In recent years, some of the so-called Low Cost Carriers (LCCs) have experimented with abandoning distribution via travel agencies in the belief that this would result in improved profitability. In many cases this has proved to be a misjudgement, particularly for airlines wanting to appeal to business travellers or maximise their income per seat sold, instead of simply competing on price. Wise LCCs do both: they work hard to cut costs while also endeavouring to stand out from the crowd.

This places new demands on IT support, as the solution has to be adapted to suit the LCCs’ business models. In this respect, and in our capacity as IT Solutions Provider, Amadeus has had some considerable success where Inventory is concerned, rapidly developing new solutions and already filling our order books.

Unfortunately this is not the end of the matter, because an airline can in fact employ Amadeus technology and yet still choose to abandon travel-agency distribution. It is therefore particularly gratifying for us that companies such as Sterling have found that they can reach a larger market and reduce their distribution costs by working together with us and the travel agencies.

In this issue of Dialogen, we have the pleasure of meeting Michael T. Hansen, VP, Business Development & IT for Sterling, who shares his views on the subject.

In the case of Sterling, the link between the LCC and travel-agency distribution is called Amadeus Ticketless Access, and it is an example of how development can take place rapidly when there is a strong will and a good partnership. Indeed, it has all happened so quickly that it will take a little time yet before flights on Sterling will be available for sale in some of our applications. However, had this innovative solution not been introduced, all Sterling content would have passed both us and the travel agencies by.

I can promise that more LCCs will follow Sterling’s example if we, together with you at the travel agencies, continue to demonstrate that volumes and profitability grow more quickly in our channel than anywhere else.

Janchrister Egnefors CEO, Amadeus Scandinavia