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SYSTEM (ARS)
A SEMINAR PRESENTED
BY
JANUARY, 2010
CERTIFICATION
This is to certify that I, DICK PERE ILAYE, CS/06/076 carried out this seminar work on the
topic “Airline Reservation System”, in Partial Fulfillment for the award of Bachelor of
I did this seminar work and it has not been submitted elsewhere for the award of a Certificate,
Diploma or Degree.
________________________ _____________________
DICK PERE ILAYE Date
(Student)
________________________ _____________________
Mrs. EZEKWE CHINWE Date
(Supervisor)
________________________ _____________________
Mr. ATABONG TIMOTHY A. Date
(Head of Department)
DEDICATION
I thank God Almighty for his infinite love and mercy. I also seize this opportunity to thank
my supervisor Mrs. Ezekwe C. for her immense contribution academically in approving this
thesis and also being there to correct, suggest and support my ideas throughout the period of
compilation.
Furthermore, I thank my parents Cmdr. and Mrs. Pere Dick for their contributions spiritually,
morally and financially. My entire siblings and friends are also not forgotten here; I
Airline Reservation Systems (ARS) used to be standalone systems. Each airline had its own
system, disconnected from other airlines or ticket agents, and usable only by a designated
number of airline employees. Travel agents in the 1970s pushed for access to the airlines'
systems. Today, air travel information is linked, stored, and retrieved by a network of
Computer Reservations Systems (CRS), accessible by multiple airlines and travel agents. The
global distribution system (GDS) makes for an even larger web of airline information, not
only merging the buying and selling of tickets for multiple airlines, but also making the
systems accessible to consumers directly. GDS portals and gateways on the Web allow
consumers to purchase tickets directly, select seats, and even book hotels and rental
(GDS) has led to ease of airline ticketing, flight scheduling and also provided a means for
customers to access and book flights from their homes. It has also increased the speed with
which information about customers are retrieved and handled for flight scheduling tasks.
TABLE OF CONTENTS
Page
CERTIFICATION i
DEDICATION ii
ACKNOWLEDGEMENT iii
ABSTRACT iv
REFERENCE 18
CHAPTER ONE
INTRODUCTION
science and technology, the desire for improvement is a constant subject which triggers
advancements. This is visible in every ramification and the airline industry is not an
exemption.
Airline Reservation Systems (ARS) used to be standalone systems. Each airline had its own
system, disconnected from other airlines or ticket agents, and usable only by a designated
number of airline employees. Travel agents in the 1970s pushed for access to the airlines'
systems. Today, air travel information is linked, stored, and retrieved by a network of
Computer Reservations Systems (CRS), accessible by multiple airlines and travel agents. The
global distribution system (GDS) makes for an even larger web of airline information, not
only merging the buying and selling of tickets for multiple airlines, but also making the
systems accessible to consumers directly. GDS portals and gateways on the Web allow
consumers to purchase tickets directly, select seats, and even book hotels and rental
This seminar is aimed at exposing the relevance and importance of Airline Reservation
Systems (ARS). It is projected towards enhancing the relationship between customers and
airline agencies through the use of ARSs, thereby easing the flight ticketing and selling
The outcome of this study will provide a basis for developing the appropriate approach to the
problems associated with air traveling operations in relation toAirline Reservation Systems
(ARSs).
This seminar is not only restricted to Computer Reservation Systems (ARSes), but also other
systems dedicated to the optimal performance in the airline industry; airline agencies and
This presentation will be beneficial to all those who make use of Airline Reservation Systems
(ARSs), flight operators, air traveling operators, travel agents and airline agencies.
