CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

An airline ticket is a document issued by an airline or a travel agency to

confirm that an individual has purchased a seat on a flight on an aircraft.

(travelandtourism,2005) The basic function of an air ticket is to verify that the

passenger has the authority to board the plane and has paid the fare. This

document is then used to obtain a boarding pass at the airport, then with the

boarding pass and the attached ticket, the passenger is allowed to board the

aircraft (info,2004).

There are two types of airline ticket, the older style with coupons now

refer to as paper ticket and a more common style, electronic ticket usually

referred to as e- ticket (coupons are tickets or documents that can be exchanged

for a financial discount or rebate when purchasing a product). In 1930s, paper

coupons were used that detailed every leg of the trip, the original paper plane

ticket recognized by all airlines was introduced after they agreed to set

common standards at the Warsaw convention. In 1940s airlines introduced the

practice of issuing prepaid scrip to their regular passenger to pay for their

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ticket, each paper slip in the booklet of scrip was worth a particular sum of

money and when passengers bought tickets, instead of paying cash the clerk

would tear out of the paper slip until the booklet is empty. But there were so

many disadvantages with the paper coupons like issues of passengers forgetting

their coupons at home, issues of passengers obtaining a boarding pass at the

airport and attaching it to the ticket and having it scanned for verification at the

airport by the gate agents leading to increase in waiting time. In 1950s, with the

advent of the internet airline, reservation began when American Airlines

required a system that would allow real time access to flight details in all of its

offices and integration and automation of its booking and ticketing processes.

As airplane has become an indispensable traveling tool today, people tend to be

more interested in select plane as their first choose when going a long trip.

People's shopping behavior has greatly changed by the advent of

network. It seems traditional ticket booking methods are lag behind the time.

Another intuitive and simple way of ticket booking is strongly needed by the

customers' demand (Jarvenpaa and Todd,1996).In 1970s, the advent of advance

computerized reservation system allows airlines to easily perform cost benefit

analyses on different pricing structures leading to almost perfect price

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discriminations in some cases. In 1980s, there was the creation of automated

boarding pass which included a magnetic strip that could be read by computers,

this increased the rate at which passengers were boarded into planes.

Online air flight reservation as defined by (Hoffman & Novak, 1996)

stated that online flight reservation is an advanced form of home shopping or

booking and require changes in behavioral attitudes through using information

technology. In 1990s, passenger chose and paid for flight online and their

confirmation receipts were sent to their email addresses or made available on

website. E-tickets were printed and brought to the airport and if forgotten, the

airline can normally look up passenger reservation on the computer. Through

the e-reservation system, the system also helps to reduce the workload of their

travel agents while allowing to buy and book their air tickets using the online

reservation system (Komsub,1999).

As Shao et al. (2008) point out, today more and more people have been

using the Internet where they can easily get the information they are interested

in. For Bilotkach and Rupp (2011), obviously, people prefer booking tickets in

advance than going to ticket agent to buy in office hours. However, as

indicated by Shon et al. (2003),these systems have several problems, such as if

3
customers want to book more than one tickets as a group, these systems cannot

search the cheaper tickets and if the flight is delayed or canceled, these systems

cannot sent messages to passengers.

In the recent years, the travel and tourism industry in Malaysia has

received increasing responses ("Tourism Facts & Figures," 2010) with the

growth and availability of internet. People uses the internet nowadays to plan

their journeys and vacations and thus, has led to the evolution of online

reservation to the airline industry through the introduction of electronic ticket

for reservation systems (Turban, King, Lee, & Warkentin,2002).

The online flight reservation system which deployed by these air travel

companies enable Malaysians to make reservations through online internet

connections and ticket purchased through the usage of credit cards or any other

form of online monetary such as the PayPal system. Another benefit by using

such system is that lower transaction cost occurred between customers and the

airline company and also enable the travel agency to contact directly to the

customer (Heung,2003). Thus, the internet has made a great impact on the

online reservation business for the airline company over the last 10 years

("Business: Who needs paper?; Electronic tickets," 2008) and the latest trend

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that more trips are booked over the internet due to the fact that more online

users have become accustomed to the online air reservation system while

reducing their transaction cost which are reflected into cheaper air tickets. The

growth of e-reservation and popularity among consumers has driven the

International Air Transport Association (IATA) to introduce electronic tickets

totally by the year 2007 in replacing the traditional manual air tickets (David,

2004).The International Air Transport Association (IATA) announced that as

of June 1 2008, IATA members will no longer issue any paper ticket. Self-

service technologies (SST) in the airline industry materialized over 20 years

ago, but with limited use. SST is a world away from what the industry first

experienced in the mid –1990’s and is currently in use by almost every airline

(Airport-technology, 2008).

Technology is constantly changing and new forms are placed into

operation regularly, requiring the airline industry to adapt quickly and

efficiently in order to keep up with the competition. Airport SST takes on many

forms which include but are not limited to; information kiosks (stand-alone

terminal that provides information, goods and services), ticketing kiosk

(purchase airline tickets, check baggage and monitor flight status), CUSS kiosk

(ease congestion and help reduce long lines, shared terminals with multiple

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airlines), retail kiosk (customers can purchase goods and services before or

after a flight) (Abdelaziz,2010), internet bookings and through the use of smart

phones or mobile devices. SST has become a relied upon service in satisfying

the both customer and the airline needs. According to the International Air

Transport Association (IATA) 73 million of 2 billion airline passengers used

SST in 2004, while the average CUSS check-in takes 2.5 minutes opposed to

3.5 minutes at a traditional service employee counter check-in (Fiorino,2005).

1.2 PROBLEM STATEMENT

The traditional travel agencies and online booking systems uses the

traditional service employee check-in which promotes long lines (queue),

displeased customers and employs large staffing levels to complete repetitive

task. Online booking system promotes online fraud due to unsecured system

(sites), also booking through traditional travel agency is stressful and

inconvenient and most travel agents are not reliable. But the proposed system

promotes efficiency, convenience, shorter waiting time and reduced labor cost.

1.3 AIM AND OBJECTIVES OF THE STUDY

This research work is aimed at formulating a model of customer-self air

ticketing system to reduce waiting time.

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The objectives of the study are stated below;

 To carry out an investigation on the air ticketing existing systems in

other to determine its challenges and flaws.

 To propose a system solution that would resolve the challenges of the

existing air ticketing system.

1.4 SCOPE OF STUDY

The scope of this study is limited to ways of reducing the waiting time (time

spent) during air ticketing services.

1.5 RESEARCH METHODLOGY

In this study, the researcher will be using research architectural

framework. Research architectural framework is an original investigation

undertaken in order to generate knowledge, insights and understanding based

on competencies, methods and tools proper to the discipline of architecture. It

has its own particular knowledge, bases, modes, tactics, scopes and strategies.

An architectural framework provides principles and practices for creating and

using the architecture description of a system. It structures architects thinking

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by dividing the architecture description in domains, layers, views and offer

models typically matrices and diagrams for documenting each view.

This architectural structure will comprise of four stages that will enable

the researcher achieve the research goal. These stages comprises of description

of existing systems used by customers for booking air tickets, challenges faced

by the existing system, proposed solution and how it will be used to resolve the

challenges of the existing systems and recommendation.

1.6 LIMITATION OF STUDY

The major limitation of this study is funds;

 Cost of carrying out further research.

 Cost of hardware and software for designing the system.

 Time constraint for carrying out research

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 CHAPTER TWO
LITERATURE REVIEW

2.0 INTRODUCTION

The emergence of the internet in the mid-1990s as well as the

development of Intranet and Extranets forced airlines to refocus their strategy

on technological innovations in order to enhance their competitiveness

(Buhalis, 2004). Therefore, this seems the driving force behind the Airlines

industry to identify the internet as a major opportunity to tackle distribution

costs and re-engineer the structure of the industry.

According to Yang (2001), Airlines were the earliest practitioners of e-

market and airline ticket sales now consists the largest portion of all product

sales made online. It shows that online sales bring greater benefits to airlines

than to any other industry. Besides, using ICT tools made the industry re-

engineer itself as it introduces a number of ICT-enabled innovations such as

electronic/paperless tickets, transparent and clear pricing led by proactive and

retroactive yield management.

Airline industry is one of the most competitive industries within the

economic environment. Within industry's boundaries actors have more or less

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recently and with significantly different patterns undertaken action to achieve

an integration of the internet platform and its applications (Porter, 1980). It also

works on strategic advantage framework for the effects of electronic commerce

and potential for competitive advantage in airline industry.

