Electronic Business and Commerce

Class 7


Topic: 
Disintermediation and Travel Distribution
Class Plan:

In this class we examine the evolution of the air travel distribution system, Global Distribution Systems and role of IT in that evolution. 
Required Readings:
  • Speeding Tickets: Information Technology and Travel Distribution (Stanford Case)
  • Strategy and the New Economics of Information, Harvard Business Review.
Study Questions:
    1. Why did travel agents become more important following the deregulation of the airline industry in 1978? 
    2. Will the Internet eliminate intermediaries such as travel agents? Why or why not? 
    3. Have online travel agencies been more successful than other Web-based B2C sellers?  Why or why not?
    4. Why has there been so much resistance to Orbitz?
    5. Do you think Orbitz has the potential to eliminate GDSs?  To reduce their power?  Why or why not?
    6. The CRS Rules have been phased out during 2004, resulting in an almost fully deregulated GDS industry.  What are the implications of this for the different tiers of travel distribution?  What will happen to GDSs in the future?