Amadeus Insights
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Amadeus Insights
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Foreword
Aviation is changing.
Today, the traveler expects to be wowed long before they arrive at the airport. They want a smooth, effortless journey combined with exceptional, personalized experiences from their favorite airline. In other words, airlines need to become traveler-centric retailers.
Against this backdrop, it is encouraging to see a strong appetite for investment among airlines, both low-cost and full-service carriers. Realizing the potential to enhance their offering to passengers, airlines of all models are seizing the opportunities afforded by new technology.
Travel Technology Investment Trends revealed several areas where evolving technology presents significant opportunities. Not least among these is the journey to Offer & Order. This accelerating transformation will create a new traveler-centric operating foundation, built on open systems, automation, optimization, artificial intelligence, and personalization. When complete, airlines will utilize a new operational framework to develop and commercialize new, rich, differentiated offers (new itineraries, new products and services, new bundles and new partner revenue streams), personalized to the preferences of the individual, segment, or market. Meanwhile, the Order transformation means all airlines will move to a technology that overcomes the limits of today’s standards like PNRs, tickets, and EMDs.
These are significant changes, and we are on hand to help every step of the way with Amadeus Nevio for full-service carriers and Navitaire New Skies for their low-cost counterparts. With both portfolios based on next-generation, open, cloud-native technologies, you can connect easier, build quicker, and operate smarter, to bring tangible benefits for travelers and your business alike. If you’re an airline using a PSS today, you can use ‘smart bridging’ for a smooth transition to immediately take advantage of new modern retailing capabilities.
Elsewhere, the ongoing roll-out of NDC capabilities comes under the spotlight. There is a growing understanding in the industry that this technology’s potential is now being delivered. Amadeus data shows that some airlines are now seeing one in three travel agency bookings facilitated with New Distribution Capability (NDC).
Also on the agenda for this report are the airport experience, enhanced schedule planning, overcoming disruption and a look at how we can strengthen airlines through new technology for interline partnerships. In each of these areas, Amadeus is working alongside its stakeholders from across the aviation ecosystem to develop new solutions, specifically tailored to the changing needs of the industry.
We hope you enjoy reading this report – and if you have any questions, we look forward to hearing from you.
Cyril Tetaz
EVP, Airline Solutions
Amadeus
Dave Evans
CEO, Navitaire
Amadeus Travel Unit
Introduction
Travel Technology Investment Trends 2024 is a milestone research project carried out by market insight agency, Opinium Research, alongside Amadeus.
It seeks to understand technology investment trends across the different segments of the travel industry – a task Amadeus, with its position at the center of the travel ecosystem, is uniquely positioned to take on.
Findings are presented in a series of eight reports – addressing sectors including airlines, hospitality, corporations, travel sellers, airports, and payments. The project is designed to take a unique, panoramic view across the entire travel industry. The work investigates the developments that will define the sector over the coming year and beyond.
This specific report is focused on airlines. It is based on individual responses from 100 senior airline leaders based in ten key countries – Brazil, China, France, Germany, India, Mexico, South Korea, UAE, UK and USA – combined with expertise from Amadeus’ executives.
The report explores the technology needs of both:
Full-service carriers (FSCs): Those airlines which typically operate a hub and spoke network, flying longer haul routes to large, urban airports, those with diversification of their distribution strategy via direct and indirect channels.
Low-cost carriers (LCCs): Airlines which primarily fly point-to-point, short-haul routes between regional airports, with a strong focus on price-sensitive traffic, mostly leisure passengers.
By asking aviation leaders from both segments about investment plans, business challenges and priority areas, this report offers a globally representative understanding of the airline industry, its concerns and ambitions for 2024 and beyond.