All in all, e-ticketing system enables the EAL to provide efficient

services to its customers and eliminate costs associated with paper ticketing

and get real-time information about coupon status. E-tickets will be issued for

all bookings made online at (ethiopianairlines,2006). On a successful purchase

the system will generate an electronic ticket and a printable itinerary receipt

will be displayed. The itinerary receipt is used as confirmation of travel. It is

possible to receive an e-mail with the status of the booking. It is also possible

to print the confirmation shown on the screen or print the e-mail. Then, what a

passenger has to do is walk in to the airport and check-in with his/her valid

photo identification and printed itinerary receipt. The passenger boarding pass

will be issued against the itinerary receipt.

An organization requires high financial investment to practicing e-

marketing and needs to see the real tangible advantages coming out. Human

resource issue is also another challenge. This usually leads to outstretched staff

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workloads which usually result in work being prioritized and inevitably other

activities being seen as more important than web site development or e-

marketing. Similarly, many small and medium scale enterprises are reluctant in

this regard mainly due to lack of specialized skills or know-how of marketing

on the web (Chapman et al., 2000). Moreover, the generalist nature of

managers and employees within an organization results in limited knowledge

about how various computer technologies could contribute to an overall e-

marketing strategy (Jeffcoate et al., 2002). This in turn shows the impact of the

ability of managers and employees whether to practice or not. This could be the

case before implementing any computer technology or software needs training.

However, the system is difficult to operate and less user-friendly and has

become a challenge to practice. He further stated that many under developed

countries' organizations often become frustrated by their dependence on

external service providers. This is due to the fact that many developing

countries' companies purchase software from external sources. This also creates

many problems. There are also other problems, which have become a

bottleneck for companies, among others, inadequate infrastructures, resistance

to change and negative customer perceptions as well as implementation and

maintenance, inter alia.

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2.1 E-Ticketing

Like any other industry, the travel management industry also faces challenges

brought by technological advances. E-ticketing by definition combines the

issues and delivery of ticket into a single operation, which would reduce

overall transaction (Sulaiman et al, 2008). An e-ticketing model allows

authorized travel agents to transmit ticketing information directly to the airline

database, enabling passengers to check-in and board the flight without showing

a paper ticket. E-tickets substitutes the paper-based flight coupons by an

electronic ticket image that is stored in the airline’s database. With the e-ticket,

details of the passenger’ journey are stored in an airline database, and are

retrieved using a unique lookup code. This means that there is no need to issue

a physical ticket to the passenger; instead, the code can be delivered via the

internet or over the phone. E-ticketing, the new way of issuing and delivering

tickets is becoming prevalent and is employed by many airline companies in an

effort to reduce the cost that goes to printing tickets. In India, for instance, it is

projected that the e-ticketing will result in 10 to 15 million US dollar saving

(travelandtourism, 2006). While e-ticketing creates cost savings for the airlines

companies, travellers get their benefits in terms of convenience. The travellers

do not need to carry paper tickets which means that the tension of misplacing a

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ticket is eliminated. Besides, the passengers are allowed to check-in online over

the web, see what choice of seats are available on the screen, and make the

appropriate choices accordingly. The move towards e-ticketing has also

received warm welcome from corporate sectors. The electronic management of

ticket information helps the companies in tracking their expenditures and

support corporate travel policies more efficiently (Hopkin,2005). Globally, in

2005 electronic tickets account for approximately 30% of all tickets issued,

compared to 19% in 2004 (Gale Group, 2005). A survey of e-ticketing trends

(Airline IT Trends Survey, 2004) discovered that 17% of the major carriers

around the world have adopted the e-ticketing model. The pace of e-ticketing

adoption is considered remarkable, as it is widely available in most parts of the

world for example, Emirates Airlines now offers e-ticketing worldwide, India

Jet Airways has recently adopted it, and Philippine Airline will so do so.

According to (David, 2004), at American Airlines, e-ticketing grew from 55%

in April 2001 to 91% in 2004. Whereas in the Asia Pacific region, the

proportion of e-tickets grew from 10.4 percent to almost 22 percent between

January 2004 and March 2005 with a ratio of one to ten of all tickets sold

online (SITA,2005). Air India entered the e-ticketing market in 2002, when it

allowed its customers to buy tickets using credit cards via ICICI Bank’s

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Payment Service. In Malaysia, e-ticketing is pioneered by Air Asia. The

tremendous growth of e- ticketing has actually driven International Air

Transport Association (IATA) to replace the paper tickets with electronic

tickets totally by the year 2007 (David,2004). In spite of the higher of e-

ticketing acceptance rate, not many companies have adopted it. According to

the result from 2005 Airline IT Trends Survey conducted by SITA, 29% of

airlines in Europe are still exclusively paper-tickets based, despite the

campaign spearheaded by International Air Transport Association (IATA) to

shift the industry to hundred percent e-tickets by the end of 2007. The result

also revealed that 57% of airlines in the region cited pricing complexity as a

major business issues associated with online ticket sales (SITA group, 2005).

On the other hand, in India, the major factor that hinders the companies to

adopt e-ticketing is due to the negative perceptions of consumers

(expresstravelandtourism, 2005). Kolsaker et al. (2004) who focused their

studies in Hong Kong observed that although consumers acknowledge the

convenience offered by the web, they also recognized simultaneous the risks

associated with buying tickets online. The study indicated that fear of financial

loss through credit card fraud ranks as the critical factor in purchasing airline

tickets via internet. In addition, some airline companies claimed that “not

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enough buyers” was the biggest issue that hinders the implementation of e-

ticketing (travelandtourism,2005). The development of e-ticketing is also

hampered by inadequate infrastructure. According to Tan (2005), airline

companies in Africa, for instance find it hard to catch up with technological

advancement in the airline industry due to less developed infrastructures.

Meanwhile, in North America and Europe, where the technologies are widely

available, Tan (2005) reported that because of financial difficulty, some airline

companies in the regions failed to keep up with the e-ticketing model. Airlines

IT Survey 2005, indicated that 20% of airlines in Europe and North America

will not have the majority of their system IP-enabled due to their financial

constraint (IP is the underlying communication technology that enables many

new applications such as web-based booking systems) (SITA, 2005).

2.2 FACTORS AFFECTING E-TICKETING PRACTICING

It is a well-known fact that individual user's preferences and beliefs

impact on the performance or practice of almost every system. This review

examines factors that influence the choices of customers and organizations

while deciding to use on-line system to purchase/sale tickets. Among the

different influencing factors the following eight factors have been used more

often than others in relation to ICT technology based system or e-ticket system

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based on different research models, reviews and objectives of the research.

Perceived risk, perceived usefulness, ease to use, technological advancement,

financial difficulty, behavioral control and subjective norm are the most

popular factors employed to explain on-line consumer practice.

Perceived risk

The study of perceived risk has a long history in the marketing literature.

Researchers generally agree that perceived risk is a combination of the

perception of the likelihood that something will go wrong and the perception of

the seriousness of the consequences. According to Grazioli and Jarvenpaa

(2000), a perceived risk refers to a consumer’s perceptions of uncertainty and

adverse consequences of buying from the web. Consumer behavior involves

risk in the sense that any action of a consumer will produce consequence which

he/she can’t anticipate with anything appreciating certainty, and some of which

are likely to be unpleasant (Stone and Gronhaug, 1993).

Perceived usefulness

Perceived usefulness refers to the degree to which a person believes that using

a particular system would enhance his or her job performance (Davis 1989). It

explained that an individual’s choice of behavior is based on the probability

that an action will provoke a specific consequence. For instance, the

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consequences of the purchase of online tickets on passengers can be seen as a

good example of this factor. However, it needs so many preconditions such as

infrastructure facility, awareness and security. It also depends on the capacity

of something to act as a means to a desired end or purpose.

Ease of use

Effort is a finite resource that a person may allocate to the various

activities for which he or she is responsible. Although most research have

found perceived ease of use to be directly related to usage, the findings of

Ndubisi et. al., (2001) revealed that perceived ease of use had no effect on

usage of technology. This was because their study was conducted on a sample

of women entrepreneurs who were not aware of or exposed to technology as

they were small entrepreneurs who had to deal with day-to-day activities rather

than using technology to enhance their performance. When a technology is new

the significant driving force would normally be perceived usefulness.

Technological advancement

According to Tan(2005), airline companies in Africa, for instance find it

difficult to catch up with technological advancement in the airline industry due

to less developed infrastructures.

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Financial difficulty

In Northern America and Europe where technologies are widely

available, (Tan,2005) reported that because of financial difficulty, some airline

companies in the region failed to keep up with the e-ticketing model.

Behavioral control

Control beliefs give rise to perceived ease or difficulty of performing the

behavior. According to Ajzen (1991) explained that perceived behavioral

control reflects beliefs regarding the access to resources and opportunities

needed to perform a behavior. They also divided perceive behavioral control

into two components. The first component reflects the availability of resources

needed to engage in the behavior. This includes access to financial resources,

time and other resources. The second component reflects the focal person’s self

confidence in the ability to conduct the behavior.

