dustry. This change will require less travel agents and promote more competition among carriers. United Airlines for example, has created a service for people who visit their web site. Not only can they book flights on United, but on over 500 other airlines as well (Competition Bulletin, Internet). United Connection, as it is called, is likely to be imitated by other airlines and because of this may only be a temporary competitive advantage at this point in time.The idea of third tier on-line travel agents such as Microsofts Expedia and Preview Travel allow travelers to choose flights at reduced prices. Currently, on-line travel is the most frequently used e-commerce medium on the Internet with revenues of $274 million, or 1% of the ticket booking market. This is estimated to increase to 6 to 9 billion by 2002. (US Business Reporter, Internet). Online services such as these result in intense competition in the industry. Because sales from the airline directly are reduced by such methods, carriers are faced with the problem of finding other profit producing measures.Another new innovation is that of ticketless travel. The idea was originated by Air Tran (Value jet) as a way to cut costs and provide faster service for customers. The passenger is able to pick up boarding passes at the check-in counter or can have one printed through automated dispensing machines. The e-tickets are then activated with a credit card or frequent flyer card. E-tickets will save a lot of time and could likely separate the top airlines from the lesser ones if the idea catches on because airline passengers are drawn to services that speed up travel time. Consumers may quickly become more price sensitive in the near future with companies such as Sabre and Priceline.com. These outfits allow consumers to pick their price and are automatically booked if their price is matched. As a result, airlines may be forced to match these prices in order to stay com...
