This paper focuses on web reservation and on-line ticketing services provided by airlines and travel agents. The impact of the Internet on the air transportation industry in Taiwan, the development of e-commerce and e-business in airline operations, and the conflicts between virtual and physical channels are discussed. A questionnaire is developed to determine the major consumer behavior differences among channels. Some new trends and airline e-commerce issues are examined. The research outcome showed that virtual channels are good enough to dominate the market, but the traditional channels also have their own niches in some specific segments.
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