Perceived responsiveness

Responsiveness is defined as the degree which an individual believes

that his request would be responded appropriately, quickly and satisfactory. If

the perceived responsiveness is high the more likelihood that the user will use

the system(Susato & Godwin,2010).

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Subjective norm

Subjective norms deal with studying those respondents who purchase e-

tickets in a given company's website or through an agent. It applies by asking

them how important could their opinions be influencing the attitude of others in

their personal decision-making. Subjective norm refers to one’s perception of

social pressure to perform or not to perform the behavior under consideration

and its effect in the initial stages of system implementation (Athiyaman, 2002).

It explained that when applying new technology/system social pressure needs

at the begging of the system.

2.3 SELF SERVICE TECHNOLOGY

As the service industry continues to expand, airlines have a desire to

computerize processes in order to reduce operational costs, increase speed of

transactions and eliminate the variability in the human service encounter.

Airport self-service technology (SST) is used to reduced cost and increase

revenue (Fiorino, 2005) (Technologies, 2009) while also improving customer

service (Beatson, 2007).

The International Air Transportation Association (IATA) reported in

2004 that 80% of airline passengers checked-in with an airport ticket

agent/ticketing counter, 15% used self-service kiosks and 5% used off-airport

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technology such as personal computers or smart phone check-in. It is

anticipated that in 2012 only 20% of passengers will utilize ticket agents

(service employees)/counters for check-in, 30% will use self-service kiosks

while 50% will complete the check-in process prior to arriving at the airport,

through the use of personal technology devices (Ghee, 2011), therefore it is

anticipated the 80% of all customers will be using some sort of SST in the year

2012 (Jenner, 2007).

SST provides both customers and airlines with many benefits; however there

are often constraints that impose a burden upon both parties causing each user

to consider how SST in airports affects the way they choose to access

information and use technology. Understanding how airlines have implemented

SST to benefit all users will help create an enhanced perceptive of how

customers, employees and the airline industry as a whole has been affected by

the use of personal technology devices (Ghee, 2011), therefore it is anticipated

the 80% of all customers will being using some sort of SST in the year 2012

(Jenner, 2007).

SST provides both customers and airlines with many benefits; however

there are often constraints that impose a burden upon both parties causing each

user to consider how SST in airports affects the way they choose to access

20
information and use technology. Understanding how airlines have implemented

SST to benefit all users will help create an enhanced perceptive of how

customers, employees and the airline industry as a whole has been affected by

the use of SST. This literature review will establish the validity and importance

of SST in airports, specifically in regards to the airline industry, and its impact

on the customer experience.

2.4 Self Service Technology Background

SST are devices that have technological interfaces that enable customers

to produce a service independent of direct service employee involvement (M.L.

Meuter, 2000). The automation process began in the manufacturing industry

and slowly progressed to the retail and service sector. In the late 1800’s the

telegraph, telephone and radio were all devices used to communicate with

others from far (Leiner). In the late 1960’s the financial industry first

introduced SST with the Automated Teller Machine (ATM) (Ambrus, 2006).

As technology and consumer demands changed, SST began to play a larger

role in the service industry and became regularly used in gas stations, airport

check–in kiosks and movie ticket kiosks (Ambrus,2006). Prior to the airline

industries introduction of SST devices, Global Distribution Systems

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(GDS) such as Apollo, World span, Sabre, Amadeus and System One were all

systems in place that airlines and travel agents relied heavily on for airline

travel. In 1996, 90% of all U.S. flights were booked through GDS. The

changing trends in internet usage jeopardized the airlines and travel agents use

of GDS’s, as customers were now able to book directly from their a computers

which eliminated the “middle man” better known as the GDS (Hospitality Net,

1996).

GDS’s still exist today, however much less relied upon in the travel

industry. While the hospitality industry grew, customers became more

interested in dining, entertainment and travel, this encouraged the service

industry to adopt SST to maintain a competitive advantage and meet the needs

of airlines and customers. During the past two decades the airline industry has

progressively increased their customer/employee usage of SST. SST has been

installed throughout airport facilities with the use of various kiosks that

perform multiple functions. Customers are also able to use personal computers

and smart phones to complete internet bookings and check-ins. Technology

advances have been a motivating force in the use of SST, influencing the

variety of SST choices the airline industry chooses to use to satisfy both the

airlines and the customers (Ambrus, 2006).

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 In the late 1990’s airlines were using information kiosks which are a

standalone computer terminal that provides information, goods and services to

customers and airport operators. Information kiosks allow customers to retrieve

information about airport facilities such as restaurants, stores, lounges and

flight information. These devices also provide customers and employees with

outside information such as hotels, car rentals, tours and all other general

information (Abdelaziz, 2010). Ticketing kiosks (interactive computer

terminal) were also used to allow individuals to purchase tickets, check

baggage’s and monitor the status of arriving and departing flights for a specific

airline. Ticketing kiosks are categorized as Interactive Transaction Machines

(ITMs), which allow customers to have direct access to an airline’s centralized

customer service database, however, it does not operate as a standalone

machine.

Airlines generally place ticketing kiosks close to the service counter;

this allows the kiosks to have a direct connection to an airlines information

database. When a kiosk is not able to identify or assist a customer, the kiosk

directs the customer to the service counter where they can be assisted by a

service employee (Abdelaziz, 2010).

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 During the past 10 years the airline industry has embraced the

advancements in internet technology which has allow airlines to use these

devices to gain a competitive advantage. Prior to using SST, airlines relied

heavily on travel agents and Global Distribution Systems (GDS). This reliance

on GDS has been greatly reduced by the use of SST and personal devices

(personal computers and smart phones). Continental Airlines was the first to

introduce the self-service kiosks as a check-in option in 1995 and Alaska

Airlines was first to introduce Web check-in, in 1999 (Stellin, 2008). In 2005

The Butler Group (British Analyst) reported that economic prosperity in the

20th century owed its foundation to the development of SST, as self-service

has changed the way people and businesses operate (Hughes, 2005).

2.5 Customer Behaviors

When entering an airport, airlines have begun to supply SST that has

become readily available to customers in order to complete travel transactions

with easy, instead of depending on the traditional service employee check-in

counters. Not only are customers presented with SST at the airport but they are

now able to use at home check-in and mobile devices to aid in completing

travel arrangements. SST has allowed customers ease of use and convenience

while saving time with quicker transactions and shorter lines. In 2010,

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SITA/Air Transport World Passenger Self-Service Survey reported that 70% of

air passengers want self-service for more steps in their journey. SITA also

reported that online check-in is now at 61% while kiosk check-in is at 71%

(Koumelis, 2010). SST has begun to affect the service encounter, thus reducing

the personal contact that was once created by the direct interaction between the

service employee and customer. Understanding how customers are affected by

SST, plays an important role, as studies show that organizations cannot survive

without repeat customers. Such technology reduces personal contact between

employees and customers, therefore it can have a long term effect on customers

retention (Beatson, 2007). According to Parasuraman, four elements that shape

customer technologies readiness include; optimism, innovativeness, discomfort

and security (Parasuraman, 2000). These elements play an important role in

how customers view the use of SST, as a certain comfort level needs to be

reached for customers to feel secure with the use of SST.

While some customers have embraced SST others have found SST

challenging and prefer to utilize service employees to complete transactions.

SST puts the customer in the driver’s seat and allows for complete control over

the travel experience. Customers are now able to perform the tasks that ticket

agents were once required to do. A customer can use an airport CUSS kiosks to

25
purchase a ticket, select seating assignments, print a boarding pass, tag luggage

and complete or view a variety of other information. The passenger’s

willingness to use such SST frees up ticket agent’s to help other passengers

with complex questions or needed assistances. The possibility of eliminating

ticket counters and service employees will not happen anytime in the near

future but there is a strong possibility that a substantial reduction in usage can

and will occur. Many customers depend on the service employee to complete

the check-in process as they are not familiar or comfortable with SST, yet.

Currently customers are given the choice between the service employee

interaction or the use of SST, however with the increased use and demand for

SST these choices can be reduced or eliminated substantially as time passes.

2.6 ADVANTAGES AND DISADVANTAGES

Advantages

As the airline industry continues to grow and the demand for SST

changes, airlines have taken hold of SST and have been able to provide

customers with the technology they have longed to use. Airlines are now

putting the power in the customers’ hands and allowing them to perform

multiple tasks that once could only be completed by a service employee

(Weiss, 2006).

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 SST provides customers with various benefits that would not be possible

had the customer used a service employee. Benefits include: increased control

over the service delivery as the customer is in control of the process,

convenience as SST is available at almost every hour and at multiple locations,

reduction in customer wait times as lines tend to be shorter and flexibility in

use as many tasks can be completed in a central location for multiple

airlines(Meuter, 2000).

