The day is not very far off when the Indian traveller can criss-cross the globe with just an e-ticket. Taking e-commerce and information technology services a step further, the Indian travel industry is composing itself to usher in the era of e-ticketing, reports Raadia Mukadam

Imagine, a ticketing model that allows authorised travel agents to transmit ticketing information directly to the airline’s database, enabling passengers to check-in and board the flight without showing a paper ticket. Yes, the paperless revolution is finally here to stay. 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 CRS (Central Reservation System) providers that record the details of the transaction. The Indian arm of Galileo and Amadeus, India’s leading CRS providers are gearing up to introduce e-tickets for air travel from September, this year while the travel agents and airlines are readying themselves for this landmark transition.

E-mpowering The Travel Industry

IATA permits 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. Being successfully implemented in the western part of the world, the concept has finally made way to India. E-tickets will replace the paper-based flight coupons with an electronic ticket image that is stored in the airline database. Explains Seema Luthra, general manager, Galileo India P Ltd, "This paperless alternative to a conventional paper ticket may sound unbelievable but is tried, tested and true. E-tickets are a more practical and faster option to manual ticketing, effecting sizeable savings for both airlines and travel agents. Strangely this ticketing module spells benefits across the board with no ulterior motives for any segment of the travel trade. We finally have a win-win situation for every link in the travel process starting with the passenger, travel agent, airlines, and finally the CRS."

However, there are some agents who still associate e-ticketing with on-line booking. "Well, I do not know whether e-ticketing will make a substantial difference to my business, since it hasn’t so far," mentioned an ignorant Chennai-based travel agent, who was in effect referring to on-line booking. Clearing the myth, Ankur Bhatia, managing director, Amadeus, India Subcontinent, said, "Nothing could be further from the truth. On-line booking involves perusing of available information on travel websites and then making a reservation, whereas, an e-ticket is merely an electronic avatar of the existing air ticket irrespective of how you booked 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, defining new horizons for the Indian travel trade."

MoCA Clears The Final Roadblock

The Ministry of Civil Aviation (MoCA) has recently released a notification, that effective March 1, 2003, 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. This move overcomes the crucial roadblock to large-scale deployment of e-ticketing, overruling the earlier dictate that entry into Indian airports only required a physical ticket. Passengers can now enter airports with e-tickets, backed by a proof of identity. This has paved the way for full-fledged implementation of e-ticketing services in the country.

The Security Issue

The usage of e-ticketing is restricted today by the lack of systems that allow data interchange between airlines; ground handling systems and other third parties. Airlines also need to build their own electronic ticketing servers with the ticketing database and applications as a pre-requisite. But while airlines and travel agents can work together to resolve this infrastructure compatibility issue, the larger problem is that of airport security.

"Today the physical ticket is used at the airport entrance to identify the customer as a bona fide traveller. With e-tickets, the worry is that this will no longer be possible. A possible solution could be the airline offices at airports acting as the first point of contact for the traveller. This means that airline offices should be allowed to issue the boarding pass directly to the traveller, which he will simply carry with him as he walks through the airport entrance. "This will ensure convenience without compromising safety," says Bhatia.

According to an official from MoCA, "The authenticity of an 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 reportedly set up a monitoring system to ensure proper implementation of the system and to prevent any possibility of unwanted persons gaining entry into the terminal building.

Gains Galore

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 workload for travel agents. While Ashutosh Akshikar, head - travel management, Thomas Cook India Ltd feels that significant savings on operations and administrative costs for the travel agencies and airlines will be effected, Nalin Kapadia, director, Stop-n-Shop Tours And Travels adds that operational perils such as ticketing errors and maintaining ticket stocks will be eliminated. Says Jaffer Shaikh, general manager, TPH Travel Services, "Collection and maintenance of Cash Value Documents (CVD) stock will not be required, relieving the back office workload considerably as no tickets would need to be issued but only a reference would be required to be generated."

