Amadeus is launching a new Global Merchandising System that it claims will unlock more than $130 billion in additional airline revenue by 2020.
The technology firm said the increasingly broad range of products and services available represents a “significant opportunity” for airlines to enhance profitability.
According to its own research and data from IATA and the Frost and Sullivan consultancy, the untapped revenue can be made through the sale of ancillary services and by adopting an “omni-channel strategy” for these sales.
Amadeus said it will be achieved through the personalisation of the traveller offer “throughout the entire journey”.
“By bringing together providers and participants across the travel industry at each key touch point in the traveller’s journey, unique customer insights will be leveraged to deliver offers and services that are personalised, relevant and timely,” Amadeus said.
Amadeus says it has three elements in its merchandising vision:
- The development and roll out of a new Global Merchandising System will enable airlines to create their offering dynamically
- The evolution of our retailing and distribution systems to enable the efficient and effective delivery of enhanced airline content
- Integration of both the new Global Merchandising System and Amadeus’ retailing and distribution systems with the Amadeus Altea PSS Suite.
The merchandising system will be compatible with the new controversial NDC XML standards.
“The global travel industry, and the way in which consumers experience it, is changing so dramatically that it requires a fundamental change to the way in which travel is sold and how the traveller is served,” said Luis Maroto, CEO and president of Amadeus.
He added: “With our industry insight and experience, our unrivalled R&D capacity and our global subscriber network, Amadeus is uniquely placed to bring the industry together in a global travel ecosystem that will bring huge benefits to both airlines and subscribers, offering significant potential to the industry to unlock greater value from its products and services.”