By: David J. Wardell

© 1991 By: David J. Wardell.  Reproduction or redistribution in any form without written permission is strictly prohibited.

I was among the lone voices taking a contrary view.  Read my retrospective on the ETDN phenomena written several years later, "ETDN Epilogue."

The Electronic Ticket Distribution Network (ETDN), according to its proponents, promises greatly expanded travel agency distribution capabilities, low-cost ticket delivery, improved customer service and protection of travel agency interests.

Significant rewards are to be available in return for limited risks — such a compelling proposition that the ETDN presentation was among the best attended at September’s Focus on Automation conference.

Proposed ETDN technology allows any agency having a commercial relationship with an ETDN supplier to distribute tickets using that supplier’s ticket distribution network.

The agency prints auditor’s and agent’s copies of a ticket in its own office, while the flight coupons are electronically separated and printed at a distant location by the ETDN vendor.

Because the agency uses its own ARC number for all phases of the transaction (auditor’s, agent’s and fight coupons all carry the same number just as if they were printed together), overrides and other production-based incentives are preserved.

The vendor realizes economies of scale because the ticketing needs of many agencies would be served, with some of this advantage passed to the agency in lower delivery costs.

Eventually, most ETDN vendors envision large networks comprised of unattended ticketing devices readily accessible for ticket deliveries to agency customers.

The experience of banks and automated teller machines (ATMs) is frequently cited as an example.

First, the bank ATM business model is seriously flawed.

Customers often use bank cash machines because they believe the experience to be less repellent than dealing with a human teller inside the branch. I doubt most agencies would find this a compelling foundation upon which they can build their customer relationships.

Banks created ATM networks using resources that are difficult for any travel industry vendor to match.

It is conceivable that new ATMs supporting both bank and ticketing functions could be built, but no one has yet brought a major bank network operator to the table to say such a proposition would be technologically or commercially practical.

ATMs also usually occupy a bank’s own physical branch locations. It is unproven that ticketing facilities can be widely placed in space not controlled by the ETDN vendor or that this can be done for an acceptable cost.

Second, where are the customers clamoring for this service? Admittedly, ETDN services project substantially lower delivery costs, but most customers would consider it to be a degradation in service if they have to pick up their tickets from a machine as opposed to having them delivered.

It is unproven that acceptable customer service standards and customer satisfaction can be maintained through ETDNs.

Finally, here are a few general risks associated with ETDN development worth thinking about:

• Financial practicality. Developing ETDNs will be expensive. Those contemplating using these services should consider whether their suppliers have sufficient resources.
  
• Market confusion. There will be a time when several vendors will compete for ETDN business and locations.

This will doubtless be confusing to travelers and may require that agents affiliate with multiple networks in order to obtain adequate coverage.

• Physical space. Prime locations, particularly airports, are difficult to get. Actual vendor locations in place may fall short of expectations in quality, quantity, and timing.
  

• Agent’s role. No matter how supportive ETDN suppliers are of their agency customers and their marketing needs, the basic concept of multi-source distribution points means that the agency creating the ticket is virtually transparent to the client.

It may not be in every agency’s interest to sacrifice geographic differentiation for delivery expediency.

ETDNs can potentially reduce a fundamental component of an agency’s costs, but they require further development and actual market experience to see if this promise is sustainable.