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February 27, 2008

Bye Bye Paper Tickets

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If you're one of those people stubbornly avoiding e-tickets when you fly, brace yourself because come June 1, you'll have to say adios to paper tickets for good!

When the International Air Transport Association announced about four years ago that it would phase out paper tickets, only 18 percent of flyers world-wide were using electronic tickets. These days, e-ticket users make up 93 percent of flyers.

That's quite a transformation.

Airlines want to make the switch because, according to this Herald Tribune story, "Replacing paper tickets, and the elaborate global system that processed them, with electronic ticketing will save airlines $3 billion annually on the roughly 400 million tickets sold outside of the United States alone."

In the U.S., the move to e-tickets has been even more rapid.

Airlines Reporting Corp., or ARC, an industry-owned company that clears tickets sold in the United States, Puerto Rico and the U.S. Virgin Islands, said that electronic ticketing accounted for 96.86 percent of tickets it settled last August.

 

Just consider for a moment, the IATA says that while a paper ticket costs $10 to process, e-ticketing reduces that cost to $1. Sounds like a no-brainer.

IATA says there will be some glitches in the turnover:

E-ticketing penetration in Africa is only 83% and has reached 84% in Middle East North Africa (MENA). The real concern is Russia and CIS, which is at 54% due to a late start while the government changed legislation to allow for e-tickets. “Combined, these regions represent 8% of total volume. IATA’s 150 experts are working with the airlines in these regions to close the gap quickly. If we can bring the convenience of e-ticketing even to small remote island airports with no electricity, I am confident that with some hard work in the final stretch we will be successful,” said Giovanni Bisignani, IATA’s Director General and CEO.

People who don't have computer access can still use the kiosks at the airport to get their e-tickets. But IATA says consumers will benefit from this move to simplify the business because: You won't have to worry about lost tickets anymore. There won't be a need to physically receive tickets from travel agents or airlines. It will be easier to handle itinerary changes especially for last minute travel decisions. And, it will allow more effective use of internet capabilities for booking travel.

All good points to me. Anyone see a downside? Also, is there anyone out there who still favors the paper tickets? If so, why? Anyone sorry to see them go?

(photo courtesy of stock.xchng)
Posted by Dan Thanh Dang at 12:55 PM | | Comments (0)
Categories: Airlines, Technology, Travel
        

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