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The digitalisation of market relationships in the airline business: the impact and prospects of e-business

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  • Jarach, David

Abstract

In today's hypercompetitive environment, new sources of product and process innovation are continually being sought to reinforce companies’ competitive advantages. In the recent past, the digital revolution inspired new managerial applications to strengthen positions within market arenas. In the case of airlines, early web applications were in the form of asynchronous sites, where customers could get little more than the same information on timetables and fares provided by travel agents albeit in new formats. Later, carriers started selling tickets on the web to make use of the cheaper distribution channel than the standard computer reservation systems (CRSs). Today, Internet potentially permits carriers to get significant economic and competitive benefits beyond those simply coming from e-commerce. A wider e-business perspective may assure a one-to-one relationship with target customers, with a consequential fine-tuning of a firm's system offer. At the same time, carriers may exploit the significant cost savings from their procurement processes.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jaitra:v:8:y:2002:i:2:p:115-120
    DOI: 10.1016/S0969-6997(01)00039-4
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    Citations

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    Cited by:

    1. Shon, Zheng-Yi & Chen, Fang-Yuan & Chang, Yu-Hern, 2003. "Airline e-commerce: the revolution in ticketing channels," Journal of Air Transport Management, Elsevier, vol. 9(5), pages 325-331.
    2. Kwang-Ho Lee & DongHee Kim, 2019. "A peer-to-peer (P2P) platform business model: the case of Airbnb," Service Business, Springer;Pan-Pacific Business Association, vol. 13(4), pages 647-669, December.
    3. 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).
    4. 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.
    5. 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.
    6. Aliza Fleischer & Daniel Felsenstein, 2004. "Face-to-Face or Cyberspace? Choosing the Internet as an Intermediary in the Israeli Travel Market," Tourism Economics, , vol. 10(3), pages 345-359, September.
    7. 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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