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The future of airline distribution

Author

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  • Alamdari, Fariba
  • Mason, Keith

Abstract

This paper provides an overview of the changes taking place in airline distribution and evaluates the impact of these changes on the key stakeholders; the airlines, travel agents, global distribution systems companies and corporate travellers. Conclusions as to the future of airline distribution are drawn. It is likely that global distribution systems deregulation will lead to the fragmentation of airline inventories across different distribution channels. Airlines will seek to increase the proportion of sales they make directly on their own website, thereby reducing their costs. Travel management companies will need to demonstrate their value to corporate clients clearly. Corporate clients are most concerned about ensuring access to the widest possible range of airline products and tariffs, at the same time as distribution costs are removed from the value chain.

Suggested Citation

  • Alamdari, Fariba & Mason, Keith, 2006. "The future of airline distribution," Journal of Air Transport Management, Elsevier, vol. 12(3), pages 122-134.
    • Handle: RePEc:eee:jaitra:v:12:y:2006:i:3:p:122-134
    DOI: 10.1016/j.jairtraman.2005.11.005
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    Citations

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    Cited by:

    1. Merkert, Rico & Hakim, Md Mahbubul, 2022. "Travel agency transaction costs in airline value chains – A risk in distribution channels in South Asia?," Annals of Tourism Research, Elsevier, vol. 95(C).
    2. Roma, Paolo & Zambuto, Fabio & Perrone, Giovanni, 2014. "Price dispersion, competition, and the role of online travel agents: Evidence from business routes in the Italian airline market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 146-159.
    3. Holma, Anne-Maria & Bask, Anu & Kauppi, Katri, 2015. "Ensuring corporate travel compliance – Control vs. commitment strategies," Tourism Management, Elsevier, vol. 51(C), pages 60-74.
    4. 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.
    5. Koo, Bonwoo & Mantin, Benny & O'Connor, Peter, 2011. "Online distribution of airline tickets: Should airlines adopt a single or a multi-channel approach?," Tourism Management, Elsevier, vol. 32(1), pages 69-74.
    6. Gianmaria Martini & Davide Scotti, 2009. "Potere di mercato e distribuzione dei profitti nella filiera del trasporto aereo," Working Papers 0906, Department of Management, Information and Production Engineering, University of Bergamo.
    7. Ramón-Rodríguez, Ana B. & Moreno-Izquierdo, Luis & Perles-Ribes, José F., 2011. "Growth and internationalisation strategies in the airline industry," Journal of Air Transport Management, Elsevier, vol. 17(2), pages 110-115.
    8. Varella, Rafael R. & Frazão, Jessica & Oliveira, Alessandro V.M., 2017. "Dynamic pricing and market segmentation responses to low-cost carrier entry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 98(C), pages 151-170.
    9. Fernández, Xosé Luis & Coto-Millán, Pablo & Díaz-Medina, Benito, 2018. "The impact of tourism on airport efficiency: The Spanish case," Utilities Policy, Elsevier, vol. 55(C), pages 52-58.
    10. Teichert, Thorsten & Shehu, Edlira & von Wartburg, Iwan, 2008. "Customer segmentation revisited: The case of the airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 227-242, January.
    11. 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.
    12. Michael D Wittman & Peter P Belobaba, 2017. "Dynamic availability of fare products with knowledge of customer characteristics," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(2), pages 201-217, April.

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