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Amadeus

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Amadeus

Amadeus is an online Global Distribution System (GDS) that provides IT solutions to the Travel and Tourism industry (Amadeus.com, 2005). The company provides customer, business solutions in:

  • Distribution and Content,
  • Sales and e-commerce,
  • Business Management, and
  • Services and Consulting (Amadeus.com, 2005).

Nearly 75,000 travel agencies and more than 11,000 airline sales offices use the Amadeus system to run their business (Amadeus, 2005), with its primary audience based in Europe, the Middle East, and Africa (Hoovers, 2005). The company books flights on nearly 500 airlines, and makes reservations at hotel chains, car rental agencies, cruises, tours and ferry operators (Hoovers, 2005).

History of Amadeus

Amadeus was founded in 1987, by a joint venture involving Air France, Lufthansa, Iberia and SAS (Amadeus.com, 2005). Amadeus opened their first office in South America in 1993 and their first office in Asia-Pacific in 1994 (Hospitality Distribution Solutions, 2005). They have since, established more than 75 local and regional offices around the world, with the company's headoffice located in Madrid, Spain (Hospitality Distribution Solutions, 2005). In 1995, Amadeus merged with System One, a reservation system operated by Continental Airlines (Hospitality Distribution Solutions, 2005). The GDS launched their web site, Amadeus.net, in 1997 and in 1999, the company went public (Hospitality Distribution Solutions, 2005). The year 2000 saw Amadeus collaborate with leading national airlines and specialist companies (Hospitality Distribution Solutions, 2005).

These included:

Future acquisitions included:

  • SMART AB, a Northern European travel company;
  • Vacation.com, a US marketing travel network; and
  • e-travel Inc., a supplier of technology products for corporate travel (Amadeus.com, 2005).

In 2003 Amadeus bought a 16.7% stake in competitor online company, Opodo and paid €49million for its investment (Business Travel World, 2003). For Amadeus, the deal was part of its strategy to build business through both, online and traditional channels (Business Travel World, 2003).

At the end of 2004, Amadeus entered the UK leisure distribution market by purchasing a 20% share in technology firm, Comtec Enterprises (Nelson, 2004). The purchase was prompted in order for Amadeus to offer traditional package holidays along-side its traditional business travel content on one system (Nelson, 2004). The move was part of a strategy to move away from the low-margin, business-travel sector, into the higher-margin leisure industry (Nelson, 2004).

Current Circumstances / Projects

Amadeus’ current activities include the introduction of the Pioneer Customer Management Solution (CMS), which is an IT solution designed to help low cost carriers improve operational efficiency (amadeus.com, 2005). Amadeus is currently growing steadily in all key business areas, as indicated by recent figures which suggest an increase in total reservations, by 1% to 124.9 million, year on year (Amadeus First Quarter 2005 Results, 2005). In particular, the Amadeus e-commerce, self-service solution, e-Travel Planitgo, is claiming record-breaking passenger booking figures, which were documented at a 67% increase from the previous year (TravelBiz, 2005). Amadeus said the growth had been fuelled by the accelerated adoption of self-service through the websites of Amadeus e-Travel customers worldwide (TravelBiz.com, 2005). Additionally, Amadeus has also seen UK cruise bookings increase by 150% this year after it introduced a simpler automated booking system (Travel Weekly, 2005).

Future Developments

The near future will see Amadeus continue to introduce solution systems to improve travel businesses (amadeus.com, 2005). At the end of 2005 the online company will launch its Agent Customer Relationship Management Tool, which will allow travel agents to better target their clients (Travel Trade, 2005). Additionally, in the first quarter of 2006, Amadeus plans to release an “entry-level�? online booking engine for small leisure companies to add to their websites. This will enable booking agents to enter the online industry without having to develop of their own system (Travel Trade, 2005).

Further Information

See Also:

For further information on Amadeus:

Competition

Amadeus top competitors include:

References

Amadeus (2005) retrieved, Oct 17, 2005, from, http://www.amadeus.com.

Amadeus (2005) “Amadeus expands low cost carrier IT offering - introduces new customer management solution for LCCs seeking growth,“ Oct 11, retrieved, Oct 19, 2005, from, http://www.amadeus.co.in/10/1070_international_128.htm.

Amadeus First Quarter 2005 Results (2005) “Amadeus continues to grow in first quarter 2005,�? retrieved, Oct 19, 2005, from, http://www.amadeus.co.in/10/1040.htm.

Business Travel World (2003) “Amadeus buys 16.7% stake in Opodo,�? May.

Hoovers (2005) “Amadeus Global Travel Distribution�? retrieved, Oct 19, 2005, from, http://www.hoovers.com/amadeus/--ID__53838--/free-co-factsheet.xhtml.

Hospitality Distribution Systems (2005) "Amadeus," retreived, Oct 21, 2005, from, http://www.hospitalitydistributionsolutions.com/Amadeus.html

Nelson, P (2004) Amadeus turns to leisure, Travel Weekly, Feb 9, iss.1704.

Travel Weekly (2005) “Amadeus bookings soar,�? June 10, iss.1773, pp.18

Travel Trade (2005) “Tools of the trade: a new range of solutions on offer,�? Aug 10, pp.14-18.

Travelbiz (2005) “Self-service solution a winner, claims Amadeus,�? Aug 30, retrieved, Oct 21, 2005, from, http://www.travelbiz.com.au/articles/7e/0c03607e.asp.

Contributors to this page include:

Carlene Daley 23:05, 26 Oct 2005 (EST)

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