Amadeus First-half Revenue Exceeds 1.3 Billion; Asia Pacific Market Share Passes 28%
Company reaps benefits of continued technology investment, demonstrated by market share, bookings and revenue growth
Singapore (Asia Pacific), Amadeus, a global leader in technology and distribution solutions for the travel and tourism industry, today announced its financial results for six months ending on 30 June 2006.
Asia Pacific continues to demonstrate strong growth in travel agency bookings, online and e-ticketing. Travel agency bookings in the region grew by eight percent to over 25 million. Asia Pacific also saw a significant uptake in e-ticketing with nearly four million e-tickets issued in the first six months of 2006, up nearly 30%. Online bookings processed by Amadeus in the region grew by 56% to nearly 700,000.
Jose Antonio Tazón, President and CEO, Amadeus, comments: “Amadeus’ strong financial performance is testament to our investment in technology for the travel industry. We are proud to manage one of the largest and most advanced civil data centres in the world, which we believe is a key differentiator in our evolving industry and we will continue to invest €300 million each year in our technological infrastructure and development.”
“We continue to drive the transition of our GDS system architecture to open systems based on Unix and Linux, which will deliver two fundamental benefits to our customers. It will keep costs under control as transaction volumes increase exponentially: each day, our datacentre already processes 310 million customer queries. Second, open technology is already allowing us to bring new services and solutions to the market more quickly. As the outsourcing partner for some of the biggest names in travel our time-to-market is their time-to-market.”
To date, Amadeus has secured content agreements with over 100 airlines across the globe for travel agents and corporations. The most recent ones include US Airways, Copa Airlines, KLM, Maxjet, Paramount Airways and Vueling. Currently 59 airlines in the European market have signed up to the Amadeus Full Content Option, which assures travel agencies that schedules, fares, last seat availability and associated inventory available through Amadeus will be the same as content offered in the following channels:
- any internet website, including the airline’s own website
- the airline’s own reservation system
- any other GDS
In July, Amadeus announced a global technology agreement with Eurostar, high-speed passenger train service linking the UK with the Continent. For the first time, users can compare and book real-time Eurostar for routes on the same display as the airlines. In addition, Deutsche Bahn's fares and availability will also be available on the airline display thanks to a global agreement with Amadeus and AccesRail, allowing agents to choose between rail and short-haul air.
The Amadeus Leisure platform was launched in France as a tour package solution for travel agents. Selectour is the launch partner, the largest French independent travel agency network covering over 550 travel agencies employing 1,600 travel agents, with over 1,800 points-of-sale in France. In the near future, Amadeus will make its Leisure Platform available to the entire French leisure agency network.
Amadeus added two new cruise lines in the first half of this year – Oceania and MSC Cruises – taking its cruise offering to over 18 cruises lines, the highest of all GDSs. eCruise solution was launched in the US, with plans to expand to other global markets soon. Amadeus continued the rapid uptake of its cruise solution with bookings growth of 200% compared with the same period in 2005.
During the first six months of the year, Amadeus announced the signature of two new global technology partnerships with ITP and Uniglobe. Amadeus will provide common technology platforms for both organisations. Using a common IT platform allows an organisation to deliver a global standard of service more reliably and efficiently, which is becoming more and more important to corporations looking for a travel management partner. Amadeus also extended its partnership with Thomas Cook for another four years, with a global deal to add Egypt, Germany, France, Belgium, Austria, Hungary, Poland, UK, India and Sri Lanka to the list of markets where the companies work together.
Advanced low-fare search technology and full content agreements with leading airlines continue to make Amadeus a partner of choice for online travel agencies in Europe. In May, the company began a long-term agreement to provide Expedia with the distribution technology and travel content it needs to offer more flights, better prices and more destinations. And after one year of successful partnership the company announced plans to continue to support Terminal A on their international expansion plans through Amadeus’ technology platform. Amadeus has similar agreements with the top four online travel agencies in Spain and nearly all of Europe’s leading online travel agencies.
EgyptAir and Etihad Airways became the 27th and 28th airlines to select Amadeus Altéa CMS to improve customer service and gain agility to quickly adapt to changing market forces.
Electronic Ticketing: British Airways implemented electronic ticket interline links through Amadeus e-Ticket Server (ETS) with 40 airlines, including all of its oneworld partners and most recently, Austrian Airlines, bmi, Kenya Airways, LOT Polish Airlines, Sri Lankan and Singapore Airlines. Over the next two years, Amadeus will help British Airways to implement e-ticket interlining with an additional 80 new interline partners. Amadeus e-Ticket Server, a hosted solution built on flexible open technology, allows airlines to outsource their full distribution and interlining e-ticketing operations.
Other technology for airlines: British Airways migrated to Amadeus Codeshare, which allows airlines to fully host all codeshare messaging needs in the Amadeus system without maintaining a separate and additional system to communicate between different airlines' inventory systems. British Airways can now support ten partner airlines including Aer Lingus, American Airlines, Cathay Pacific, Finnair, Iberia, Japan Airlines, KLM Royal Dutch Airlines, LAN Airlines, SN Brussels and Qantas.
Travel Intelligence: 31 airlines around the globe are currently using Amadeus Revenue Integrity to improve yield, forecasting and load factors. This solution helps an airline ensure it is filling planes with paying customers instead of empty seats. Airlines using Amadeus Revenue Integrity have reduced of no-shows from 13% to 4% within days of starting to use the solution.