When discussing increased control, over the service delivery, this refers

to the control airlines and passengers gain from the use of SST. Airlines are

able to control the entire SST interaction with passengers from behind the

scenes while passengers are also able to control almost every aspect of the

interaction with SST. The airline has control over what information each

passenger is able to access while the passenger has control of managing their

travel arrangements through such devices. The customer is able to choose

various service through SST from the SST, which can include changing flights,

changing personal information, checking flight status, changing seat

assignments, check-in, etc. all which provide customers with the feeling of

control (Weiss, 2006). The control aspect benefits all parties involved in the

transactions.

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 Convenience is another advantage that affects both the customer and

airlines. SST allows airlines to provide passengers with 24 hour information

and service. In the hours where staffing is at a minimum, mainly overnight, the

airlines can depend on SST to act as their “service employees” to provide

passengers with needed information. Convenience is also important for

passengers because they are able to use these devices to gain information in a

matter of seconds even when minimum or no staff is present opposed to

waiting in long lines.

Flexibility is an advantage as CUSS kiosks allow passengers to check in

for multiple airlines at various locations at just about any hour of the day.

Travelers no longer have to search the airport facility for their assigned airline

as they can walk up to any CUSS machine and complete their desired

transactions. Flexibility also impacts the airlines in regards to location of

devices; they can be moved frequently without service interruption, and allow

flexibility in information provided or accessible by both service employees and

traveling passengers (Meuter, 2000).

Disadvantages

While many advantages exist customers face many disadvantages as

well. SST has allowed airlines to lose a great deal of interpersonal contact that

28
customers once had with service employees (Beatson, 2007). The reduction in

interpersonal contact can have a long term impact on customers’ perceptions of

individual airlines depending on their experience with SST devices.

Disadvantages include; possible loss of personal information (Beatson,

2007), lack of comfort with the technology, fear of the unknown (Curran,

2003) and usability as many kiosks are touch screen and are difficult for

customers that are visually impaired or blind (IBM, 2010).

Customers who fear the loss of personal information tend to shy away

from technology that creates such vulnerability. This forces the airline industry

to take extra precautions and ensure customers that personal information is

protected and will not be distributed in-voluntarily.

One major disadvantage airlines are forced to deal with is the lack of

knowledge customers have regarding the use of such SST’s. Customers with

apprehension towards the “technology age” can experience anxiety and doubt

the smooth transition when considering the use of SST (Abdelaziz, 2010).

Customers who are uncomfortable with SST often find it intimidating and fear

the loss of interaction between the service employee and themselves (Beatson,

2007).

29
 Understanding if and when customers are willing to accept technology

changes is important, as some customers are willing accept the changes while

others may resist for fear of the unknown.

According to Parasuraman and Colby, technology readiness is a factor

that promotes or delays customer’s willingness to accept or reject new

technology (Parasuraman, 2001). Airlines are now focused on understanding

where customers stand regarding technology readiness when deciding how and

when to use SST.

Baby Boomer, represent 420 million people and account for over 260

million trips a year (Association, 2006). During the next two decades the baby

boomer generation is expected to significantly increase airline usage. One

industry report suggested that active seniors represent one of four customer

segments, which will have a substantial impact on the airline industry over the

next 15 years (America, 2007). With increased use of SST service employees

are able to help those customers who have difficulties with the kiosks or need

special accommodation, such as those passengers traveling with pets, children,

disabled, etc. (Abdelaziz, 2010). As airlines increase the use of SST devices,

they have begun to understand the importance of providing customers with

service employees to educated and assist in the use of the devices. Many

30
airlines staff service employees that move about the terminal floor to offer

assistance to those in need of help, which ultimately benefits both the airlines

and the customers in knowledge and processing speed.

The newest and most controversial disadvantage customers have been

faced with focuses users with disabilities. While airlines and kiosks creators

(hardware and software) work to remove such barriers customers are faced

with the reality that they must continue to use the service employee counter or

not travel. IBM, one of the largest CUSS kiosks distributors, now includes

standard features such as; audio connectors, accessible hardware controls and

text to speech output which helps those travelers who are blind or have low

vision or mobility impairments (IBM, 2010). These features can also assist the

baby boomer generation use SST as they begin to age.

2.7 Impact of 9/11

SST emerged in the airline industry during the past 20 years; however

the terrorist attack on September 11, 2001 forced airlines to bring SST more in

line with the changing needs of airports and airlines. The attacks on 9/11

literally crippled the airline industry, as all United States airspace was shut

down for the first time ever for four days. The shutdown reportedly cost the

airline industry losses exceeding $330 million a day, which caused airlines to

31
lose their financial positions (Mullins, 2011). Passenger travel dropped

dramatically post 9/11, which forced airlines to rethink ways to reduce

operating cost while still providing customers with exceptional service

(Conroy, 2008). Airlines began cutting back staffing levels in 2002 (following

the September 11th terrorist attack) and heavily investing in SST while

encouraging travelers to utilize these devices (Yu, 2006).

The industry has begun to move towards a paperless check-in system that

enables customers to use mobile devices and self-service kiosks to perform

check-in procedures that in the past could only be completed through a service

employee (Brockman, 2009). In 2007, the International Association for

Wireless Communications (CTIA) reported that over 250 million Americans

subscribed to a cell phone service, which represents 82.4% of the population.

The usage increased by over 400% since 1997, which was 55 million

subscribers (Gearlog, 2007). Smart phones have become an extremely desirable

device of today and the future. Smart phones allow customers to access travel

information directly in the palm of their hand while speeding up the entire

process at the customer’s convenience. Continental, American and Delta are

testing mobile and smart phone check-ins at over a dozen U.S. Airports.

Mobile devices are another self-service device allowing airlines to move

32
forward with paperless boarding passes. When customers use mobile check-in

they are presented with a bar code on their mobile browser which can be read

by a scanner at security and at the gate for boarding (Brockman, 2009),

however these types of boarding passes are still being tested as security

features are a major concern for airlines and passengers. Airlines are offering

customers multiple self-service devices which included:

 Common User Terminal Equipment also known as CUTE is shared

between airlines to reduce equipment space and technology resources.

CUTE allows airlines to make service ticketing counters common use

where gates and ticketing counters are managed by the agents and are

commonly used between major airlines (Abdelaziz, 2010).

 Common Use Self Service Kiosk, also known as CUSS, allows multiple

airlines to rely on one kiosk (standalone machine) to help reduce

congestion and prevent long lines at the ticket counters while reducing

airline costs. CUSS kiosks allow customers to obtain boarding passes,

check baggage and conduct multiple transactions at their convenience.

The CUSS provides a one-stop-shop where customers can but are not

limited to: gaining airport information, obtaining tickets and boarding

33
 passes, check-ins, selecting seat assignments and baggage check-ins

(Abdelaziz, 2010).

In 2004, CUSS kiosks usages reached 27%, in 2009 usage reached 68%

and it is anticipated to reach 81% by 2014 (Jenner, 2007). Major benefits of the

CUSS include card readers, boarding pass printers, passport bar code readers,

2-D barcode scanners (Howes, 2006) and bag tag printers (Kiosks, 2007) all

while monitoring and maintaining public information and private information

(Howes,2006).

Las Vegas McCarran International Airport is known best for its use of

CUSS. In 2006, McCarran Airport had over 80 CUSS kiosks, with 15 airlines

sharing the terminal (Howes,2006). The creation of the CUSS was to provide

efficiency and profitability for all subscribing airlines. From a financial

perspective the CUSS offers subscribing airlines a reduction in cost per

passenger check-in, reduced check-in processing time, physical infrastructure

(reduction in queuing space and counter space) and length of time of kiosk

return on investment (Kiosks,2007). The CUSS kiosk has become convenient

and desirable for both the airlines and passengers that utilize such devices, as

its use can be beneficial to all.

34
  Mobile check-in, although not a SST offered at the airport, can be

completed through a handheld mobile device that provides internet

access. Cell phones and smart phones have become a cutting edge

technology that allows passengers to check-in from the palm of their

hand (Brockman, 2009).

2.8 Financial and Operational Effects on Airlines

SST has become the norm throughout almost all US and international

airports, creating financial advantages and disadvantages for the airline

industry and customers. The driving financial forces behind SST are reduction

in operational cost (Weiss, 2006) and increase customer’s satisfaction

(Beatson, 2007). Airport IT Trends (Year) reported that on average,

information technology and telecommunications represents 3% of airports total

revenues. The study also revealed that two thirds of airports invest more than

the industry average on information technology and 54% of airlines were

expected to increase their IT budget in 2008 (Jenner, 2007).

