History of Airline Booking Systems

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Questions and Answers

What key technological advancement significantly reduced airline ticket booking times in the mid-20th century?

  • The development and implementation of the Sabre system. (correct)
  • The standardization of commission rates paid to travel agents.
  • The deregulation of the airline industry by the US government.
  • The introduction of the 'lazy susan' system for organizing physical flight index cards.

Prior to the widespread adoption of computerized systems, what was a significant challenge faced in airline ticket booking?

  • The lack of standardized pricing across different airlines.
  • The limited number of flights available to meet passenger demand.
  • The time-consuming process of manually referencing flight information. (correct)
  • The absence of international agreements governing air travel.

How did the introduction of CRS (Central Reservation Systems) like Sabre and Apollo impact travel agencies in the 1970s and 80s?

  • Agencies became entirely reliant on airlines for booking flights.
  • Agencies gained direct access to flight information but were initially limited to one airline per terminal. (correct)
  • Agencies were forced to merge with major airlines to maintain competitiveness.
  • Agencies were able to eliminate commission fees for booking flights.

What regulatory action was taken to address the anti-competitive practices of CRS owners like American Airlines in the 1980s?

<p>The legal separation of airlines from their CRS to create standalone GDS (Global Distribution Systems). (B)</p> Signup and view all the answers

What was a primary economic benefit airlines gained by transitioning to online ticket sales via the internet?

<p>Reduced distribution costs compared to traditional agency bookings. (C)</p> Signup and view all the answers

Which of the following best describes the evolution of online travel agencies in the late 1990s?

<p>Several companies emerged, utilizing data from various GDS to offer online booking services. (C)</p> Signup and view all the answers

What marked the beginning of the mobile era in the travel industry?

<p>Kayak's release of the first mobile travel application. (C)</p> Signup and view all the answers

What is a key trend in the current travel industry, driven by technological advancements?

<p>A focus on providing a comprehensive, all-in-one travel experience accessible via smartphones. (A)</p> Signup and view all the answers

How did deregulation and lower fuel prices impact the airline industry and CRS systems?

<p>They spurred the entry of new airlines, compelling CRS owners to include them in their systems. (C)</p> Signup and view all the answers

What was the original purpose of ICAO and IATA in the context of early flight booking systems?

<p>To establish regulations and standards for the rapidly growing aviation industry. (A)</p> Signup and view all the answers

Flashcards

"Lazy Susan"

A system used by airline ticket agents in the 1950s involving a rotating platform to store and access flight information cards.

Sabre

The first airline central reservation system (CRS), launched in 1964 by American Airlines and IBM, which significantly reduced flight booking times.

Standardized CRS

Computerized systems developed by IBM to facilitate flight bookings for multiple airlines after the success of Sabre.

CRS Access for Agents

Systems such as Sabre provided access to flight information and booking capabilities directly to travel agents through terminals installed in their offices.

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Anti-competitive CRS practices

Practices like prioritizing an airline's own flights in CRS rankings and charging competitors for better placement, which were later deemed illegal.

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Global Distribution Systems (GDS)

Systems that emerged after airlines were required to separate from CRS to prevent anti-competitive practices.

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Easy Sabre

The first online closed booking engine, launched in 1994, marking a significant step towards online flight booking.

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Travelocity

Launched in 1996, it was the first online travel agency, founded by Sabre, which allowed consumers to book flights and other travel services online.

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Kayak Mobile App

The first mobile travel application, released in 2009, marking the beginning of the mobile era for flight bookings and travel planning.

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Mobile booking

Common now, smartphone apps allow users to book flights, manage travel itineraries, and access travel information.

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Study Notes

Early Flight Booking

  • In the 1950s, airline ticket agents used a "lazy susan" for storing and accessing flight index cards.
  • Reserving tickets could take up to 1.5 hours per booking.
  • Post-World War II, civil aviation increased passenger numbers and flight frequency.
  • The International Civil Aviation Organization (ICAO) and the International Air Transport Association (IATA) shaped aviation rules during this period.

The Birth of Sabre

  • In 1953, a meeting between American Airlines' president C.R. Smith and IBM's R. Blair Smith led to Sabre's development.
  • Sabre, short for Semi-Automated Business Research Environment, was the first airline central reservation system (CRS).
  • Sabre launched in 1964 and used IBM 790 computers to store and share flight information digitally.
  • Sabre reduced booking times from hours to minutes.

CRS Development and Expansion

  • IBM developed a standardized CRS for multiple airlines across the US and Europe after Sabre's success.
  • Panama, System One, and Apollo emerged, based on IBM's product.
  • By the late 1970s, major American and European carriers had built their systems.
  • The automation of flight booking began.

Addressing Distribution Bottlenecks

  • During the 1970s and 80s, travel agencies experienced bottlenecks in accessing flight information.
  • Sabre and Apollo extended access to their CRS to travel agents by providing terminals in their offices.
  • Agencies could access flight information and book tickets directly but were limited to one airline per terminal.
  • Commissions were paid by agencies for terminal maintenance and bookings made through the system.

Deregulation and Competition

  • Deregulation by the US government and lower fuel prices resulted in new airlines entering the market.
  • CRS owners allowed new airlines into their systems.
  • American Airlines and other CRS owners began prioritizing their flights in the system rankings, charging competitors for better placement.
  • Governmental regulation addressed anti-competitive practices, making the use of CRS for competitive advantage illegal.
  • By the end of the 1980s, airlines separated from CRS, leading to standalone Global Distribution Systems (GDS).

The Internet Era and Online Booking

  • The internet reduced distribution costs for airlines for selling tickets online.
  • In 1994, easy Sabre, the first online closed booking engine, was launched.
  • Sabre founded Travelocity, the first online travel agency, in 1996.
  • Microsoft launched Expedia in 1996, using data from Worldspan GDS.
  • Website distribution costs were significantly lower (25 cents) compared to traditional agencies ($8).
  • Priceline.com, founded in 1997, sold expiring tickets from Worldspan GDS.
  • American, Northwest, Continental, and Delta founded Hotwire.com.

The Rise of Mobile and Consolidation

  • Kayak and Skyscanner both launched in 2004.
  • Market consolidation occurred with the rise and fall of various businesses.
  • Kayak released the first mobile travel application in 2009, marking the beginning of the mobile era.
  • Booking flights via smartphone is now common.
  • Travel companies are creating all-in-one travel toolsets.
  • Google and Airbnb offer travel solutions within their platforms.
  • Kiwi aims to become a global travel experience platform.
  • The travel industry is moving towards providing a complete travel experience in one place, accessible via smartphones.

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