Amadeus e-commerce technology enables airlines to increase online yield
Aggregated online data on 8 airlines shows increase of 8% in online yield and over 30% in revenue in a few months
Business Release
1 Dec 2005
Aggregated online data on 8 airlines shows increase of 8% in online yield and over 30% in revenue in a few months
Air France Vice President Distribution, Henri Hourcade, stated "We have seen an immediate and remarkable increase in sales revenues with the introduction of Amadeus Flex Pricer."
"Amadeus e-commerce technology continues to support our long term international strategy of increasing our online yield and profitability." said Arni Sigurdsson, Director Distribution at Icelandair.
"Our analysis on a non-weighted basis also showed increases in both online yield and revenues, which proves that our technology benefits all types of airlines", adds Jérôme Destors, Commercial Director of Amadeus e-Travel. "We have noticed that leading airlines increasingly strive to not only save costs by outsourcing critical parts of their websites, but also improve their profits by adopting our on-demand e-Merchandising solutions."
In parallel, a recent survey3 conducted by Amadeus among 85 executives from 35 airlines confirmed that online yield is a high business priority. The survey respondents outlined the most important objectives in e-commerce to be growing volume (97%), followed by increasing yield (92.5%) In this survey, reducing costs was the lowest priority after ensuring reliable growth, enhancing competitiveness, and enhancing loyalty.
About Amadeus e-Merchandise
Amadeus e-Merchandise is a full Software-as-a-Service hosted solution, which enables airlines to structure, manage, display, and efficiently promote their fares online, empowering travellers to make their most advised decisions on a comprehensive calendar display and up-sell panels. Amadeus e-Merchandise is aimed at enabling airlines’ profitability strategies and enhancing their end-users’ experience online. Integrating with any environments, Amadeus e-Merchandise consists of a number of products such as Amadeus Flex Pricer as a pricing engine, Amadeus FareXpert to manage fares, Amadeus Global Connect to ensure scalability, and Amadeus e-Design to build, maintain, and host complete e-commerce stores. The user interface offers advanced navigation techniques with a large choice of available options for online travellers to decide on times, dates, fares, and fare conditions.
1. Excluding any adjustments for market conditions such as seasonality effects, regional conditions, or exchange rate variations and assuming a minimum Flex Pricer production volume.
2. In this research, the online yield is the total online Fare Amount data for all relevant airlines divided by their total number of online PNRs.
3. 8th Edition of e-Travel Summit for Airlines - May, 2005.
Notes to the editors:
About e-Travel, the e-commerce division of Amadeus.
e-Travel is the e-commerce division of Amadeus, a global leader in technology and distribution solutions for the travel and tourism industry. It provides e-commerce solutions to airlines, corporations, travel agencies and other online travel businesses, and is dedicated to its customers net success. e-Travel serves customers in 90 countries including corporations such as DaimlerChrysler and Oracle Corporation, airlines and travel suppliers such as Air France, Iberia and Qantas, and online agencies such as Opodo.
For further information, please visit our Web site at www.amadeus.com/airlines
Contact details:
Corporate & Marketing Communication
Amadeus
Tel: +34 91 582 0160
Fax: +34 91 582 0188
E-mail: externalcommunication@amadeus.com
Madrid, 1 December 2005: e-Travel, the e-commerce division of Amadeus and the global leader in online travel solutions, today reported results on the performance of its online solution Amadeus e-Merchandise, the most widely adopted global merchandising solution for airlines, which includes Amadeus Flex Pricer. This analysis shows that Amadeus has been instrumental in supporting airlines’ strategies to increase their profitability levels by implementing fare shopping solutions that enhance online yield and grow online volume.
Amadeus analysed aggregated online Passenger Name Record (PNR) and Fare Amount data1 from 8 leading airlines - Air France, bmi, Finnair, Iberia, Icelandair, Luxair, Qantas, and Wideroe - which together carry more than 100 million passengers a year, and which have adopted Amadeus e-Merchandise.
On a weighted basis, the Amadeus investigation showed:
- an 8 % increase in online yield2 when comparing the consolidated online fare amount data in the three months before and in the three months after each airline’s initial launch month of Amadeus e-Merchandise,
- over 30% revenue increase over the same period resulting from the above yield improvement and online volume growth, which represented more than 100 million Euros in additional ticket sales for these airlines.
Air France Vice President Distribution, Henri Hourcade, stated "We have seen an immediate and remarkable increase in sales revenues with the introduction of Amadeus Flex Pricer."
"Amadeus e-commerce technology continues to support our long term international strategy of increasing our online yield and profitability." said Arni Sigurdsson, Director Distribution at Icelandair.
"Our analysis on a non-weighted basis also showed increases in both online yield and revenues, which proves that our technology benefits all types of airlines", adds Jérôme Destors, Commercial Director of Amadeus e-Travel. "We have noticed that leading airlines increasingly strive to not only save costs by outsourcing critical parts of their websites, but also improve their profits by adopting our on-demand e-Merchandising solutions."
In parallel, a recent survey3 conducted by Amadeus among 85 executives from 35 airlines confirmed that online yield is a high business priority. The survey respondents outlined the most important objectives in e-commerce to be growing volume (97%), followed by increasing yield (92.5%) In this survey, reducing costs was the lowest priority after ensuring reliable growth, enhancing competitiveness, and enhancing loyalty.
About Amadeus e-Merchandise
Amadeus e-Merchandise is a full Software-as-a-Service hosted solution, which enables airlines to structure, manage, display, and efficiently promote their fares online, empowering travellers to make their most advised decisions on a comprehensive calendar display and up-sell panels. Amadeus e-Merchandise is aimed at enabling airlines’ profitability strategies and enhancing their end-users’ experience online. Integrating with any environments, Amadeus e-Merchandise consists of a number of products such as Amadeus Flex Pricer as a pricing engine, Amadeus FareXpert to manage fares, Amadeus Global Connect to ensure scalability, and Amadeus e-Design to build, maintain, and host complete e-commerce stores. The user interface offers advanced navigation techniques with a large choice of available options for online travellers to decide on times, dates, fares, and fare conditions.
1. Excluding any adjustments for market conditions such as seasonality effects, regional conditions, or exchange rate variations and assuming a minimum Flex Pricer production volume.
2. In this research, the online yield is the total online Fare Amount data for all relevant airlines divided by their total number of online PNRs.
3. 8th Edition of e-Travel Summit for Airlines - May, 2005.
Notes to the editors:
About e-Travel, the e-commerce division of Amadeus.
e-Travel is the e-commerce division of Amadeus, a global leader in technology and distribution solutions for the travel and tourism industry. It provides e-commerce solutions to airlines, corporations, travel agencies and other online travel businesses, and is dedicated to its customers net success. e-Travel serves customers in 90 countries including corporations such as DaimlerChrysler and Oracle Corporation, airlines and travel suppliers such as Air France, Iberia and Qantas, and online agencies such as Opodo.
For further information, please visit our Web site at www.amadeus.com/airlines
Contact details:
Corporate & Marketing Communication
Amadeus
Tel: +34 91 582 0160
Fax: +34 91 582 0188
E-mail: externalcommunication@amadeus.com
