The Airline Passenger Reservation Systems ( APRS )

The Airline Passenger Reservation Systems ( APRS )

Executive Summary

In a time when establishing and maintaining a market advantage is crucial, the use of technical innovations such as the Airline Passenger Reservation Systems (APRS) becomes a competitive necessity. Good business strategies in developing strategic alliances and exposing the consumer to a globally expanded product base allows airlines to compete. A wider range of products, the ability to be flexible with fluctuating consumer needs are all potentially exploitable through the power of technology and strategic planning.

The following report provides an understanding concerning the Airline Passenger Reservation System. It will briefly discuss the advantages associated with integrating the system across the airline industry and what and where are the potential gains.

Introduction

There has been much discussion concerning how information technology may contribute to the development of a competitive advantage. Whilst there are some notable examples, investment in information technology (IT) is often a matter of competitive necessity. The technological advances emerging from the integration of computing, microelectronics and telecommunications are creating significant changes in organisations (Stoner, et al 1994). The information technology revolution of the past 20 years has made information technology an integral part of any core business activity. Information technology management now contributes to all the management functions of planning, organising, leading and controlling and affects competitive strategy and business operations.

This report will briefly discuss the strategic nature of networked Airline Passenger Reservation Systems and some of the benefits derived from deploying such a system.

The Competitive Edge

Since the beginning of commercial aviation, airlines have developed a wide range of co-operative arrangements to provide a wider, more efficient range of services (Qantas 2000). However, since the deregulation of the US airline industry in 1978 and the subsequent follow on of the Japanese, Australian and European industries in 1985, 1990 and 1997 respectively (Chatfield & Bjorn-Anderson 1997) competition between rival airline companies has intensified. Since it is neither practical nor economical for any one carrier to operate across the entire globe (Oneworldalliance 2000) airlines and their subsidiaries must form alliances to remain competitive.

These alliances brought about the introduction of the Airline Passenger Reservation System (APRS) or Computer Reservation System (CRS) as it is sometimes known. This system offers airlines the ability to expand their product line to meet a broader range of customer needs through gaining access to product and services of other companies to which they have a strategic alliance.