United States Department of Transportation
i
Study of Airline Computer Reservation Systems
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1988-05-01
[PDF-8.20 MB]
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NTL Classification:NTL-AVIATION-AVIATION;NTL-AVIATION-Aviation Economics and Finance;
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Abstract:The study addresses possible competitive issues concerning the five airline-owned computer reservation systems (SABRE, APOLLO, SYSTEMONE, PARS and DATAS II). The relationship of the fees charged by the vendor airlines to participating airlines and travel agency subscribers to the cost of providing these services is examined. The financial benefits to an airline of owning a CRS are examined. The importance the "halo effect" (the additional airline passenger revenues a vendor airline receives because of its affiliation with travel agents who subscribe to its CRS) is discussed. Whether there is any remaining carrier-specific bias in the methods used to rank flight information on their CRS displays is explored. The competitive consequences of liquidated damages provisions in the vendors' contracts with travel agents are noted. And, finally, how the vendors' revenue market shares have changed in major metropolitan markets over time is documented. The report also examines whether technology exists to facilitate major changes in the way travelers make airline reservations and obtain travel documents.
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