Amadeus’ Global Distribution System (GDS) saw a 6.9% year-over-year increase in bookings in the fourth quarter, totaling 102.2 million. This growth is particularly noteworthy considering the challenges faced by the company, including a rise in cancellations due to conflict in the Middle East and increased competition from a North American customer implementing direct-connect airline distribution. These factors were estimated to have reduced year-over-year growth by approximately 6 percentage points in the fourth quarter.
Despite the obstacles faced, Amadeus reported a 16.9% increase in air distribution revenue in the fourth quarter, reaching 627.4 million euros. The company also secured 13 distribution agreements during this period and expanded its customer base for the Cytric corporate travel and expense solution. Notably, Radisson Hotel Group and Deloitte are among the new customers who have joined forces with Amadeus to utilize their technology for their operations in Spain.
In the full year, Amadeus experienced a significant increase in bookings, up by 13.6%. This growth resulted in air distribution revenue rising by 23.6%, totaling 2.66 billion euros. The average revenue per booking also saw a notable increase of 8.8% in 2023.
The Asia-Pacific region emerged as a key driver of growth for Amadeus, with a staggering 63.7% year-over-year increase in bookings. This region accounted for 18% of total bookings for the year. Western Europe, on the other hand, which had the largest share of Amadeus bookings at 28% in 2023, experienced a growth rate of 13.3%. Meanwhile, North America saw a slight decline in bookings, down by 0.4% and comprising 27% of total bookings.
Despite facing challenges such as cancellations and increased competition, Amadeus has managed to achieve significant growth and expansion in its GDS booking system. The company’s strategic distribution agreements and expansion into new markets such as the Asia-Pacific region have been instrumental in driving its success. With a focus on innovation and customer satisfaction, Amadeus continues to solidify its position as a key player in the travel and technology industry.
Leave a Reply