Technology Enables Airlines to Increase Online Yield
DECEMBER 2, 2005. eTravel has reported results on the performance of its online solution Amadeus e-Merchandise.
The analysis shows that Amadeus has been instrumental in supporting airlines' strategies to increase their profitability levels by implementing fare shopping solutions that enhance online yield and grow online volume. Amadeus analysed aggregated online Passenger Name Record (PNR) and Fare Amount data* from 8 airlines - Air France, bmi, Finnair, Iberia, Icelandair, Luxair, Qantas, and Wideroe - which together carry more than 100 million passengers a year, and which have adopted Amadeus e-Merchandise.
On a weighted basis, the Amadeus investigation showed: an 8 % increase in online yield** when comparing the consolidated online fare amount data in the three months before and in the three months after each airline's initial launch month of Amadeus e-Merchandise, over 30% revenue increase over the same period resulting from the above yield improvement and online volume growth, which represented more than 100 million Euros in additional ticket sales for these airlines.
Air France Vice President Distribution, Henri Hourcade, stated "We have seen an immediate and remarkable increase in sales revenues with the introduction of Amadeus Flex Pricer. Amadeus e-commerce technology continues to support our long term international strategy of increasing our online yield and profitability." said Arni Sigurdsson, Director Distribution at Icelandair.
"Our analysis on a non-weighted basis also showed increases in both online yield and revenues, which proves that our technology benefits all types of airlines", adds J'er^ome Destors, Commercial Director of Amadeus e-Travel. "We have noticed that leading airlines increasingly strive to not only save costs by outsourcing critical parts of their websites, but also improve their profits by adopting our on-demand e-Merchandising solutions."
In parallel, a recent survey***| conducted by Amadeus among 85 executives from 35 airlines confirmed that online yield is a high business priority. The survey respondents outlined the most important objectives in e-commerce to be growing volume (97%), followed by increasing yield (92.5%) In this survey, reducing costs was the lowest priority after ensuring reliable growth, enhancing competitiveness, and enhancing loyalty.
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