Page 1

Round Trip Special Edition > June 2012

Editorial

ASC Newsletter PAGE 2 - 3 / News

• ASC announces 2011 financial results

Is a world seemingly dominated by dozens of online travel tools a sign of the typical Travel Agent joining the dinosaurs?

•Amadeus receives 2012 Air Transport News award as Best IT Company

I would like to share an interesting article by Michelle Higginswith of the New York Times (20th April 2012). Interesting, as contrary to the general belief that all travel arrangements are happening online, statistics in the US show that bookings with traditional Travel Agents for a second year running have shown substantial increase.

•Amadeus and OAG launch daily airline schedule updates

Got me thinking why this resurgence. Are Travel Agents getting smarter or are people getting fed-up of searching online without being convinced that they always get the best pricing online? Maybe a bit of both.

PAGE 4 - 5 / Market Trends

In a survey of more than 2,000 global travellers also mentioned in the article, 20 per cent said it took them more than five hours to search and book travel online. Nearly half said it required more than two hours. How many of us have spare hours?

•Major growth in travel volumes during the London 2012 Olympics

My theory is that the travel planning process has become extremely complex with too many options and limited flexibility when changes are necessary.

PAGE 6 - 9 / Reports & Products

•ASC 2012 Gala Dinner

Will this lead to travel agency sales moving back to pre-Internet? Don’t think so as tools providers and suppliers desperately try and improve online tools and the booking experience. Agents are however thought necessary as the amount of information out there is overwhelming. There is a belief that agents are better qualified to help through the selection process. Whatever the reasons a resurgence of interest in traditional travel agents create a terrific opportunity for travel shops. Travellers are after finding value of online offerings. Bringing value into the equations is a huge opportunity for the Travel Agents and the smart ones are busy thinking out ways of creating this value. Travellers want value which isn’t always available on a browser – they want the human element to ask questions like what’s included? What can be included and what’s not included? Travellers are recognizing that value may not be the best price.

•ASC ATM X 2012 •Seven out of ten of the world’s busiest inter-city routes •Amadeus creates world’s first interline EMD link •Take your business to new places

PAGE 10 - 11 / Guidelines •Amadeus Offers •Reissue Guidelines

When searching through online tools the results are nearly always about price – never about value.

PAGE 12 / ASC Now

Many of the Amadeus Products & Solutions are specifically designed to bring value to the Traveller and the Agent relationship.

•New Dawliya office

Ask any of the ASC team to come and talk to you about your Agency creating value and winning in the market-place.

Shafiq Hamid General Manager

ASC-ME.NET - ALL NEW We have launched our new website, visit and tell us what you think, Image library, Online Support, Video Library, Training Registration and much more…

•Amadeus User Forum March 2012


2 News

ASC announces 2011 financial results • 2012 and Beyond starting with the “Think Service” Campaign.

• ASC’s Chairperson Eng. Hadeel Al Ghunaim announced the financial results of 2011 while highlighting the company’s operational transformation. Engineer Hadeel Al-Ghnaim the Chairman of Automated System Co. “ASC” said “ the company went through significant operational transformation as part of the plan set down for the year 2012 and beyond, in which our new campaign «Think Service» will highlight this year’s operations” she added “the continuity of the Board Management in developing a system of work to ensure development for achieving positive results for shareholders and profits by providing the best services in the State of Kuwait and the region”. This speech for Engineer Al-Ghunaim came during her chairmanship of the ordinary general assembly events held by the company, as she revealed the financial results of the company during the last year 2011 in forefront of the high revenue from the distribution of the automated reservation system (GDS) for over 12 months by an increase of 24.13 % as well as the increase of the company’s share in the market from the distribution of the system to 44.6% at the end of 2011, which confirms the right path that ASC is pursuing since moving to the current distribution system Amadeus, noting that the total profit for the year reached KD 541,504 with a slight increase from last year’s result. Despite the change in fair value of investments to KD 295,757, pointing out that the earning per basic and diluted share reached 13.52 fils and increased by 3.36% from last year, expressing her happiness for the success of the company in achieving that positive result despite the difficulties experienced by the global economy. The Board of Directors agreed to distribute a cash dividend to shareholders at 25% of the company’s capital, namely at 25 fils per share for the financial year ended 31/12/2011. Engineer Al-Ghunaim said that “the Board members have developed a plan to determine how to deal with the company's business lines and made good progress in the light of this plan which make it in a good position to provide value to shareholders in accordance to the favorable conditions, we also continue to gain strategic advantages due to our financial strength and our ability to understand customer needs and by attracting the right people to work with”. In regards to the legal dispute between ASC and its previously distributed GDS company in which ended positively, Engineer Al-Ghunaim said “it is ASC’s persistence in following-up to defend its legal rights with the previous automated reservation system provider (GDS) thanks to God for the achieved results.

