AIRLINE RESERVATION SYSTEM (ARS)

A SEMINAR PRESENTED

BY

DICK PERE ILAYE CS/06/076

SUBMITTED TO THE DEPARTMENT OF COMPUTER SCIENCE, FACULTY OF NATURAL SCIENCE, MADONNA UNIVERSITY, ELELE CAMPUS

IN PARTIAL FULLFILMENT OF THE REQUIRMENTS FOR THE AWARD OF BACHELOR OF SCIENCE (B.Sc) DEGREE IN COMPUTER SCIENCE

SUPERVISOR: EZEKWE, C. (MRS)

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

Science in Computer Science.

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

This work is dedicated to God Almighty.

ACKNOWLEDGEMENTS

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

appreciate all of you. God Bless you all.

ABSTRACT

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

cars.Airline Reservation System (ARS) in conjunction with Global Distribution System

(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

CHAPTER ONE: Introduction 1

1.1 Introduction to the Study 1

1.2 Aim/Objective of the Study 1

1.3 Justification of the Study 2

1.4 Scope of the Study 2

1.5 Significance and Limitation of the Study 2

CHAPTER TWO: Literature Review 3

2.1 History of Airline Reservation System (ARS) 3

2.2 Definition of Terms 5

CHAPTER THREE: Airline Reservation System (ARS) 7

3.1 What is ARS? 7

3.2 Global Distribution Systems (GDS) 7

3.3 Trends in Airline Reservation System (ARS) 7

3.4 Major Computerized Reservation System (CRS) 10

3.5 Operations of Computerized Reservation System (CRS) 11

3.5.1 Operation of Vendors to Air Carriers 11

3.5.2 Operation of Vendors to Subscribers Regarding Commercial Arrangements 13

3.5.3 Operation of Vendors Regarding Display 14

CHAPTER FOUR: Conclusion and Recommendation 17

REFERENCE 18

CHAPTER ONE

INTRODUCTION

1.1. INTRODUCTION TO THE STUDY

It is obvious that everything that issustainable would have to go through advancement. In

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

cars.(Winston, Clifford 1995)

1.2 AIM/OBJECTIVE OF THE STUDY

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

process and all air traveling operations.

1.3 JUSTIFICATION OF THE STUDY

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).

1.4 SCOPE OF THE STUDY

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

their customers inclusive.

1.5 SIGNIFICANCE AND LIMITATION OF THE STUDY

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

the system and also those doing research on similar topic.

CHAPTER TWO

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

reservation system called Airline Reservation System (ARS). (Wikipedia, 2010)

2.1 HISTORY OF AIRLINE RESERVATION SYSTEM (ARS)

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

development and alterations. Trans-Canada Airlines developed a computer-based system with

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

technology gurus emerged. (Morrison, Winston 1995)

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

Airlines executive Robert Crandall proposed creating an industry-wide Computer

Reservation System to be a central clearinghouse for U.S. travel; other airlines demurred,

citing fear of antitrust prosecution. (Wikipedia, 2010)

Airline deregulation occurred in 1978, magnifying the importance of computerized airline

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

toward GDS. (European Parliament, 2008)

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

airlines. (Winston, Clifford 1995)

2.2 DEFINITION OF TERMS

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

common carriers (government-certified companies that offer cargo and passenger

services to the public) and general aviation (private aircraft used for recreation or

business). (Microsoft Encarta 2009, Microsoft Corporation)

Reservation: The written record or promise of an arrangement by which accommodations

are secured in advance. (WordWeb 5.1, WordNet Database)

System: This is any collection of component elements that work together to perform a

task.

NB: In computer science, System is used in a variety of contexts. A computer System is a

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

the computer, system also refers to any collection or combination of programs,

procedures, data, and equipment utilized in processing information: an accounting

system, a billing system, a database management system. (Microsoft Encarta 2009,

Microsoft Corporation)

Deregulation: The act of freeing from regulation (especially from governmental regulations).

(WordWeb 5.1, WordNet Database)

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)

Computerize: To control a function, process, or creation by a computer. (WordWeb 5.1,

WordNet Database)

CHAPTER THREE

AIRLINE RESERVATION SYSTEM (ARS)

3.1 WHAT IS ARS?

AirlineReservations System(ARS) is a computerized system used to store and retrieve

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.

