Group 5
Amita Mistry Santosh More Manish Nangalia Aquil Nomani Vivek Oza Bipin Pal Mayank Parekh Sadanand Ramugade Nina Raste 241 242 243 244 245 246 247 249 250
Case Study
Sabre Evolution
A computer reservation system developed by American airlines Primary channel for booking and reservation Access to travel agents with travel related content like fares, schedules etc. Availability to real time travel information In 2005, Sabre connected 400 airlines, 60,000 hotels, 37 car rentals, 9 cruise lines, 36 railroads and 220 tour operators to thousand of travel agents around the world. To increase revenues it launched 3 websites: Travelocity.com, Virtually There and Get There
distribution cost
In 2003, Northwest paid $180 m as GDS fees In 2004, Northwest encouraged direct selling as a low cost alternative to GDS through internet by using its own website To discourage the use of GDS, it started charging additional $10 per ticket booked through GDS.
Indian Scenario
Type of Airlines Services
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Deccan Profile
Started air operations in 2003 by Capt. G R Gopinath with a vision to provide affordable and point to point flight service India's first low cost, no frill airline Providing the lowest airfares and connectivity to unconnected towns and cities Despite a disastrous maiden flight which caught fire, Deccan continues to grow
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Distribution cost
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Aviation Fuel Global distribution Service 40% 40% On Billing and settlement plan On travel agent on other over heads 3% 4% 10% 3% Others
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Pioneer in introducing internet based computer reservation system E-ticketing In-house development of Airline Distribution System (ADS) Elimination of GDS, BSP and Travel Agent Cost
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Air Deccan
40 10 4 3
3 40 100
40 0 0 0
1 30 71
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Online Booking offers many advantages for both travelers and airlines, including security, flexibility, cost and convenience Merits Easy Connectivity Receive Bookings 24/7 Cost Benefit Low Maintenance Cost Demerits Phishing De-motivation to travel agents
References
http://www.cio.in/sites/default/files/Air%20Deccan.pdf
http://www.rediff.com/money/2006/may/15spec5.htm http://www.fiaindia.in/member/airdeccan.htm http://www.fiaindia.in/issues.htm
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