The second development was ticketless travel

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The second development was ticketless travel.Ticketless travel, or e-tickets, originated with MorrisAir in early 1990s.Morris was owned and operated by a travel and tour agency out of Salt Lake City.Morris was subsequently purchased by Southwest who used Morris’ developed technology to initiateticketless travel in 1994, largely in response to a dispute with Sabre and other GDSs. The cost of issuinga paper airline ticket was about $10 compared to about $1 for an e-ticket (Belobaba, Swelbar, &Barnhart, 2009).Gradually, all U. S. domestic carriers adopted e-tickets.Since May, 2008, electronictickets are used by 100% of airlines, and almost 100% of passengers.In fact, in recent years, if apassenger wants a printed paper ticket, they will generally have to pay more, somewhere around $15,for the service.Passengers with e-tickets are spared the hassle of having to take possession of tickets,storing them until their flight and then finding them to present to the agent.E-ticketing also saves theairlines money.For example, the cost to process an e-ticketed passenger who uses the Internet tocheck-in for their flight and then prints their boarding pass at home is only about 16¢ compared toabout $3.62 for check-in with a live agent.The International Air Transportation Association (IATA),which mandated that all 230 of its airline members utilize e-ticketing by 2008, reports that the 100% useof e-ticketing saves the airlines a total $3 billion a year, worldwide (“IATA Fact Sheet,” n.d.).E-ticketing also works very well in conjunction with internet reservations.Instead of having to visit atravel agent or airline office to print a ticket (and pay the additional fee), the e-ticketed passenger getsonly a confirmation number from either the web site or from an agent.When they get to the airport,they provide the airline agent with the confirmation number and their identification and they are issueda boarding pass for their flight.The two main services the traveler needed from travel agents and GDSsystems were now available directly from the airline via the Internet.Using the Internet to sell reservations could save the airlines each tens of millions of dollars in travelagent commissions and GDS booking fees annually.However, it would take time for travelers totransition to the internet process.Additionally, many airlines still had contracts with GDSs.One tactic airlines used to drive potential customers to their internet site was to charge anadditional fee if the passenger used a GDS system versus the airline’s preferred system.For example,Continental followed United and American when it announced it was imposing a $3.50 per segmentbooking fee if the passenger used certain GDSs.In 2004, Northwest began an initiative to chargepassengers for using more costly distribution channels announcing additional charges of $10 for bookingat the airport ticket office, $7.50 for booking through a GDS, and $5 for booking through thereservations center. It was forced to drop the $7.50 “shared GDS fee,” but most carriers adopted the

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Term
Fall
Professor
Kelly Lawton
Tags
United Airlines, Delta Air Lines, Pan American World Airways, Cab, Douglas DC 3
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Refrigeration and Air Conditioning Technology
The document you are viewing contains questions related to this textbook.
Chapter 26 / Exercise 17
Refrigeration and Air Conditioning Technology
Silberstein/Tomczyk
Expert Verified

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