Case Study: Speeding tickets ,
the development of IT in Travel industry
1.Who are the winners at different stages of the changing travel industry?
According to the cased developing process of travel industry can be divided into 4 stages First stage: Pre-SABRE stage, Manual operation stage (before 1950s ) At this stage, all the ticket booking operations are handled manually , no CRS is widely used, as a result , the companies that have the largest crew and hire the most professional people win the market. Second stage: Semi-automated stage(1950-1963)
At this stage, IBM and American Airlines became the winners as they were the pioneers of taking advantage of CRS. IBM was the main provider of SABRE while American Airlines was the main user of the system. Third stage:Fully Automated stage (1963-1988)
The four GDS operators and the TA became the winner.
The four GDS operators provided services for almost all travel agents in United States. They charged high fees from airlines. The airlines that owned GDS developed methods to reinforce their leadership in the market. The four GDS operators and airlines that owned the GDS are the winners in this stage. At the same time , The TA gradually took a big market channel share, from which they gain a lot of benefits. Fourth stage: Internet Era Stage(-Now)
Travelocity & Expedia became the winners of new era.
The popularity of the internet offered a way of bypassing both costly GDS and travel agents, in order to deal directly with customers. In this stage, the airlines companies and the online agents are the winners.
2.What are core competitive advantages of companies at different stages of the changing
At the first stage, there were no high entrance barriers for TA and no outstanding differentiation among airline companies , thus the one who hire the largest and most professional crew gains the core competitive of that era. At the second stage, IBM owns core technology of...
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