The increasingly broad range of travel products and services available, as well as the proliferation of channels open to the customer, represent a significant opportunity for airlines to enhance both revenues and profitability. Industry estimates show that airlines are already earning $50bn in annual revenues through the sale of ancillary services, primarily through their direct channels. Amadeus research indicates that a further $53bn could be secured by 2020 by adopting an omni-channel strategy for these ancillary sales. In addition, new innovation in travel technology can bring a further $77bn in the same time frame.
Amadeus believes this will be achieved through the personalization of the traveler offer throughout the entire journey, delivered through every channel by systems that are open, intelligent and dynamic. With deep collaboration across the travel industry, new business opportunities will be created. By bringing together providers and participants across the travel industry at each key touch point in the traveler’s journey, unique customer insights will be leveraged to deliver offers and services that are personalized, relevant and timely.
“The global travel industry, and the way in which consumers experience it, is changing so dramatically that it requires a fundamental change to the way in which travel is sold and how the traveler is served,” said Luis Maroto, Chief Executive Officer and President of Amadeus. “With our industry insight and experience, our unrivalled R&D capacity and our global subscriber network, Amadeus is uniquely placed to bring the industry together in a global travel ecosystem that will bring huge benefits to both airlines and subscribers, offering significant potential to the industry to unlock greater value from its products and services.”
Three key elements will underpin Amadeus’ merchandising vision:
1. The development and roll out of a new Global Merchandising System that will enable airlines to create their offering dynamically, to provide consumers with the most relevant offer at any given time, through any point of sale of any channel, direct or indirect and through any device
2. The evolution of our retailing and distribution systems to enable the efficient and effective delivery of enhanced airline content at the point of sale, whether in the direct or indirect channel with a focus on agents’ needs to foster adoption
3. Full integration of both the new Global Merchandising System and Amadeus’ retailing and distribution systems with the Amadeus Altéa PSS Suite, delivering a truly joined-up and end-to-end traveler journey across key touch points such as servicing, delivery, disruption management plus ticketing and fulfilment.
“The introduction of dynamic and flexible merchandising tools for airlines will give them the opportunity to deliver a unique and personalized customer experience for each traveler and in doing so could unlock significant revenues,” said Julia Sattel, Senior Vice President of Airline IT at Amadeus. “Each customer values something different in their travel experience and Amadeus can help airlines to become intimate with their customers’ needs and deliver them the experience that they want, increasing both their loyalty and value.”
The Global Merchandising System, seamlessly delivered through Amadeus’ direct retailing and distribution systems - the world’s largest indirect airline sales network, will draw on real-time intelligence and information from both the buyer and the seller to facilitate the delivery of a personalized offer to each individual search, bringing the right offer more quickly, and clearly offering greater transparency, choice, convenience, and efficiency. It will enable airlines to realize their retailing and merchandising vision by giving them the ability to control the price, placement and promotion of ancillary content across all channels.
The Global Merchandising System and Amadeus’ retailing and distribution channels will be connectivity agnostic, available to Altéa and non-Altéa customers, and will enable the tailoring of airline content in every segment of the subscriber market and through every device, channel and customer touch point. Amadeus envisages that the systems will be compatible with planned NDC XML industry standards.
“Amadeus has a long track record of bringing subscribers and airlines together to develop new revenue opportunities and we are committed to maintaining that approach and making the necessary investment to develop a global travel ecosystem that will enhance commercial opportunities for both,” said Holger Taubmann, Senior Vice President of Distribution. “We do this by providing airlines with a platform to differentiate their offering, and to stand out and generate more revenue in a fierce competitive environment whilst we provide our subscribers with efficient and transparent access to the broadest range of content available.”
*Source: Amadeus gathered industry data from sources including IATA and Frost & Sullivan as well as its own proprietary research.
Amadeus is a leading provider of advanced technology solutions for the global travel industry. Customer groups include travel providers (e.g. airlines, hotels, rail and ferry operators, etc.), travel sellers (travel agencies and websites), and travel buyers (corporations and travel management companies).
The Amadeus group employs around 10,000 people worldwide, across central sites in Madrid (corporate headquarters), Nice (development) and Erding (operations), as well as 71 local Amadeus Commercial Organisations globally.
The group operates a transaction-based business model.
Amadeus is listed on the Spanish Stock Exchange under the symbol “AMS.MC” and is a component of the IBEX 35 index.
To find out more about Amadeus please visit www.amadeus.com, and www.amadeus.com/blog for more on the travel industry.
Amadeus IT Group
Tel.: +34 91 582 01 60
Tel.: +1 305 499 6448