Strategic growth Cloud-based technology is key


the hotel-management technology company, from its private equity owner for $1.52 billion in August, hailing it as a deal to “create a hospitality leader [with] distribution reach across all channels”. The acquisition is expected to go through by the fourth quarter of 2018, following regulatory approval. Pérez-Lozao said at the time: “This is a


huge step forward for Amadeus in hospitality. We have already made strong progress with the large chains. “TravelClick gives us access to the mid-chain and independent hotel segment that makes up almost three-quarters of the market. We are looking for significant growth.” He explains: “We offer sophisticated


computer reservations systems (CRSs) for big operators, but smaller operators want much more than a CRS and we want to accelerate [our] penetration. The hotel industry is as large as the airline sector. It’s healthy in terms of profit.” Amadeus sees it as full of opportunities for cloud-based solutions to “connect the dots”.


Smart payments Payments offer a further area of opportunity. Pérez-Lozao says: “GDSs were born channelling credit-card payments through our pipes, but with digitisation and the wave of innovation with payments there is much more we could do. “We have more than 100 airlines using our booking engine. They all need to interact with payment flow, not just with credit cards but with PayPal and the new digital commerce platforms. So why not create a ‘smart’ payment layer? “Today, we can offer airlines almost all methods of payment available globally, and we are adapting this for hoteliers. “The merchants of record – airlines,


hotels – pay a phenomenal bill [for processing payments]. According to a recent PYMNTS. com/Amadeus study, travel companies spend $74.5 billion a year, or 5.4% of their revenue, on payments. It’s a huge cost, so we work to simplify it and to make it more cost-effective.” Pérez-Lozao says: “We created a payment


34 | Travel Weekly Europe Report 2018


platform and we are now in the testing stage with some big customers on version 2 which involves data-rich ways to route transactions better.” The airlines that have used it “love it”, he says, adding: “It helps merchants manage payments more effectively.” The platform “routes transactions better,


consolidating data on routeing to give improved visibility and to optimise it and provide transparency on costs. “We are not substituting for other intermediaries,” he says. “We are giving power to the merchant.”


On track with rail The final area of travel distribution Amadeus is involved in, rail, is also the most challenging. Pérez-Lozao notes: “We distribute rail and


provide IT to rail providers. That is easily said and more difficult to do. The rail world is phenomenally diverse. OTAs and TMCs need to provide rail content for their customers, but there are still no [common] standards in the rail industry. You would be surprised how many types of systems there are. It is very complex, and therefore quite costly. “We try to help overcome the complexity


TRAVEL: MODE OF TRANSPORT


0.5% 4.5% 54% 31%


% OF ALL OUTBOUND TRIPS


4.7% 5.3% Air


Coach Rail Private vehicle Waterway Other


Source: Eurostat EU OUTBOUND FIGURE 38:


and create a platform that connects rail companies, OTAs and TMCs. It’s a challenge and we have invested tons of money, but we are beginning to see fruit.” He says: “Rail operators need to beef up


their IT systems and we are helping with that. Amadeus distributes roughly 90 rail carriers today, most of them to travel agencies in their own markets. Distribution is still country-specific. International distribution is still in its infancy, and we are focused on finding solutions to make it simpler for our customers and for the traveller. “To combine rail operators is difficult and still a long way off. We are only now beginning to see the first TMCs selling rail tickets for international journeys, for example a Danish agency selling Swedish or French rail tickets. “But as we go deeper, the potential to join the dots expands. “There are so many opportunities for


customer-centric improvements that it’s daunting – and we are one of the players that can make this a reality.”


�


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48