Staffing costs

Passengers have embraced SST, which helps in aiding airlines reduce

operating cost as passengers are able to complete various transactions without

35
the assistance of airline employees. The self-service aspect not only gives the

customers control but allows the airlines to reduce operating cost by utilizing

the “free labor” of passengers that SST provides. The passenger’s willingness

to use SST allows airlines to eliminate or relocate ticket agents and baggage

personnel which can help reduce staffing cost (Weiss, 2006). Kinetics Kiosk, a

company that manufactures airport kiosks, reported in 2004 that one self-check

in machine initially cost between $6,000 to $10,000, and each kiosks can

replace 2.5 ticket agents (Fishman, 2004), showing great benefits financially

towards airlines bottom lines.

SST aims to change how the airline industry operators while trying to

maximize their use of service employees. SST relieves service employees of

manually entering information and helps eliminate the long queues that once

formed during peak check-in times. SST kiosks help eliminate the need for

service employees to perform repetitive tasks that customers or a machine are

capable of completing (Abdelaziz, 2010). Airlines have continuously decreased

staffing levels over the past 10 years as they continue to substitute SST for jobs

that service employees were once needed to complete (Yu, 2006).

Four years following the terrorist attacks of 9/11 six of the largest airlines

(American Airlines, United Airlines, Northwest Airlines, Delta, US Airways

36
and Continental Airlines) reduced their workforce by 34% (Yu, 2006). In 2004,

Kinetics (67 employees), provided two thirds of airport kiosks that put

thousands of employees out of work. Kinetics three largest customers at the

end of 2000 were Delta Airlines, Northwest Airlines and Continental Airlines

which together eliminated 37,000 employees due to the increase use of SST in

the years following 9/11 (Fishman, 2004). An industry gauge of labor

productivity can be measured by the number of available seat miles per full

time employee, this percentage rose by 30% from 2000 to 2005 (Yu, 2006).

Operational cost

Airlines operating margins are thin, thus creating a need for SST to help

reduce operating costs. SST has created substantial cost reductions in how

much it cost the airlines to check-in passenger. From a cost perspective it cost

the airlines $3.86, to check-in a passenger with a service employee, opposed to

$0.16 with the use of SST kiosks (Weiss, 2006). SST has the ability to the same

plus offer additional services than your typically service employee can do in

the same amount of time. In 2004, Continental Airlines reported average

check-in time, once a customer is in front of a kiosk, was 66 seconds for

customers with bags and 30 seconds for customers without bags (Fishman,

2004). The initial investment of SST can be discouraging for airlines however

37
the cost benefits far outweigh the initial costs. In 2009, Newark Liberty

International Airport installed six trial CUSS, in Terminal B, with connections

to ticketing systems in four international airlines costing the Port Authority of

New York & New Jersey an initial cost of $200,000, the airlines also agreed to

pay all maintenance (Faber, 2009). During the trial period the airlines will

analysis how these self-service devices affect the airlines from a financial

standpoint and how they affect the customer experience, thus determining how

the airline will benefit in the end if the devices move beyond a trail period.

Retail space and miscellaneous cost

While SST is a driving force in airline travel, kiosks allow airlines to use

less counter space, less rental space and reduce customer congestion at ticket

counters (IATA, 2011). SST can help airlines avoid the need to expand or

renovate airline counter space; with the use of SST airlines are able to use their

current space more efficiently (eliminating unused counter check-in space or

reducing counter space for bag tagging) and use extra space for other airline

services such as; baggage claims area or additional kiosks. If space is not

needed the airlines can eliminate the excess space all together (Falconer ,2008),

thus reducing unneeded financial expenses that airlines once had.

38
 While SST drives staffing cost down, airlines are not completed able to

eliminate all cost that come along with SST. Some airlines are finding hidden

costs that relate to the maintenance of these devices, which can’t be ignored.

Self-service kiosks are connected to networks that can experience system

failures and service outages, therefore airlines must have systems in place that

allow strategic planning for humans, financial and equipment resource planning

(Weiss, 2006).

In 2004, Las Vegas, Nevada’s McCarran Airport, owned and operated

all kiosks located throughout the building. In order to keep SST running

correctly, the airport had a team of 13 full-time employees that were available

21 hours a day (Weiss, 2006). There is a potential for lost revenue when service

interruptions occur; as a result information technology team members must be

onsite constantly during operating hours. Airlines that do not maintain the SST

on premises are forced to contract with service providers who manage and

repair the kiosks, to reduce or prevent service failures (Weiss, 2006). Although

the actual kiosks do not lose revenue, airlines typically cut staffing levels that

can end up causing major havoc when self-service devices “go down”. When

technology fails airlines must have service employees present to take over.

With technology failures airlines are forces to bring in service employees to

39
take over and compensate for the services that SST should be providing. Bring

staff in can take a substantial amount of time to complete and cost the airlines a

substantial amount of money. Systems downtime can cause mass confusion and

cause passengers to become frustrated and disgruntled which in the end can

produce additional unforeseen expenses on the airlines (Conroy, 2008). Not

only do passengers become frustrated but those service employees already on

duty can be faced with challenging circumstance and forced to work additional

hours that add to airlines expenses.

2.9 Kiosk

Since several US and UK catalogers tested experimental kiosk use in the

early 1990’s (Rowley, 1995), kiosks have been widespread in retailing,

particularly, for the past few years (Moerloose et al., 2005). Previously, kiosks

used in retail applications were rare compared with the use for banking and

airport check-ins (Ferriolo, 2003). However, presently kiosks are found at

different retail locations such as supermarkets, drug stores, and restaurants. The

global self-service market is projected to reach $24.7 billion by 2010,

maintaining the annual growth rate of 17% (Howell, 2006). The growth of

general SSTs fuels the increase of retail kiosks. As people have more

experience with one application of an SST, they will likely use other SSTs for

40
different applications. Service for ATMs in banking is so common nowadays;

approximately 75 % of airline check-ins is handled by customers through

Internet web pages or standalone kiosks. While people are accustomed to

technology based self-service, they will seek similar experiences shopping,

which demand retailers’ adoption of kiosks. The benefit of SSTs is their

efficiency and effectiveness in improving customer service (Bitner et al.,

2000). Utilizing kiosks, retailers can deliver fast and customized services and

provide convenient shopping experiences (Meuter et al., 2000; Walker et al.,

2002). Consumers can pick-up pre-ordered drugs through kiosks even after the

store is closed. At a supermarket, using a self-check-out kiosk, customers can

conveniently pay for the merchandise without standing in a long waiting line.

Customers can order food and beverages through kiosks located at their table in

a restaurant. In a deli store, when the order is ready, customers then can receive

a text message to their cell phone letting them know to pick up their order.

Kiosks also can provide information for products (the image, price, availability,

and location) and stores (location and operation hours). Some kiosks feature

information pull-up systems using key words or conditions (Murphy, 2008).

Supermarkets can offer unique information such as health content and recipes

using stand-alone kiosks (Murphy, 2007). As a whole, these features can

41
distinguish one retailer from another. From a companies’ perspective, kiosks

are the cost effective tool to reduce labor costs. According to Forrester

Research, airline firms can save $ 3.52 for each customer who uses kiosks

instead of personnel at a check-in counter (Kivat, 2004). Kiosks work as

salespersons within a store. Retailers can deliver advanced customer service

with fewer employees while not losing productivity. Therefore, utilizing kiosks

can create an advantage to retailers in a very competitive environment (Tung

and Tan, 1998). However, adopting kiosks does not necessarily result in a

positive outcome. Uncomfortable feelings toward technology, lack of human

interactions, risks of service failure and employee resentment are often cited as

the downside of SSTs (Curran et al., 2003). Probably, because of the problems,

only about a half of consumers expressed their satisfaction with this self-

service experience (Alcock and Millard, 2006). Individuals’ tendency in using

a new technology was an important driver in behavioral intentions toward SSTs

(Lin and Hsieh, 2006). Lack of human interaction is another problem of SSTs,

which may be more significant in a high-service-context business such as

hotels. Hotel guests felt kiosks were useful but felt employee service was more

important (Beatson et al., 2006). It may be because the guests prefer personal

contact in relating room conditions or services. Actually, just 10 to 25% of

42
hotel guests use kiosks to check-in or out when it is available (Stellin, 2006).