3.2 GLOBAL DISTRIBUTION SYSTEMS (GDS)

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 the Airline Reservation System (ARS) database.

3.3 TRENDS IN AIRLINE RESERVATION SYSTEMS (ARS)

In 1946, American Airlines installed the first automated booking system, the experimental

electromechanical Reservisor. A newer machine with temporary storage based on a magnetic

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

no way for agents to directly query the system.

In 1953, Trans-Canada Airlines (TCA) started investigating a computer-based system with

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

Semi-Automatic Business Research Environment (SABRE), launched the following year. By

the time the network was completed in December 1964, it was the largest civil data

processing system in the world.

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

Airlines executive Robert Crandall proposed creating an industry-wide Computer

Reservation System to be a central clearinghouse for U.S. travel; other airlines demurred,

citing fear of antitrust prosecution.

In 1976, United began offering its Apollo system to travel agents; while it would allow the

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

Eastern Air Lines specifically to gain control of its SystemOne ARS.

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

Videcom technology), forming a network providing distribution for 49 subscribing

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%

of UK airline business trade bookings by 1987. The system went on to be replicated by

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

Germany's Lufthansa developed Amadeus, modeled on SystemOne. In 1990, Delta,

Northwest Airlines, and Trans World Airlines formed Worldspan, and in 1993, another

consortium (including British Airways, KLM, and United Airlines, among others) formed the

competing company Galileo International based on Apollo. Numerous smaller companies as

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.

3.4 MAJOR AIRLINE RESERVATION SYSTEM (ARS)

Name Created By Also Used by Amadeus Air France

Iberia Lufthansa SAS

Online travel agencies including

o Anyfares o CheapOair o ebookers o Expedia o Flights o Opodo

Over 500 individual airlines Over 120 individual airline

websites Over 90,000 travel agencies Over 76,000 hotels

SABRE All Nippon Airways American Airlines Cathay Pacific

Airways China Airlines Singapore Airlines

Expedia CheapOair Godard Lastminute.com Mobissimo Travelocity Over 20 individual airlines

Galileo by Travelport Aer Lingus Air Canada Alitalia British Airways Swiss TAP United Airlines US Airways

CheapOair CheapTickets ebookers Orbitz

Worldspan by Travelport Delta Northwest TWA

Hotwire Hotels Priceline Orbitz

TravelSky Air China China Southern China Eastern Hainan Airlines

Online travel agencies including

o Ctrip o eLong o mangocity

Patheo Finnair KLM Lufthansa - > Moved

to Amadeus VA

Online travel agencies including

o Airgorrila o American Express o Anyfares o Flights

Abacus All Nippon Airways Cathay Pacific

Online travel agencies Over 450 individual airlines

Airways China Airlines Dragonair EVA Airways Garuda Indonesia Malaysia Airlines Philippine Airlines Royal Brunei Airlines SABRE SilkAir Singapore Airlines

Over 25 countries in Asia Pacific

Over 80,000 hotels

KIU Sol LineasAereas Aerogal Star Peru LC Busre Peruvian Airlines CielosAndinos Easyfly Laser Airlines LADE - LineasAereas

Del Estado Amaszonas Maya Air

Over 12 individual airlines Over 10 countries in Latin and

North America Travel agencies and wholesale

tour operators worldwide

Table 3.1: Major Airline Reservation System (ARS) Source: (Wikipedia, 2010)

3.5 OPERATIONS OF AIRLINE RESERVATION SYSTEM (ARS)

The following are some of the operations regulated by Airline Reservation System:

3.5.1 Operation of Vendors to Air Carriers

A system vendor shall:

a) Permit participation in its ARS by any carrier prepared to pay the requisite

fees and to accept the system vendor's standard conditions;

b) Not require carriers to participate in its ARS exclusively or for a certain

proportion of their activities;

c) Not impose any conditions on participation in its ARS that are not directly

related to the process of distributing a carrier's air transport products through

the ARS;

d) Not discriminate among participating carriers in the ARS services it offers,

including timely and non- discriminatory access to service enhancements,

subject to technical or other constraints outside the control of the system

vendor;

e) Ensure that any fees it charges are:

