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A wider range of products, the ability to be flexible with fluctuating consumer needs are all potentially exploitable through the power of technology and strategic planning. The following report provides an understanding concerning the Airline Passenger Reservation System. It will briefly discuss the advantages associated with integrating the system across the airline industry and what and where are the potential gains. There has been much discussion concerning how information technology may contribute to the development of a competitive advantage. Whilst there are some notable examples, investment in information technology (IT) is often a matter of competitive necessity. The technological advances emerging from the integration of computing, microelectronics and telecommunications are creating significant changes in organisations (Stoner, et al 1994). The information technology revolution of the past 20 years has made information technology an integral part of any core business activity. Information technology management now contributes to all the management functions of planning, organising, leading and controlling and affects competitive strategy and business operations. This report will briefly discuss the strategic nature of networked Airline Passenger Reservation Systems and some of the benefits derived from deploying such a system. Since the beginning of commercial aviation, airlines have developed a wide range of co-operative arrangements to provide a wider, more efficient range of services (Qantas 2000). However, since the deregulation of the US airline industry in 1978 and the subsequent follow on of the Japanese, Australian and European industries in 1985, 1990 and 1997 respectively (Chatfield & Bjorn-Anderson 1997) competition between rival airline companies has intensified. Since it is neither practical nor economical for any one carrier to operate across the entire globe (Oneworldalliance 2000) airlines and their subsidiaries must form alliances to remain competitive. These alliances brought about the introduction of the Airline Passenger Reservation System (APRS) or Computer Reservation System (CRS) as it is sometimes known. This system offers airlines the ability to expand their product line to meet a broader range of customer needs through gaining access to product and services of other companies to which they have a strategic alliance. Whilst there is a diversified range of Computer Reservation Systems providers covering the global market, from the smaller consortiums to the very large, companies such as Oneworld, Worldspan, Apollo, Galileo and Sabre are all major providers. They have formed alliances not only with airlines but also with hotels and motel accommodation providers, railways, car rentals, tour and sightseeing operations etc to offer a seamless service dictated by supply and demand. It is this extension of alternative services available to airlines, which allows them to gain a competitive advantage over those airlines that have chosen alternative methods. An example of early success was American Airlines. American Airlines gained an initial competitive advantage over its rivals when it gave travel agents access to its sophisticated Sabre reservation system. Now, with alternative reservation systems in operation and legal moves to ensure equitable listing of competitor flight schedules the initial competitive advantage of the airline reservation system has evolved into more of an essential for survival (Stoner, et al 1994). Whilst it is difficult to comment on the differences and similarities between the various providers it is clear that each portray themselves as the market leader. In an everchanging global market where customer demands frequently fluctuate there is an overgrowing need to offer something different. Itˇ¦s not long, however before the rest ˇ§jump on the bandwagonˇ¨. There are many advantages associated with the APRS. The increase in strategic value can be seen in the following points: „X Customers have access to a seamless ˇ§one stop shopˇ¨ catering for all needs „X Opens the market up for customer convenience „X Airlines have access to a wider range of products and services than would of otherwise been possible under autonomous operations „X APRS provides for instant confirmation of a customers entire travel package rather than awaiting confirmation from each individual service provider to confirm arrangements „X Airlines have increased flexibility to changing market conditions „X APRS has enabled streamlining and enhancement of business procedures by utilising additional services coupled with CRS such as Yield Management Systems. „X Reduction in processing lag time increasing customer turnover The ability to connect people and tasks within and between organisations electronically has become a strategic necessity. The Airline Passenger Reservation System provides a classic example in the benefits of global connectivity and shows how the integration of airlines and other services provides for increased strategic management and financial leveraging. It proves that businesses in a ˇ§ joint venture:ˇ¨ scenario can co-exist and business processes integrated with information management technologies are mandatory to maintain the competitive edge. Bibliography: References 1. Stoner, J. A; Yetton, P.W; Craig, J, F; & Johnston, K, D. (1994). Management (2nd ed.) Australia: Prentice Hall 2. QANTAS (2000) Alliances http://www.qantas.com.au/company/factfiles/alliances.html [2000, February]. 3. Chatfield, A., & Bjorn-Anderson, N (Summer 1997). Transformation of the Value of Japan Airlines, pages 3- 5. Journal of Management Information Systems. [On-Line]. Available : http://www.proquest.com 4. Oneworldalliance (1999) What Oneworld Will Offer http://www.qantas.com.au/company/factfiles/alliances.html[1999, February 1999]. Word Count: 847
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