Online Reservation Systems: A Tool for Enhancing Airline Performance in Nigeria

Aims: The complexity posed by increased demand for air travel has occasioned a transition between
manual reservation systems to online reservation systems. The development of these computerized
reservation systems came as management solution to the increasing number of commercial airline
companies which put more pressure on their management to continually seek profits, reduce cost,
and increase revenues in a competitive environment that only provides marginal profit. Although
empirical evidence indicates the ease of airline transaction such as ticket booking or travel planning
for airline customers. However, clarity on the relationship between the level of usage of reservation
systems and the associated revenue benefits to airlines are yet explored. Therefore, this chapter
explores the relationship between the use of Airline Reservation System and the performance of an
airline. It attempts to assess the impact of ICT enhanced reservation procedures on the performance
of airline industries with a hope that the information provided will guide airline operators and policy
makers in their bid to sustain productivity and maintain efficiency.
Study Design: The study adopts a positivist view to exploring phenomenon’s to assess the impact of
Airline Reservation System on the performance of airline companies. It assumes possibility of an
existing relationship between both variables, hence the proposition of hypothesis for confirmation or
rejection of the claim.
Place and Duration of Study: Research was conducted in Imo State, a south-eastern city in Nigeria.
The study target population represents the airlines which utilize the online reservation system have
their offices located in Sam-Mbakwe International Cargo Airport Owerri, Imo state. Consequently, the
airport in Imo State was selected as a suitable study location.
Methodology: Using survey data collected from airline staff, airline passengers and reservation
agents of six airlines at the Sam-Mbakwe International Cargo Airport Owerri, Imo state, this study
adopts a Pearson correlation analysis to ascertain the relationship between the number of users of
airline reservation system and the performance viz a viz its returns on assets.
Results: The study result showed an R2 value of 0.8583 for hypothesis 1, which strongly expresses
the trend component of the relationship and therefore supports the alternative hypothesis which states
that there is a significant relationship between the use of airline reservation system and the
performance viz a viz its returns on assets. Furthermore, the result from the SPSS coefficients
analysis shows that for a one unit rise in the number of users of the airline reservation system there is
a corresponding .961 rise in the returns on the assets which further indicates a greater performance
level, hence accepting Ha2: which states that “the correlation between the performance of an airline
(return on Asset) and the use of an Airline Reservation System is not zero” and rejecting Ho 2.
Conclusion: Based on the findings, the study encourages a wider adoption of ICT tools such as the
online reservation systems by airlines because its adoption suggests a propensity for improved
revenue generation as well as customer satisfaction. However, our suggestion for further studies
focuses on the exploration of the challenges of adopting such ICT systems with respect to developing
country contexts.