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The bookings industry has invested some $500 million over the past three to four years to develop technology to support the services sought by airlines, but travel agencies have been slow to adopt it due in part to the cost of switching, said Gillian Gibson, executive vice president of Travelport. "We believe we are making the right investments," she said. "We need to have an incentive for them to shift to a new technology." Under the current model, travel agents receive commissions from airlines through the distribution systems, leaving them little incentive to move to another system. Airlines are also playing catch-up to a practice widespread elsewhere in the e-commerce world: mining stored data on a customer's previous purchases to tailor product recommendations. They want to be able to offer special deals based on previous buying patterns, in the same way that Amazon uses a user's data to create a customized list of recommended books. In an example envisioned by IATA Chief Executive Tony Tyler, a customer buying tickets on an airline's website could be offered, say, tickets to see "Les Miserables" based on data showing that the traveler had bought tickets to see "Cats" on a previous trip to the same city, according to an interview Tyler gave to an aviation trade journal last year. "It already happens in the world of retail today. Why shouldn't it happen with airlines?" said Aleks Popovich, an IATA senior vice president. The group is developing standards for a system that will allow airlines to offer additional services and help customers interact with carriers directly or through travel agencies or other services, Popovich said. Experts from Google Inc., IBM Corp. and Hewlett-Packard Inc. were included in discussions of a proposed plan that's due to be submitted to the aviation group's board in December for consideration, Popovich said. He said it's unclear how long it might take to roll out a system, but he pointed to the example of paperless electronic tickets, an IATA initiative that he said took two to three years to be adopted worldwide. "I can't give a date, but it's pretty clear the pressure for change is there," said Popovich.
[Associated
Press;
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