Distribution: Airlines around the world continue to place their trust in Amadeus for the provision of electronic ticketing solutions. Currently 138 airlines and 134 markets can issue e-tickets through Amadeus.
Online solutions: Kenya Airways implemented Amadeus e-Retail Solution, the best-in-class online booking engine for airlines, and one of the main components of the Amadeus e-Travel Airline Suite. This has been instrumental in supporting the airline’s strategy to increase their profitability levels and customer loyalty.
Airline bookings made through the Amadeus e-Travel Airline Suite increased by 28% during the first half of 2006, compared with the same period of 2005. 70 airlines currently use the Amadeus e-Travel Airline Suite, including Qantas, Air France, and Iberia.
Low cost carrier solutions: Amadeus announced a pilot scheme with a new solution to revolutionise the low cost airline market by providing comprehensive, up-to-the-minute fare and flight information access for the first time to travel agents and corporate customers. The solution, called Ticketless Access, is being piloted by Sterling, a leading Scandinavian low-cost carrier.
Xtra Airways successfully implemented Results Customer Management Solution by Amadeus, the hosting, reservation, fares and pricing, inventory and departure control solution designed specifically for the ready-to-market needs of low-cost carriers.
Partnerships: Amadeus partnered with DOB Systems, a leading provider of market intelligence solutions to the airline industry, to deliver a fully portfolio of data analysis solutions for airlines.
Amadeus also partnered with Constraint Technologies (CTI), a leading provider of optimisation technology to the airline industry, to bring airlines a fully integrated solution comprising CTI's powerful crew and flight operations optimisation solutions and Amadeus' new generation customer management solutions offering.
The flagship corporate self-booking tool, Amadeus e-Travel Management was upgraded twice in the first six months of the year; the solution now provides wider choice, more flexibility, increased cost savings and improved presentation of onscreen data for a smoother, more-informed and faster booking process.
Amadeus announced the development of direct connects between e-Travel Management and Avis and Europcar, combining the best of the direct connect model with the back-up of the travel management company. Amadeus also added the Madrid-Barcelona Puente Aereo air shuttle, SAS Travelpass cards, and Finnair multifly.ecards, for all ticketless travel on Finnair e-ticket routes in Europe.
Amadeus’ corporate travel management division gained the Cybertrust Security Management Programme (SMP) Certification.
Enhancements continue to be made to the hotel service with sales up 50% year on year. A new insurance deal was entered into with AIG and in air sales Opodo has maintained its number two position across Europe. In May the company launched its own bespoke Dynamic Packaging Solution across its UK, French, German and Italian sites.
Karavel, the French tour operating business, has expanded to include regional departures and new destinations with sales up 30% year-on-year while Vivacances has increased sales by 80% year-to-date compared with the same period last year.
Amadeus is the chosen technology partner for providers, sellers, and buyers of travel. The company provides distribution, IT and point-of-sale solutions to help its customers adapt, grow and succeed in the fast changing travel industry. Customer groups include travel providers (airlines, hotels, car rental companies, railway companies, ferry lines, cruise lines, insurance companies and tour operators), travel sellers (travel agencies) and travel buyers (corporations and travellers). Solutions are grouped in four solution categories – Distribution & Content, Sales & e-Commerce, Business Management and Services & Consultancy.
Solutions for travel providers: Amadeus distributes content to around 385,000 points of sale located in over 215 markets worldwide through a range of technology solutions. For airlines Amadeus Altéa Customer Management Solution (CMS) is the first new generation IT platform seen by the airline industry for 30 years, allowing airlines to unlock the full value of each traveller and turn their passengers into customers. Some 150 airlines use Amadeus Altéa Reservation (Sell) as their sales and reservation system – among these are world class airlines including British Airways, Qantas, Finnair, United Airlines and South African Airways who have also contracted Amadeus Altéa Inventory (Plan) and Amadeus Altéa Departure Control (Fly) system.
Solutions for travel sellers: The Amadeus system allows over 78,300 travel agencies and more than 11,500 airline offices to make bookings on 500 airlines. It provides access to more than 60,470 hotel properties and 42 car rental companies serving over 31,000 locations.
More than 217,650 points of sale around the world use the Amadeus Selling Platform (Vista), the world's first browser-based point of sale platform that allows travel professionals to focus on selling travel and developing customer relations instead of just making bookings.
Solutions for corporations: In e-commerce, Amadeus is the global leader in online travel technology and corporate travel management solutions. It services travel agencies in 90 countries, and powers the websites of over 1,000 corporations and more than 70 airlines and hotels. Amadeus e-Travel Management is an online travel booking solution to help corporations manage their travel policy more efficiently. Both Amadeus and its partners enable corporations to integrate all the elements of their global travel programmes, into one easy-to-use and easy-to-administrate solution. Customers include Altria, Cemex, Daimler Chrysler, Ericsson, Huntsman, Nestlé, Total, Thales and Siemens.
Amadeus has central sites in Madrid (corporate headquarters & marketing), Nice (development) and Erding (Operations – data processing centre) and regional offices in Miami, Buenos Aires and Bangkok. At market level, Amadeus maintains customer operations in 76 countries covering more than 215 markets.
The company is owned by WAM Acquisition, whose shareholders are BC Partners, Cinven, Air France, Iberia and Lufthansa. Amadeus employs nearly 6,700 employees worldwide, representing 95 nationalities. Amadeus’ revenue for the six months year ended 30 June was €1,381.6m. More information about Amadeus is available at: