Facts about e-Markets - 2

To get some idea why, just look at the cost savings that arise in the distribution business that retails information and makes sales. The table below shows the cost of processing the sale of an airline ticket. Using the internet has cut the cost from $8 to $1, a spectacular saving. Next time you want to fly to Spain or Greece, you will find that all airlines, from established carrier British Airways to new entrant EasyJet will sell you a ticket more cheaply if you buy on the internet. Of course you won't save 7/8ths of the whole price, merely 7/8ths of the part that covered ticketing costs themselves.

Cost of ticketing for US airlines
Travel agent via reservation system $ 8
Direct from airline $ 6
E-ticket via internet $ 1



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