United Airlines' decision to make electronic ticketing an option for passengers on all its domestic routes, including services to Hawaii and Puerto Rico, could save the carrier up to $5 per ticket.
The carrier estimates the new technology will save it about $25 million annually, similar to savings reported by Southwest, which has offered electronic ticketing systemwide since last January and now has 30 per cent of its passengers using it.
Ticketless travel is also well accepted by United customers, 88 per cent of whom said the electronic option was their preferred means of ticketing. The system requires passengers to have photo identification when travelling, and even though there is no paper ticket a receipt can be obtained.
Initially United offered electronic ticketing in the west coast shorthaul markets served by the Shuttle. It was then made available out of Chicago on 'Business One' service - flights to major business destinations. Sue Fullman, United's director of sales distribution, says the carrier plans to test it in a few international markets. Possible test routes are those on which United codeshares with Lufthansa.
Ticketless travel has quickly become a cost-saving mechanism for the airline industry, and most majors in the US envisage implementing the process within the coming year. If Southwest's success is an indicator, a 30 per cent saving in distribution costs will not only have the immediate benefit of bolstering carriers' bottom lines, but it will also further marginalise the travel agent's role.
Source: Airline Business
