Improve your operating costs

Amadeus' new generation IT Solutions simplify your business and enable you to implement more efficient and cost-effective processes.

This translates into a significant reduction of your direct operating costs - on top of productivity gains.

Amadeus is an active IATA Simplifying the Business Strategic Partner, and is committed to providing solutions that help to improve airline industry operations.

Schedule management costs

• Reduce the cost to launch a new schedule, product or business policy
• Reduce the cost to re-accommodate individual passengers
• Reduce the cost to manage seasonal schedule change

Distribution costs

• Enable implementation of optimised distribution strategy (maximising margin per customer), easily combining all direct and indirect sales channels
• Eliminate passive bookings costs with Amadeus travel agencies
• Develop cost-effective direct online channels
• Drastically reduce ticketing costs by moving to 100% e-ticketing and ensuring e-Ticket synchronisation

Servicing costs

• Significantly reduce the cost of serving your own frequent travellers and those of your partners
• Drastically reduce the cost of serving codeshare customers and eliminate the cost of codeshare discrepancies
• Reduce the cost to change a ticket

Check-in and airport servicing costs

• Reduce check-in cost by simplifying agent check-in process and developing self service check-in
• Reduce cost to check-in customers from alliance partners
• Eliminate cost of penalties by automating regulatory checks
• Minimise overbooking costs by selecting the most appropriate customers for transfer or offload
• Minimise disruption management costs by selecting the most appropriate customers and automating the process
• Reduce cost of flight delays caused by passengers

Load planning costs

• Reduce the cost to manage a flight departure by automating weight and balance and simplifying the process
• Reduce the cost of flight delays due to load planners' mistakes

Training costs

• Reduce system training costs for all new operational employees with graphical user interfaces and usage of workflows

Communication costs

• Reduce messaging costs with partners who are part of the Amadeus community

Optimise the total cost of ownership of your IT solution

Airlines outsourcing to Amadeus reduce the total cost of ownership of their IT solutions (for a similar scope).

Although each airline is a different case, for specific IT operating costs and models (in-house or already outsourced), you can expect the following cost reductions:

Save on IT operating costs

• Benefit from Amadeus economy of scale
• Eliminate the cost of industry mandates
• Eliminate the cost of technology or hardware upgrade
• Share the cost of full back-up services with other airlines

Save on new developments

• Benefit from Amadeus community developments for free
• Share new developments with other airlines
• Avoid financial cost of heavy one-shot investment

Reduce costs in case of business downturn

• Benefit from full pay as you use model (versus in-house solution)

Reduce cost of service outage

• Improve service availability levels through hosting by Amadeus

Share costs with airline partners

Airlines joining the Amadeus common platform can easily combine operations with their partners on the same platform:

• Reservation and ticketing offices
• Call centres
• Airport check-in counters
• Airport load planners

This rationalisation leads to very significant benefits, with an average of up to 30% reduction in costs when combining two offices in the same location.

Expected financial benefits

Migrating to an Amadeus Customer Management Solution provides immediate cost reductions.

The estimated financial returns will depend on an airline's current situation (eg, whether it is already equipped with an e-ticketing solution or not) and transformation plan.

As a guide, airlines generally estimate the value of cost reductions (outside productivity gains) due to the use of Amadeus solutions on average as between 2% to 3% of total operating costs.

Source: Amadeus Value Proposition workshops.

The impact on the total IT cost of ownership depends greatly on the airline and the gain in terms of current sophistication.