Airline Reservations System
Encyclopedia
An airline reservation system is part of the so-called passenger service systems
(PSS
), which are applications supporting the direct contact with the passenger.
The airline reservations system (ARS) was one of the earliest changes to improve efficiency. ARS eventually evolved into the computer reservations system
(CRS). A computer reservation system is used for the reservations of a particular airline and interfaces with a global distribution system (GDS) which supports travel agencies and other distribution channels in making reservations for most major airlines in a single system.
Prior to deregulation, airlines owned their own reservation systems with travel agents subscribing to them. Today, the GDS are run by independent companies with airlines and travel agencies as major subscribers.
As of February 2009, there are only three major GDS providers in the market space: Amadeus
, Travelport
(the merged Worldspan
and Galileo
systems), Sabre
and Shares. There is one major Regional GDS, Abacus, serving the Asian marketplace and a number of regional players serving single countries,including Travelsky (China), Infini and Axxess (both Japan) and Topas (South Korea).
Reservation systems like Navitaire hosts "ticket less" airlines such as AirTran, and previously hosted JetBlue. Virgin America is hosted by iflyRes(aiRes), which is a new generation reservation system developed and operated by IBS Software Service Pvt. Ltd. Virgin America has decided to move to Sabre now (ref: http://www.star-telegram.com/2011/01/26/2800193/virgin-america-chooses-southlake.html)
In additional to these "standardized" GDS, some airlines have proprietary versions which they use to run their flight operations. A few examples of this kind of system are Deltamatic (built off the Worldspan platform) and EDS SHARES. SITA Reservations remains the largest neutral multi-host airline reservations system, with over 100 airlines currently managing inventory.
system to support a permanent optimization of the offered booking classes in response to changes in demand or pricing strategies of a competitor.
that is used to check-in passengers and baggage. Reservation data such as the number of booked passengers and special service requests is also transferred to flight operations systems, crew management and catering systems. Once a flight has departed the reservation system is updated with a list of the checked-in passengers (e.g. passengers who had a reservation but did not check in (no shows) and passengers who checked in, but didn’t have a reservation (go shows)). Finally data needed for revenue accounting and reporting is handed over to administrative systems.
The compiled set of fare conditions is called a fare basis code. There are two systems set up for the interchange of fares data – ATPCO
and SITA, plus some system to system direct connects. This system distributes the fare tariffs and rule sets to all GDSs and other subscribers. Every airline employs staff who code air fare rules in accordance with yield management intent. There are also revenue managers who watch fares as they are filed into the public tariffs and make competitive recommendations. Inventory control is typically manipulated from here, using availability feeds to open and close classes of service.
The role of the ticketing complex is to issue and store electronic ticket records and the very small number of paper tickets that are still issued. Miscellaneous charges order (MCO) is still a paper document; IATA has working groups defining the replacement document the electronic multipurpose document (EMD) as at 2010. The electronic ticket information is stored in a database containing the data that historically was printed on a paper ticket including items such as the ticket number, the fare and tax components of the ticket price or exchange rate information. In the past airlines issued paper tickets; since 2008 IATA has been supporting a resolution to move to 100% electronic ticketing. So far, the industry has not been able to comply due to various technological and international limitations. The industry is at 98% electronic ticket issuance today although electronic processing for MCOs was not available in time for the IATA mandate.
required a system that would allow real-time access to flight details in all of its offices, and the integration and automation of its booking and ticketing processes. As a result, Sabre
(Semi-Automated Business Research Environment) was developed and launched in 1964. Sabre's breakthrough was its ability to keep inventory correct in real time, accessible to agents around the world. Prior to this, manual systems required centralized reservation centers, groups of people in a room with the physical cards that represented inventory, in this case, seats on airplanes.
The deregulation
of the airline industry, in the Airline Deregulation Act
, meant that airlines, which had previously operated under government-set fares ensuring airlines at least broke even, now needed to improve efficiency to compete in a free market
. In this deregulated environment the ARS and its descendants became vital to the travel industry.