In addition, it will assist all those in computer-related disciplines who may want to appreciate
LITERATURE REVIEW
In the early days of American commercial aviation, passengers were relatively few, and each
airline's routes and fares were tightly regulated by the Civil Aeronautics Board. These were
published in a volume entitled The Official Airline Guide, from which travel agents or
consumers could construct an itinerary, then call or telex airline staff, who would mark the
reservation on a card and file it. This manual system is still used by relativelyfew travel
agents who do not use ARS. As demand for air travel increased and schedules grew more
complex, this process became impractical, hence, giving rise to the need of an automated
American Airlines was the first to establish an automated booking system in 1946. Using a
system to track information and improve efficiency was a highly appealing aim in the
industry, and drew the attention of other airlines worldwide. The system endured years of
remote terminals that eventually took over operations in 1953. The same year, American
Airlines worked closely with IBM to develop an improved system, and the Airline
Reservation System (ARS) and the Semi-Automatic Business Research System (SABRE)
launched thereafter in 1960. The network completed set-up in 1964, and it was recognized as
the largest data processing system in existence. Later, other airlines invested more in research
and development to launch improved systems, and through the late 1960s and early 1970s,
airlines established their own systems. United Airlines developed the Apollo Reservation
System, and shortly after allowed travel agents access. The Apollo system was the foundation
for many further developments, which spread from just US airlines to European airlines as
well. The research and development of Airline Reservation System became a significant
aspect of the industry and all its air carrier companies, and partnerships between airlines and
Other airlines soon established their own systems. Delta Air Lines launched the Delta
Automated Travel Account System (DATAS) in 1968. United Airlines and Trans World
Airlines followed in 1971 with the Apollo Reservation System and Programmed Airline
Reservation System (PARS), respectively. Soon, travel agents began pushing for a system
that could automate their side of the process by accessing the various ARSes directly to make
reservations. Fearful this would place too much power in the hands of agents, American
Reservation System to be a central clearinghouse for U.S. travel; other airlines demurred,
reservation systems and their accessibility. During the early 1970s, as travel agents pushed
for access to reservation systems, and certain airline executives made investments for the
sake of accessing the systems of other airlines, antitrust laws came into focus. The purpose of
the 1978 Airline Deregulation Act in the U.S. was to eliminate government control over
commercial aviation, and ensure competitive behavior and fair business practices in the
airline industry. Passengers could gain knowledge of market forces and new market entry in
the industry. Information on specific airlines and the industry as a whole became more widely
and readily accessible, evolving the airline reservation systems from "standalone" operations
Of the major types of airline reservation systems, most are linked to GDS to provide
information to travel agents, employees of other airlines, and the passengers or potential
customers, directly. The major systems include SABRE, Worldspan, Galileo, Patheo, and
Abacus. American Airlines now uses SABRE, also used by Expedia, Lastminute.com, and
Travelocity. Abacus is used by over 450 individual airlines, over 80,000 hotels, and over 25
countries in Asia. Companies like Expedia share their system accessibility directly with
consumers.Today, about six major airline reservations systems are used by international
Airline Industry(Air Transport Industry): This is an area of commerce that uses aircraft to
transport people, cargo, and mail. The air transport industry encompasses flights of
services to the public) and general aviation (private aircraft used for recreation or
System: This is any collection of component elements that work together to perform a
task.
hardware system consisting of a microprocessor and allied chips and circuitry, plus an
input device (keyboard, mouse, disk drive), an output device (monitor, disk drive),
and any peripheral devices (printer, modem). Within this hardware system is an
operating system, often called system software, which is an essential set of programs
that manage hardware and data files and work with application programs. External to
Microsoft Corporation)
Deregulation: The act of freeing from regulation (especially from governmental regulations).
Network: In computer science network is a system used to link two or more computers.
Network users are able to share files, printers, and other resources; send electronic
messages; and run programs on other computers. (Microsoft Encarta 2009, Microsoft
Corporation)
WordNet Database)
CHAPTER THREE
information and conduct transactions related to air travel. The systems was originally
designed and operated by airlines, but were later extended for the use of travel agencies.
Major ARS operations that book and sell tickets for multiple airlines are known as Global
Distribution Systems (GDS). Airlines have divested most of their direct holdings to
dedicated GDS companies, who make their systems accessible to consumers through Internet
gateways. Modern GDSes typically allow users to book hotel rooms and rental cars as well as
airline tickets.
Global Distribution Systems (GDS) are subsystems connected to Airline Reservation Systems
(ARS) which allows users access to information on flight scheduling and reservation stored
In 1946, American Airlines installed the first automated booking system, the experimental
drum, the Magnetronic Reservisor, soon followed. This system proved successful, and was
soon being used by several airlines, as well as Sheraton Hotels and Goodyear for inventory
control. It was seriously hampered by the need for local human operators to do the actual
lookups; ticketing agents would have to call a booking office, whose operators would direct a
small team operating the Reservisor and then read the results over the telephone. There was
remote terminals, testing one design on the University of Toronto's Manchester Mark 1
machine that summer. Though successful, the researchers found that input and output was a
major problem. Ferranti Canada became involved in the project and suggested a new system
using punch cards and a transistorized computer in place of the unreliable tube-based Mark I.
The resulting system, ReserVec, started operation in 1962, and took over all booking
operations in January 1963. Terminals were placed in all of TCA's ticketing offices, allowing
all queries and bookings to complete in about one second with no remote operators needed.
