Ancillary sales skyrocket for Amadeus

Salzburg, Austria - January 14, 2012: A lifesize cut out image of Mozart joining pedestrians on the pavement outside a shop, to advertise Mozartkugeln Confectionary, a traditional sweet made by Mirabell.

A lifesize depiction of Mozart promoting the traditional Salzburg Mozartkugeln sweets made with marzipan, nougat and chocolate.

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Amadeus reports an almost 100% increase in travel agency sales of ancillaries while revenues explode to almost Euro 4 billion.

Travel agencies are playing a greater role in the sale of ancillaries as the number of online travel agencies with airline ancillaries integrated into their systems tripled year-on-year during 2015, Amadeus reports.

In 2015 Amadeus reports an almost 100% increase in travel agency sales of ancillaries, which for certain carriers, up to 40% of their bookings distributed by OTAs included an ancillary sale. Increased sales were derived from greater availability with 135 airlines signing up for the Amadeus Ancillary Services solution by the end of 2015, 101 of which already had implemented ancillary sales.

The GDS reports travellers are “much closer to a door-to-door experience” following the roll out of a new module in the Amadeus Selling Platform which enables travel agents to sell airport express tickets. Last year London’s Heathrow Express became the first to launch with the Amadeus tool which will be followed by the Brisbane Airtrain this year.

The company’s year-on-year financial and operating result for the full year of 2015 was adjusted profit up 10.4%, to €751.8 million supported by a revenue increase of 14.5%, to €3,912.7 million and EBITDA growth of 12.2%, to €1,465.4 million. According to reports, it is projecting low double-digit revenue growth in 2016.

“Amadeus enjoyed a highly successful 2015 with strong operational and financial performances. We remained highly focused on technology and deployed a consistent strategy of investment in 2015 to support our long-term growth and profitability goals,” Luis Maroto, President & CEO of Amadeus said.

“Both our Distribution and IT Solutions businesses delivered increases in revenues. Revenue growth in Distribution of 11.5% was underpinned by growth in North America and Asia-Pacific. In IT Solutions, revenue growth was 22.1%, driven by the continued migration of large carriers in Asia-Pacific, as well as upselling and contribution from new areas such as Airport IT and Payments.

“Despite recent economic concerns we are positive for 2016 based upon the expansion of our offering to travel providers, the continuous improvement of our competitive position, the migration of additional carriers to the Altéa platform, the growth of New Businesses, and our strengthened position in the low-cost carrier and hybrid segment with the addition of Navitaire.”

Image: istock

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