Issue dated > 1 - 15 July, 2003  
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E-Ticketing: The Cost-Effective Alternative

e-ticketing has finally translated into a reality for the Indian travel trade, says Ankur Bhatia, managing director, Amadeus, India sub-continent. In an exclusive interview with Express Travel & Tourism, he elaborates on all aspects of the subject to Raadia Mukadam

The industry has for long been talking about e-ticketing, could you please elaborate on this concept?
IATA allows travel agents to sell air transportation without issuing printed tickets and passengers to check-in and board flights without holding printed tickets, which is how e-ticketing was conceptualised. An e-ticket by definition combines the issue and delivery of the ticket into a single operation. The entire infrastructure for e-ticketing is provided by the CRS companies and all details of the transactions are recorded here.

An e-ticket allows authorised travel agents to transmit the ticketing information directly to the airline’s database, enabling the passenger to check-in and board the flight without holding a paper ticket. E-tickets substitutes the paper-based flight coupons by an electronic ticket image that is stored in the airline’s database. Very simply put, e-ticketing is a paper-less and a hassle-free alternative to a conventional paper ticket. With the introduction of e-tickets all a passenger needs to do is to show-up at the airport without any printed ticket.

What differentiates e-ticketing from online booking?
Online booking involves logging on to a popular travel website, scanning the available information and making your reservation. While an e-ticket is merely an electronic ‘avatar’ of the existing air ticket irrespective of how you book it. And while travel dotcoms may or may not catch the public’s fancy, e-tickets are a reality the world over and will soon be touching down on the Indian tarmac.

Is this concept actually working?
You would be surprised to note that several countries across the globe are already enjoying the benefits of e-ticketing including the US, Canada, Australia, New Zealand, Britain, France, Mexico, Central America, Chile, Argentina, Belgium, Venezuela and The Netherlands. In fact in the US it has 80 per cent market penetration while in Europe it is approximately 40 per cent.

Amadeus India has successfully conducted pilot tests with British Airways and Lufthansa at select agency locations in Delhi namely, Carlson Wagonlit, Friendsglobe, Gitanjali Travels and Lee Travel World. In addition, the company is also in talks with AF, SR, LH, BA, SQ, UA and AA, who haveconfirmed to come onto the e-ticketing bandwagon. Most of the international airlines are technically ready, since they already do e-ticketing in other
countries.

How is e-ticketing expected to benefit the travel agents and the airlines?
While e-ticketing spells loads of privileges for passengers who can do away with paper tickets, not run the risk of losing a ticket and enjoy a shorter check-in time, it also ushers in abundant advantages for the travel trade.

For travel agents, e-ticketing will lead to productivity enhancement by cutting down ticketing requirements and consequently printing of flight coupons. Travel agents can now focus on their core competence, which is travel consultancy and research, rather than on ticket issue and delivery. Access to critical passenger data gives flexibility in modifying the ticket at any point in time. The system automatically reports the electronic ticket sale thus lightening the work load for travel agents.

Airlines on the other hand can cut their ticketing costs by a minimum of 80 per cent (from US$ 7 to US$ 1). This system introduces a faster ticket process and ensures data security at all time because several steps in the ticket issuing and processing stage can be eliminated with e-tickets. In fact with e-tickets the cost of issuing a ticket can be reduced drastically from close to Rs 500 today to a mere Rs 50. If the Indian market adopts it, the international airlines operating in India will collectively be able to save at least US$ 10-15 million.

Will this system also man savings for the CRS industry?
Yes, in a way it will, because it will eliminate the need for giving out ticket printers to new subscribers. However, those subscribers who already have ticket printers given by us can continue to keep them. Besides effecting a reduction in cost it also opens avenues for revenue generation as only international carriers, so far, have adapted to the e-ticketing concept. Our domestic airlines do not have e-ticketing servers. However, we are in talks with all the domestic carriers and anticipate a favourable response from them.

If it is a win-win situation for everyone, why did the concept take so long to come into the Indian market?
The main roadblock to large-scale deployment of e-ticketing was the fact that entry into Indian airports required a physical ticket. Now, by way of a ministry of civil aviation notification, passengers can enter airports with e-tickets, backed by a proof of identity. This has paved the way for full-fledged deployment of e-ticketing services in the country. This notification has come into effect from March 1, 2003, and all passengers with confirmed e-tickets will henceforth be allowed access into the passenger terminal building provided the passenger’s credit card number is clearly mentioned on the e-ticket.

The authenticity of the e-ticket and genuineness of its holder will be checked by the security staff at the passenger access control gate of the terminal building. Security staff at the airports are already being trained for the purpose. The bureau of civil aviation security has set up a monitoring system to ensure proper implementation of the system.

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