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;

f) Provide information on billing for the services of a system in a form

(including, if requested, via or on electronic media) and in sufficient detail to

allow participating carriers to verify promptly the accuracy of the bills;

g) Include in contracts a provision permitting an air carrier to terminate a contract

by giving notice:

i) which need not exceed six months, to expire not before the end of the

first year; or

ii) as prescribed by national law;

h) Load information provided by participating carriers with consistent and non-

discriminatory standards of care, accuracy and timeliness, subject to any

constraints imposed by the loading method selected by the participating

carrier;

i) Not manipulate the information provided by carriers in any way that would

lead to information being displayed in an inaccurate or discriminatory manner;

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

involved in the service covered by the reservation but to no other parties

without the written consent of such carriers and the air transport user; and

k) Not discriminate among participating carriers in making available any

information, other than financial information relating to the ARS itself,

generated by its ARS in an aggregated or anonymous form. (CODE OF

CONDUCTfor the Regulation and Operation of Computer Reservation

Systems)

3.5.2 Operations of Vendors to Subscribers Regarding Commercial Arrangements

A system vendor shall not:

a) Discriminate among subscribers in the ARS services it offers;

b) Restrict access by subscribers to other ARSs by requiring them to use its ARS

exclusively or by any other means;

c) Charge prices conditioned in whole or in part on the identity of carriers whose

air transport services are sold by the subscriber;

d) Require subscribers to use its ARS for sales of air transport services provided

by any particular carrier;

e) Tie any commercial arrangements regarding the sale of air transport services

provided by any particular carrier to the subscriber's selection or use of the

system vendor's ARS;

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

g) Require subscribers to enter into contracts which:

i) exceed five years; or

ii) cannot be cancelled by the subscriber at any time after one year, with

notice and without prejudice to recovery of actual cost; and

iii) contain provisions that undermine contract termination. (CODE OF

CONDUCTfor the Regulation and Operation of Computer

Reservation Systems)

3.5.3 Operations of Vendors Regarding Displays

A system vendor shall:

a) Make available a principal display or displays of schedules, space

availability and tariffs of air carriers which are fair, non-discriminatory,

comprehensive, and neutral in terms of:

i) not being influenced, directly or indirectly, either by the identity of

participating carriers or by airport identity; and

ii) the information being ordered in a manner which is consistently

applied to all participating carriers and to all city-pair markets;

b) Ensure that any principal display made available is as fully functional and at

least as easy to use as any other display it offers;

c) Always provide a principal display except where there is a specific request

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

construction of connecting services on objective criteria (such as departure/

arrival times, total elapsed time between initial flight departure at origin and

final flight arrival at destination, routing, number of stops, number of

connections and fares);

e) Provide to subscribers:

i) a principal display of flight options ranked in the order of all non-stop

flights by departure time, other direct flights not involving a change of

aircraft and all connecting flights by elapsed journey time; or

ii) a principal display of flight options ranked in any other order based on

objective criteria; or

iii) principal displays based on i) and ii)

f) In the ordering of services in a principal display, take care that no carrier

obtains an unfair advantage;

g) In any principal display of schedule information:

i) clearly identify non-scheduled flights, scheduled en-route changes of

equipment, use of the designator code of one air carrier by another air

carrier, the name of the operator of each flight, the number of

scheduled en-route stops, and any surface sectors or changes of airport

required; and

ii) clearly indicate that the information displayed regarding direct services

is not comprehensive if information on participating carriers' direct

services is incomplete for technical reasons or if any direct services

operated by non-participating carriers are known to exist and are

omitted;

h) In the selection and construction of connecting services in a principal display,

select as many alternative (single or multiple) connecting points on a non-

discriminatory basis as is necessary to ensure a wide range of options;

i) Not intentionally or negligently display inaccurate or misleading information;

j) In cases where States do not find it practicable to ensure that subscribers

comply with Article 10, include appropriate provisions regarding compliance

in its contract with each subscriber; and

k) Where participating carriers have joint venture or other contractual

arrangements requiring two or more of them to assume separate responsibility

for the offer and sale of air transport products on a flight or combination of

flights, permit each carrier concerned—up to a maximum of three—to have a

separate display using its individual designator code. (CODE OF

CONDUCTfor the Regulation and Operation of Computer Reservation

Systems)

CHAPTER FOUR

CONCLUSION AND RECOMMENDATION

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

flight scheduling is tasked.

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.

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