Airlines are generating increased revenues using Amadeus Revenue Maximisation tools

Madrid, 15 January, 2007: Amadeus, a global leader in technology and distribution solutions for the travel and tourism industry, has registered a marked increase in the number of the world’s leading carriers using its revenue maximisation tools to increase revenues through travel agency distribution. Etihad Airways, SN Brussels and TACA are some of the airlines which have improved their performance following the successful application of Amadeus’ revenue maximisation tools and services .

David Doctor, Director, Airline Business Group, Amadeus, explains: “We recognise that the distribution strategies of all airlines have changed significantly as they focus on increasing profitability.” Following customer research, Amadeus identified three core business challenges for airlines: the need to sell profitably across their networks; to control more effectively sales through travel agencies; and to improve their customer and market segmentation through this channel. “Using the revenue maximisation portfolio means that carriers are able to address all three of these challenges quickly and successfully,” says David Doctor.

Maximising profitability across the network
The dual issue of accurately forecasting revenues and preventing revenue leakage across its short and long haul network was a challenge for Latin American regional carrier, TACA, which has over 47 per cent connecting traffic.

Through implementing Amadeus Dynamic Availability in conjunction with Amadeus Married Segment Control, TACA is able to accurately identify the most valuable bookings based on origin and destination (O&D) information whilst protecting itself against O&D misuse. Consequently, TACA can ensure connecting flights are linked together in bookings, preventing partial cancellations of the higher yield long-haul segment after availability has been granted on the short-haul route.

According to Fernando Lara, Director, IT Applications, TACA: “From our past experience the revenue loss of not having married segment controls in place could be as much as 4% depending on the route.”

Improving customer and market segmentation
Effective revenue maximisation is about ensuring that all seats are sold at the right price at the right time through the most productive agents, channels and markets. It was this requirement, which led the Abu Dhabi-based airline, Etihad Airways, to implement Amadeus Availability Management, which provides the carrier with the means to decide what inventory to release to which sales outlet.

According to Ali Saleh, Vice President, Distribution and Alliances, Etihad Airways: “These tools allow us to optimise our revenues in two ways: by encouraging more sales through our most productive travel agencies via the provision of increased availability; and by better monitoring non-compliance of our distribution policy.”

At its core, Etihad Airways continues to seek new ways to expand its services and provide innovative benefits for its “Guests”. Implementation of electronic ticketing follows the recent launch of the carrier’s pioneering Etihad Guest program, a loyalty scheme which challenges the traditional airline approach and instead responds to customer demand by offering its members flexibility of choice, transparency and convenience.

Improving sales performance through the travel agency channel
Belgium-based SN Brussels looked to Amadeus to help the carrier distribute more and better, their preferred content to travel agencies. Using the Amadeus Carrier Preferred Display Management, a tool unique to Amadeus, the airline can create a customised ‘shop window’ for travel agents.

Alfred Kidjo, Head of Distribution Services and Systems, SN Brussels, said: “Since we have complete control over the content of the ‘shop window’, this allows us to tailor our offer in line with our distribution strategy as if we had a direct link to travel agencies.”

David Doctor concluded: “We are committed to further enhancing and extending our revenue maximisation portfolio to ensure that distribution to travel agencies is a significant driver of value.

Notes to the editors

About the Amadeus Revenue Maximisation portfolio
In addition to the Amadeus Married Segment Control, Carrier Preferred Display Management, Availability Management and Dynamic Availability mentioned in the press release, the portfolio of six revenue maximisation tools include Amadeus Journey Data, which provides airlines with real-time data about their customer’s complete journey, and Amadeus Long Haul Availability, that gives them the ability to manage O&D directly in the Amadeus system.

About Amadeus
A world-leading technology and distribution solutions provider, Amadeus delivers unparalleled expertise to the travel and tourism industry, including leading-edge solutions that cover airlines’ unique business needs, independent of their size, business model or market reach.

Amadeus’ pioneering new-generation Customer Management Solution (CMS) portfolio, Amadeus Altéa CMS, serves network and regional carriers. The Altéa portfolio, based on a pioneering community platform concept, enables improved operational efficiency and increases revenue. The portfolio consists of the Altéa Reservation, Altéa Inventory and Altéa Departure Control solutions.

Low Cost Carriers also have a specific CMS for LCCs – based on adaptive technology and already used by carriers in Europe and the USA - that provides robust options that easily adjust to their evolving operational requirements.

Further complementing these integrated IT solutions is the Amadeus e-Travel Airline Suite. Over 70 of the world’s leading airlines use the Amadeus e-Travel Airline Suite to power over 250 websites in more than 80 markets.

Other standalone IT solutions include amongst others: Amadeus Revenue Integrity, Amadeus Ticket Changer, an automatic ticket reissue tool, and a full range of ticketing solutions; including e-ticket interlining and ground-handling management technology services.

More information about Amadeus’ solutions for airlines is available at: www.amadeus.com/airlines

About TACA
TACA flies to 19 countries with 34 international destinations within the Americas and 77 flights within Central America. TACA offers 10 direct routes from Central America to the United States, the best connections within Central America and the most complete hub to South America. The airline provides transportation to more than 3 million passengers a year. TACA operates the youngest, all-Airbus-aircraft fleet on the American continent. Its fleet is one of the most modern in the world, with 28 Airbus airplanes that are recognised globally for their technological innovation, efficiency, and the additional comfort offered to passengers. For more information, see www.taca.com.

About Etihad Airways
Etihad Airways is the National Airline of the United Arab Emirates and based in the UAE’s capital, Abu Dhabi. Currently Etihad offers flights for Guests and cargo to 47 destinations in the Middle East, Europe, North America, Africa and Asia.

Etihad Crystal Cargo – www.crystalcargo.ae – offers a comprehensive range of cargo services throughout Etihad’s network, and services its many all-cargo destinations and world-wide charters with a fleet of modern regional freighter aircraft.

Etihad Holidays - www.etihadholidays.com - offers a range of innovative holiday options in 82 destinations including skiing, fly-drives, cruises, tours, stopovers, inbound programmes and city breaks.

Through these exciting divisions, Etihad Airways is changing the way people see the world.

For more information about this award-winning aviation group, please visit www.etihadairways.com.

About SN Brussels
SN Brussels Airlines was founded in 2002 and today provides a direct link to 55 European, 33 North-American, 14 African destinations and 3 in the Gulf region.

SN Brussels Airlines is the only full service airline that operates from Brussels and is the market leader at Zaventem/Brussels Airport, with 285 flights per day and 3.5 million passengers per year. Since April 2005 SN Brussels Airlines works closely together with the leading Belgian low fare airline Virgin Express.

Throughout the years SN Brussels Airlines has remained one of the most punctual airlines in Europe placing the customer at the heart of its business in providing value for money and the most punctual travel experience. SN Brussels Airlines has over 2,367 multilingual staff in Belgium and other countries.

For more information, see www.flysn.com.


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