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16 airline distribution systems
1,350 miles per hour. By comparison, a Boeing 747
`jumbo jet' cruises at 1,015 kmh.
ANTHONY G. SHEPPARD, USA
airline deregulation see deregulation, airline
airline distribution systems
Airline distribution systems are the means by which
airlines make their flight capacity available to
customers for purchase. Airlines tend to use a
variety of distribution channels to reach customers,
often a mixture of both direct and indirect means.
The latter methods involve the use of intermediaries
such as retail travel agents �see travel
agencies) ortour operators. Some airlines use
direct distribution channels without any intermediary
organisations. The role of the travel agent has
traditionally been important in airline distribution
systems, although this appears to be changing.
More direct means of distributing airline
products have assumed significance also and
include bookings by telephone �often a toll-free
number) or online. Airline distribution systems
which exploit technology have been evolving
rapidly. Computer reservation systems, interactive
kiosks and the Internet are examples of
these. This is a dynamic field of activity and further
developments are likely.
Some airline seats are sold as part of an air
inclusive package tour, with tour wholesalers
such as tour operators combining the different
components of these packages. Airlines can perform
the wholesaling function themselves, and
many do so today. This is particularly true in
countries such as the United States where the
domestic market is deregulated. Airlines may also
own their own retail travel outlets, although many
do not.
The importance of travel agencies as a system
used to distribute airline capacity varies among
countries. Their role is to act as an intermediary
between the airlines, wholesalers and consumers.
Commission is paid by the airline or wholesaler for
the service that they offer. Travel agents usually
employ some form of computer system due to the
complexities of meeting consumer needs when
making bookings on their behalf. Some act as
consolidators, distributing scheduled and flightonly
charter seats for airlines. The latter will often
have some form of affiliation with the other
organisations in their chain of distribution.
Viewdata is a generic term used to describe
information systems that previously dominated
the leisure travel agency network in some
countries. These early systems used telephone
lines to transmit data among channel members.
Computer reservation systems and more recently
the Internet have advantages over prior communication
systems, although they are more controversial
since they can bypass travel agents in
some instances.
Further reading
Poon, A. �1993) Tourism, Technology and Competitive
Strategies, Oxford: CAB International. �Provides
an overview of the different stages in the
development of CRS and major issues surrounding
them, especially Chapter 7, pp. 172±94.)
LESLEY PENDER, UK
Airline Reporting Corporation
The purpose of the Airline Reporting Corporation
�ARC) is to provide a method of approving
authorised agency locations for the sale of
transportation and cost effective procedures for
processing records and funds of such sales to
carrier customers. The process provides a combination
of fixed reporting requirements, for ease of
record keeping, with variation of payment terms
for competitive purpose. The Industry Agents'
Handbook, provides, among other things, the basic
ticketing and reporting requirements for over
47,000 ARC-approved travel agency locations
to report and settle ticketing transactions with the
carrier participants by means of ARC Standard
Ticket and Area Settlement Plan. ARC is located
in Arlington, Virginia in the United States.
TURGUT VAR, USA