CAPA data shows that LCCs flew almost 1.4 billion seats worldwide in 2015 – the highest ever on record, with a share of total seats flown of just over 25%.
As LCCs become more established and transition to the hybrid space, traditional carriers continue to adjust their cost base and operations. In the face of this intensifying competition, carriers of all business models are exploring new ways to secure future growth – and LCCs are looking to Amadeus.
CONNECTING – Powering industry partnerships
8 new LCC and Hybrid carriers signed with us in 2015, and, just in the last quarter, 4 more joined Amadeus to boost volumes and yields across their networks.
The start of 2016 also saw Ryanair launch its Business Plus Fare for the first time in partnership with Amadeus and with no surcharge as well as Spring Airlines, North Asia’s largest LCC, joining Amadeus to drive their plans for expansion using our extensive agency network and unique light ticketing technology.
With over 80 LCC and Hybrid carriers in Amadeus today, including 8 out of the 10 world’s largest, the momentum of new carriers coming to Amadeus is expected to continue throughout 2016.
DELIVERING – real results
So why the migration of LCCs and Hybrids to Amadeus?
Simply, we’re delivering real and significant results for our low-cost and hybrid customers:
- Average ticket yields for leading LCCs is 20-60% higher in Amadeus than on their own websites
- For carriers partnering with interline or codeshare partners, volumes are increasing on average by 19%
- For ticketless carriers, our light ticketing solution delivers twice the volumes compared to traditional API integration
- Ancillary services and fare families sales are achieving up to 80% attachment rates
Whether LCC and Hybrid carriers seek to target the business traveller, expand internationally, increase volumes or feed into traditional routes, these carriers recognise that the indirect channel can complement their existing business by offering new revenue opportunities, supporting cost efficiency and improving the customer experience.
And with the recent acquisition of Navitaire we foresee exciting, new opportunities to simplify and improve the way carriers distribute.
Check out this infographic of Airline Distribution Q1 2016 Highlights to see how we’re powering industry partnerships, delivering real results and leading the conversation in the LCC and Hybrid global arena.
Don’t miss us at the CAPA LCCs in North Asia event in Tokyo on 7 – 8 June, where we will be on a panel with leading LCCs from the Asia Pacific region to talk about the Japanese LCC market!