Passenger service system
A PSS or Passenger Service Systems, is the name given to a series of critical systems used by airlines. The PSS usually comprises an Airline Reservation System, an Airline Inventory System and a Departure Control System .- Overview :...
(PSS
PSS
- Science :*Packet Switch Stream, a British packet-switched network*Perceived Stress Scale, a psychological instrument for measuring perceived stress in humans...
), which are applications supporting the direct contact with the passenger.
The airline reservations system (ARS) was one of the earliest changes to improve efficiency. ARS eventually evolved into the computer reservations system
Computer reservations system
A computer reservations system is a computerized system used to store and retrieve information and conduct transactions related to air travel. Originally designed and operated by airlines, CRSes were later extended for the use of travel agencies...
(CRS). A computer reservation system is used for the reservations of a particular airline and interfaces with a global distribution system (GDS) which supports travel agencies and other distribution channels in making reservations for most major airlines in a single system.
Overview
Airline reservations systems contain airline schedules, fare tariffs, passenger reservations and ticket records. An airline's direct distribution works within their own reservation system, as well as pushing out information to the GDS. A second type of direct distribution channel are consumers who use the internet or mobile applications to make their own reservations. Travel agencies and other indirect distribution channels access the same GDS as those accessed by the airlines' reservation systems, and all messaging is transmitted by a standardized messaging system that functions on two types of messaging that transmit on SITA's HLN [high level network]. These message types are called Type A [TTY] for remarks-like communications and Type B [EDIFCT] for secured information. Message construction standards are set by IATA and ICAO, are global, and apply to more than air transportation. Since airline reservation systems are business critical applications, and their functionally quite complex, the operation of an in-house airline reservation system is relatively expensive.Prior to deregulation, airlines owned their own reservation systems with travel agents subscribing to them. Today, the GDS are run by independent companies with airlines and travel agencies as major subscribers.
As of February 2009, there are only three major GDS providers in the market space: Amadeus
Amadeus CRS
Amadeus is a computer reservations system owned by the Amadeus IT Group with headquarters in Madrid, Spain. The central database is located at Erding, Germany. The development center is located at Sophia Antipolis, France...
, Travelport
Travelport
Travelport is a broad-based business services company and a leading provider of critical transaction processing solutions to companies operating in the global travel industry...
(the merged Worldspan
Worldspan
Worldspan is a provider of travel technology and content and a part of the Travelport GDS business. It offers worldwide electronic distribution of travel information, Internet products and connectivity, and e-commerce capabilities for travel agencies, travel service providers and corporations...
and Galileo
Galileo CRS
Galileo is a computer reservations system owned by Travelport. As of 2002, it had a 26.4% of worldwide CRS airline bookings.In addition to airline reservations, the Galileo CRS is also used to book train travel, cruises, car rental, and hotel rooms...
systems), Sabre
Sabre (computer system)
Sabre Global Distribution System , owned by Sabre Holdings, is used by more than 55,000 travel agencies around the world with more than 400 airlines, 88,000 hotels, 24 car rental brands, and 13 cruise lines...
and Shares. There is one major Regional GDS, Abacus, serving the Asian marketplace and a number of regional players serving single countries,including Travelsky (China), Infini and Axxess (both Japan) and Topas (South Korea).
Reservation systems like Navitaire hosts "ticket less" airlines such as AirTran, and previously hosted JetBlue. Virgin America is hosted by iflyRes(aiRes), which is a new generation reservation system developed and operated by IBS Software Service Pvt. Ltd. Virgin America has decided to move to Sabre now (ref: http://www.star-telegram.com/2011/01/26/2800193/virgin-america-chooses-southlake.html)
In additional to these "standardized" GDS, some airlines have proprietary versions which they use to run their flight operations. A few examples of this kind of system are Deltamatic (built off the Worldspan platform) and EDS SHARES. SITA Reservations remains the largest neutral multi-host airline reservations system, with over 100 airlines currently managing inventory.