Airlines, on the other hand, can cuts their ticketing costs by a minimum of 80 per cent (from US $7 to US $1). This system introduces a faster ticket process and ensures data security at all times because several steps in the ticket issuing and processing stage can be eliminated with e-tickets. In fact with e-tickets the cost of issuing a ticket can be reduced drastically from close to Rs 500 today to a mere Rs 50. It is projected that e-ticketing will result in a 10-15 million US$ saving for international airlines operating in India, if the whole market adopts it. Not withstanding the CRS industry also stands to gain from this paperless revolution essentially as the need to give out ticket printers to new subscribers will be eliminated. Besides effecting a reduction in cost, it also opens avenues for revenue generation from domestic carriers, as only the international carriers so far are adept to the e-ticketing concept.

Will It Work?

Like all new things that are viewed suspiciously and treated cautiously, so is the case with e-ticketing. Speculations are rampant on whether this process will work in the Indian environment or whether this concept is mere vapourware.

Varied people voice varied views. Frederick Divecha, vice-president - marketing, SOTC speculates that, "In the Indian context, e-ticketing currently caters to only a specific segment comprising of on-line ticketing agents and this strategy will work well with them. However it will take considerable time for e-ticketing to work in India on a mass-scale." On a more positive note Akshikar says, "We are just at the launch stage and it is a matter of concept selling at the moment. However, given the technological advances, changing profiles and needs of the Indian traveller one cannot see any reason for it not to work in India."

Reiterated Shaikh, strongly believes that this revolution is imminent and the airlines and CRSs are quite excited about it. Says Meher Bhandara, general manager, corporate communication, Travel Corporation (India) Ltd, "If it’s working in the USA, it should work elsewhere too, provided the conditions are similar. However, it is too early to comment as no official communications from airlines or BSP have been received on the modalities. The pros and cons can only be discussed once we are clear about the workings. Research proves 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 USA, it has an 80 per cent market penetration and in Europe a 40 per cent market penetration."

The Pilot Tests

Galileo India who claims that over 45 airlines do e-ticketing with them across 43 countries has reportedly conducted pilot tests with United Airlines and British Airways at select agency locations. "We are also in talks with several other airlines to bring them onto the e-ticketing bandwagon. Most of international airlines are technically ready, since they already do e-ticketing in other countries," informed Luthra.

According to Bhatia, "Amadeus has put this technology in operation in more than 50 markets world over and has successfully conducted pilot tests in India with British Airways and Lufthansa. Travel agents namely, Carlson Wagonlit, Friendsglobe, Gitanjali Travels and Lee Travel World are also part of the pilot programme. In addition, we are in talks with Air France, Lufthansa, British Airways, Singapore Airlines, United Airlines, American Airlines and SWISS Air Lines, who have confirmed their participation in this venture."

The company has reportedly initiated training for additional 25 agents and is currently in discussions with all domestic airlines and some international airlines, which have shown keenness to introduce the concept of e-ticketing in India. "We are also working very closely with the concerned regulatory bodies in tandem with the various airlines to ensure that e-tickets become a reality, with minimum policy bottlenecks in implementation," added Bhatia.

Perceived Implementation Hiccups

Technology playing a key role in the successful implementation of e-ticketing, it is the mind set of both the travel agents as well as the traveller that will need to be changed. As Kapadia clearly points out that educating travel agents will play a pivotal role in clearing pre-set notions and any ambiguity created by half knowledge agents. Bhandara further added, "The operational aspect will have to be thoroughly examined and conveyed to agents. Issues like entry into airports, cancellations and re-booking procedures and monitoring of the same by agents, local BSP/ARC readiness, carrier’s technical and commercial availability will need to be clarified. Also maturity of the market will play a significant role in implementing e-ticketing."

Another vital aspect that warrants an insight is the accounting, reporting and security issue. "Till date, the good old ticket has formed the basis of billing to clients and reporting to carriers. In its absence, would a similar foolproof document take its place? How would an agency keep track of tickets issued? Would there be scope for unscrupulous staff to get away with financial mischief? Would all fares offered by airlines be e-ticketed or only normal fares? If it is so, then how would one ticket special fares? Would an error of deal code or class by agency staff be carried over to the e-ticket and attract debit notes or would an e-ticket correct the errors? Would such issues inconvenience the client?" are questions that Shaikh poses, answers to which have still to be streamlined.

In a bid to get e-compliant, however, Akshikar suggests that information being the nodal point in this grid, seminars and conferences organised by the CRS providers would be necessary to educate the agents or clear existing myths. Adds Kapadia, "Thorough study of all aspects and complete communication and training to agents before implementation is unavoidable."