Total number of Passengers Boarded in 2011 increased to 439.1 million, or 17.9% higher than in 2010, despite the loss of traffic from Mexicana, which ceased operations in August 2010. Excluding the impact of migrations, total PB grew by 7.3%, ahead of traffic growth, given the positive mix in our client base. As of December 31, 2011, 52.1% of our total PB volume was generated by Western European carriers, with the remainder generated in high growth geographies. Latin America was the only region where our PB base did not grow, due to the above mentioned Mexicana bankruptcy.
During 2011, 11 airlines were contracted onto our Altéa Reservations and Inventory systems and 21 onto our Departure Control system. At December 31, 2011 we had 115 airlines contracted to our Altéa product, out of which 100 were already implemented. Of these, 42 were already using the full Altéa Suite and the remaining 58 were using the Reservation and Inventory modules.
Total like-for-like IT Solutions revenue increased by 7.8% in 2011 driven by the strong growth in IT transactional revenue which was somewhat offset by declines in Direct Distribution.
As shown in the table below, IT transactional revenue increased by 17.4% in 2011, from €366.6 to €430.3 million. This growth was supported by very solid performance in all main revenue lines:
Our IT transactional revenue per Passenger Boarded for 2011 was €0.98, in line with 2010.
Like-for-like revenue from direct distribution dropped 15.9% in 2011. This decrease was driven by a decline in bookings resulting from the full year effect of existing Reservations module users (notably Air France-KLM and LOT) migrating to, at least, the Altéa Inventory module. Once migrated on to the Altéa Inventory module, these clients are charged a fee per PB, and revenue is accounted for under IT transactional revenue, rather than Direct Distribution.
Non transactional revenue decreased from €70.2 million in 2010 to €63.9 million in 2011, driven by a decrease in revenue from our Property Management System product given the disposal of our equity stake in Hospitality Group in September 2010. Adjusting for Hospitality, non transactional revenue would have had a positive growth.
The contribution of our IT Solutions business is calculated after deducting from our revenue those operating costs which can be directly allocated to this business (variable costs, including certain distribution fees, and those product development, marketing and commercial costs which are directly attributable to each business).
Total contribution for 2011 amounted to €455.9 million, up 11.3% vs. 2010. There was also a significant margin expansion from 68.1% in 2010 to 72.6% in 2011.
The 11.3% increase in the contribution of our IT Solutions business in 2011 was driven by higher revenues, the significant decrease in operating costs and higher capitalisations. This decline in operating costs was the net result of a number of factors. The key drivers for the decline in costs were certain cost control measures, a favourable FX impact and certain one-off effects such as the reduction in variable costs from the change in the treatment of certain bookings, and the sale of Hospitality Group in 2010. These effects were partially offset by an increase in R&D expenditure associated with upcoming migrations to the Altéa Inventory and Departure Control System modules, as well as other product implementations (within e-Commerce and Stand Alone IT solutions as well as in relation to ancillary services) and to new projects for portfolio expansion (mainly related to Revenue Management and Revenue Accounting). We also continue to work in product evolution, adding new functionalities such as code sharing, customer experience, availability control, etc. Finally, commercial costs related to account management and local support also increased.