Norwegian expands partnership with Amadeus to support its low cost long haul growth strategy

Norwegian has its sights set far on the horizon. Having just won Skytrax’s “World’s Best Low-Cost, Long Haul Airline” award for the fourth year running, it is building a reputation for bringing low fares to travellers on long haul routes. Travel sellers have played a significant role in this growth. In fact, Norwegian has seen 110% growth in long-haul bookings from Amadeus travel sellers since 2015. 

In a bid to build further on this success, Norwegian and Amadeus today announce a renewed partnership. The airline has signed a distribution agreement that ensures Amadeus travel sellers access to the airline’s fares. This agreement also welcomes Norwegian Air Argentina, a new carrier serving a market where the airline has recently received regulatory approval for over 150 routes. The airline will also adopt Amadeus Customer Experience Management to gain relevant traveler insights, enabling it to drive loyalty through personalization.

The close partnership between the two companies and adoption of key technologies have been instrumental in Norwegian’s growth. Valuable insight into travelers’ booking and payment preferences from Amadeus’ travel agency network has enabled the airline to adapt its strategy and significantly increase agency bookings. In fact, over 25% of travel seller bookings for Norwegian now originate outside of Scandinavia. The airline has also been able to connect to travel sellers in a more simple and efficient way by using Amadeus’ eTicketing solution.

Lars Sande, Senior Vice President of Sales and Distribution, Norwegian, commented, “As a growing global airline, it is vital to keep costs low and offer affordable fares. This way we can increase the number of passengers and add the direct routes that travelers want. It’s always difficult to enter a new market, where you’re not well-known, and our partnership with Amadeus has given us the technology, connections and insight we needed to grow our business. Travel sellers are a key channel for us representing 20% of all our bookings. We are delighted to have renewed and expanded our relationship with Amadeus as we pursue continued growth.”

Under the renewed agreement targeted, bundled fares will continue to be offered through travel sellers. These bundled fares include premium services and deliver a better booking experience for travellers and agency partners, helping to support the airline’s growth.

Manuel Midon, Head of Airlines, Northern & Western Europe, Amadeus, added, “We are very pleased to support Norwegian’s low cost long haul growth strategy and our expanded agreement helps to underline the key supporting role of the intermediated channel. We have been working hand in hand with the airline to help enable its expansion through innovative distribution and IT solutions. This technology has been supported by unique insights from our extensive travel agency network, allowing Norwegian to adapt its strategy due to local market conditions.”

Norwegian has also been an Amadeus Altéa Passenger Service System (PSS) customer since 2010. This has helped its operations to run smoothly and consistently in every market, whilst bringing agility and efficiency to travel agencies selling the airline’s offer. Agents are able to see real-time flight information with a shared PNR, gain instant visibility on seat availability and changes, and track and service customers throughout their journey.

Amadeus partners with over 110 low-cost and hybrid airlines worldwide, with 12 new carriers signed 2017 and 11% average growth in travel agency bookings for low-cost and hybrid airlines in Q1 2018.