Airlines shift spending from IT to customer service

07/1/2009 | Wall Street Journal, The

In cost-saving mode, airlines appear to be cutting their overall spending on information technology while boosting investments in areas that improve customer service. According to a new SITA study, airlines spent less last year for back office technology such as reservations systems -- the first year-over-year decrease since 2002. But technologies such as cell phone boarding passes are on the rise, and airlines will soon begin testing a new baggage-tracking kiosk where travelers can log missing bags in just two minutes, compared to an average of 45 minutes using a customer service agent.

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