Situation Analysis : Chief Decision Maker Essay

2094 Words9 Pages
Airplane Case
Situation Analysis (Chief Decision Maker (American Airlines) : The travel industry was revolutionized in 1960 when air travel became affordable. As more people could afford to fly, there was a heavy reliance on travel agents to act as intermediaries between consumers and airlines. The process for booking a flight was complicated, which is why a vast majority of people who flew would consult a travel agent. This process would involve the travel agent, contacting the airline via telephone in the hopes of getting the ideal flight date, or a date suitable for their client. If it was not for the travel agents acting as an intermediary between airline and consumer, the airline industry would have suffered because consumers would not have wanted to go through the hassle of booking a flight. Since travel agents played a critical role in the success of the airline industry, we compensated them with commission for every client they got to fly with us. As technology advanced and new airline booking platforms were introduced, the role of the travel agent drastically changed. In the early 1960’s we launched the Semi-Automated Business Research Environment (SABRE) platform with IBM, which gave us a competitive edge in the airline market. SABRE allowed flights to be booked through a computerized system, so there was no more direct calling from an agent to book a flight. Our competition saw the benefits of this platform, so they tried to create their own
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