Impact Of Online Reservation And E Commerce On The Air Travel Industry

1781 Words Feb 25th, 2016 8 Pages
This case study analyzes the impact of online reservation and e-commerce in the Air Travel industry. It focuses mainly on the United States, and displays the various evolutions that will lead an industry that was mainly ruled by very knowledgeable people and hardly accessible to the masses to becoming an open market where most, if not all of the information concerning the prices and services offered are “transparently” displayed. This case depicts the reason behind the long lasting success of the SABRE system. The main reason being that SABRE is an evolving set of systems that altogether are able to create a competitive advantage for American Airlines. The airline company was able to keep this competitive advantage for many decades, only because of their continual technical and product innovation. The SABRE system embodies the changes that the travel agent industry has suffered in the past. As the case points out: “continual evolution itself is not the success factor, but the combination of evolution with opportunistic exploitation of the opportunities offered by the industry environment” might be the key to it. At first, airlines were offering their services to travel agents via some reservation systems that were complicated to understand and utilize. This led the industry to be very segmented because the travel agents would basically become specialized in one or the other airlines’ system, thus making their life more complicated and their profit lower. On top of that,…

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