Despite a challenging economic environment and difficulties in the travel industry, 2012 was overall a very successful year for Amadeus during which it maintained growth and further consolidated its leading position in the industry.
This growth was attributable to successful expansion across both business lines. In Distribution, our global market share in travel agency air bookings expanded 0.9 percentage point vs. 2011 to become 38.6%, helping grow revenue by 5.8%. In IT Solutions, as the number of migrated Altéa customers increased to 109 airlines, Passengers Boarded rose by 28.4% vs. 2011 and revenue went up by 13%.
Amadeus’ overall customer portfolio evolved significantly during the year to diversify by both area and geography. Landmark customer wins in North America with Expedia, Southwest Airlines, and Kayak deserve special mention. So too does the fact that the number of airlines contracted for both Altéa Reservation and Altéa Inventory increased to 121, raising our estimated PB for 2015 to 800 million – which would be an increase of 42% on 2012. In Distribution, whilst many contracts with key airlines were re-signed, we also signed many new Low Cost Carriers (LCCs). Increasing LCC adoption in the travel agency channel is a key priority for Amadeus, and a number of initiatives are in place in order to increase the number of bookings for LCCs from travel agencies. We also made great progress in the growth area of merchandising, and specifically in relation to ancillary services where the Amadeus Ancillary Services solution has been contracted by 53 airlines. Our New Business units also continued to tap into the significant growth potential for the provision of IT solutions to rail providers, hotels and airports, with many important customer wins.
We attribute these successes directly to our leading customer offering and once again our tireless dedication to innovation remained core throughout the year, launching products such as Amadeus Featured Results and increasing total R&D investment by 20% to €414 million.