Amadeus e-commerce technology enables airlines to increase online yield

e-Travel, the e-commerce division of Amadeus, today reported results on the performance of its online solution Amadeus e-Merchandise, one of  the most widely adopted global merchandising solutions for airlines, which includes Amadeus Flex Pricer.

Amadeus analysed aggregated online Passenger Name Record (PNR) and Fare Amount data from 8 leading airlines - Air France, bmi, Finnair, Iberia, Icelandair, Luxair, Qantas, and Wideroe - which together carry more than 100 million passengers a year, and which have adopted Amadeus e-Merchandise.

On a weighted basis, the Amadeus investigation showed:

- an 8% increase in online yield when comparing the consolidated online fare amount data in the three months before and in the three months after each airline’s initial launch month of Amadeus e-Merchandise,

- over 30% revenue increase over the same period resulting from the above yield improvement and online volume growth, which represented more than 100 million Euros in additional ticket sales for these airlines.

Air France Vice President Distribution, Henri Hourcade, said “We have seen an immediate and remarkable increase in sales revenues with the introduction of Amadeus Flex Pricer.”

“The analysis on a non-weighted basis also showed increases in both online yield and revenues, which proves that our technology benefits all types of airlines”, added David Brett, President of Amadeus Asia Pacific. “Already, leading carriers in the region, including Qantas, Singapore Airlines and Cathay Pacific, increasingly strive to not only save costs by outsourcing critical parts of their websites, but also improve their profits by adopting our on-demand e-Merchandising solutions.”

In parallel, a recent survey conducted by Amadeus among 85 executives from 35 airlines confirmed that online yield is a high business priority. The survey respondents outlined the most important objectives in e-commerce to be growing volume (97%), followed by increasing yield (92.5%) In this survey, reducing costs was the lowest priority after ensuring reliable growth, enhancing competitiveness, and enhancing loyalty.

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