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Home > Amadeus acquires Newmarket International

Amadeus acquires Newmarket International

Posted on February 2014

In December we announced the acquisition of Newmarket International, a leading provider of cloud-based group and event IT solutions to the hotel industry.

The addition of Newmarket, based in Portsmouth, New Hampshire, will bring a strong management team and talented workforce to Amadeus that will significantly strengthen the Group’s expertise and experience in the hotel IT industry, a key target sector for future growth. Newmarket also adds established relationships with key customers in the hotel segment.

We gain some insight from Jeff Edwards, Head of Global Hotel Business.

First of all, for those of us who don’t know, who is Newmarket International?

Newmarket, which serves around 22,000 unique properties in 154 countries, operates in the group and event management segment of the hotel industry, which is estimated to account for 30-40% of a full-service hotel's revenues. Newmarket has a strong track record of growth and profitability.

Newmarket assists hospitality organizations of all sizes to maximise revenues and resources

Newmarket assists hospitality organizations of all sizes to maximise revenues and resources by enabling each to find and win new business, welcome guests, and deliver exceptional service. Newmarket delivers proven hospitality solutions that: empower sales and catering teams to streamline business and generate more revenue; optimize operations leading to increased employee productivity and reduced costs; improve customer and guest satisfaction resulting in greater loyalty.

Can you sum up for our readers the top three most important benefits of this acquisition?

  1. This deal significantly strengthens Amadeus’ presence in the Hotel IT market, and emphasises our long term commitment to the hotel sector.
  2. The deal brings a strong management team with deep subject matter expertise and understanding of the hotel industry to Amadeus’ global technology infrastructure and capabilities.
  3. The combination of Newmarket and Amadeus’ vision, expertise and infrastructure opens up new opportunities to tackle long-standing challenges faced by hoteliers globally.

What do you see as the challenges faced by the hotel industry and how will Amadeus and Newmarket help address these?

The competitive landscape for IT vendors is not yet structured to effectively tackle challenges faced by hotel companies (outdated technology platforms, delayed investments in IT infrastructure, etc.). The market is fragmented between traditional IT specialists, global technology providers and in-house developments which don’t have the scale and/or focus to address the challenges faced by hoteliers. No single player was able to offer an end-to-end solution.

The combination of Amadeus’ and Newmarket represents a compelling ‘one-stop-shop’ alternative for hotel chains.

Amadeus is making significant investments in the area of hotel IT, including but not limited to an all new community CRS and PMS solution, based on the world renowned Altea community platform for Airlines. Newmarket possesses a unique portfolio of solutions that will further complement our technology investments, allowing Amadeus to offer a comprehensive set of unique solutions that will differentiate Amadeus from competition.

The combination of Amadeus’ global scale and reach and expertise in core IT areas and Newmarket’s subject matter expertise in complementary hotel solutions represents a compelling ‘one-stop-shop’ alternative for hotel chains.

Why is this news interesting for current customers of Amadeus or Newmarket?

Newmarket is the undisputed leader in the area of sales and catering, group and events management, and hotel processes optimisation. Newmarket’s products are fully scalable, and are deployed at an individual property level (although master agreement exist with most large international hotel chains), as well as on a subscription fee model accessed via Newmarket’s cloud based versions. Therefore, these tools are well suited to all types of hotels – large chains, mid-size chains and independent properties. These are all solutions that are centred around a hotel’s property.

For current customers, they will over time have the benefit of adding a broad range of products and services

This comes as a complimentary set of solutions to Amadeus’ own portfolio comprising Central Reservation System (CRS) and Property Management System (PMS). The acquisition of Newmarket positions Amadeus uniquely as an end-to-end travel and hotel IT solutions provider. This will allow for joint and continued R&D programs and investment to maintain technology leadership and create the industry’s next generation hospitality community model.

For current Newmarket customers, they will over time have the benefit of adding a broad range of products and services (CRS, PMS, e-Commerce, etc.) previously not available from Newmarket which will be provided on a SaaS basis. Sales, deployment and customer service will all be provided by Newmarket to the high standards it is recognised for around the world.

You mentioned community model, what is the model and how does the acquisition fit into the model?

Amadeus uses an innovative Community Model concept for travel technology development, which is already delivering great benefits to our customers. We are committed to funding community developments and involving our customers in regular forums to discuss market changes and priorities. This approach enables us to maximise synergies and deliver a cost-effective and rapid response to common industry challenges. The benefits are: reduced development costs, richer functionality, smooth upgrade, reduced time to market, and increased scope for private development.

The Newmarket products and services are very much aligned with the Amadeus Community Model concept. Many of the current products offered by Newmarket are already cloud based and therefore will easily adapt to the new model.

What does this mean for hotel chains and Amadeus and Newmarket customers?

In short, the combination of Newmarket’s subject -matter skills and specialized solutions with Amadeus’ global scale, technology infrastructure and core-system expertise allows us to jointly expand our vision for the future and opens up a myriad of potential new opportunities. Together we are in a strong position to tackle the challenges that our hotel customers face today – from major chains through to independent properties and. We hope that all our customers will join us on this exciting journey as we shape the future of hotels.

For more information on Newmarket, please visit www.newmarketinc.com.

For more information on Amadeus Hotels, please visit www.amadeus.com/hotels.