Passenger centric airline technology for a more sustainable travel future

Julia Sattel

Senior Vice President, Airlines, Amadeus IT Group

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According to a recent Oxford Economics report commissioned by Amadeus, the global travel industry is heading for a golden decade with overnight visitor flows projected to grow by 5.4% over the next 10 years.

airline travelling

To put this in context, that’s significantly higher growth than global GDP, which is expected to increase by 3.4% on average over the next 10 years.

According to IATA latest estimations, airlines have managed to increase their profitability 3.0% vs. 2012, in line with global GDP. This means that the industry is on a good track.

One way airlines improve their cost structure is by outsourcing transactional services to a technology provider like us.

New revenue ideas

Airlines are looking at different ways to drive new revenues while operating in an increasingly competitive and dynamic environment. Hence building strong relationships with travellers has never been more important.

We at Amadeus offer innovative technology to help airlines better serve their customers. Creating customer centric experiences requires players at all stages of the travel chain to work together and technology is the key ingredient to making this vision a reality.

The ‘traveller profile’ that is at the heart of the next generation of integrated customer centric technology can hold a vast amount of data, such as journey history, frequent flyer information, and customer preferences. This allows airlines of any size and business model to analyse it and create new products that address changing passenger requirements. In short, next-generation technology will let any airline facilitate greater personalisation of their offer and connectivity with other travel players.

In the case of Full Service or Regional Carriers, they want to improve their merchandising capabilities and personalise their offering whether through the direct or indirect distribution channels. The positive impact of revenues from ancillary services is important. According to IdeaWorks, ancillary revenues represented 6% of the global airline revenues or a total of US$42.6 billion in 2013.

The way for LCCs

On the other hand, in the case of Low Cost Carriers(LCCs), it’s about finding new ways to tap into the higher yield business traveller. LCCs need more sophisticated distribution strategies and this is where we also help.

We have been providing ancillary and merchandising solutions for some years and helped airlines seamlessly integrate and distribute their offering through the different channels, providing a rich, differentiated and relevant consumer experience. It is about helping them to remain profitable while managing costs and generating new revenues. It is about ensuring the sustainability of their business.

Thanks to the use of our solutions, an Amadeus airline customer can reduce its total operational costs on average 2% to 3% and easily evolve its business model.

Today, more than 485 carriers in over 195 markets benefit from the advanced technology that we offer.

We pride ourselves in always being attentive to our customer needs. This is why we put trust and transparency at the basis of the relationship. These elements are fundamental to how we work with our customers around the world and how, together, we shape a more sustainable travel future.