Inventory management
An airline’s inventory contains all flights with their available seats. The inventory of an airline is generally divided into service classes (e.g. first, business or economy class) and up to 26 booking classes, for which different prices and booking conditions apply. Inventory data is imported and maintained through a schedule distribution system over standardized interfaces. One of the core functions of the inventory management is the inventory control. Inventory control steers how many seats are available in the different booking classes, by opening and closing individual booking classes for sale. In combination with the fares and booking conditions stored in the Fare Quote System the price for each sold seat is determined. In most cases inventory control has a real time interface to an airline’s Yield managementYield management
Revenue management is the process of understanding, anticipating and influencing consumer behavior in order to maximize yield or profits from a fixed, perishable resource...
system to support a permanent optimization of the offered booking classes in response to changes in demand or pricing strategies of a competitor.
Availability display and reservation (PNR)
Users access an airline’s inventory through an availability display. It contains all offered flights for a particular city-pair with their available seats in the different booking classes. This display contains flights which are operated by the airline itself as well as code share flights which are operated in co-operation with another airline. If the city pair is not one on which the airline offers service it may display a connection using its own flights or display the flights of other airlines. The availability of seats of other airlines is updated through standard industry interfaces. Depending on the type of co-operation it supports access to the last seat (last seat availability) in real-time. reservations for individual passengers or groups are stored in a so-called passenger name record (PNR). Among other data, the PNR contains personal information such as name, contact information or special services requests (SSRs) e.g. for a vegetarian meal, as well as the flights (segments) and issued tickets. Some reservation systems also allow to store customer data in profiles to avoid data re-entry each time a new reservation is made for a known passenger. In addition most systems have interfaces to CRM systems or customer loyalty applications (aka frequent traveler systems). Before a flight departs the so-called passenger name list (PNL) is handed over to the departure control systemDeparture Control System
A Departure Control System automates processing an Airlines' Airport management operation. This includes managing the information required for Airport Check-in and printing Boarding card, cargo load control and aircraft checks....
that is used to check-in passengers and baggage. Reservation data such as the number of booked passengers and special service requests is also transferred to flight operations systems, crew management and catering systems. Once a flight has departed the reservation system is updated with a list of the checked-in passengers (e.g. passengers who had a reservation but did not check in (no shows) and passengers who checked in, but didn’t have a reservation (go shows)). Finally data needed for revenue accounting and reporting is handed over to administrative systems.
Fare quote and ticketing
The Fares data store contains fare tariffs, rule sets, routing maps, class of service tables, and some tax information that construct the price – "the fare". Rules like booking conditions (e.g. minimum stay, advance purchase, etc.) are tailored differently between different city pairs or zones, and assigned a class of service corresponding to its appropriate inventory bucket. Inventory control can also be manipulated manually through the availability feeds, dynamically controlling how many seats are offered for a particular price by opening and closing particular classes.The compiled set of fare conditions is called a fare basis code. There are two systems set up for the interchange of fares data – ATPCO
Airline Tariff Publishing Company
The Airline Tariff Publishing Company, ATPCO, or ATP, is a corporation that publishes the latest airfares for more than 500 airlines multiple times per day. Based at Washington Dulles International Airport outside of Washington, D.C.,ATPCO also has offices in London,UK and Singapore...
and SITA, plus some system to system direct connects. This system distributes the fare tariffs and rule sets to all GDSs and other subscribers. Every airline employs staff who code air fare rules in accordance with yield management intent. There are also revenue managers who watch fares as they are filed into the public tariffs and make competitive recommendations. Inventory control is typically manipulated from here, using availability feeds to open and close classes of service.
The role of the ticketing complex is to issue and store electronic ticket records and the very small number of paper tickets that are still issued. Miscellaneous charges order (MCO) is still a paper document; IATA has working groups defining the replacement document the electronic multipurpose document (EMD) as at 2010. The electronic ticket information is stored in a database containing the data that historically was printed on a paper ticket including items such as the ticket number, the fare and tax components of the ticket price or exchange rate information. In the past airlines issued paper tickets; since 2008 IATA has been supporting a resolution to move to 100% electronic ticketing. So far, the industry has not been able to comply due to various technological and international limitations. The industry is at 98% electronic ticket issuance today although electronic processing for MCOs was not available in time for the IATA mandate.
