preview

Case Study 2 Essay

Better Essays

Airline Distribution Systems in 2013: A Case Study Embry-Riddle Aeronautical University Worldwide Abstract Airline distribution systems are undergoing a dramatic change in the way airline tickets are distributed due to the influence of different factors such as new technology, low-cost demands, and the changing needs of travelers. This paper will discuss those factors and discuss Global Distribution Systems (GDS) and what advantages airlines would gain from being in control of ticket distribution. The strengths and weaknesses of such systems will be discussed and a government report will be reviewed throughout. Finally, two websites will be researched as to their successfulness and ease of use for customers. The two airlines for …show more content…

(Koenig, 2011). The justice department has clearly stepped into the mix by investigating claims of monopoly power and anti-trust. Only announcements of such investigations have taken place with no more real information being handed to the public. American and US Airways have both filed lawsuits against the global distribution giant, Sabre (Koenig, 2011). Sabre was actually created by American Airlines but later spun off as a separate company (Koenig, 2011). American also sued Travelport for using monopoly tactics and burying their flight information (Koenig, 2011). With Travelport accounting for nearly $2.7 billion of American’s ticket sales last year, it is hard to see where the complaint lies yet American is intent of wrongdoing and is asking for government assistance through lawsuits (Koenig, 2011). Government institutions try to protect consumers and smaller companies in tourism by imposing anti-discrimination and anti-trust regulation to ensure that real information is presented and competition levels remain satisfactory (Beatrice, Cezar, & Alexandra, 2013). Industry Airlines and independent travel agencies were amongst the first to take advantage of the marketing and sales opportunities the internet provided (Borenstein, & Rose, 2013). Airlines saw the internet as a way to bypass the traditional sales channel of travel agents in order to gain

Get Access