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Impact of e-business on air travel markets: Distribution of airline tickets in Korea

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  • Yoon, Moon Gil
  • Yoon, Duk Young
  • Yang, Tae Won

Abstract

Early e-business activity in the airline industry was limited to the provision of flight schedule information to customers on websites. Recently, however, many airlines have expanded the capability of their web sites for selling tickets to make use of this cheap distribution channel. Here, we explore the impacts of airline e-business on the performance of air ticket distribution channels. Through a conjoint analysis, we suggest a model to estimate the change of market sales for each distribution channel. The impact of e-business on air travel markets and some implications on e-business strategy for both airlines and travel agents are also identified through an empirical survey.

Suggested Citation

  • Yoon, Moon Gil & Yoon, Duk Young & Yang, Tae Won, 2006. "Impact of e-business on air travel markets: Distribution of airline tickets in Korea," Journal of Air Transport Management, Elsevier, vol. 12(5), pages 253-260.
    • Handle: RePEc:eee:jaitra:v:12:y:2006:i:5:p:253-260
    DOI: 10.1016/j.jairtraman.2006.07.002
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    References listed on IDEAS

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    1. Jarach, David, 2002. "The digitalisation of market relationships in the airline business: the impact and prospects of e-business," Journal of Air Transport Management, Elsevier, vol. 8(2), pages 115-120.
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    3. Alamdari, Fariba, 2002. "Regional development in airlines and travel agents relationship," Journal of Air Transport Management, Elsevier, vol. 8(5), pages 339-348.
    4. Paul E. Green & Abba M. Krieger & Yoram Wind, 2001. "Thirty Years of Conjoint Analysis: Reflections and Prospects," Interfaces, INFORMS, vol. 31(3_supplem), pages 56-73, June.
    5. Alamdari, Fariba & Mason, Keith, 2006. "The future of airline distribution," Journal of Air Transport Management, Elsevier, vol. 12(3), pages 122-134.
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    Cited by:

    1. Heiets, Iryna & La, Jiezhuoma & Zhou, Wenhui & Xu, Shaoxin & Wang, Xingyue & Xu, Yuchen, 2022. "Digital transformation of airline industry," Research in Transportation Economics, Elsevier, vol. 92(C).
    2. Harison, Elad & Boonstra, Albert, 2008. "Reaching new altitudes in e-commerce: Assessing the performance of airline websites," Journal of Air Transport Management, Elsevier, vol. 14(2), pages 92-98.
    3. Xiabing Zheng & Xiaolong Guo, 2016. "E-retailing of restaurant services: pricing strategies in a competing online environment," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(11), pages 1408-1418, November.
    4. Long, Yong & Shi, Pingping, 2017. "Pricing strategies of tour operator and online travel agency based on cooperation to achieve O2O model," Tourism Management, Elsevier, vol. 62(C), pages 302-311.
    5. Wang, Weidi & Tang, Ou & Huo, Jiazhen, 2018. "Dynamic capacity allocation for airlines with multi-channel distribution," Journal of Air Transport Management, Elsevier, vol. 69(C), pages 173-181.

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