In 1953, American Airlines CEO C. R. Smith chanced to sit next to R. Blair Smith, a senior
IBM sales representative. C. R. Smith invited Blair to visit their Reservisor system and look
for ways that IBM could improve the system. Blair alerted Thomas Watson Jr. that American
was interested in a major collaboration, and a series of low-level studies started. Their idea of
an automated Airline Reservation System (ARS) resulted in a 1959 venture known as the
the time the network was completed in December 1964, it was the largest civil data
Other airlines soon established their own systems. Delta Air Lines launched the Delta
Automated Travel Account System (DATAS) in 1968. United Airlines and Trans World
Airlines followed in 1971 with the Apollo Reservation System and Programmed Airline
Reservation System (PARS), respectively. Soon, travel agents began pushing for a system
that could automate their side of the process by accessing the various ARSes directly to make
reservations. Fearful this would place too much power in the hands of agents, American
Reservation System to be a central clearinghouse for U.S. travel; other airlines demurred,
agents to book tickets on United's competitors, the marketing value of the convenient
terminal proved indispensable. SABRE, PARS, and DATAS were soon released to travel
agents as well. Following airline deregulation in 1978, an efficient ARS proved particularly
important; by some counts, Texas Air executive Frank Lorenzo purchased money-losing
Also in 1976 Videcom international with British Airways, British Caledonian and CCL
launched Travicom, the world's first multi-access reservations system (wholly based on
international airlines (including British Airways, British Caledonian, TWA , Pan American
World Airways, Qantas, Singapore Airlines, Air France, Lufthansa, SAS, Air Canada, KLM,
Alitalia, Cathay Pacific and JAL) to thousands of travel agents in the UK. It allowed agents
and airlines to communicate via a common distribution language and network, handling 97%
Videcom in other areas of the World including the Middle East (DMARS), New Zealand,
Kuwait (KMARS), Ireland, Caribbean, United Sates and Hong Kong. The Travicom UK
multi access system airlines eventually migrated into the system called Galileo ARS in the
UK today and in 1988 Travicom Ltd was migrated into the distribution company Galileo UK.
European airlines also began to invest in the field in the 1980s, propelled by growth in
demand for travel as well as technological advances which allowed GDSes to offer ever-
increasing services and searching power. In 1987, a consortium led by Air France and West
Northwest Airlines, and Trans World Airlines formed Worldspan, and in 1993, another
consortium (including British Airways, KLM, and United Airlines, among others) formed the
KIU, have also formed, aimed at niche markets the four largest networks do not cater to; as
the Low Cost Carrier (LCC) segment and small and medium size domestic and regional
airlines as well.
The following are some of the operations regulated by Airline Reservation System:
a) Permit participation in its ARS by any carrier prepared to pay the requisite
c) Not impose any conditions on participation in its ARS that are not directly
the ARS;
d) Not discriminate among participating carriers in the ARS services it offers,
vendor;
i) non-discriminatory;
ii) not structured in such a way that carriers are unfairly precluded from
participation; and
iii) reasonably structured and reasonably related to the cost of the service
provided and used and shall, in particular, be the same for the same
level of service;
by giving notice:
i) which need not exceed six months, to expire not before the end of the
first year; or
carrier;
i) Not manipulate the information provided by carriers in any way that would
j) Make any information in its ARS that directly concerns a single reservation
available on an equal basis to the subscriber concerned and to all the carriers
without the written consent of such carriers and the air transport user; and
Systems)
b) Restrict access by subscribers to other ARSs by requiring them to use its ARS
d) Require subscribers to use its ARS for sales of air transport services provided
f) Require subscribers to use its terminal equipment or prevent them from using
computer hardware or software that enables them to switch from the use of
one ARS to another, although it may require technical compatibility with its
ARS; and
ii) cannot be cancelled by the subscriber at any time after one year, with
Reservation Systems)
b) Ensure that any principal display made available is as fully functional and at
from an air transport user which requires the use of another display;
d) Base the ordering of services in a principal display and the selection and
arrival times, total elapsed time between initial flight departure at origin and
e) Provide to subscribers:
ii) a principal display of flight options ranked in any other order based on
objective criteria; or
equipment, use of the designator code of one air carrier by another air
required; and
ii) clearly indicate that the information displayed regarding direct services
omitted;
for the offer and sale of air transport products on a flight or combination of
Systems)
CHAPTER FOUR
4.1 CONCLUSION
Airline Reservation System (ARS) has led to ease of airline ticketing, flight scheduling and
also provided a means for customers to access and book flights from their homes. It has also
increased the speed with which information about customers are retrieved and handled and
4.2 RECOMMENDATION
Owing to the ease and comfort of Airline Reservation Systems, local flights which are not on
the system should be encouraged to compensate the system. Secondly, the system should be
made affordable so as to encourage consumers and travel agents on patronizing the system.
REFERENCE
2. “Aviation and Space”. Retrieved on December 18, 2009 from Microsoft Encarta Premium
2009 Encyclopedia.
11. R. Doganis, C. Routledge (2001): “The Airline Business in the 21st Century.” McGraw-
Hill, New York.
12. R. Doganis, C. Routledge (2002): “Flying Off Course: The Economics of International
Airlines,” 3rd Edition. McGraw-Hill, New York.
13. WordWeb 5.1 (2006): WordNet Database by Princeton University, Princeton.