Travel Reference
In-Depth Information
its Sabre Computerized Reservation System (CRS), a project that was
described as a technical marvel (French, 1998; O'Connor, 1999). Subse-
quently, the CRS expanded rapidly into a gigantic computerized network.
In the 1990s, CRS evolved into Global Distribution Systems (GDS), which
offered a wide range of tourism products and provided a mechanism for
communication between principals and travel agencies. GDSs effectively
became travel supermarkets offering information and reservation capabili-
ties for the entire range of travel products, including accommodation, car
rentals and schedules for nonair transport. GDSs are at the heart of airline
operational and strategic agendas as they control and distribute the vast
majority of airline seats (Buhalis, 2004).
The development of the world wide web (www) in the late 1990s pro-
vided both a challenge and an opportunity for airlines (American Airlines,
2000; French, 1998; Smith & Jenner, 1998; Buhalis, 2000a,b). By 1998,
most airlines already had web sites, which not only informed consum-
ers but also enabled itinerary building, fare construction, and reservations.
In turn, this enabled interactivity with consumers and the development
of relationship marketing strategies. It also assisted airlines in launching
another communication and purchasing channel to reduce the power and
costs of conventional intermediaries.
Overall, it would appear that the establishment of new distribution
channels by airlines in the Asia-Pacific region is following recent trends
elsewhere—but will more likely be similar to those in Europe than in the
US.
The development of the Internet has made information easily acces-
sible to consumers, and has therefore established a direct link between
consumers and suppliers. As a result, traditional travel distribution chan-
nels are changing rapidly. A major feature of this change is “disintermedia-
tion,” with principals such as airlines, hotels and rental car chains bypass-
ing intermediaries to sell directly to consumers. A number of web-based
travel agents have also emerged (Expedia.com, Travelocity.com) while
off-line agencies have developed their on-line provision. Internet portals
(Yahoo, Altavista, Excite) and vertical portals (or vortals) have also de-
veloped on-line travel distribution, often by sourcing their travel contents
from external online agents and suppliers.
On-line travel agencies are moving into Asian markets. Travelocity, one
of the two leading on-line agencies in Canada, Europe and the US, is report-
ed to be establishing an on-line distribution system in Asia (Kirby, 2001).
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