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Contents
1.0
Introduction............................................................................................................ 3
2.0
3.0
1.0 Introduction
Information Technologies have brought about significant improvements in Business
operations and in the entire human life as whole. Talking about globalization, information
technologies has brought the world closer together. This means that we not only share information
quickly and efficiently, but we can also bring down barriers of language and geographic
boundaries. [By Martin Nana Baffoe Pieterson, 7 October 2009] Information technologies have
also made it possible for businesses to operate for 24 hours all over the globe. This means that a
business can be form at anytime and anywhere, which making purchases from different countries
easier and more convenient. Airlines focus on cost reductions in driving to operations that are
more efficient. However many airlines are turning to customer relationship management (CRM)
as a tool for managing customer relationships. Unfortunately, in many cases, they have failed to
recognize CRM as a holistic strategy, instead viewing it as synonymous with their frequent flyer
programs. As airlines struggle to gain market, share and sustain profitability in today's fiercely
competitive and economically demanding environment, they must develop new ways to manage
their customer relationships to optimize customer loyalty and revenues. Over the last years,
individuals and organizations all over the world have invested significantly in information
technologies and systems. It is widely believed that strategic information technology (IT)
investments will enable firms to cut costs and working effectively.
Sources: http://www.airasia.com/my/en/home.page
Sources: http://www.aircanada.com/en/travelinfo/airport/expresscheckin/index.html
3.3 SITA
SITA is the world's leading air transport IT and communications specialists. Most of the
Airlines use SITA's IT and communications solutions. They all rely on SITA's expertise to help
keep the wheels of the industry in motion. The technologies below show the technological trends
and their impact on the airline industry.
3.3.1 In-Flight Entertainment (IFE)
Passengers will develop a good knowledge of the service and product to expect of each
airline. For example, crew service standards, seat pitch, meals offered, drinks offered, in-flight
entertainment (IFE) experience and so on. [By Robert Boyle, 1, April 2009] With that knowledge
and insight, they will make their choices accordingly. SITA anticipate that this extensive consumer
knowledge of airlines' relative merits will increasingly drive consumer behaviour. Airlines
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A leading global online travel company that uses innovative technology to enable leisure
and business travelers to research, plan and book a broad range of travel products. Orbitz was
acquired by Cendant and assumed responsibility for Cendant's domestic online travel business,
which included cheap tickers, a leading online travel brand focused on the value-conscious
traveler, and for Flairview Travel, which operated the international online hotel websites. The
figure below shows the different price of difference airline can be search by using the
technologies of Orbitz:
Sources: http://www.orbitz.com/
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Effects
Effects:
Effects
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Effects
Effects
8.0 What Will Happen If Airlines Industry Not Using Any Technologies?
There is only one thing could happen if airlines industry is not using any technologies
which is bankruptcy. Why? Because airlines are most dependent industry on information
technologies. No matter what business you are running, customers play as the most important role
for business to continue survives. So how technologies related to the customer? Imagine if one of
the airlines does not implemented with online booking technology, what will happen if the
customers want to purchase a flight ticket? Do you think they will go to your airline company by
travel few kilometres from their home to purchase a flight ticket which they might be also need to
queue up for quite a long time? Or just purchase flight ticket through another companies which
provided online booking technology
9.0 Conclusion
Properly implemented, technology can have a significant impact on the airline industry.
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10.0 References
1. Kochava R. Greene, eHow Contributor, The Advantages of Online Airline Reservations
[online].
Available
at
http://www.ehow.com/about_5072492_advantages-online-airline-
reservations.html
2. JAD MOUAWAD, (June 4, 2010), Airlines Work to Catch Up to the Digital Age. [online]
Available at http://www.nytimes.com/2010/06/05/business/05air.html?_r=1&
3. Raymond Kollau, (2 July 2010), American Airlines equips customer service agents with mobile
YADA [online] Available at http://www.airlinetrends.com/2010/07/02/american-airlines-yadahandheld/
4. Robert Boyle, Director of Strategy & Business Units, (April 2009), Technological trends and
their
impact
on
the
airline
industry
[online]
Available
at
http://www.sita.aero/content/technological-trends-and-their-impact-airline-industry
5. Air Canada, What is an Electronic Boarding Pass? [online] Available at
http://www.aircanada.com/en/travelinfo/traveller/mobile/ebp.html
6. Storminteractive, Enhanced customer service, streamlined reservation and management
systems, on the ground and in the air [online] Available at
http://www.storminteractive.eu/airline-industry.html
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