September summary

In this issue, find out about the Amadeus value proposition.
Discover more about our commitment to NDC (New Distribution Content).
Watch a video testimonial about how Value Search gives customers more relevant offers.
Learn how Flyr's Fare Keep lets your customers block a fare by paying a fee.
Find out about how the digital transformation is changing what travellers value.

Amadeus Value Proposition

In a turbulent landscape, growth is not a matter of chance. A trusted partnership is at the heart of sustainable growth.

We offer solid content with more than 130 airlines in our Altéa platform and access to around 85 Low Cost Carriers via our subsidiary Pyton. That’s 2-3 times more air content than our competitors. Proven technology & services are at the heart of our business, enabling you to stay connected with your customers 100% of the time, with a response time of milliseconds.

Our global payment platform allows you to operate in 200 countries. Thanks to our recognised leadership Amadeus has been number one in R&D in the Travel&Tourism industry in Europe for several years now. All of this together keeps travel agents growing... and explains why they stay with us.

Amadeus and NDC

Amadeus is committed to making NDC work for the industry as a whole. We have been investing in NDC and XML for years. Today, over 20 LCCs are part of our portfolio with XML connectivity. We received the highest level of NDC certification as an IT provider in June 2016, and we are working on NDC certification as an aggregator.

We are in the best position to take on this new technological challenge: We employ over 5000 people around the world in the Travel Channels business unit. They come from diverse backgrounds and have extensive travel industry knowledge and technology expertise. The European Commission has ranked Amadeus as the leading investor in R&D in travel and tourism in Europe since 2014. Last, we are leading all customer segments globally: OTAs, TMCs and Retail. Airlines would need to invest heavily in technology and people if they want to insource their technology needs. As a result, we strongly believe that Amadeus is best placed to support airlines and to ensure the wide adoption of NDC across the industry with minimal disruption. Therefore, Amadeus remains your most reliable partner for both content and bookability.

The goal: a platform aggregating content from all sources. We acknowledge that some airlines will choose to insource their technology needs. At the same time, agents will continue to require access to all relevant content at the lowest possible cost. That’s why we are creating a flexible platform that will combine all content from different sources: GDS content, NDC content and aggregators’ content.

Testimonial on Amadeus Master Pricer Value Search

With Amadeus Master Pricer Value Search, you can provide the most RELEVANT offers that travellers want to book, as well as the cheapest bookable fares over a wide choice of airlines.

More personalisation in results is key for 37% of travellers*. So for today’s search it’s all about getting personal. Inform your customers of all relevant options in an organised manner, for a more confident choice, and increased satisfaction. Plus, based on our revolutionary search algorithms, adapt travel recommendations to your defined travel personas. Improve the relevance of the flights you provide to your travellers and increase your conversion rates and customer loyalty!

“Value Search is one of the simplest implementations we have done, delivering very significant improvements. By biasing the search query, we now not only return the cheapest recommendations, but also many more relevant travel solutions for our travellers. This has allowed us to improve the conversion rate.”
Eli Valborg Lindland, Director development & technology, Berg-Hansen Reisebureau AS

Lock fares and increase conversion with Flyr

Online Travel Agencies spend at least a third of their marketing budget on customer acquisition. ‘Exit Traffic’ could be up to 95%. It is the number of visitors who leave your website without booking. So how could you still make money with this lost traffic and increase conversion at the same time?

Farekeep is a technology built by the data science company FLYR. It is based on experience in financial and insurance industries. Their algorithm takes into consideration user behavior, fare prediction and sell-out prediction. What does it do? Travellers who are interested in a flight but not yet keen on booking can “lock” the fare for 7 days in paying a protection fee. After paying, they receive a confirmation email with a link back to the fare on your website. A reminder email follows when the expiration date gets closer, including a deep link to your website. The locked fare is guaranteed for 7 days. If the traveller confirms their purchase and the fare is no longer available during that period, Flyr would cover the difference.

  • Coverage is over 93% of WW flights in 120+ currencies, 6 languages and over 30 POS
  • Low Premiums (even for business class fares) ensure high conversion

So in a nutshell, what’s in it for you? You receive higher customer conversions: 20% of travellers who purchase FareKeep book the flight afterwards! You decrease your acquisition costs and make your otherwise “exit traffic” profitable. Your overall revenue will increase, thanks to the FareKeep commission, and incremental flight bookings.



A spotlight on what travellers value

Amadeus just published a white paper on the digital transformation of airlines. The new report focuses on how airlines can best shape and communicate their offer to travellers. Today, as online travel agencies include merchandising in their offering, many of the insights are applicable as well for them.

 

The first step towards digital transformation is for airlines to understand what each individual traveller most values at specific moments in time. Only then can the correct product attributes be presented, for example extra legroom or onward ground transport.

 

The report proposes a new model of ‘product vs service vs convenience’ for understanding what travellers value, how best to group attributes of the flight product and subsequently to up-sell those products. A few insights:


The impact of Artificial Intelligence:
Digital tools, automated services and data-driven decisions – these are the theoretical building blocks of the Fourth Industrial Revolution. Data and artificial intelligence are the building blocks for serving customers in a new way and will lead to a new form of online travel agency that provides consultancy services in digital form.

 

How to move beyond price to communicate value:
The saying goes that everybody has a price. But in order to have a price, everybody has to have a value. Value consists of the paradigm product vs service vs convenience. Depending on the situation, a traveller can put more importance on one pilar than on another. For example: A mother travelling with her child might put most importance on service. The same person traveling alone for business puts more importance on convenience. OTAs need to know which pillar is most important to the traveller in order to propose the most relevant offer.

 

The evolution of economy class and how to merchandise it effectively:
Economy-class air travel has evolved beyond recognition over the past 20 years, and budget travellers are now accustomed to a culture of ancillary charges. But some charges are more evident than others, and provoke more of an emotive reaction, particularly when a charge is imposed for something that was formerly free. Identifying which components travellers are happy to pay more for – and how much – is essential for OTAs to adapt the right upselling strategy.