Airlines use fees to encourage e-ticket use

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Airlines use fees to encourage e-ticket use
By Shannon Reilly, USA TODAY

Four major airlines now charge for some paper tickets when an electronic
ticket can be issued instead. The charges, usually $10, are a way to
encourage more use of e-tickets, saving airlines millions of dollars a year
in printing, distribution, storage and processing costs for paper tickets.
America West, which offers e-tickets for all its flights, said last week it
will charge $10 to issue most paper tickets. Nearly 80% of America West
customers use e-tickets. "It's certainly where society is heading," says
America West spokesperson Janice Monahan. The charge won't apply to tickets
purchased through travel agents, tickets issued on government-contracted
fares, group tickets or when e-tickets must be converted to paper tickets
to accommodate passengers being rerouted on other airlines. American,
Continental and Alaska already have similar policies. Most major airlines
issue 50% to 85% of their tickets as e-tickets. By next year, says
Forrester Research airline analyst Henry Harteveldt, 70% to 80% of all
tickets issued in the USA will be e-tickets.

One major airline estimates e-ticketing saves it $15 million to $20 million
a year, or $2 a ticket. The real cost benefits will come when e-ticket
usage is close to 100%, officials say. Selling e-tickets is good business
for the airlines, says Al Lenza, Northwest Airlines' vice president. Lenza
predicts that Northwest will stop using paper tickets within three years.
One obstacle blocking total e-ticketing is that not all airlines' computers
can communicate with other carriers' reservations, accounting and baggage
systems, Harteveldt says. But most major airlines have goals to be able to
access other airlines' systems in the future. "It's just a matter of time,"
Harte veldt says.

Frequent travelers will be glad to hear that. Many love the convenience of
e-tickets, but some encounter barriers with flight cancellations. "If you
have a flight cancellation and need to go to another carrier, then you need
to have the e-ticket converted to a paper ticket. For some reason, the
process to convert an e-ticket to paper is very complicated and a huge
hassle," says USA TODAY Road Warrior Victor Sanchez of Baltimore. And what
about e-tickets for international travel? Rob Schainker of Jan's Travel and
Cruise in Kirkwood, Mo., usually insists his travelers use paper tickets
for international travel. "If they have a problem, most likely there will
be a language barrier," Schainker says. "Once you leave the States, you are
out there fending for yourself. If you have a paper ticket, you have
something to bargain with."




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