ZDNet
   Site Map

Search ZDNN

 
Page One
Headline Scan
News Bursts

AnchorDesk
Business
Commentary
Computing
CyberCrime
Internet
Investor
MSNBC News
Silicon Spin
ZDY2K


XCam2 Tiny Wireless Video Camera

Resources
  News Specials
  News Elsewhere
  Company Finder
  Custom News
  Contact Us
  Corrections

Other ZD News
  PC Week
  Inter@ctive Week
  Sm@rt Reseller
  MacWeek
  GameSpot
  ZD Infobeads
  ZDTV News

Click Here!

Resellers, click here.


XCam2 Tiny Wireless Video Camera

ZDNet   Reviews   Shopping   Business   Help   News   Investing
Games   Tech Life   Downloads   Developer


June 10, 1998 5:22 AM PT


Credit card fears slow airline Internet sales

By David Gersovitz, Reuters



MONTREAL -- Fear of fraud rather than fear of flying has held back the growth of air travel sales on the Internet, travel industry experts told the International Air Transport Association(IATA) annual general meeting.

But even that won't stop air travel from becoming the biggest selling consumer item on the Net by 2002, according to recent forecasts.

Concern about the security of credit card information transmitted online is the reason most frequently cited for why a majority of travel shoppers do not end up completing a purchase, a panel of electronic commerce experts said at the AGM.

It is also a totally groundless fear, the panel said.

Last year, there wasn't a single report of theft of credit card information processed using the secure encryption facility built into the two main Internet browsers, Netscape Navigator and Microsoft Explorer, Terrell Jones, chief information officer of The SABRE Group said.

"Not one (theft of in-transit credit data) happened, but it simply hasn't been publicized," Jones said. People who will readily give a credit card to a waiter in a restaurant or an order taker in a call centre tend to be reticent about disclosing card information online, he added.



Are you concerned about the security of credit card information online? Or do you think consumers are being too paranoid? Add your comments to the bottom of this page.





So online travel services like SABRE's Travelocity allow people to call a toll-free number to give their credit card information to an agent, or allow them to transfer an online booking to their travel agent who issues the ticket.

Between 1997 and 2002, air travel sales on the Internet are forecast to increase almost nine-fold, from less than $1 billion last year to almost $9 billion, though that will constitute only nine percent of total airline passenger revenues.

It is not just airlines which have gone online with travel ticket offices. In the past 12 months, three online travel booking services have broken into the top 30 ranking of U.S. travel agencies by sales.

Agencies like Travelocity and Microsoft Corp's Expedia are the most active sites, but thousands of conventional travel agencies are going online, some of the largest offering the capability to book travel while connected.

Yet fewer than one in two online travel shoppers is buying on the Internet, a major reason why services like Travelocity are not yet profitable, said Jones.

"We have too many lookers and not enough bookers. We have too many people who shop our site and not enough people who buy."

Besides dispelling fears about credit card security, he said, airlines and online travel agencies can encourage electronic buying by adding visual features to their sites that people cannot get over the phone. Such features could include aircraft seating diagrams, maps and the latest travel and weather information, Jones said.

Also spurring Internet sales of air travel is the phasing out of paper tickets. Today 40 percent of passengers on Continental Airlines CAIb.N are travelling without paper tickets, whether they made their booking online, through a travel agent or airline call centre, said Steve Cossette, the airline's vice-president of distribution planning. All it takes to get a boarding pass is a confirmation number.

"Electronic ticketing combined with the Internet are the great enablers of electronic commerce" rather than the Internet alone, he told the IATA delegates.


Click here to see more page one stories



Read
Online travel takes off

Fly the friendly Web

Fly the Airlines' Websites







Cybercrime treaty still doesn't cut it





Kessler: Palm's biz push paying off





Online holiday sales shatter records





Server sales: Sun gaining on Big Blue





Yahoo!'s CEO predicts broadband boom





Microsoft readies next Win2000 fixes





E-mail this!


Get Personal News Alert


Business

Wireless Net phones hit by waplash


FTC chair has AOL merger misgivings



Commentary

Gibson: Ready for the new domain rush?


Dvorak: The computer vs. television



Computing

Microsoft scores with EA for Xbox


Ericsson, Tivoli call on phones that morph



Internet

Researchers try covering Net tracks


FCC wireless auction nets $501M








News, Financials, Products




Netscape Communications Corp.

Microsoft Corp.




Enter a company










Get our FREE digest of the day's top headlines by e-mail every morning.

Text HTML


























(MORE...)





Top



 Sponsored Links
Washtech  Get a year of free wireless service from Washtech.com.
AMD Duron  Configure your AMD Duron Desktop System NOW!
Free Book!  3 Computer Books for $1.99 each + 1 FREE w/ membership!
Got Speed?   New! Diskeeper(r) 6.0 disk defragmenter for Windows(r)
Books  Take $10 Off at Barnes & Noble.com Today!
Do It All  Work. Life. Education. University of Phoenix Online.
 
 Intel Manufacturer Showcase    Need More Help?
Shop Now!   Shop at Dell's Home Solution Center - Dell Small Business Center
Shop Now!   Gateway Home Computing Center - TOSHIBA
 
 Featured Links
The Best!  New: The Top 100 Products of 2000 from computershopper.com
It's Here!  MSN Explorer is now available. Download it FREE!
Red Herring  RISK-FREE! For insight into the business of technology.
 
 Magazine Offers
BuyingTips  Holiday Shopping Must Read - 20 Best & Worst e-Shops
 

Tech Jobs | Digital Coupons | Free E-mail | 
Newsletters | UpdatesMyZDNet | Alerts | 
ZDNet Rewards | Join ZDNet | Members
Feedback | Your Privacy | Service Terms | Ad Info
Copyright © 1999 ZD Inc. All rights reserved. ZDNet and the ZDNet logo are trademarks of ZD Inc.

Copyright (c) 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.