Within the travel and tourism industry, GDS platforms connect a large number of travel providers with a large number of travel agencies, through which corporations and end consumers can buy travel. As such, Amadeus creates value in the travel distribution chain for both travel providers and travel agencies:
We operate within a two-sided business model where (i) success in attracting and retaining travel agency customers and (ii) breadth of travel provider offering can create a virtuous cycle: the more comprehensive our content, the more attractive we are to travel agencies and the more travel agency subscribers we have, the more attractive we are to travel providers in offering them enhanced global reach.
We operate primarily on a fee-pertransaction basis, collecting a booking fee from the relevant travel provider for travel bookings processed through our platform. Although such bookings are initiated and completed through travel agencies, the fee is paid by the travel provider.
Amadeus is the largest GDS provider serving the worldwide travel and tourism industry, with an estimated market share of 37.7% in 2011 1. Amadeus holds the number one position in travel distribution in Western Europe and Central, Eastern and Southern Europe (CESE), as well as in faster growing emerging regions such as the Middle East and Africa and the Asia-Pacific region.