Ticketmaster to Use United’s Computer Net
In a move to broaden its appeal to travel agents and consumers nationwide, United Airlines, in conjunction with Los Angeles-based Ticketmaster, will begin selling tickets this fall to sporting and entertainment events in four major cities.
Executives for both companies are expected to announce the agreement today in New York.
“This will enable travelers not only to have their airline tickets in advance but tickets for theater, concerts or a sporting event before they leave their home,” said Frederic Rosen, Ticketmaster’s chairman and chief executive. “We are talking about the world of convenience.”
And, of course, money.
Because computerized reservation systems help airlines to gain market share, several carriers are battling to place their computer systems in travel agencies. Today, more than 80% of the nation’s travel agencies use computerized reservation systems that not only book plane seats but hotel rooms, car rentals and even ocean cruises.
Service for Agents
“This gives us another service we can offer our 7,000 travel agents and reservation centers to provide their clients,” said Barry Kotar, director of United’s computer reservation system, known as the Apollo system.
Apollo ranks No. 2, with 37% of the market, behind American Airlines’ Sabre system, which claims 40% of the market, or 10,000 users.
American Airlines officials declined to comment on United’s exclusive agreement with Ticketmaster. In fact, American launched a similar service through its computer reservation system in May, 1984, but only for events in New York City. Ticketmaster offers tickets to events in 30 cities, including some in Canada and Europe.
Initially, travel agents using the Apollo system will be able to gain access to Ticketmaster’s computers in Los Angeles, San Francisco, Chicago and New York. Within seconds, Ticketmaster will inform the agent about prices and available seating for the desired event.
Handling Fees
The travel agent will then provide Ticketmaster with the customer’s credit card number to bill for the price of the ticket and a handling fee ranging from no charge for amusement parks to $10 for a Broadway show. Rosen said he also plans to charge the ticket user about $12 to cover Ticketmaster’s overnight delivery service. In the case of next-day tickets, customers will be able to pick up their tickets at the box office.
Robert Joedicke, an airline analyst at Shearson Lehman Bros., said United’s agreement with Ticketmaster is part of an industrywide trend to make the airlines a one-stop shopping center for travelers.
“Once you’ve got the (computerized reservation) system, you can throw these things in,” Joedicke said. Comparing the new ticket service to the frequent-flyer programs, he added: “It’s a service gimmick . . . to make the product and computer system more attractive and broader.”
For Donald Mison, a manager at Cardillo Travel Services in Los Angeles, the added feature on his Apollo system will be a welcome relief from the time he now spends on the telephone “on hold with ‘beautiful music.’ ”
