Tourism Industry In The Airline Industry

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According to Hikkerova (2010), tourism traditional suppliers and service providers are: - Transport companies, such as airlines, railways, shipping lines, rental cars; - Hospitality companies, which provide accommodation services. One of the most profitable industries of the tourism sector is the airline industry. Airline companies manage complex operations, thus they need to handle inventory and other internal activities in an efficient, fast and effective way (Buhalis and Jun, 2011). At the beginning, passengers used to make reservations manually on dedicated display boards. On the other side, travel agencies’ job was to find the best offers in manuals, and then call by phone for checking availability and making reservations, before releasing…show more content…
Their systems control both internal activities and distribution channel through technology (Buhalis and Jun, 2011). Hotels coordinate their accommodation services by means of the so-called Property Management Systems (PMSs), which is a unified tool for hotel chains for planning, budgeting and administrating their properties (Buhalis and Jun, 2011). PMSs organize front office, sales, planning and operational functions by managing reservations and hotel’s inventory, as well as administration functions (e.g. accounting and finance), marketing activities, forecasting and yield management, payroll and personnel, and purchasing (Buhalis and Jun,…show more content…
CRSs and GDSs) in order to better organize internal information, increase efficiency and empower distribution management (Buhalis and Jun, 2011). As previously said, central reservation systems (CRSs) and global distribution systems (GDSs) have been introduced by airline companies to monitor flights and routes schedules, check availability and prices, and to reshape the reservation and distribution channels from cost to profit centers (Hikkerova, 2010). Nowadays, the Internet is a crucial element for all strategic, operational and structural functions to integrate global suppliers, intermediaries and customers (Buhalis and Egger, 2008; Buhalis and Law). According to the Tourism Business Portal (2014) : • Global distribution systems (GDSs): are information systems based on large databases of tourism suppliers. These systems create a huge network of retailers and provides, and their sales regard transportation tickets and accommodation services. GDSs charge a fee to the suppliers that want to be part of this network. Examples of GDSs are Amadeus and Sabre (Tourism Business Portal, 2014). • Central reservation systems (CRSs): are systems that connect tourism suppliers with the GDS or IDS (Internet Distribution System). CRSs represent service providers in promotional activities and they charge them by a fixed fee or transaction fees (Tourism Business Portal,

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