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CHANGING THE RULES : US DOT HAS BEEN EVALUATING NEW CRS RULES SINCE 1997

Jon Feldman

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Abstract

New rules governing airline computer reservations systems (CRS) still don't seem likely to be coming out of the U.S. Department of Transportation anytime soon because the business is in such upheaval. At their peak the four airline-owned operations handled 85% of bookings, which is what prompted the call for rules. Now carriers are building their own Web sites for ticket sales and cutting travel agent commissions steadily. Airlines are saving on booking fees by using their own sites, with low-cost carriers and those with simpler fare structures getting significant proportions of their ticket revenue from their own sites. Online booking services are linked to airlines in most cases, which complicates regulatory strategies, and the operators of the four CRSes are striving to update their services. No rules are likely in the near future.

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What this paper is about

New rules governing airline computer reservations systems (CRS) still don't seem likely to be coming out of the U.S. Department of Transportation anytime soon because the business is in such upheaval. At their peak the four airline-owned operations handled 85% of bookings, which is what prompted the call for rules. Now carriers are building their own Web sites for ticket sales and cutting travel agent commissions steadily. Airlines are saving on booking fees by using their own sites, with low-cost carriers and those with simpler fare structures getting significant proportions of their ticket revenue from their own sites. Online booking services are linked to airlines in most cases, which complicates regulatory strategies, and the operators of the four CRSes are striving to update their services. No rules are likely in the near future.

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Available abstract

New rules governing airline computer reservations systems (CRS) still don't seem likely to be coming out of the U.S. Department of Transportation anytime soon because the business is in such upheaval. At their peak the four airline-owned operations handled 85% of bookings, which is what prompted the call for rules. Now carriers are building their own Web sites for ticket sales and cutting travel agent commissions steadily. Airlines are saving on booking fees by using their own sites, with low-cost carriers and those with simpler fare structures getting significant proportions of their ticket revenue from their own sites. Online booking services are linked to airlines in most cases, which complicates regulatory strategies, and the operators of the four CRSes are striving to update their services. No rules are likely in the near future.

Key concepts: Ticket, Revenue, Business, Air travel, Aviation, Interlining, Operations research, Marketing

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