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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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