How airline cuts ticketing cost ?

16Nov09

Remember those days, and it wasn’t that long ago, a MAS ticket was a 5-6 pages post card size booklet. The ticket was probably expensive to print and bulky to store. The paper ticketing had to be done manually and processing was a slow work. The whole process was slow and expensive .

It was Air Asia that introduced the internet booking as we know it and with internet booking comes a system which allows the ticket to be self printed. Internet Booking did away with the middle man and his commission . It also enabled bookings to be done 24/7. It does away with the expensive and cumbersome tickets. These means further cost reduction and thereby making more money for the air line. Of course, internet ticketing was aided with the growth of the internet, and widespread use of the credit card.

More and more new systems have come on stream for the purpose of cutting cost .

SMS message being scanned

A new system is now being trailed by Jet Star , an Australian budget airline , a subsidiary of Qantas , according to the Smart website ,thps system is “set to introduce a new boarding pass technology that would allow users to enter planes using tickets contained on an SMS message. “

Smart added “The boarding pass contained in the message is essentially a type of barcode that is scanned by the airport attendant. It contains information that is checked against an airport’s database.
The SMS boarding pass system is able to be integrated with “at least 98%” of all mobile phones currently available. “So I should be able to receive through my mobile phone .

Mark my word, Air Asia will soon be testing this system too.

The world around us is changing, businesses are becoming more competitive and in turn business has to be more cost efficient. In our economy we have been sheltered but not for long . A lesson for us small business is, should we not review our business systems to make it more user’s friendly, efficient and cost effective too ?



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