8. Web booking systems The web provides: A new sales channel
Less opportunity for price comparison
Chance to develop brand loyalty
Value-added features can include:
Customer’s Frequent Flyers account online
Pre-allocation of seats
Online selection of meal options
Additional travel services
Travel and airport information
Access to seat sales/auctions
Personalisation of the web site
E-Commerce ©David Whiteley/McGraw-Hill, 2000

9. With online booking (%)
Web booking systems
Analysis of airline web sites usage (1999)
With web site (%)
With online booking (%)
North America 58 22
South America 33 8
Western Europe 42 12
Eastern Europe 7 1
Pacific 44 9
Asia 23 3
Africa 26
Average 10
E-Commerce ©David Whiteley/McGraw-Hill, 2000

10. Airline Web sites Customer Information: Alternatives:
Requirement for prior registration
Take details when purchase is made
Prior registration:
Can annoy/put-off customers
Might tie customer into site
Details at time of purchase:
Time-consuming (if done every time)
Sales can be mixed mode:
Web enquiry / telephone sales
Discuss / Check out some Airline sites
E-Commerce ©David Whiteley/McGraw-Hill, 2000

11. Airline Web sites Product (flight) Information: Alternatives:
Show Timetables
Take date, time and airport details
Issues:
Knowing airport names / codes
Several airports for one city
Alternative dates and times
Check out some Airline sites for cheap deals:
London to New York:
Several airports for each city
Cheaper tickets may be available on alternative dates
… and discuss issues.
E-Commerce ©David Whiteley/McGraw-Hill, 2000

12. Airline Web sites Payment and Delivery: Payment by Credit Card:
Security Issues
Delivery:
By post
Collect at airport
e-Ticket
Discuss issues ….
E-Commerce ©David Whiteley/McGraw-Hill, 2000

13. Options for booking airline seats
Main options:
Telephone airline direct
Conventional Travel agent
Online Travel Agent
Airline web site
E-Commerce ©David Whiteley/McGraw-Hill, 2000

14. Chapter 5 – Exercise 1
Check out booking of airline seats online – the requirement is for the best price for London to San Francisco – out 23 Dec and back 02 Jan.
The following sequence of steps is recommended:
Use the web to find out a list of carriers that fly the required route.
Use two or three airlines to find the cheapest available return flight.
Find an online travel agent and check for the cheapest price there.
E-Commerce ©David Whiteley/McGraw-Hill, 2000