We’re creating a more connected travel industry, underpinned by sustainability and long-term investor relations.
As the travel industry evolves, so does Amadeus. And things are evolving fast. The travel and tourism industry continues to grow faster than global GDP. In fact, it contributed USD 7.6 trillion in 2016 to the global economy. To put that into context, if the industry was a state, only the US and China would have larger economies.
To stay at the forefront of this dynamic industry, Amadeus systematically seeks to identify trends that will impact us so as to be able to adapt to them in a timely manner. We recently released our global report where we outlined some trends we’re currently watching.
Here are a few in more detail:
Growth in the travel industry is particularly strong in Asia-Pacific. Due to the absolute size of the industry there, this region will be the major catalyst of growth. This is driven by, among other factors, China’s massive travel investments, both domestic and via mergers and acquisitions, as well as the huge growth of domestic and outbound travel in India. Within air travel, Asia-Pacific will contribute to more than half the new air travel passengers expected to be added between 2017 and 2036.
Cloud computing has a number of features that makes it particularly relevant to the travel industry. Amadeus has responded to this with Amadeus Cloud Services (ACS), which can be deployed on multiple cloud environments, either on public cloud providers and/or on our private infrastructure. One of the solutions deployed on ACS is our next-generation Central Reservations System for the Hospitality industry. ACS is also available for airlines through Amadeus Airline Cloud Availability BoX.
There are two main components in making advanced AI systems: the fuel and the engine. The data is the “gas” and machine learning is the “engine.” Within Amadeus, we are using the latest big data technologies and applying machine learning in a number of areas, including revenue management, fraud detection, recommender systems for travel products (e.g. hotels, flights and ancillary services), and advertising.
This emerging technology holds tremendous promise in terms of changing the way in which we “exchange value”. We have identified four potential use cases: (1) simplified and more secure passenger identification; (2) improved baggage tracking; (3) more user-friendly loyalty schemes; and (4) simplified payments between travel agencies and airlines. Our teams have developed live prototypes, and we are cultivating a network of specialist partners to experiment with this new technology, respecting the data security and privacy implications blockchain presents.
The travel and tourism sector is already challenged by issues like overcrowded destinations, income inequalities or human-induced climate variability. Being aware of these challenges and the UN Sustainable Development Goals, the United Nations World Tourism Organization celebrated in 2017 the International Year of Sustainable Tourism for Development, an event in which Amadeus actively participated and sponsored.
Check out the Amadeus Global Report 2017 where you can find more detailed information on our view on these and other trends.