New Solution To Support Airline Ancillary Revenues
Amadeus launches airline service fees
Bangkok, Thailand - Amadeus today announced the launch of the first module of Amadeus Airline Service Fees, the industry’s first solution to automatically price and collect ticketing fees through multiple channels in compliance with ATPCo and IATA regulations defined for OB Fees.
Amadeus Airline Service Fees comprises two modules: the first one, which is now available, enables airlines to automatically collect ticketing, credit card, and miscellaneous fees in their direct sales channels (airport & city ticket offices, call center, website). The second module that is due to be rolled out as part of the Amadeus Retailing Platform, will allow airlines to collect credit card fees through their indirect sales channel, the travel agencies.
Amadeus Airline Service Fees is designed to fulfil three goals:
Increase airlines’ revenues: Amadeus Airline Service Fees enables airlines to secure their fee collection and eliminate human error by end-to-end automation of the entire process. With the indirect channel module of the solution, carriers will also maximize the reach of their fee policies and access new revenue streams by collecting credit card fees through the travel agency channel.
Secure transparency in airlines’ fees collection: “The European Union recently highlighted the need for transparency in airline fee calculations,” points out Frederic Spagnou, vice president, Airline Business Group, Amadeus. “The Amadeus Airline Service Fees solution was developed precisely to solve the issue, quoting a total price including all fees and displaying a complete breakdown of those fees to the final customer/traveller.” The integration of fees in the reporting process has the additional benefit of allowing more transparency within airlines’ revenue accounting.
Improve airlines’ fee management: Automated and flexible, Amadeus Airline Service Fees is the airlines’ solution to customize their fee policies and accurately manage their fee revenues. Airlines can, as a result, roll-out new fee policies across all sales outlets in real-time. A cost-saving solution as well, Airline Service Fees is fully integrated within the agent workflow so that staff productivity is ensured.
An Amadeus Show Me the Value study demonstrated that the automation of service fees processing can provide up to a 28 per cent increase in fee revenue and 67 per cent increase in productivity. Maximizing this revenue stream is even more important for airlines seeking ways to increase their ancillary revenues to compensate the surge in their operating costs due to the fuel price hike.
The first module of Amadeus Airline Service Fees solution is now available to all airlines that have adopted the Amadeus Altéa Reservation platform.