The second development was ticketless travel Ticketless travel or e tickets

The second development was ticketless travel

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The second development was ticketless travel. Ticketless travel, or e-tickets, originated with Morris Air 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 initiate ticketless travel in 1994, largely in response to a dispute with Sabre and other GDSs. The cost of issuing a 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, electronic tickets are used by 100% of airlines, and almost 100% of passengers. In fact, in recent years, if a passenger 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 the airlines money. For example, the cost to process an e-ticketed passenger who uses the Internet to check-in for their flight and then prints their boarding pass at home is only about 16¢ compared to about $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% use of 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 a travel agent or airline office to print a ticket (and pay the additional fee), the e-ticketed passenger gets only 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 issued a boarding pass for their flight. The two main services the traveler needed from travel agents and GDS systems 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 travel agent commissions and GDS booking fees annually. However, it would take time for travelers to transition 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 an additional 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 segment booking fee if the passenger used certain GDSs. In 2004, Northwest began an initiative to charge passengers for using more costly distribution channels announcing additional charges of $10 for booking at the airport ticket office, $7.50 for booking through a GDS, and $5 for booking through the reservations center. It was forced to drop the $7.50 “shared GDS fee,” but most carriers adopted the other two fees. A year later in 2005, Northwest doubled most fees, from $5 to $10 for tickets purchased
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  • Fall '16
  • Kelly Lawton
  • United Airlines, Delta Air Lines, Pan American World Airways, Cab, Douglas DC-3

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