Major S\systems
| Name | Description | Vendor | Contact Info | |
|---|---|---|---|---|
| AvAIO | Is the latest state of the art fully online web based aviation system providing marketing, reservation, inventory and pricing to sell seats, is part of a full enterprise system to operate the major parts of an airline. | SysAIO Inc | www.sysaio.com | |
| IflyRes | iFly Res is the next generation Airline Passenger Services System. | IBS Software Services | www.ibsplc.com | |
| Travel Technology Interactive Solutions | Integrated Airline Management System and global distribution system (GDS). | Travel Technology Interactive Travel Technology Interactive Travel Technology Interactive Group is a French based international company. It is a solution provider for the air transport industry, specialized in IT software for the management of airlines... |
www.ttinteractive.com | |
| Radixx Air Enterprise | Integrated Passenger Services System | Radixx International | www.radixx.com | |
| SabreSonic Customer Sales & Service | Integrated reservations, departure control, inventory system and e-commerce platform. | Sabre Airline Solutions Sabre Airline Solutions Sabre Airline Solutions is a subsidiary of Sabre Holdings. The main product of Sabre Airline Solutions is the SabreSonic system. This provides departure control, reservations, and, inventory management. Other products include resource management, fares and revenue management, data services,... |
www.sabreairlinesolutions.com | |
| Altéa Res | Integrated Airline Reservation System and global distribution system (GDS). | Amadeus IT Group Amadeus IT Group Amadeus IT Group is a transaction processor for the global travel and tourism industry. The company is structured around two key related areas - its global distribution system and its IT Solutions business area... |
www.amadeus.com | |
| Takeflite Solutions | Online Airline Management & Maintenance Software Service. | Takeflite Solutions | www.tflite.com | |
| Topware AirSuite | European Airline Reservation System | Maxxcom | www.maxxcom.it | |
| SkyVantage Corporation | SkyVantage Airline Management System. Full suite of reservations and operations software. | SkyVantage Corp | www.skyvantage.com | |
| AccelAero | A Low Cost Carrier (LCC) oriented Airline Reservation System | Information Systems Associates | www.isaaviation.ae (Note: website no longer active as of October 21, 2011) |
|
| AirKiosk | A complete reservations system, including IATA e-ticketing and interline e-ticketing, DCS | SUTRA Inc. | www.airkiosk.com | |
| AeroCRS | One stop cloud reservations system, including full e-commerce website, Flight information displays, Check-in and DCS, BI Dashboard. | Enoyaone LTD | www.aerocrs.com | |
| KIU KIU System (CRS&GDS) KIU is a Computer Reservations System and Global Distribution System used by airlines, travel agencies and hosted airlines GSAs worldwide. Current hosted carriers include: Aerogal, Air Cuenca, SAEREO, EasyFly, Sol Líneas Aéreas, LADE - Líneas Aéreas Del Estado, Star Perú, LC Busre, Cielos Andinos,... |
A computer reservations system Computer reservations system A computer reservations system is a computerized system used to store and retrieve information and conduct transactions related to air travel. Originally designed and operated by airlines, CRSes were later extended for the use of travel agencies... (CRS) and global distribution system (GDS). |
KIU System | www.kiusys.com | |
| Horizon Horizon The horizon is the apparent line that separates earth from sky, the line that divides all visible directions into two categories: those that intersect the Earth's surface, and those that do not. At many locations, the true horizon is obscured by trees, buildings, mountains, etc., and the resulting... |
A Passenger Service System Passenger service system A PSS or Passenger Service Systems, is the name given to a series of critical systems used by airlines. The PSS usually comprises an Airline Reservation System, an Airline Inventory System and a Departure Control System .- Overview :... (PSS). |
SITA Inc | www.sita.aero | |
| Amelia | A complete airline management solution, including Reservations,Ancillary Sales, DCS, Flight Operations, Cargo and Charter Quotes etc... | InteliSys Aviation Systems | www.intelisys.ca | |
