The Impact of the Internet on the Airline Industry - Essay Example

?Airline industry and Internet The paper conducts a study on the impact of Internet on the Airline industry. The airline industry has encountered major change over the decade and the advent of technology has facilitated its use. Technological up-gradation has benefited both the users and the service providers. The ease of work handled by the internet has its serious implications on the overall popularity of the airline industry. In the paper a special emphasis has been given to the use of Web2.0 technology and the benefits reaped by the airline industry in particular. In the paper the increased affordability of the passenger in respect of the ticketing facility has been focused. The expansion of services and the future benefits expected by the use of internet has also been dealt, with special reference to the Web 2.0 technology. The study deals with the revolutionary impact of Internet on the Airline industry. 1. Introduction: The improvement in technology has occurred in leaps in bounds over the decade. The popularity of technology has caused automation in almost every sector. The rise in use of technology has made the world technology dependent. In the present generation a task is performed with lot f ease and without the waste of any time. The inculcation of technology on the airline industry has benefitted significantly from the customers point of view. A wide range of services are in offer for the customers and ads further comfort in their air travel. The daily innovations in this field are opening up possibilities for further development and betterment of services being provided. 2. Ticketing without Queuing Airline industry has proved its dominance in the travel industry. Air-travel being the sole mode of transport in the entire overseas destination is one of the primary causes of its steady market. Other than the overseas travel, many passengers in domestic travel also opt for the mode because of the time factor and for availing a smooth travel. The facility of e-ticket services provided by all the airlines is surely one of the facilities provided in the airline industry. The automation in the airline ticketing system provided by the internet has also resulted in the increased revenue for the industry. Customers can order the ticket online, pay for through their credit cards and also get an e-version of the ticket within a short frame of time by accessing the internet. The introduction of airline ticket sale through the website of the company and through the travel websites has created a revolution in the ticket sale. Other than the time factor associated and the ease of the online ticket purchase consumers also have an opportunity to access a lot of options with different airlines before making a final decision. They also enjoy the factor of price transparency and compare the price options across different airlines. (Rubin & Joy, 2005, 223) Over the internet customers can take an in-depth knowledge of the different flights of their desired location and the variety of service offered by each of them. In purchasing tickets online consumers do not need to possess a great knowledge in Information technology. The platforms built for online ticket booking are very much user friendly and requires primary information to be feed in by the user. On successful filling of the information and making the necessary choice, customers can get an e-ticket. In purchasing an air ticket online passengers also can avail varieties of offers and discounts on the price, based on certain terms and conditions. The basic requirements for online booking of air ticket are a computer, internet connectivity and valid credit card. The popularity of the online booking system can be found from the table which studies the total number of online bookings made in the United States over the years. With the passage of time the modernization in technology is bringing in added service for the air passengers worldwide. Year Total number of on-line air ticket buyer % of total US airline booking 1999 48.1 5.9 2000 54.2 7.4 2001 60.5 9.2 2002 71.9 11.1 (Yang, 2001) 3. The virtual Web 2.0 In the latest era of technology Web 2.0 has major implications across various sectors. The platform of Web 2.0 enables users to communicate over the virtual space. The example of web 2.0 includes blogs, social networking sites, video sharing sites and blogs. The implementation of this particular technology enables the user to explore a wide range of facilities other than retrieving information. The users in this platform are provided with more interface and storage facilities. In the present business environment the business organizations provides much priority in the customer satisfaction. Airline industry being a service industry and considering the immense competition among them, the airlines has started incorporating the technologies to facilitate their customers. The customers and the users of the service are provided with many add- on as a result of the incorporation of the latest technological advancement. Massive development has taken place in videoconferencing, webcasting and with other telecommunication technologies because of the introduction of Web2.0 technology. Several airlines are using the social media in order to enhance their business and create a higher level of satisfaction among the passengers. The popular use of various social media are face book, twitter, you tube and flickr (Anderson, 2007). Virgin America airlines maintain their own face book profile. In the face book profile offers a wide range of information regarding their flights. Customers can search flights and know about their flight status. Besides they can also access their You tube and twitter profile. The Facebook page enables the customers to communicate with one another (Refer to the appendix for the Facebook page of Virgin America) Similarly Jet blue has its own flickr group where the members can share and comment on the photos and carry on with their discussion in the discussion boards. These ads more option into the entertainment of the passengers. Delta airlines take the help of You tube to entertain the customers in their long flight journeys. Besides it has its own safety video uploaded over You tube to raise safety awareness among the passengers. South West airlines have their own twitter account which enables the passenger to share their views and an idea while spending time in the airport and prevents them from boredom. The use of internet has thus not only facilitated the purchasing of tickets but also provide a wide range of entertainment options for the customers and the passengers (Albert, 2008). 4. The future of e-flying The Web 2.0 platform of technology has seriously influenced the flying experience. Customers face a delightful experience with a wide range of technological up-liftmen. The improvement of mobile technology has created option for online air-ticket booking mobile boarding passes and messaging. The use of smart mobile technology will be crucial for carrying out sophisticated transactions. The use of bar code technology will enable the passengers to perform quicker and easier security checks ad will faster the rate of boarding process. The improvement in technology will enable the passengers to chose or change their seating facilities and get information about the lounges in the airport. They can also order specific services and products on flights from beforehand. The progress of technology has taken in such a rapid rate that passengers can expect to use their mobile phones in flight without actual breach of security issue taking place. Boarders can also choose their co –passengers based on their profile and can view their own choice of movies in the flight. (What Happens When Web 2.0 Turns On the Airline Industry?, n. d) 5. Conclusion: The implication of technology on the airline industry has massively changed the overall outlook of the industry. The industry has brought in fast and smart changes to facilitate the customer and to raise the overall standard of the service sector industry. It has made air flying smooth and ecstatic. The customer receives worth for the money they incur for their air travel. Airlines agencies thrive to get the best customer response and they look into minute details to enable the customers a hassle free ride. The involvement of technology for the ultra modern experience of travelling has benefitted the users and takes care of them starting from the purchase of tickets till the time they depart from the airport. The airline companies aim to provide a journey, which is worth remembering for the customers and wants them to retain them in the competitive business environment. The use of technology has been properly utilized and the future innovations will add much pleasant experience. The use of Web 2.0 has modernized the aviation sector to a much extent and has opened a gateway for the entertainment to be a part of the flying experience for the passengers. Besides, new technology is evolving in the market on a regular basis. The wide range of facilities and options lie in store for the passengers to explore in the coming days. Appendix: Facebook page of Virgin America References Yang, S, (2001), E-Commerce in Airline Business, unpan, available at: http://unpan1.un.org/intradoc/groups/public/documents/un/unpan001219.pdf Albert, S, (2008), How Airlines are Using Social Media, Dir Journal, available at: http://www.dirjournal.com/articles/airlines-socil-media/ Anderson, P, (2007), What is Web 2.0? Ideas, technologies and implications for education, jisc, available at: http://www.jisc.ac.uk/media/documents/techwatch/tsw0701b.pdf Rubin, M, R & Joy, J, N, (2005), Where Are the Airlines Headed? Implications of Airline Industry Structure and Change for Consumers, Journal of consumer affairs, Volume 39, Number 1, p. 223, available at: http://onlinelibrary.wiley.com/doi/10.1111/j.1745-6606.2005.00010.x/pdf, (accessed on October 29, 2011) What Happens When Web 2.0 Turns On the Airline Industry?,( n. d), tombomb http://tombomb.typepad.com/tombomb/2006/10/what_if_your_te.html Read More