Amadeus e-merchandise Solution. Sales & e-commerce

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1 Amadeus e-merchandise Solution Sales & e-commerce

2 Contents Amadeus e-merchandise in numbers 4 Amadeus e-merchandise Solution 6 Amadeus e-merchandise business benefits 8 Amadeus e-merchandise profit enablers 10

3 Amadeus e-merchandise Solution 3 We have seen an immediate and remarkable increase in sales revenues with the introduction of Amadeus e-merchandise. Henri Hourcade Vice President Distribution, Air France

4 4 Amadeus e-merchandise Solution Amadeus e-merchandise in numbers World s most deployed e-commerce solution: > 0 design costs for a personalised shopping store (including presentation). > Over 75 countries. > More than $25 million planned investments annually in research and development. > 23 languages. > 13 e-merchandise airlines. Most scalable solution: > 24x7 support. > Over 99.9 % up-time and reliable platform, in H > ISO 9001:2000 certification. Fastest time-to-market: Most profitable solution: > + 8% in yield in the 3 months following live implementation. > 67% year-on-year customer booking growth in H > 8 weeks implementation turnkey solution. > 100% Software-as-a-Service model (with software upgrades included). > Real-time activation of Fare Family. Best online shopping experience: > Up to 6 customisable Fare Families. > More than 200 trip recommendations. > Up to a 15x15 calendar matrix with 225 fare cells. Amadeus e-merchandise is built upon a number of components:

5 Amadeus e-merchandise Solution 5 We were delighted with the rapid implementation of Amadeus e-merchandise Solution. The project was completed in three months and is fundamental to the airline s new strategy. Through this technology, we expect to increase our penetration of the online markets and to deliver a yield growth. bmi is particularly appreciative of e-travel s dedicated and comprehensive account management services and the flexibility of the team to deliver the product to bmi s specification. Paul Burroughs General Manager Online Sales & Distribution, bmi.com

6 6 Amadeus e-merchandise Solution Amadeus e-merchandise Solution Amadeus e-merchandise is the world s most widely adopted e-commerce shopping solution specifically designed to enable airlines to increase profits on a global basis. It is a flexible solution that connects to any environment and existing infrastructures. It is an adaptable solution designed to allow your airline to offer online services that exclusively reflect its strengths. At Amadeus, we know what travellers want from an airline website. They want easy access to the broadest and most relevant range of best fares. And they want fare structures they can understand. We also know what airlines need and expect from their e-commerce shopping and faring solution. They want a solution that will not only do an excellent job of serving consumers needs (before, during and after their online purchase), but also one that can cut costs, increase yield, and secure online growth. In 2005, the popularity of Amadeus e-merchandise allowed the Amadeus e-commerce business unit to outperform the market, with a year-on-year bookings growth of 72 percent. Much of that revenue growth was funneled directly back into research and development initiatives to better support customers, evolve its e-commerce solutions and further enhance their performance. Amadeus e-merchandise is a proven e-commerce shopping solution that already powers leading airlines such as: Air Canada, Air France, bmi, Croatia Airlines, Finnair, Iberia, Icelandair, Luxair, Lufthansa, Qantas, Varig and Wideroe. Perhaps more importantly than all of these - and something that truly differentiates Amadeus technology and services from its competitors - is the way it helps airlines to reach new levels of loyalty and profit. - Highlighting one-way combinable availability on a single screen.

7 Amadeus e-merchandise Solution 7 Amadeus e-merchandise offered us a clear competitive advantage as well as an opportunity to foster brand loyalty among our existing customers. We thoroughly investigated the other products in the market place and we unanimously agreed that Amadeus e-merchandise met all our goals, specifically in driving increased profits and revenues while improving the usability and flexibility of our website. Odd Langvatn Managing Director, Wideroe