Employees’ support is also important in the use of self-check-out kiosks in a

supermarket (Anitsal and Paige, 2006). That is, coordinated human interactions

are essential for the successful operation of retail kiosks (Rowley, 1995). Well-

trained employees can provide quick and effective assistance when customers

have problems while using kiosks. In this way, retailers can reduce possible

service failure in the use of kiosks. Beside the inherent problems of kiosks as a

SST, retailers need to be concerned with other related issues. A documented

failure describes the importance of the visibility of kiosks. Sephora, a leading

global beauty retailer, once located kiosks within their stores but they were not

attracting consumer attention (Alexander,2000). The kiosk was placed in the

back of the store and customers did not even notice their existence nor were

encouraged to use them. More recently, one of Canada’s largest bookstores,

Indigo Books & Music, launched its kiosk program but customer response did

not meet expectations (Murphy, 2008). When the company relocated kiosks to

high customer traffic areas and redesigned the appearance of the kiosks, the

number of users increased significantly. These practical examples show the

importance of location and attention for the successful utilization of kiosks

(Rowley, 1995). To briefly summarize, kiosks are being used in retailing and

43
show great potential for success. However, this success does not mean that all

companies will successful when using kiosks. Facilitating kiosks are costly.

The basic interactive kiosk is approximately $25,000 with PCs and the price

increases for touch screens and other customized features. In addition, there

will be other costs for printers and high quality display screens, which range

from $2,000 to $10,000; while the software fee ranges from $3,500 to $20,000

and the licensing fee per kiosk ranges from $150 to $5001. In order to

compensate for this investment, retailers need to adopt winning strategies.

2.10 What are Successful Retail Kiosks?

Gaining financial benefits are the most obvious success factors for retail

operations. However, it is often difficult to measure the return on investment

(ROI) for kiosks (Murphy, 2007); which can be compared to estimating the

revenue created by a single, specific employee. Other than the financial

evidence, previous studies investigated the success of kiosks using different

measures. While research on retail kiosks is sparse, previous studies were

conducted mainly in relation to consumer adoption of kiosks in the context of

airline service (Chang and Yang, 2007; Liljander et al., 2006), banking (Littler

and Melanthiou, 2006) and overall use of SSTs (Lin and Hsieh, 2006). Those

studies identified individuals’ characteristics or perceptions of the technology

44
as the significant determinants of consumer adoption. These findings may need

further empirical research in a retail context; however there is no question that

consumer adoption as an indicator of initial success is vitally important.

Because of the innovativeness and unconventional features of kiosks, consumer

adoption is an important issue. The sustainable success, however, is measured

when customers who have tried kiosks are satisfied with the service and intend

to commit future purchases to that retailer.

Beatson et al. (2006) questioned if kiosks affect consumer satisfaction

with the organization and commitment to the service provider. Commitment

was delineated into affective, temporal, and instrumental commitment; they are

represented by positive emotion, individuals’ expectation, and losses from

terminating the relationship, respectively (Kim and Frazier, 1997; Beatson et

al., 2007). Analyzing 241 surveys from the guests of a hotel, researchers found

that experiences of kiosks positively related to the satisfaction and commitment

intention toward the hotel. For a comparison, the impact of personal service

was also examined and the results showed that personal service was a more

important determinant of satisfaction and commitment. This result confirmed

that kiosks are useful but human factors are still important for the success of

kiosks. Few studies are available regarding the impact of retailers’ kiosks

45
adoption on consumer commitment toward the firm. A limited number of

studies focused on self-scanning devices or check-out systems. An early study

(Dabholkar et al., 2003) investigated the determinants of consumer adoption of

self-scanning devices in a supermarket but did not examine the consequences

to consumer behavior. Similarly, Anitsal and Paige (2006) conducted a study of

consumer adoption and quality perception of self-check-out systems which are

used in the U.S retail grocery stores. An additional study (Marzocchi and

Zammit, 2006) collected data from users of selfscanning devices at a major

Italian supermarket chain located in Northern Italy. The researchers analyzed

353 samples and found that sense of control and enjoyment significantly

influenced satisfaction with the self-scanning device. They also found that

satisfied customers were willing to say positive things about the store and to

visit the store more frequently. In summary, the success of retail kiosks may be

determined by customer adoption initially but consumer satisfaction and

commitment will be a more meaningful indicator, as well as positive financial

returns. Most previous studies of kiosks were not fully focused on retail use

and few researchers investigated the influence of factors on the success of retail

kiosks; in other words, the impact of kiosks on consumer commitment. Few

studies of retail kiosks were available and those that were conducted were

46
focused on a specific function of the kiosk and in a very specific retail setting;

that is, a self-scanning devices or check-out systems in supermarkets. The

application of retail kiosks is diverse and kiosks are now being used in different

retail sectors. Successful strategies of retail kiosks should be discussed

regarding diverse foci of kiosk service and in different retail sectors.

Summary

In summary, the researcher discussed the different ways of booking air tickets;

Traditional travel agency and online, the factors that affects online booking

system was also discussed. The researcher also talked about self-service

technology, the usefulness and disadvantages of SST, kiosk and what a

successful retail kiosk is.

47
 CHAPTER THREE
RESEARCH ARCHITECTURAL FRAMEWORK

3.0 INTRODUCTION

In this chapter the research methodology is discussed which is used for

the study. Here the researcher develops an architectural framework for the

study which comprises of four different stages that enables the researcher to

achieve the research goals. It also contains a diagram that helps to explain the

architectural framework used and detailed explanation of each stage of the

framework.

3.1 RESEARCH ARCHITECTURAL FRAMEWORK

A research methodology is simply the methods, techniques, ways the

researcher intends to use in collecting data for the study in order to achieve the

research goals (Rajasekar,2006). It comprises the theoretical analysis of the

body of methods and principles associated with a branch of knowledge

(business dictionary, 2004). In this research study the researcher will be using a

research framework in order to achieve research goals. An architectural

framework is an original investigation undertaken in order to generate

48
knowledge, insight based on methods and tools proper to the discipline of

architecture (Mitre,2005). An architectural framework establishes a common

practice for creating, interpreting, analyzing and using architecture descriptions

within a particular domain of application or stakeholder community.

This architectural structure will comprise of four stages that will enable

the researcher achieve the research goals. These stages comprise of a detailed

insight of the existing system used, challenges of the existing system, proposed

system solution and recommendation. See diagram below for more insight;

Description of Existing System

CChallenges of the Existing System

Proposed System Solution

Recommendation

Fig 3.1 research architectural structure

Description of the existing system: These are system that are invoked, that are

been used and already implemented. These systems are already in the market.

49
Challenges of existing system: these are flaws of the existing system. The

limitations of the system and why there need to be an improvement.

Propose system solution: This is the possible solution or improvement to

flaws of the existing system. It is also a slight modification of the existing

system by adding your ideas.

Recommendation: This is the process of convincing the sectors that use the

existing system to use the proposed system.

3.2 DESCRIPTION OF EXISTING SYSTEM

Over the years, customers have used different mediums for booking air

tickets. This is due to the rate at which people use airline services now. There

has been evolution in the ways customers book air tickets such as travelling

agencies, online booking.

Online booking/internet booking: Is an application, which helps the travel

and tourism industry support reservation through the internet. It helps

consumers to book flights, hotels, holiday packages, insurance and other

services online. This is a much needed application for the aviation industry as it

has become one of the fastest growing sales channels. IBEs were necessary as

50
the underlying (often called legacy) systems were unable to carter

economically for the large number of shopping transactions and the speed of

development required by the customers. In most cases the underlying systems

were not designed for direct exposure to customers (travelandtourism,2005).

Technological advances has profoundly changed the way consumers buy

products and services. Around the globe, the number of Internet users is

approximately 655 million in 2002 and is expected to reach 941 million by the

end of 2005 (Dholakia and Uusitalo, 2002).

Many companies have started using the Internet with the aim of cutting

marketing costs, thereby reducing the price of their products and services in

order to stay ahead in highly competitive markets. Customers use the Internet

not only limited to buy products and services online, but also to compare

prices, product features and after sale service facilities they will receive if they

purchase the product or services from a particular store. The rapid growth of

Internet users globally provides a bright prospect for e-marketers.

According to a study from International Data Corp (IDC), more than

600 million people accessed the Internet globally by the end of 2002 and spent

more than US$1 trillion buying goods and services online (Straits Times,

51
2002). People are now buying many types of goods and services on the

Internet. With the growing numbers and changing trends of buying behavior,

an increasing number of companies are also finding it attractive to join the

bandwagon and offer the consumers online shopping facilities. A number of

studies have tried to examine the profiles and characteristics of online buyers.

It is important for marketers to develop a better understanding of the Internet

shoppers, as this will help them in developing the effective marketing strategies

and tactics in an effort to attract and retain existing customers. Since the year

2000, many industries have been turning to the Internet to market their product,

including the airline industry. The widespread of enthusiasm for e-commerce

has lead airline industry to venture into electronic ticketing or e-ticketing. The

concept of e-ticketing has entered U.S as far back as in 1980’s which is

primarily adopted by its domestic carriers; United Airlines in 1984

(travelandtourism, 2005).

