Delta Fares

Can a reservation system be unfair? (CASE STUDY)?

American airlines and United Airlines developed reservation systems used by their own ticketing agents and by travel agents in booking flights. When a customer calls to book a flight, the agent enters information into a computer concerning the date and time of flights required. The system displays the flights that meet these criteria, and the agent presents the choices to the customer. In 1984, several of their competitors sued American and United, claiming that these reservation systems constituted unfair competition. The competitors claimed that American and United charged excessive fees for including competing airlines flights in the system. Also, they asserted that American and United limited competitor’s participation and displayed competitors’ flight after displaying their own. Not surprisingly, busy travel agents were more likely to book these flights instead of looking further for flights on the other airlines that might be as good or better for customers. American and United countered that their use of these systems was not unfair competition. Rather, they had decided to invest in these systems many years earlier, and after years of work were now enjoying the fruit of these investments. That same year, American and United agreed to discontinue preferential treatment for their own flights in screen displays used by travel agents. CAN U PLEASE IDENTIFY THE PROBLEMS U SEE AND GIVE SOLUTIONS TO IT..THANKS

Public Comments

1. I do not see reservations being unfair if its understood as being a norm of the process, for example eating at a super fancy restraunt, showing up at 6pm on a saturday, and expecting to get seated, no you have to call ahead and make reservations. What I honestly think is unfair and down right infurating, is when they overbook flights, and often! That and losing luggage. Those are the issues with customer service and airlines.
2. I would not say it as unfair.In todays fast world this kind of activities help the needies a lot. But i won't deny it that the concerned peoples make profit of it.We are left with no other alternatives, nor they.Competition always leads to step ahead for some and a step behind for some.