CHAPTER I CHAPTER I INTRODUCTION
2.4 Chapter Summary
As said earlier, this research is undertaken to examine applicability of opaque selling mechanics on SBTs and have discussed the same in context of System's Flexibility and User's Flexibility to increase the Perceived Usability of Online Airline Reservation Systems. The first two research areas of Usability Perception i.e.
Usability Perception by Performing Content Analysis and Usability Perception through User's Internet Adoption are related to supply oriented studies, the other two studies i.e. Usability Perception based on Users' Preferences and Expectations and Usability Perception based on Online Behavior of Web Users are demand driven since they consider online services and features used by travelers when making traveling and purchasing decisions. There are also some researchers who have combined some or all four research areas for investigating Usability Perception of online systems. For example, Benckendorff and Black [99] have used surveys of regional tourism organizations as well as website evaluations methods. Nysveen [I 08] conducted surveys and obtained results from both web users and tourism businesses. Their research objective was to investigate gaps between customer preferences and actual website offerings.
This research uses a blended approached and combines the four research areas of Usability Perception to determine Perceiv(:d Usability of the Online Airline Reservation Systems. It is important because customers' usability expectation and preferences from Online Airline Reservation Systems lacks research and empirical
findings. Law and Leung [lOlJ had emphasized upon the need to investigate expectations of airline customers that book their itineraries through their online self- booking tools. Moreover, the existing evaluation of online tourism websites is performed by researchers and not by customers. lt leads to a dilemma and research gap that does not potentially address expectations of travelers. Even though internet is referred as a major technological innovation of today. its success heavily depends upon assimilation of customer expectations and preferences into the design and content of websites [1 01]. For airlines to run successful business, in spite of their products are sold online or through more traditional channels, it is important to design their self-booking tools in view of customers' preferences, expectations and online usage behavior.
Thus, behavioral characteristics in terms of making travelers flexible are appealing and an important area of research. And if it can be determined, i.e., what makes a traveler flexible on the basis of his/her behavioral characteristics, it could give crucial insight for designing of Flexible Online Airline Reservation Systems, based on SBTs offering opaque selling. The existing opaque selling literature lies at the intersection of consumer behavior and revenue management operational strategies [ 40]. However no study has been found to address consumer behavior on opaque selling with respect to online airline reservation system as most recent paper and researchers are done within the marketing domain [ 40]. The research therefore examines travelers' expectations, preferences and online behavior (User's Flexibility) and aligns that with designing of flexible Online Airline Reservation Systems (Systems Flexibility) and users' as evaluators of the online systems to determine its usefulness through effectiveness, efficiency and satisfaction (Perceived Usability).
This anticipation of travelers for low fares is an extremely important concern, that airlines are faced with every day. As mentioned earlier, airlines are not in a strategic position to offer low cost fares directly to sell their left over inventories, due a number of potential threats to their revenue generation, therefore, the only business model that addresses this concern is opaque selling by OT As. The concept of online airlines reservation systems or SBTs for disposing off their opaque inventory directly has not been adequately considered in information system research and literature. The concept requires extensive research especially in academic discipline [40] and as
highlighted by Jerath et a/. [ 1
OJ
a number of studies have focused upon airline revenue management systems, however attempts to empirically verify those findings are a few. Likewise, recent research adopts an objective discourse to empirically validate revenue management theories (see, for example, Puller et a/. [123]). This does not adequately address the research gap on opaque selling. Moreover, the only known studies on opaque selling are of Granados et a/. [122], [124] who have compared price elasticities of the offline, onlline transparent and opaque channels.Their findings suggest that opaque selling mechanism has high price elasticity.
Literature also highlights that direct last-minute selling, although could lead to severe consequences for the airline, it is still preferred over selling through an opaque intermediary in case of high expectations of customers and customer expecting little service differentiation [10]. However, research on opaque selling also shows it has been preferred over direct last minute selling with an increase in high demand situations and this has been the primary factor for airlines to opt for opaque fare intermediaries [10]. However, if an airline opts for an opaque fare selling it can position itself more competitively than opaque selling intermediaries because of its knowledge and precise information on availability of its own resources [I 0]. This could put an airline in a win-win situation, whereby it will employ its own resources and provide opaque selling directly to price-sensitive customers, who do not wish to anticipate hidden characteristics of the service to be provided to them, a major concern in opaque selling through intermediaries.
Anticipation of travelers for low fares, gives an idea about their traveling behavior, which is 'the extent to which a traveler anticipates for a low fare', indicating the extent to which 'a traveler is ready to compromise on flying conditions', and thus becoming flexible in accepting what is being offered to them by an airline. The existing opaque selling literature lies at the intersection of consumer behavior and revenue management operational strategies [ 40]. However no study has been found to address consumer behavior on opaque selling with respect to online airline reservation system as most recent pap(:r and researchers are done within the marketing domain [ 40]. This research therefore contributes to the small but growing literature in designing of Online Airline Reservation Systems b y moulding upon flexible behavior of travelers.
CHAPTER 3