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How a ticket is sold, through an agent or by the airline directly, and whether the<br />

ticket is paper or electronic, can mean the difference between paying $8.00 or $1.00<br />

to process a ticket:<br />

$8.00: Travel agent books, using computer reservation system<br />

$6.00: Travel agent books direct with airline<br />

$1.00: Customer books electronic ticket direct with airline.<br />

Source:<br />

Henry D, Cooke S, Montes, 1998, The Emerging Digital Economy, US Department of<br />

Commerce 1998, p. A4-<strong>23</strong>.<br />

Sea<br />

The sea transport sector has been long active in e-commerce initiatives,<br />

many started by the ACS but involving significant industry participation.<br />

Examples include, COMPILE for customs agencies, EXIT2 and Sea Cargo<br />

Automation for shipping lines and terminals (see section 9.2). Shipping<br />

lines and agencies are now transmitting manifest information<br />

electronically to Port Authorities.<br />

9.5 External dimension<br />

With the increase in electronic booking and lodgement systems,<br />

including regulatory lodgements, an opportunity is created for some or<br />

all of the administrative work in organising transport to be moved<br />

overseas to the head office of the buying or organising company.<br />

Likewise, Australian companies could arrange some global transport<br />

services from Australia, using e-commerce to reduce the need for local<br />

agents in other parts of the world.<br />

Air passengers can check schedules, flight availability and buy fares,<br />

without the need to contact an agent familiar with Australian services.<br />

This may increase the number of additional domestic fares (air or land)<br />

purchased by international travellers coming to Australia assuming those<br />

fares are made available by the transport companies to overseas customers).<br />

Key points<br />

While there are some obvious threats to freight services from electronic delivery, it<br />

seems more likely that there will be many offsetting opportunities in the delivery of<br />

Internet-purchased physical products and transport of people. Meanwhile,<br />

improvements in supply chains will generate further efficiencies in the sector that<br />

may lead to decreased demand for labour. Additional value may also be built into<br />

customer relationships.<br />

When looking at quantitative analysis of the sector a number of direct changes have<br />

been factored in to the study:<br />

– transport will obtain a small benefit in terms of reduction in wholesale and retail<br />

input margins disintermediated through business-to-business e-commerce;<br />

– it is expected that greater use of e-commerce will stimulate direct labour saving<br />

efficiencies in the transport sector;<br />

– sectors and households that deal with the transport sector will also obtain<br />

savings in terms of time (i.e. labour) saved through more efficient purchase and<br />

tracking of goods/people in transit; and<br />

– at this time it is assumed that this sector will not face greater international<br />

competition or experience a significant boost in exports from e-commerce.<br />

160

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