Amadeus advises travel agencies to look for win-win partnerships and new selling strategies

Amadeus hosts ‘Power Breakfast’ event for travel agents in the Philippines, offering advice and survival strategies for the current downturn

Makati City, Philippines, 15 June 2009: Amadeus, a leading global technology partner to the travel and tourism industry, hosted a Power Breakfast seminar for travel agents in Manila last week, offering advice on ways to ensure their business remains viable through the current downturn.

Speaking at the Power Breakfast, Peter Smith, Vice President of the Business Solutions Group at Amadeus Asia Pacific, said that local travel agencies should look for new partnerships and explore different selling strategies to stay ahead in today’s competitive and challenging marketplace.

“The travel agency channel remains an efficient and profitable channel and an essential sector of the industry, with many opportunities for growth,” said Smith. “Amadeus is committed to helping travel agencies improve their bottom line, particularly during the current downturn.” Smith suggested four key areas where travel agencies should focus their attention:

Cost and efficiency awareness

“In today’s economy, cost awareness is crucial,” said Smith. “Many travel agencies in Asia are recognising that Amadeus’ technology can help to improve efficiency and cut costs, through our Quality Control and Applications Server Based solutions. At the same time, agents must consider offering more value-based travel options for travellers who are now very budget-conscious.

Airline alliances

In the Philippines, Low Cost Carrier (LCC) travel is the choice for many passengers. “In addition to their partnerships with national and major full-service carriers travel agents can work with LCCs and secondary carriers to package a destination and offer value deals to more regional destinations,” said Smith.

Competing with the online channel

Airlines are driving more business to their websites in an effort to cut costs, and consumers are looking for lower prices by booking direct on the Internet. Many travel agencies are concerned about this trend, with 48% of the Power Breakfast attendees rating ‘competition from online travel agents’ as a significant business hurdle for 2009. However, there are actions that travel agencies can take to combat this threat, primarily by establishing their own online presence. “Amadeus is helping many travel agencies of all different sizes to build their online business with the Amadeus Agency Internet Engine. This solution enables travel agencies to develop an effective website that will allow customers to search and book flights, hotels and more,” said Smith.

Industry cooperation

Airline consolidation is increasingly common in Europe and the USA as carriers recognise that ‘going it alone’ may not be the right strategy for survival. According to Smith, travel agencies should also seek partnerships that will benefit their business and the industry as a whole. “If travel agencies work together with tourism bodies, industry associations and government organisations, they can create attractive joint-promotions and packages that will boost travel volumes in the Philippines and create more business for all.”

Smith said that for its part, Amadeus will continue to provide travel agencies with technology that becomes an asset to their business.

“Technology does not have to come at a high cost in order to deliver strong returns,” said Smith. And it seems that this message is starting to reach the travel agency community in the Philippines, with 72% of the Power Breakfast attendees rating ‘adopting new technologies’ as a tactic that could improve their profitability in 2009.

Amadeus has been operating in the Philippines since 1997 and today works with more than 2,000 travel agencies in the country.