Evaluating IT-based operations in the airline industry: a case for electronic ticketing.

Abstract

During the late 1990s, the airline industry, led by the U.S. airlines, began to emphasize selling air tickets directly to customers in the form of “Electronic Ticket” (E-Ticket) without passing through travel agents. Airline companies realized that the implementation of “Electronic Ticketing” (E-Ticketing) could lead to significant savings in ticket distribution costs, and increased net revenues. This research was a formal study that tested the hypothesis: “Airlines can increase their net income and reduce their operating costs by implementing eticketing”. The researcher collected data from both primary and secondary sources. The primary data was gathered by conducting a survey of 100 managers and professionals, using questionnaires, from 20 airlines offering the e-ticketing service. The secondary data was collected from various journals internationally recognized. The research was descriptive, and its time dimension was cross-sectional. The t-test was used for testing the hypothesis and significant investigative questions on the questionnaires. The researcher employed a nonprobability sampling technique, which utilized a quota sample of managers and professionals from those airlines. Based on the findings from review of the literature and the survey, the researcher was able to prove that airline companies can increase their net income and reduce their operating costs by implementing e-ticketing.