In the Asia Pacific region, particularly in the Philippines, Thailand,

Hong Kong and Malaysia the e-ticketing service is gaining popularity (SITA,

2005). On the Malaysian front, the concept was first initiated by Air Asia the

country’s low cost carrier.

52
 According to the 11th Malaysia Internet User Survey conducted by AC

Nielsen in April 2005, about 14% of online shoppers bought airline tickets

online. Compared to other online shopping transactions, e-ticketing is gaining

popularity vastly as the customers can gain cost benefits from buying tickets

online. Besides that, other online transaction (e.g. books and apparel) involves

uncertainty and risk as the customers are not able to examine the products

physically before they decide to buy it. There is limited empirical explanation

of the drivers behind Malaysia’s residents in purchasing airline tickets online.

Fig. 3.2: an online booking platform (skyscanner, 2007)

53
 Fig. 3.2.3: online booking website (delta, 2008)

Traditional Travel agencies: a travelling agency is a private retailer or

public service that provides travel and tourism related services to the public on

behalf of suppliers such as airlines, car rentals, cruise lines, hostels, railways

and package tours(expresstravelandtourism,2007) .Traditionally, travel

agencies have always been the middlemen between consumers and suppliers.

With the rapid rise of the Internet, this changed: the complicated distribution

and communication channels, once the domain of the travel agent, became

untangled. This offered vast opportunities for direct customer-supplier contact

(Licata et al., 2001; Ioannides & Daughtrey, 2006). The academic world saw

this electronic brokerage effect, which they called the threatened intermediaries

or disintermediation hypothesis, as the end of the middlemen (Anckar, 2003).

54
Traditional travel agencies would most likely be removed from the market,

because the need for cost adding services along the distribution value chain had

disappeared (Vasudavan & Standing, 1999).

Surveys conducted from April 2000 to September 2005 (Morgan,2005)

revealed that, for Australians, travel agents were still the preferred booking

mode for international long-trip travel. This disintermediation hypothesis was

questioned by other authors (Bakos, 1998; Anckar, 2003). They argued that

the market would reformulate itself and go through shakeouts, but that travel

agencies would not be pushed away. Instead, they would reintroduce

themselves between the consumers and the suppliers. This re-intermediation

would take place when travel agencies themselves embrace the new electronic

environment and emerge as a new kind of travel intermediaries, called cyber-

mediatizes. These entities would operate completely online and act as a broker

between the customer and the supplier. Although these cyber-mediatizes were

seen as a threat, researchers stated that traditional travel agencies are also able

to re-intermediate and sustain their position due to their competitive advantages

over online intermediaries. Some authors proposed that travel agencies should

specialize in niche market and become experts of certain areas (Vasudavan &

55
Standing, 1999). As of today, several cybermediaries can be found on the

Internet: Expedia, Travelocity, Orbitz and Priceline are just a few examples of

online intermediaries that have grown rapidly over the past years to become the

biggest online travel agencies (OTAs) in Europe and the world (PhoCusWright,

2008). Therefore OTAs have captured a large part of the leisure travel market.

Furthermore, value conscious consumers prefer to book directly with low cost

carriers (LCC) that are a dominant party in many countries including Malaysia.

As Lewis et al. (1998) noted, travel agents play three key roles. First, they act

as information brokers, passing information between buyers and suppliers of

travel products. Second, they process transactions by printing tickets or

forwarding money. Third, they act as advisors to travelers. Information

technology has profoundly affected the first two and forced travel agents to

focus on the third, advisory role. Within the travel agent industry, the

traditional centralized market structure is currently under attack from many

providers in the market place who are trying to access their customers directly.

The biggest change is that the customer can now interface directly with the

information about the travel options. As such the travel industry is currently

undergoing a major transition due to a shift in distribution channels which

56
reflects the impact of information technology. The convenience and availability

of information makes the traditional travel agent redundant.

Fig. 3.2.4: travel agent attending to customer (dreams time, 2003)

57
 Fig. 3.2.5: travel agents (photobucket, 2008)

3.3 CHALLENGES OF EXISTING SYSTEMS

Over the years there have been many issues with the way customers

book air tickets and how time consuming and strenuous the process is. The

systems described above have various flaws which make them inefficient and

less effective. Customers sometimes find it difficult to see a real bargain when

surfing the internet and it takes time when they don’t know where to look.

Also, not all agents are relied on, a number of them disappear with the client’s

money. When customers book tickets through traditional travel agencies, it

takes a lot of time (i.e. the interviews, invites, document filling, going to see

the agent once in a while etc.). Travel agents also work on commission.

58
Customers also need internet and pc experience to book online. Viruses and

Trojan online steal information of customers. Also if the site is down or

undergoing maintenance, customers won’t be able to book online. The issues of

long queue at the booking point in airports is also a major flaw(info,2007)

Some major challenges of online booking are as follows;

Lack of firsthand knowledge

Online booking rarely gives customers the opportunity to speak with

someone knowledgeable about the service they are booking. In some cases

customers may find testimonials on a website, but they can never be sure if

they are real testimonials or paid advertisements.(info,2007). Also factors such

as insufficient, inaccessible, out-of-date and irrelevant information, lack of co-

ordination and agreement amongst cross channels (web, e-mail, telephone),

lack of information in international languages or even the sometimes poor

implementation of a software are elements that “weaken” the position of

agencies online and discourage potential customers(Matzler and Waiguny,

2005).

59
Security

Security refers to the need to protect data, equipment and processing

time. Organizations restrict access to certain data and protect data and

applications from manipulation or contamination. According to Bargh et, al.

(2008), security services offering protection from security threats are:

identification, authentication, confidentiality, integrity, access control, and non-

reputation. Security breaches can lead to numerous problems such as

destruction of operating systems or disruption of information access. Online

environment differs in terms of access and usage of transaction and privacy

information exchange during buying and selling. Booking travel online

frequently requires that customers pay at least a deposit and many times

requires that customers pay the whole cost of service up front. Customers risk

having their credit number stolen or even their whole identity by booking

through an insecure website.

Trust

60
 Trust is a necessary part of any relationship. Against this backdrop, the

objective of e-ticketing is creating a long lasting relationship with customers by

making the service trustable. Knowing the definition of trust and identifying

the different categories of actors involved in the practice of new technology

helps assess the influence of trust on the perception of a new technology. Trust

is defined as the willingness to relay on an exchanging partner in whom one

has confidence (Moorman, 1993). Customer most time do not trust online

booking systems, studies indicates that fear of financial loss through credit card

fraud ranks as the critical factor in purchasing airline tickets via internet.

(travelandtourism,2005).

Infrastructure

According to Groucutt and Griseri (2004) Investing in the infrastructure

necessary to enable widespread use of the internet represent a massive capital

cost for many nations. They also explain about the key elements of an effective

internet infrastructure. Such as:

 The necessary improvement in telecommunication service, from archaic

analogue to state- of-the-art digital systems;

61
  The acquisition of reliable hardware and software system;

 The provision of reliable uninterrupted power supplies, particularly

inclusive to many African countries;

 The necessary training, although this can be obtained on line. However,

basic computer skills must be achieved prior to gaining access to the

internet.

Infrastructure is an integral part in implementing technology-based system.

Infrastructure has been playing a crucial role in implementing e-ticketing

system in a given organization. Particularly the internet, LAN and WAN

network tools are playing a pivotal role in communicating passengers with

organization, making online payment anywhere and any place, and delivery

and distribution while performing e-ticketing. According to Tan (2005), airline

companies in Africa, for instance find it hard to catch up with technological

advancement in the airline industry due to less developed infrastructures.

Meanwhile, in North America and Europe, where the technologies are widely

available, Tan(2005) reported that because of financial difficulty, some airline

companies in the regions failed to keep up with the e-ticketing model.

62
Some of the challenges of travelling agencies are as follows;

The role of the travel agency in the tourism distribution system has been

affected by industry consolidation and advent development of new

technologies (Ioannidis and Daughtrey, 2006). Ecorys (2009) reports that

travel agencies need to re-evaluate their current activities and stop being a

product provider, but start focusing on providing added value to the customer.

To achieve success, travel agencies should focus on building up a good image

and reputation in order to earn the customer’s trust (European Travel

Commission, 2006; Ecorys, 2009).

Fig. 3.3: customers queuing up to board airplanes (photo bucket,

2007)

Summary

63
 In summary, the researcher was able to discuss the methodology and

the architectural structure used for the research study and discussing the stage

of the structure in details and with the aid of a diagram show how the

framework was structured. The existing systems and challenges of the system

is also discussed.

