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Amadeus delegates gathered in the French Riviera last month to discuss the latest happenings in the world of airline e-commerce.

For the web-savvy younger generation almost everything is available online. And as we near the second decade of the 21st century, the introduction of technology becomes paramount to airline success.

Frederic Spagnou, Amadeus' vice president of the airline business group, says the technology provider needs to look ahead to attract the next cohort of consumers.

"My children spend a lot more time on the internet than I do," he explains. "It's the next generation we need to target - the ones who are immediately jumping on Google browser. This is their fun - it's not a job, it means a lot more than that to them."

At present the company offers several e-commerce services which have plenty of appeal for airline passengers. The e-merchandising component, adopted by 60 airlines, enables a flex-pricer fare search tool which incorporates a calendar displaying the cheapest options for each flight. Other products include the e-retail engine, which offers customers a comprehensive booking system and the e-retail product which offers passengers extra assistance.

According to Spagnou using the web to serve customers decreases an airline's costs. "What is most expensive for the carrier is every time the customer has to do something that is not automated," he explains. "Every time they ring the call centre and interact with a person this can take one hour and you pay this person for servicing one person in this hour. If you can do the same service with a machine online it's much better."

And while it's been suggested customers prefer human interaction, Spagnou argues there is significant evidence to dispel this myth. "If you want to change your flights it is like coming back to the shop with a pair of shoes and saying this isn't right, can I change the colour? You feel guilty as you're reversing the interacting between customer and supplier," he says. "But on the web it's neutral; nobody is judging you or asking if you could've asked these questions before. So the airline is saving money and the customer feels comfortable."

Henry Harteveldt, vice president and principle analyst for Forrester airline/travel research, believes e-commerce is at the core of improving airline/customer relations. "The web facilitates self-discovery," he explains. "Airlines can show their special offers, you can sign up to get emails, redeem points, check in and take full advantage of upgrade offers." For Harteveldt online is the cheapest channel by which a carrier can sell a ticket.

However, although internet penetration remains high, particularly amongst travellers, it is not universal. In the Middle East, the web has traditionally been a less popular booking agent than in Europe and America.

But, as Harteveldt points out, e-commerce goals may be tailored accordingly in different areas. "It can fulfil a different role for any Middle East airline. Perhaps it might not be so much about selling as about familiarisation and getting used to it," he adds.

Hasmet Gokirmak, vice president of business development for Turkish airlines agrees passengers in the region use the online booking service to research the products rather than buy. "We have a lot of people visiting the website but only a few of them are actually buying tickets. They just want to find out about flights and available prices," he says. "Often they copy everything into an email and send it to the travel agent to purchase the actual ticket."

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