Amadeus is rolling out a new technology solution which will revolutionise the low cost airline market by providing comprehensive access for the first time, to sales through travel agents and corporate customers. Amadeus Ticketless Access enables up-to-the-minute fare and flight information from ticketless carriers to be displayed alongside those of full service airlines through the Global Distribution System (GDS). Equally important, it eliminates an estimated 3-5 EURO per booking in added technology costs, currently faced by LCCs that distribute through this channel.
Scandinavian LCC, Sterling is successfully pioneering Amadeus Ticketless Access. Michael Hansen, Vice President, Business Development & IT at Sterling, said: “Amadeus has shown a real understanding of the low cost carrier business model and a commitment to deliver on its vision of a next generation GDS.”
Amadeus Ticketless Access provides Sterling with access to the GDS channel without significant expenditure as the airline does not place inventory into the GDS and all transactions are carried out using Sterling’s existing system. The benefit to Sterling is two-fold: a reduced distribution cost and increased reach across Europe whilst retaining full control of all content.
Hansen continued: “We expect the new solution to deliver significantly increased bookings from business travellers and inbound traffic which will have a major impact on our commercial objectives.”
Frédéric Spagnou, Vice President Airline Business Group, Amadeus, said: “Whilst they continue to do things differently and control costs, LCCs need to generate new revenues if they are to stay ahead in a maturing market. In Europe alone the number of LCCs has increased from five in 2000 to 65 in 2006. By removing the added technology cost associated with distribution via the GDS, we have truly opened up sales through travel agencies, balancing the dependency of low cost airlines on the internet channel. LCCs tell us this will enable them to realise approximately 30% increase in yield, through access to higher value corporate customers and also a 20% increase in the volume of bookings.”
Amadeus developed Ticketless Access in response to market demand from LCCs, travel agents and travellers, especially corporates who wish to have a fuller choice of flights through a single channel. The solution is the only one available to LCCs that uses standard Extensible Markup Language (XML) messages and integrates airline content with the core back office GDS.
Ticketless Access is part of Amadeus’ commitments to deliver technology solutions that meet the needs of all airlines and to make the price of distribution equal to the perceived value it delivers to airlines.