Amadeus launches new distribution solution for Low Cost Airlines

Amadeus has rolled out a new technology solution which it believes 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.

Sterling, a leading Scandinavian LCC, is successfully pioneering Amadeus Ticketless Access. Michael Hansen, Vice President, Business Development & IT at Sterling, said, “The low cost carrier market in Europe is increasingly competitive and it is important that we continue to look at ways to increase revenues and support growth. We have often been outspoken critics of the costs associated with traditional GDSs in the past but Amadeus Ticketless Access is a truly pioneering tool to help us extend our reach and distribution. It is a genuine change in the industry. 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 added, “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.”

Damian J. Hickey, Vice President Airline Business Group Asia Pacific, 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 Asia Pacific, we are already seeing a period of consolidation among the Asian LCCs to meet with the challenging operating conditions. 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.

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