Amadeus Announce Value-Based Pricing

PRNewswire MADRID Nov. 25 :

Amadeus has announced its 2004 pricing for distribution services offered
to airlines.

Effective 1 January 2004, the company will introduce a new, value-based
pricing model, which recognizes airlines` diverse commercial strategies
and the different benefits that the GDS channel brings to airlines today.

This new pricing model consists of a segmented booking fee structure,
defined by the nature of each airline`s business profile and reach of
operations. In the new structure, a booking is valued as standard or
premium, depending on the worth of the reservation to the airline and the
value added by the GDS to the process. The two pricing parameters are as
follows:
Standard value: domestic and intra-continental reservations made within an
airline`s home/prime market.

Premium value: inter-continental bookings, domestic and intra-continental
reservations made outside an airline`s home/prime market.

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This pricing, detailed by region, will have no impact on contractual
agreements that Amadeus currently has in place with travel agencies.

Itemized pricing for specific content and services
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Additionally, Amadeus will be introducing an itemized pricing arrangement
for specific optional distribution services in line with the requirements
of each airline. This ensures greater choice and flexibility for airline
customers in terms of the services they select from Amadeus. Itemized
pricing will come into effect in 2005.

Low fare content
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In order to provide its travel agency customers with the widest possible
range of content, Amadeus will pilot in 2004 a reduced fee option for
airlines to distribute selected low fare content through specific
reservation classes. Travel agents will be able to choose to participate
in this program and could be asked to share in the distribution cost.

The pilot phase will allow Amadeus to work with both its travel agency and
airline customers to determine the most suitable framework for the needs
of the different markets.

A first step of a strategic evolution
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Amadeus has presented this range of unprecedented and strategic pricing
reforms as it recognizes that the radical changes in the airline industry
require a similar fundamental evolution in distribution pricing. An
approach that goes beyond the current short-term, tactical response being
offered in the market.
The Amadeus 2004 pricing is a first step towards the establishment of a
value-based pricing framework. This will provide airlines worldwide with
the flexibility they need to compete and will contribute to the long-term
success of the travel industry as a whole.

Amadeus is the leading global distribution system (GDS) and technology
provider, serving the marketing, sales and distribution needs of the
world`s travel and tourism industries. Its comprehensive GDS data
processing centre serves some 64,500 travel agency locations and more than
10,000 airline sales offices, which together total around 290,000 points
of sale located in over 210 markets worldwide.

Through the Amadeus GDS, travel agencies and airline offices are able to
make bookings on more than 95 per cent of the world`s scheduled airline
seats. The system also provides access to 56,000 hotels, 50 car rental
companies serving some 25,300 locations, and other provider groups
including: ferry; rail; cruise; insurance and tour operators.

Amadeus is a leading application service provider (ASP) to the airline
industry. 139 airlines use the Amadeus Sales System in their offices to
provide passengers with superior and seamless service at optimal cost.
Amadeus`s new generation of Passenger Service Systems, which include all
IT systems associated with inventory management and departure control,
will be implemented by British Airways, Qantas and Finnair.

Amadeus is a leading application service provider (ASP) to the airline
industry. 139 airlines use the Amadeus Sales System in their offices to
provide passengers with superior and seamless service at optimal cost.
Amadeus`s new generation of Passenger Service Systems, which include all
IT systems associated with inventory management and departure control,
will be implemented by British Airways, Qantas and Finnair.
e-Travel, Amadeus`s e-commerce business unit, is global leader in online
travel technology and corporate travel management solutions. It powers the
Web pages of more than 900 travel agencies, 264 corporate sites, 10 hotel
sites and 54 airlines.
Amadeus is headquartered in Madrid, Spain and quoted on the Madrid, Paris
and Frankfurt stock exchanges. For the year ended 31 December 2002, the
company reported revenues of EUR 1856m and net income of EUR 148.6m. The
Amadeus data centre is in Erding (near Munich), Germany and its principal
development offices are located in Sophia Antipolis (near Nice), France.
The company has some 5,100 employees worldwide.
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