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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