World Telecommunication Day 1999

IHT October 15, 1999


Airlines Play the Electronic Card

On-line bookings and sales are only part of the picture as airlines have moved into cyberspace.


Airlines have emerged as leading-edge technology adapters who rely heavily on interconnectivity and integrated systems. As a result, Internet-related services are changing the way tickets are sold, clients handled and flights arranged.

By providing flight information on-line, carriers can reduce calls to their toll-free numbers and in turn decrease their telephone reservations staff. If travelers book and buy tickets via computer, airlines save on commissions to travel agents. Last-minute on-line fares are an inexpensive way for airlines to advertise and sell seats that would otherwise go empty.

''E-tickets'' are becoming widely popular in the United States, with many individuals booking weekend getaways on-line. But e-tickets have been slower to catch on overseas. The primary problem is the incompatibility of most airline e-ticketing systems, which makes traveling on more than one airline during a single trip impossible.

The International Air Transport Association (IATA) and IBM, however, are currently developing a system that will allow airlines around the world to exchange electronic tickets. IBM claims the system will be more efficient than requiring airlines to establish distinct electronic links with one another. Run on IBM mainframe computers, the system will be designed, developed and managed by the computer giant.

United Airlines is promoting Internet ticket purchases by offering 4,000 frequent-flier miles to each customer for the first United ticket bought on-line between August and December this year. ''This special promotion provides an added incentive for travelers to experience booking a trip on ual.com,'' says Rick Collins, the airline's acting director for electronic commerce.

The UA Web site provides access to much more than United flights. Travelers can purchase tickets with over 500 airlines, 45 car rental companies and 30,000 hotels worldwide, and the site is the only source for purchasing e-fares on discounted weekend travel on select domestic and international routes.

British Airways is the first IATA carrier to offer e-ticketing in the United States through Worldspan - a reservation, ticketing and office automation system owned by affiliates of Delta, Northwest and TWA. In addition to e-ticketing, Worldspan can electronically revalidate BA flights and carry out exchange or refund transactions.

Says Sue Powers, Worldspan's vice president, sales and marketing: ''The unique functionality of electronic ticketing on British Airways makes it easier and more convenient than ever for Worldspan travel agents to provide this important service to their clients.''

Worldspan recently expanded its reach by offering home-based and other remote-location travel agents access to the system through Worldspan Go! Solo, a dial-in access solution that provides open access to Worldspan's mainframe reservation system via the user's own Internet service provider rather than through a more costly dedicated network.

Communications technology is also at the forefront of customer relations management, with customer needs and preferences recorded and stored in on-line databases. Industry experts predict billions of dollars in revenue in the coming years as a result of these advances.

In a first step toward this goal, Delta Airlines hopes to slash overhead and stimulate more business with corporate customers by using e-commerce to remove non-value-added costs and help them better manage expenses. For example, Delta will offer increased discounts to corporations that use Delta's reservation system and a high percentage of e-tickets.

Airlines are also using advances in computer-telephony integration to improve customer/employee communications. Cathay Pacific recently installed an interactive voice response system at the airline's new $625 million headquarters in Hong Kong. The system will provide details on Cathay flights and dispense information on all flights in and out of Hong Kong.

Julia Clerk