When it comes to selecting the right IT solution, value for money is not just about price.
Airlines can find several legacy passenger service systems on the market at a lower, dumped price because they have been amortised over decades. But outsourcing to these providers is certainly not a wise decision when you take into account the cost of the migration project – and the fact that another migration will certainly be necessary soon to renew the legacy technology.
In fact, return on investment depends mainly on the value that the new Customer Management Solution can generate for the business. But only new generation solutions – bringing new added value features, integration benefits with partners and superior service performance – can generate significant value.
Airlines estimate the value that Altéa brings to their operations at several dollars per passenger boarded. And that’s the sort of level of ROI that is necessary to justify the launch of a major transformation project...
The main sources of value creation are the added value features that new generation solutions bring to an airline.
Amadeus IT solutions have been designed to bring additional features to meet the needs of airlines of all sizes and environments. This is the main reason why Amadeus invested €300 million to develop such applications.
These added value features will have a multiple impact on your business: productivity enhancement, reduction of some direct operating costs, improvement of direct revenue, increase of revenue from repeat customers or faster time to market.
This impact varies for each airline, but always translates into significant hard currency benefits.
The second source of value creation is the common platform that provides unique benefits for integration with partners.
Obviously, the integration with alliance, code share or even interline partners is greatly facilitated and accelerated, which generates one-shot cost savings.
But most of the value comes from the fact that airlines can integrate better with their partners, leading to ongoing benefits like seamless service for passengers, joint cost reduction or revenue enhancement opportunities.
Airlines migrating to Amadeus Altéa benefit from industry-leading levels of service availability, meaning fewer service outages and fewer episodes of degraded system performance.
Any service outage for critical customer management solutions is very costly – bringing direct costs, such as lost sales and delayed flights, as well as negative impacts on customer perception and brand image. So any increase in service reliability translates into significant value.
Amadeus offers a flexible pricing model for its IT solutions, based on the scope selected and value provided.
Our software as a service model enables you to benefit from a variable price, eliminating high fixed costs of IT operations and the need to divert financial resources from core business to fund new IT developments needed to support your business evolution. As part of its long-term partnership approach, Amadeus strives to set competitive but fair price levels that take into account the value brought by your business and the incurred development and maintenance cost.