64
 CHAPTER FOUR
ANALYSIS OF THE PROPOSED SYSTEM

4.0 INTRODUCTION

This is the process of analyzing the new system after a detailed study of

the existing system. This research proposes a customer self-booking air

ticketing system as a solution to reduce the challenges encountered by

customers when trying to obtain air tickets at the airport reception. Customer

self-booking air ticketing system is an emerging system in the aviation

industry. A customer self-booking air ticketing system is an e-system

(electronic system) where customers book air tickets. This system will help

improve the processes customer book flight tickets.

4.1 SYSTEM ANALYSIS

65
 System analysis is defined as the comprehensive study of an existing

system to discover the areas of its functional limitation. This is the tool that

helps us a lot in gaining an understanding of the existing system and what is

required of it. It is a structural process that we used in collecting and analyzing

facts in respect to systems operation of transcript information systems and

procedures in order to get a full appreciation of the situation so that an effective

computerized information management system may be designed and

implemented. (Bill, 2009 ) .

4.2 COMPONENTS OF THE PROPOSED SYSTEM

Display screen: this is an output device (LCD screen) that displays the

interactive display interface to the customer. All transactions carried out on the

system are displayed on this screen.

Printer: this is also an output device, it prints out the flight documents (bag-

tags, tickets, boarding pass) needed by customer.

Central processing unit (CPU): this is the brain of the kiosk, it processes all

the information entered by the customer into the system.

66
Card reader: this reads the credit card the customer inserts into the machine

and verifies it if payment can be made from it.

Cash slot: this is the slot the customer places money if cash payments are to be

made.

Barcode reader: this is used for scanning the passport of the customer.

Keyboard: this is an input device, it allows the customer to enter details

needed for the transaction. It consists of buttons which has specific functions

and allows customer to navigate through the system.

Interconnector: this connects the workstations with the airport reception

which consist of the server and the backup storage. It transfers the information

entered by the customer on the workstation to the airport reception. A switch

can be used for this network.

Backup storage: this is a secondary storage that data entered on the kiosk are

stored for future reference (retrieval).

Server: this accepts customers request from the kiosk and responds to them.

4.3 PROPOSED SYSTEM SOLUTION

67
 A proposed system is a possible solution to problems of the existing

system. It is also an improvement to the flaws of the existing system. This

research proposes a customer self-booking air ticketing system as an alternative

solution to reduce the challenges customers run into when booking tickets and

boarding a plane at the airport. The researcher proposes an airport kiosk for this

study. What is a kiosk? A kiosk is a stationary self-service system that allows

customer to create services independent of direct involvement of customer

service providers (Drenen,2011). An airport kiosk is a standalone desk or

interactive computer terminal that provides information, goods or services.

Customers do not need to go through much stress just to book a ticket or get a

boarding pass as the system will enable them book tickets, check reservations

and check-in baggage, reduce waiting time and enable them obtain boarding

pass. For efficiency of the system, it is essential to have some roving agents to

help customers with transaction speed. The speed of checking depends on

customers familiarity with the system and the rate at which it processes request.

4.4 DEMONSTRATION OF HOW PROSPECTIVE CUSTOMER WILL

USE THE SYSTEM

68
 When customer works into the airport, he/she will see the kiosks at the

airport reception usually placed in groups of 12 kiosks and the setting is

straight. There are buttons on the system just like an ATM and a special round

button with “start” inscribed on it. When customer press the start button the

option “select airline” will appear, where customer selects the airline he/she

wishes to fly with. After selecting, another option “define destination” will

appear on the screen of the system, this is when the customer will select his/her

destination, if international or local. An option “check for reservation” pops up

on the screen, where customer checks for available flight will appear. Here

customer sees departure and arrival time of the flights and if convenient

decides to book else stops transaction by pressing another button engraved

“cancel” on the system.

Customer will be asked to buy ticket. When they click proceed, a

message will appear “specify type”, if customer wishes a first class ticket, a

second class ticket and otherwise. The cost of the tickets will be at the side of

the different categories. Customer selects and presses proceed. Before paying,

another option will be prompted on the screen showing single or multiple

69
tickets. If single, the customer presses the single option. If multiple, the

customer presses the number of tickets he/she wants to book and press proceed.

Another option “method of payment” will be prompted on the screen.

Customer decides if to pay using their credit card or cash. If cash payment is to

be made, a slot will open under the screen of the machine where customers

place cash. The system only accepts cash if the money or cash is equal or

greater than the cost of the ticket. If not, it will reject it asking customer to

place the correct amount. If the customer continues with an amount less than

the actual amount, the system will automatically shut down in 1 minute. But if

the money is equal or greater than the actual amount, the system will accept

cash and repay balance in any. If credit card is used, customer slots card into

the machine and enters card pin. The system verifies if the card and the pin are

valid and deducts the amount it would cost the customer to book the flight. But

if a situation occurs where the amount in the card is not enough, the system

displays inadequate funds, ejects card and shuts down in 1 minute.

Another message displays on the screen “confirm baggage”. If customer

is travelling with bags, he/she presses yes and answers some security questions

already programed on the system to know the content of the bag and how many

70
bags. If not, customer presses no and continues. A message will be displayed

on the screen showing customer flight details like ticket number, flight number,

name, destination etc.

Customer will be asked to scan their passport on the system which is

done by a barcode reader on the system. And then they are requested to print

ticket and then print boarding pass. The main steps in the check-in process

through the system are shown below;

71
4.5 SYSTEM ARCHITECTURAL STRUCTURE DESIGN

72
 The researcher proposes the use of a cluster based system structure to

actualize the development of the proposed system solution discussed above.

Software will be installed to run on the system. See diagram below for more

insight.

AIRPORT
RECEPTION

INTERCONNECT
OR

BACKUP STORAGE
Fig. 4.4 cluster based system model

The proposed architectural structure comprises of the system (kiosk),

interconnector, airport reception control, server and backup storage. The kiosk

which is made up cabinet, the shell which houses the kiosk innards, the cabinet

houses the CPU, screen, keyboard, slot, printer, scanner and other peripherals is

connected to an interconnector device that is linked to the server and backup

73
storage. The interface software may be built or implemented with Visual

Basic.Net and the database may be implemented with MySql. The backup

storage is used to store customer’s information. With the system in place,

airlines can monitor customers that book tickets, know their identities and their

flight details. Airlines will also be able to optimize management and running

cost.

4.6 Advantages of the proposed system over existing system

 It reduces cost by lowering employee’s headcount. Since the system can

render the same services that would have been done by several

employees, there would no need to employ much people.

 Reduces queues at airport reception, i.e. reduces waiting in line by

customers.

 It enables customers to obtain boarding pass, check baggage, check

flight reservation, book tickets, seat selection.

 It enables customers to book tickets conveniently and easily.

 It provides comfort and privacy of customers.

 It provides an easy way customers get bag-tags before dropping at bag

drop-off.

74
  Accessibility and movement of passenger traffic.

Summary

In summary, the researcher discusses the proposed system solution, its

advantage over existing systems, its disadvantages, how it will work, its

structural design and how prospective customers will use it.

CHAPTER FIVE

RECOMMENDATION, CONCLUSION AND SUMMARY

75
5.0 Introduction

The basis of this research work is to find ways to reduce waiting time at

the airport reception when customer are trying to book tickets, check-in

baggage and board flights. Various issues were considered that led to the

proposed system, which is a customer self-booking air-ticketing system that

enables customer book air tickets independent of customer service providers.

This proposed system tries to solve the constraints in the existing systems.

The architectural framework design comprises of application software for the

interface which should be implemented with Visual Basic.Net and an

application software for the database which should be implemented with

MySQL.

5.2 Recommendation

Having achieved the objectives of this research as stated in the introductory

section, some findings were made and it is on that basis that the researcher

recommends the following;

1. Customer self-service technology is a new immerging and evolving

technology in airline industry. There are on-going researches on how to

76
 make self-service technology more effective and reliable for customers.

Government should provide facilities and time to the devotion of further

research on SST.

2. Customer self-booking air ticketing system is an advanced technology

and most individuals shy away from this system because of lack of

knowledge. Airline industry should encourage customer by assigning

agents who can be of assistance to customer if they are new to the

system.

3. Finally, the use of the customer self-booking air ticketing system will

only be effective if it has high processing speed, contains enough

required information and has high respond time.

5.2 Conclusion

Customer self-booking air ticketing system is an electronic device or

workstation designed to facilitate activities like booking tickets, issuing

boarding pass and other related activities without the involvement of service

provider. With this proposed system, customer will be able to book tickets,

check reservations, print bag-tags before dropping bags at bag drop-off, print

boarding pass at their convenience. This proposed system makes booking and

77
board flights easy, convenient and flexible. But the system shifts work to the

customer, it destroys jobs thereby reducing employment opportunities and

making people jobless.

5.3 Summary

In summary, the researcher recommends the proposed system to airline

industries and also concludes by stating some flaws of the system.

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