Future travel profitability drivers revealed in global study commissioned by Amadeus
- The Travel Gold Rush 2020 details a major realignment of the travel industry as Asia looks set to represent one third of travel spend by 2020
- Death of traditional cabin classes, rise of ‘virtual’ classes, changing face of business travel and the rise of older wealthy travelers are some of the trends set to unlock vital new revenues
The report was developed by Oxford Economics, a prominent economic forecasting consultancy, and commissioned by Amadeus, a leading travel technology partner and transaction processor for the global travel and tourism industry.
Based on macroeconomic forecasts and extensive input from key industry experts across airlines, travel agents, think-tanks and international organizations, the report details new revenue opportunities, drivers of profitability, new models for delivering services and the changes in traveler tastes set to influence the future of the industry.
The global picture: Asia set to dominate travel spend by 2020
Options for growth: delivering the ‘total travel experience’ requires new models
Future tastes: death of traditional cabin classes, older travelers, rising demand for face-to-face agents and new travelers to transform travel
- The rise of ‘virtual’ personalized cabin classes are likely to replace traditional cabin classes
- Face-to-face agents to evolve into ‘lifestyle managers,’ meeting the total needs of travelers
- ‘Richer, older and going somewhere’ segment to provide new revenue opportunities
- Business travel to recover but business class may wither
According to Philippe Chérèque, EVP, Commercial at Amadeus, “We are committed to stimulating discussion and debate within the travel sector about how the world is changing, what travelers will demand and how the industry can evolve in a way that secures future growth and profitability. In this report we explore new models of co-operation, how a total travel experience can be delivered and whether or not the future for airlines and agents lies in fundamentally reshaping the services they provide.”
Adrian Cooper, Chief Executive , Oxford Economics said: “For the first time, we explore some of the long-term structural issues that have prevented the travel sector from securing profit and how the barriers can be overcome by thinking more broadly about the macroeconomic environment, future business models and changing traveler tastes.”
The Travel Gold Rush 2020 report is part of the Amadeus Traveler Series, which is a global initiative designed to stimulate new thinking and innovation in the travel sector.To download a copy of the report, please visit:
About Amadeus | Amadeus is the leading transaction processor and provider of advanced technology solutions for the global travel and tourism industry.
Customer groups include travel providers (e.g. airlines, hotels, rail, ferries, etc.), travel sellers (travel agencies and websites), and travel buyers (corporations and individual travellers).
The group operates a transaction-based business model and processed more than 670 million billable travel transactions in 2009. It has extensive experience in the system migration process, having helped 31 airlines successfully transition to Altéa during 2009 alone. Amadeus Altéa Inventory is a critical component of the Altéa Suite and has been selected by approximately 100 airlines from around the world.
Amadeus has central sites in Madrid (corporate headquarters and marketing), Nice (development) and Erding (Operations – data processing centre) and regional offices in Miami, Buenos Aires, Bangkok and Dubai. At a market level, Amadeus maintains customer operations through 72 local Amadeus Commercial Organisations covering 195 countries.
Amadeus is listed on the Madrid, Barcelona, Bilbao and Valencia stock exchanges and trades under the symbol “AMS.MC”. For the year ended 31 December 2009, the company reported revenues of EUR 2,461 million and EBITDA of EUR 894 million. The Amadeus group employs over 9,300 employees worldwide, with 123 nationalities represented at the central offices.
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