earticle

영어

Distribution accounts for about 17% of airline's total operating costs and ranks as the third largest cost for an airline after applying to labor and fuel. Commission costs account for ~8% of the costs, while ticketing for 2-3%, computer reservation services fees for 2% and credit card fees for 2-3%. In recent years, airlines in US and many European countries have either set up travel agent commissions at a very low level or removed them altogether. However, in Asian countries including Korea, the powerful role of travel agents in controlling ticket distributions is seen as the major reason preventing airlines cutting down commissions. Air travel markets, among American, European and Korean markets, showing a quite different geographical and environmental characteristics. This paper provides an overview of the air travel market in Korea through the analysis of geographical and environmental characteristics. Conclusions, regarding the reduction of distribution costs suitable for Korean markets with international route services in Korean market is presented.