24 September 2009

Amadeus is just the ticket for AirAsia

BANGKOK - A partnership between Amadeus and AirAsia is seen as a fundamental shift in the way low cost airlines are approaching distribution, according to Paul Martin, regional director for SE Asia and India, Amadeus airline business.

For the first time, Amadeus subscribing travel agencies worldwide will be able to book flights on AirAsia and all its subsidiaries ââ¬' Indonesia AirAsia, Thai AirAsia and its new long haul operation, AirAsia X. ââ¬~¨Ã¢â¬~¨

ââ¬ÅâœAirAsia has put a lot of time and effort into building its brand and web awareness and it has been very successful in achieving those aims,ââ¬~ said Martin.

ââ¬ÅâœIn key markets such as Malaysia and Singapore, AirAsia has probably done as much as it can in building the brand and achieving direct bookings.

ââ¬ÅâœBut now thereââ¬â¢s an evolution of thought among airlines, including LCCs, to widen their distribution net in order to catch the customers that have been slipping past them.

ââ¬ÅâœAnd when someone as big and as successful as AirAsia broadens its distribution to include GDS it puts pressure on other low cost carriers to be distributed in the same way.

ââ¬ÅâœTo gain higher yields and to tap new markets, low cost carriers are saying okay, we can tolerate any extra distribution costs.ââ¬~

Martin said AirAsia was beginning to operate more like a traditional feeder carrier with AirAsiaX international services distributing passengers into AirAsiaââ¬â¢s regional markets and vice versa.

Implementation of Amadeusââ¬â¢ Ticketless Access will provide AirAsia with a new sales platform for it to reach more than 101,000 travel agencies.

The platform allows travel agents to see real-time low cost fares displayed alongside full service carrier fares, expanding their product portfolio to travellers.

Martin said the partnership between Amadeus and AirAsia ââ¬Åâœdemonstrates that the travel agency market can add significant benefits to airlines whatever their model isââ¬~.

He said that AirAsia was already seeing a spike in sales worldwide with Italy emerging as a significant source market for bookings made through the Amadeus GDS.

ââ¬ÅâœIn the past Italy probably wouldnââ¬â¢t have popped up in AirAsia sales statistics. Now Italy is in the top five source markets for AirAsia bookings made through the Amadeus GDS since implementation of the Ticketless Access agreement.

ââ¬ÅâœWhat this goes to show is the benefit of being part of a broader distribution system. Just like a lottery ââ¬' you have to be in it to win it, ââ¬~ Martin said.

-by Ian Jarrett

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