Fourth Quarter Trends from Amadeus

Amadeus` total bookings and bookings revenue declined in the fourth-quarter 2001 and the CRS company anticipates flat bookings growth in 2002.
Those trends were in the company`s fourth quarter and 2001 year-end financial results.

On a brighter note, an Amadeus spokesman said the impact of Sept. 11 was less than anticipated and the company grew its global share of bookings, including those from travel agencies and airlines sales offices, more than 1% in 2001.

Indeed, Amadeus now claims to be the global leader in bookings—sort of. This is how it calculates the breakdown for 2001:

?EAmadeus, 30.9%;

?ESabre, 28.9%;

?EGalileo, 24.5%;

?EWorldspan, 13%;

?EAbacus, 2.7%.

While Sabre has a joint venture with Abacus, Amadeus doesn`t count Abacus` bookings as Sabre bookings. The Amadeus spokesman commented “If one counts Abacus bookings as Sabre bookings, then Sabre just edges out Amadeus as the global booking leader”


For the fourth quarter of 2001, Amadeus` revenue grew, when compared with the year-earlier period, 5.2% to $358.4 million and its net income, excluding special items, declined 5.8% to $5.4 million.
Booking revenue for the quarter declined 4.6% and its total bookings of 83.5 million were off 10.8% compared with the last quarter of 2000.
For the full year, Amadeus` revenue grew 14.2% to $1.6 billion and its net income, excluding special items, dropped 10.2% to $107.6 million. Total bookings in 2001 were down 2% to 386.1 million.

Amadeus, which raised its booking fees by 2% for 2002, has not made any decision on further increases and will decide May 1 whether to raise the booking fee further, the spokesman said.

The company continues to diversify its revenue stream so it is less reliant on travel agency bookings. In 2001, for instance, 20% of Amadeus` revenue was non-booking revenue—up from 15% in 2000.
The push is on to land long-term contracts to provide airlines with the Amadeus system on an outsourcing basis for use in their sales offices.
“This is a new stream of business, but it is not going away from businesses we have,” the spokesman said. “We believe very strongly in our partnership with travel agencies.”