| Avantik | A complete Passenger Service System Passenger service system A PSS or Passenger Service Systems, is the name given to a series of critical systems used by airlines. The PSS usually comprises an Airline Reservation System, an Airline Inventory System and a Departure Control System .- Overview :... (PSS) built for LCC, regional, and hybrid carriers, including Reservations, DCS, IBE, FFP, Inventory Control, Schedule Management, Crew Management, Weight & Balance, Revenue Accounting, etc. |
Mercator, Inc. | www.mercator.com | |
| Jupiter | A complete airline management solution, including Reservations, DCS, IBE, Revenue Accounting, FFP, Staff Travel, etc. | Mercator, Inc. | www.mercator.com | |
| COMPASS | A comprehensive Passenger Service System Passenger service system A PSS or Passenger Service Systems, is the name given to a series of critical systems used by airlines. The PSS usually comprises an Airline Reservation System, an Airline Inventory System and a Departure Control System .- Overview :... (PSS) used by Garuda Indonesia Garuda Indonesia PT Garuda Indonesia Tbk , publicly known as Garuda Indonesia, is the flag carrier of Indonesia. It is named after the mystical giant bird Garuda of Hinduism and Buddhist mythology. It is headquartered at Soekarno-Hatta International Airport in Tangerang, near Jakarta, the capital city of Indonesia... |
PT Aero Systems Indonesia | www.asyst.co.id | |
| SpotU Digital | A targeted airline itinerary advertising platform used by Jetstar Airlines | SpotU Digital | www.spotudigital.com |
History
The history of airline reservations systems began in the late 1950s when American AirlinesAmerican Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
required a system that would allow real-time access to flight details in all of its offices, and the integration and automation of its booking and ticketing processes. As a result, Sabre
Sabre (computer system)
Sabre Global Distribution System , owned by Sabre Holdings, is used by more than 55,000 travel agencies around the world with more than 400 airlines, 88,000 hotels, 24 car rental brands, and 13 cruise lines...
(Semi-Automated Business Research Environment) was developed and launched in 1964. Sabre's breakthrough was its ability to keep inventory correct in real time, accessible to agents around the world. Prior to this, manual systems required centralized reservation centers, groups of people in a room with the physical cards that represented inventory, in this case, seats on airplanes.
The deregulation
Deregulation
Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or...
of the airline industry, in the Airline Deregulation Act
Airline Deregulation Act
The Airline Deregulation Act is a United States federal law signed into law on October 24, 1978. The main purpose of the act was to remove government control over fares, routes and market entry from commercial aviation...
, meant that airlines, which had previously operated under government-set fares ensuring airlines at least broke even, now needed to improve efficiency to compete in a free market
Free market
A free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts...
. In this deregulated environment the ARS and its descendants became vital to the travel industry.
See also
- List of global distribution systems
- Sabre HoldingsSabre HoldingsSabre Holdings or Sabre, Inc. is an American privately held travel technology company, encompassing several brands in three global distribution system channels: travel agency, airline, and direct to consumer. These areas are serviced by TSG's three main business groups...
- Amadeus IT GroupAmadeus IT GroupAmadeus IT Group is a transaction processor for the global travel and tourism industry. The company is structured around two key related areas - its global distribution system and its IT Solutions business area...
- Videcom internationalVidecom internationalVidecom International Limited is a United Kingdom travel technology company based in Henley-on-Thames, it designs, develops and provides modern computer reservations systems to airlines and the travel industry, specializing in the hosting and distribution of airline sales.The system is connected to...
- KIUKIU System (CRS&GDS)KIU is a Computer Reservations System and Global Distribution System used by airlines, travel agencies and hosted airlines GSAs worldwide. Current hosted carriers include: Aerogal, Air Cuenca, SAEREO, EasyFly, Sol Líneas Aéreas, LADE - Líneas Aéreas Del Estado, Star Perú, LC Busre, Cielos Andinos,...
Further reading
- Winston, Clifford, "The Evolution of the Airline Industry", Brookings Institution Press, 1995. ISBN 0-8157-5843-X. Cf. p. 61–62, Computer Reservation Systems.
- Wardell, David J, "Airline Reservation Systems", 1991. Research paper.