In addition, major airlines are able to offer more incentives to travel agents who sell the airlines seats. A recent technological leap, the ticketless system, is expected to be implemented through-out the system and used by a majority of carriers. Paperless ticketing is expected to become increasingly popular with airlines and passengers. This will eventually lower costs and make it easier for end users to purchase their own tickets. Within five years one third of all US passengers will book their own flights, forcing the travel agency business to be restructured.
Many airlines form alliances through code sharing.
Code sharing allows airlines with a market presence in one region to extend their services to those in another. This allows cost cutting through shared counters, gate space, non-competitive computer software and bulk purchases. Recommendations for the Future Carriers should increase intensity and quality of service in business markets where customers are less price sensitive. As tickets become available on-line consumers will find it easier to purchase discounted tickets that would under other circumstances not be sold, therefore load factors and profits will rise. An airline with a strong hub will be an attractive partner for carriers in growing foreign markets.