Were you one of the more than a billion passengers who flew on a low-cost carrier in 2015? If you travel at all, then the answer is probably yes. LCCs now account for over 25% of global airline seats and business is booming. Amadeus travel agency customers can book over 90 LCCs, including 8 out of 10 of the world’s top LCCs.
Why are more and more LCCs joining Amadeus?
Already, LCC distribution via Amadeus is delivering real results for both airlines and travel agencies with a 71% growth in bookings since 2012. The value of the GDS as a distribution channel has long ago proven to provide real benefits for airlines with higher revenue per passenger and increased bookings. LCCs are also looking for new ways to grow beyond their home base by tapping into new customer segments and hundreds of travel agencies worldwide, opening completely new business opportunities.
Why are more and more travel agencies booking LCCs on Amadeus?
Simply because it’s 5 times faster than on airline websites and offers savings on average of 3 Euros when booking a round trip and 6 Euros when making a trip change. The benefits for agencies improve not only the financial performance but also the overall customer satisfaction. An improved traveller experience through more diverse content allows agents to demonstrate their value by offering carriers and fares that best suit traveller’s needs, while ensuring both leisure and business travellers get the best deal.
Amadeus light ticketing technology has also made it possible for LCCs that don’t comply with industry ticketing standards, like Ryanair, Spring China, easyJet and Transavia, to integrate their inventory through Amadeus, making it easy to distribute their content while keeping the same workflow that agents use for full service carriers.
What’s our commitment for the future?
We have a vision to bring travel agencies all the content and integration they need to succeed with LCCs by continuously creating opportunities for them to efficiently manage their businesses and create new revenue streams. Our commitment is to allow LCCs to distribute via Amadeus with a seamless booking process that is fully integrated into the travel agents’ workflow. We’re making our LCC and Hybrid offer even stronger by continuously expanding our LCC content with the most recently implemented low-fare companies being Interjet, Spring China, Air Arabia Maroc, Thai Smile and soon to come Spring Japan and Fastjet.
It comes without saying that all the work behind the scenes requires huge investment in bespoke technology to make sure we offer a smooth booking experience for our travel agency partners.
In 2014 Amadeus invested €568.4million in R&D, taking the total invested in R&D between 2004 and the end of 2014 to over €3.5billion.
We are also excited about the opportunity that the acquisition of Navitaire brings us. This will allow us to better understand the needs of these carriers and will enhance the indirect channel for them, similar to what we have done on the full-service side with Altéa. With Navitaire becoming part of the Amadeus family, we can address comprehensively all the needs of diverse LCCs under one roof.
For all travel agencies, check out all the savings you can make by booking LCCs in Amadeus in this LCC interactive tool.