Amadeus Gains Market Share

Amadeus’ worldwide GDS market share increased 1.5 percentage points in 2013, passing the 40% mark, chief executive officer Luis Maroto said.

In a conference call with analysts to discuss fourth-quarter and full-year earnings, Maroto said the increase was “supported by growth in most regions, notably in the U.S., thanks to recent contract wins.”

Travel agencies’ air bookings in North America rose 38.1% in 2013, “despite the negative growth of the industry in the region” he said. That helped offset the contraction of the air travel agency booking industry in Germany, Spain and France, key markets for Amadeus.

A good deal
Amadeus signed an agreement with Expedia for North American distribution two years ago, and that deal has significantly boosted Amadeus’ footprint in the region since its implementation last year.

Orbitz’ recent decision to distribute through all three GDSs in North America when its exclusive contract with Travelport expires at the end of 2014 will likely give Amadeus another leg up in the region where it has long been the smallest GDS player.

Bookings increase in 2013
Maroto said low-cost carrier bookings grew 21%, driven by the addition of 10 new LCCs to the system.

Total bookings in 2013 increased by 5.3% to 502.6 million. Air bookings increased 6.5% to 443.4 million.

For the full year, Amadeus reported a profit of €563.1 million ($855 million), an increase of 12.3% over its 2012 profit. Revenues increased 6.6%, to €3.1 billion ($4.28 billion).

In the fourth quarter of 2013, Amadeus reported a profit of €91.4 million ($126.14 million), an increase of 30.8% over its 2012 profit. Revenues increased 9.5% to €741.7 million ($1 billion).

Tech investment
Amadeus continues to invest in travel agency technology.

Its current focus is on a new-generation front office, search engines, shopping and booking solutions for ancillary services, specific tools for travel management companies, and the creation of the Total Travel Record.

The Total Travel Record is the future evolution of the PNR, containing all traveler information with cross-sell, cross-channel, multi-GDS data and related customer management functionalities.

The company also has invested in improved access to additional content (LCC, hotel and  rail) and better integration into the travel agency workflow.