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Online Reservation Systems: A Tool for Enhancing Airline Performance in Nigeria | Chapter 01 | Current Perspective to Economics and Management Vol. 2

Aims: The complexity posed by increased demand for air travel has occasioned a transition between manual reservation systems to online reservation systems. The development of these computerized reservation systems came as management solution to the increasing number of commercial airline companies which put more pressure on their management to continually seek profits, reduce cost, and increase revenues in a competitive environment that only provides marginal profit. Although empirical evidence indicates the ease of airline transaction such as ticket booking or travel planning for airline customers. However, clarity on the relationship between the level of usage of reservation systems and the associated revenue benefits to airlines are yet explored. Therefore, this chapter explores the relationship between the use of Airline Reservation System and the performance of an airline. It attempts to assess the impact of ICT enhanced reservation procedures on the performance of airline industries with a hope that the information provided will guide airline operators and policy makers in their bid to sustain productivity and maintain efficiency.

Study Design: The study adopts a positivist view to exploring phenomenon’s to assess the impact of Airline Reservation System on the performance of airline companies. It assumes possibility of an existing relationship between both variables, hence the proposition of hypothesis for confirmation or rejection of the claim.

Place and Duration of Study: Research was conducted in Imo State, a south-eastern city in Nigeria. The study target population represents the airlines which utilize the online reservation system have their offices located in Sam-Mbakwe International Cargo Airport Owerri, Imo state. Consequently, the airport in Imo State was selected as a suitable study location.

Methodology: Using survey data collected from airline staff, airline passengers and reservation agents of six airlines at the Sam-Mbakwe International Cargo Airport Owerri, Imo state, this study adopts a Pearson correlation analysis to ascertain the relationship between the number of users of   airline reservation system and the performance viz a viz its returns on assets.

Results: The study result showed an R2 value of 0.8583 for hypothesis 1, which strongly expresses the trend component of the relationship and therefore supports the alternative hypothesis which states that there is a significant relationship between the use of airline reservation system and the performance viz a viz its returns on assets. Furthermore, the result from the SPSS coefficients analysis shows that for a one unit rise in the number of users of the airline reservation system there is a corresponding .961 rise in the returns on the assets which further indicates a greater performance level, hence accepting Ha2: which states that “the correlation between the performance of an airline (return on Asset) and the use of an Airline Reservation System is not zero” and rejecting Ho 2.

Conclusion: Based on the findings, the study encourages a wider adoption of ICT tools such as the online reservation systems by airlines because its adoption suggests a propensity for improved revenue generation as well as customer satisfaction. However, our suggestion for further studies focuses on the exploration of the challenges of adopting such ICT systems with respect to developing country contexts.

Author(s) Details

Dr. Geraldine Nkechinyere Okeudo
Department of Transport Management Technology, Federal University of Technology, Owerri, P.M.B.1526 Owerri, Imo State, Nigeria.

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