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Computer Reservation Systems: Action Needed to Better Monitor the CRS Industry and Eliminate CRS Biases

RCED-92-130 Published: Mar 20, 1992. Publicly Released: Mar 20, 1992.
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Highlights

Pursuant to a congressional request, GAO reviewed airline-owned computer reservation systems (CRS), focusing on whether: (1) differences in CRS treatment of host and participating airlines allowed the CRS-owning airlines to sell additional seats at other participating airlines' expense; and (2) separating owner-airlines' internal reservation systems from CRS, or dehosting, would eliminate significant differences in CRS treatment of host and participating airlines more effectively than existing or proposed CRS technology improvements.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should direct the Secretary of Transportation to revise existing DOT CRS rules to require that each CRS vendor eliminate those functional differences between host and participating airlines that can be eliminated without dehosting. If vendors assert that proprietary data are necessary to eliminate some differences, such as checking passenger name records and frequent flyer numbers, the burden of proof should be on the vendors to demonstrate that such differences in treatment can not be eliminated without access to proprietary data.
Closed – Not Implemented
The CRS controversy has abated and neither Congress nor the Administration are pursuing this recommendation further at this time.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Transportation The Secretary of Transportation should gather data both on the technical reliability of data communication linkages used by participating airlines, as compared with the internal linkages used by host airlines, and on the costs and benefits of dehosting CRS.
Closed – Implemented
Although DOT did not concur in the recommendation, it recently issued new rules governing CRSs. The rules include requiring identical procedures for loading data supplied by vendors and participating air carriers; eliminating defaults in favor of vendor airlines; and ensuring equal availability of enhancements.
Department of Transportation The Secretary of Transportation should establish a comprehensive and continuous program of gathering data on the CRS industry, including gathering data on market shares of CRS vendors and on booking patterns by travel agents using the various CRS.
Closed – Not Implemented
The CRS controversy has abated and neither Congress nor the Administration are pursuing this recommendation further at this time.

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