Amadeus makes it easier to fly business with Ryanair

With a number of low cost carriers (LLCs) available soaring from 35 in 2009 to over 80 in 2016, Amadeus has succeeded to attract budget carriers. In the first three quarters of 2015, total bookings on discount airlines by travel agencies via Amadeus has risen by 16.3%, compared to the same period last year.

Ryanair, has announced at the beginning of the year the introduction of their Business Plus Fare in the travel agency channel. Aiming at attracting business travelers on their flights, Business Plus Fare offers a wide range of services free of charge: one 20kg checked-in bag, airport check in, flexible ticket changes, a premium seat with extra legroom or a speedy exit, priority boarding and priority access to security checks.

The Head of Corporate Sales of the Irish discount airline points out the importance to simplify the travel booking process and to improve the flight experience. Meanwhile the Global Distribution System (GDS) provides to Ryanair “more relevant and targeted offers for their travelers”, commented Amadeus Vice President of Distribution Marketing in Travel Daily News.

Working with a GDS was a strategic decision made by Ryanair. Two in three business and first class bookings are done through an indirect channel on the one hand, and on the other, Amadeus is the only GDS that offers Light Ticketing technology. By generating a virtual ticket, it becomes as simple for LCCs to make availability and buy ticket as they are for full-service carriers.

We believe that it is not without significance that Ryanair works with GDS as budget carriers mature. Ryanair can benefit from GDS distribution to reach higher-yielding customers who are business travelers. Contrary to leisure travelers that represent the majority of Ryanair clients, business travelers are low-price sensitive and high time-sensitive. They are keen to pay higher prices than leisure travelers to meet their professional commitments (meetings and appointments). By consequence, the business travel market creates new opportunities and generates more revenue.

While LLCs sales were mostly online in order to minimize costs, the past few years, GDS has become a key distribution channel. This is a turning point in LLCs business strategy as LLCs have realized that they need to work in close relation with GDSs to sell to business travelers as they mainly use travel management companies to buy their tickets.

As mentioned in Flightglobal.com website, Easyjet, another budget airline, has already seen its tickets sold through third parties  - including the GDSs-  increased from 2% in 2008 to 10% in 2013. We believe that relation between LLCs and  GDSs is becoming more marked every year.

Kim TUONG – Anais DAFRI – Joëlle CALAFELL

To know more about ‪Amadeus Low Cost Carrier, we suggest you to watch the demo : 

Reference article from Travel Daily News written by Vicky Karantzavelou (26 January 2016): Amadeus makes it easier to fly business with Ryanair