Airlines fall short on e-ticket target

Airlines are unlikely to meet the International Air Transport Association’s (IATA’s) goal of introducing 100 per cent global e-ticketing by 2007.

According to an annual survey from specialist airline IT provider Sita, only 68 per cent of airlines are likely to meet the target.

Sita is now warning that technology will become a key differentiator that splits the airline industry into the haves and the have-nots.

‘There’s the spectre of a two-speed industry, with weaker airlines losing competitive advantage because of a lack of technology investment,’ said Sita president Peter Buecking.

While most airlines are increasing their use of technology – selling and distributing tickets online and allowing passengers to check onto flights either online or through kiosks – a significant number are falling behind.

IATA’s Simplifying the Business programme aims to expand the use of self-service kiosks and radio frequency identification for baggage handling, although its primary focus is establishing 100 per cent e-ticketing (Computing, 17 February). IATA says annual savings of $3bn (£1.6bn) are possible with e-ticketing alone, cutting costs from about £5 per paper ticket to 50p.

Sita says e-tickets account for 30 per cent of all tickets, up from 19 per cent in 2004.

‘Airlines are making investments in IT specifically to get profitability up again, not just IT for the sake of IT,’ said Buecking.

‘It’s clear that the industry is travelling at two speeds and technology adoption is what is fuelling the difference.’

The survey says one in four airlines does not expect to sell most of their tickets over the internet for at least the next five years, while nearly one in five has no plans to deploy self-service kiosks.

Paul Coby, chief information officer of BA and chairman of Sita, says technology is now a vital tool for airlines that want to remain competitive.

‘For a sizeable majority of airlines, technology is really changing the face of travel,' he said. ‘There’s an increased focus on customer self-service. My prediction is that airlines will be the first web-enabled industry.’