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

Journal of Air Transport Management

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

Journal: Air Transport Management

Author: Moon Gil Yoon, Duk Young Yoon, Tae Won Yang

Published: 2006


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.


Keywords: Airlines e-business; Air travel market; Conjoint analysis; Distribution channels


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