8 8 Amadeus e-merchandise Solution Amadeus e-merchandise business benefits Increase profit on a global scale Given the increasingly competitive online travel booking environment amongst both airlines and travel booking portals, it is critical for an airline to be able to merchandise its products and fares online in a way that makes them simple for consumers to understand and purchase. Airlines have to learn how to retail online effectively in order to boost sales and further save costs. Amadeus e-merchandise Solution allows an airline to do just that. It includes a complete management of fares, fare conditions, fare families, pricing in the back-end and front-end and user interface at the Web services - or complete user interface - level. Amadeus e-merchandise is a complete turnkey solution, which turns an airline s online strategy into an actionable, profitable business. It is much more than a mere low-fare search tool. Although it includes a best-fare-find application, it is designed to be configurable by each airline to be able to meet the vastly diverse needs of different segments of the travelling public. Those needs cannot be met by systems that are so complex that they require consumers to possess the skill and experience of a traditional travel agent. A good airline e-commerce system must allow the airline to package different families of fares in a coherent fashion so that consumers can quickly understand what is being offered to them and what the differences are between tickets at different prices. Being able to sell more tickets online has a direct impact on an airline s bottom line. Until now, airlines have had to walk a thin line between selling more online - with special offers or selling lower volumes at higher prices. The Amadeus e-merchandise Solution enables airlines to increase both their online yield and volume at the same time. - Amadeus supports 23 languages off the shelf.

9 Amadeus e-merchandise Solution 9 Our significant investments to deliver reliable, flexible, innovative, and customisable on-demand e-commerce solutions are paying off for our customers. Our goal is to allow airlines to drastically increase their online revenues and yield while securing their investments overtime by delivering the best Software-as-a-Service offering for the future. Philippe Der Arslanian e-travel Director Suppliers & Agencies, Amadeus

10 10 Amadeus e-merchandise Solution Amadeus e-merchandise profit enablers > Amadeus e-merchandise is an on-demand, Software-as-a-Service application that benefits from continuous improvements and can scale up to traffic surges. > Amadeus e-merchandise provides real-time management of fares, allowing airlines to quickly respond to changing market conditions by introducing new fare families on the fly and thus compete more effectively. > It is a solution that is designed from the outset to be used internationally, allowing airlines to reach all markets and increase conversion on international flights without additional design costs. 3 months before launching Amadeus Flex Pricer 3 months after launching Amadeus Flex Pricer 8 leading airlines, which together carry more than 100 million passengers a year, and which have adopted Amadeus e-merchandise for more than three months, saw their online yield increase on an aggregated basis by 8% and their revenues increased by over 30% after a few months. > The innovative Fare Rationalisation design in Amadeus e-merchandise allows airlines to increase their ability to up-sell by exposing consumers more quickly to more classes of fares and helping them understand the advantages of buying higher fares. > Dynamic user interface management with CSS/xHTML allows airlines to sell more effectively by being able to build, manage and update their online e-commerce sites without incurring extra design costs. > Amadeus e-merchandise offers professional services including dedicated training, data mining and consulting - as well as account management - to increase conversion, loyalty, and yield. > Amadeus e-merchandise is a modular and flexible solution - one that allows airlines to extend the consumer s experience by allowing them to rebook and repeat bookings with the same, familiar calendar technology. > The unified B2B/B2C architecture in Amadeus e-merchandise allows airlines to reach unmanaged, lightly managed, and fully managed markets alike.

11 Amadeus e-merchandise Solution 11 Unprecedented Time-to-Market One key advantage of Amadeus e-merchandise is that it offers a huge time-to-market advantage over competitive solutions it provides a short stairway to airline e-commerce shopping heaven in less than 3 months and translated in up to 23 languages. By the time an airline goes through e-merchandise Fare Rationalisation, the airline e-commerce site is only weeks away from the grand opening. Airlines can feel assured of the quality and reliability of their solution as Amadeus e-merchandise is managed through a rigorous, five-phase project methodology: Phase 1 Defines the airline s requirements and objectives through a project team that typically includes an Account and a Fare Quote Manager. Additional support is given by a Project and a Technical Account Manager on large projects. On the airline side, a project team is also set-up to cover e-commerce, Faring, Inventory, Pricing, Marketing and Revenue Management domains. Phase 2 Discusses airline specific requirements and addresses all technical requirements for faring, fare rationalisation, availability and user interface. Phase 3 Provides complete Amadeus Flex Pricer and FareXpert training to assist implementation. Phase 4 Provides support to define Fare Families, markets and Commercial Fare Families for the Amadeus e-merchandise solution. Phase 5 Tests the website to ensure full compliance with airline requirements and optimum quality of the deployed solution.

12 January 2006 e-travel EMEA & LATAM, e-commerce division of Amadeus Nice, France Tel: +33 (0) Travel Technology Travel Technology e-travel North America, e-commerce division of Amadeus Boston, Massachusetts Tel: e-travel Asia, e-commerce division of Amadeus Bangkok, Thailand Tel: etsalesglobal@amadeus.com