investment. A lot of airlines have invested in this on their own. Other airlines are doing it by outsourcing with us, Farelogix [the subject of a $360 million takeover by Sabre which, as this report was going to press, was the subject of a US Department of Justice lawsuit] or other providers. “We will take the right steps to make
this a reality while others try to build it themselves.”
NDC passes
THE UK and Spain lead Europe on online accommodation bookings, with rates many times those for
overall retail sales (Figure 29). Larger companies show higher rates of
e-commerce, as a proportion of all turnover, than smaller (Figure 30)
% of turnover, enterprises with 10-plus staff FIGURE 29: E-COMMERCE
ACCOMMODATION BOOKINGS %
10 20 30 40 50
0
Accommodation bookings
Retail sales*
Highest EU rate: Norway (50%)
45%44% 32% 29% 22% 22% 11%11% 14% 5% 6% 12%
Highest EU rate: Ireland (28%)
EU France Germany Italy Spain UK
Norway Ireland
*All sales excluding motor trade Source:
Eurostat 2018
‘critical milestone’ Amadeus, American Airlines and American Express Global Business Travel announced completion of their first NDC bookings in August 2019, hailing what Amadeus described as a “critical milestone”. The partners processed live bookings
by American Express GBT using American Airlines’ NDC-enabled content via the Amadeus Travel API. The companies noted: “This is an
important step forward for airline retailing.” However, they acknowledged “full functionality of end-to-end booking flow and service, including cancellations, exchanges and ancillaries” would depend on “when capabilities reach scalable production levels”. Gianni Pisanello, vice-president of
Amadeus’ NDC (X) programme, said: “We have reached another critical milestone with two travel industry giants.” He noted: “Standardisation across the industry is the single most important factor” in reaching the point “where agencies can shop, book and service NDC bookings at scale and match current performance levels”.
FIGURE 30: TOTAL E-COMMERCE SALES, 2018 % of turnover
%
10 15 20 25 30
0 5
Highest EU rate: Belgium (32%)
Highest EU rate: Ireland (29%)
30% 24% 22% 19% 17% 14% 11% 17% 13% 14% 11% 12% 14% 13% 18% 16% 25% 24%
EU France Germany Italy Spain UK
Belgium Ireland
Highest EU rate: Ireland (41%)
Small enterprises: 10-plus staff
Medium enterprises: 50-249 staff
Large enterprises: 250-plus staff
Source: Eurostat
Travel Weekly Europe Report 2019 | 17
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