Amadeus announces 2011 full year results Strong results as both Distribution and IT Solutions businesses continue to grow Year-on-year 2011 highlights (year ended December 31, 2011) • Adjusted profit increased 20.7%3 to ₠487.2 million • Like-for-like Revenue grew 5.8% to ₠2,712.0 million • EBITDA rose 6.4% to ₠1,039.0 million • Total billable travel transactions processed increased 11.5% to 947.6 million • Total dividend for the year of ₠0.37 per share or ₠165.6 million , representing a pay-out of 36% of the 2011 profit • Net debt decreased by ₠719.5 million to 1.75x last twelve months’ EBITDA • Global market share of travel agency air bookings increased by 1.0 percentage point to 37.7%

Amadeus receives 2012 Air Transport News award as Best IT Company • The ATN Global Awards recognise the companies that contribute most to the industry. Amadeus was given the 2012 Air Transport News award as Best IT Company of the year. Ahmed Youssef, Regional Director, Marketing and Operations, Amadeus Middle East & North Africa, picked up the trophy on behalf of Amadeus during the official ceremony held in Athens in March. This recognition results from the publication’s readers’ votes over a month long period. Voters analysed the organisations’ contribution to the air transport sector, wishing to pay tribute to the best companies in the air transport industry which despite the unstable environment, have made headway and helped the industry to move forward. Based on the votes and the verdict of a jury of internationally known industry experts, Amadeus won the 2012 ATN Award for IT Company of the Year. Other category winners included: Embraer ( regional aircraft

manufacturer of the year), Airbus (aircraft manufacturer of the year), Rolls Royce ( engine manufacturer of the year), Swissport (ground handler of the year), Lufthansa Technik ( Maintenance, Repair and Overhaul company of the year), Star Alliance ( airline alliance of the year), Singapore’s Changi airport ( airport of the year) and Emirates ( airline of the year). “This is a happy moment for Amadeus. Awards such as this one clearly confirm that the industry recognises that we are following the right strategy of offering the most innovative and effective solutions through sustained investments in R&D, where we have spent two billion Euros since 2004,” commented Ángel Gallego, Vice President , Western Europe, Middle East & Africa, at Amadeus.


News

3

Amadeus and OAG launch market-leading daily airline schedule updates for travel agencies OAG processes up to 50,000 airline schedule-change messages per day “Amadeus is the first global distribution system to use a daily OAG schedule feed,” OAG, the global leader in aviation intelligence, and Amadeus announce a new enhancement to provide best-in-class airline schedule information. Under the agreement, OAG now provides to Amadeus a daily transmission of schedule data files. OAG’s data is used globally by Amadeus-served travel management companies, travel websites, and agencies. “Amadeus is the first global distribution system to use a daily OAG schedule feed,” said John Grant, EVP Networks of UBM Aviation, parent company of OAG. “This enables travel agents and their customers to access more accurate information when they’re looking to book a flight – a major competitive advantage for any global distribution system.”

year ahead. This data is updated continuously, and OAG processes up to 50,000 airline schedule-change messages per day. “Airlines change their flight schedules to enhance margins, meet market demand, and seize competitive advantage and it is key that this information is made available quickly to travel agencies,” said David Doctor, Director Distribution Marketing, Amadeus. “With this new agreement, we can ensure that, for airlines which file their information in OAG, schedule changes are processed and new flights proposed for sale, immediately on the day.” Approximately one third of the flight schedules in the Amadeus system are based on OAG´s data. Airlines can also update their schedules directly in the Amadeus system.

The OAG database contains schedules for over 1,000 airlines and over 4,000 airports. The database tracks over 28 million departures a

Amadeus unveils landmark HRS agreement • Amadeus is first to distribute HRS’s hotel content through the GDS channel, taking a major industry-level step towards efficient hotel content distribution • By Q2 2012, Amadeus’ subscribers worldwide will benefit from integrated access to broader content with the addition of HRS’ 250,000 hotel properties, including more than 50,000 hotel properties which were distributed exclusively through HRS up to now. Amadeus and HRS, the worldwide leading hotel portal for corporate customers, announced a strategic alliance to distribute HRS’s hotel content through Amadeus. This is a milestone in HRS’ strategy as it is the first time the hotel portal will make its content available through a global distribution system. Through this strategic partnership, which is a major step forward in Amadeus’ ‘Multisource’ hotel initiative to distribute hotel content from diverse sources, Amadeus will seamlessly integrate HRS’ database of around 250,000 hotel properties to its distribution system. This includes more than 50,000 independent hotel properties which were distributed exclusively through HRS up to now. HRS, recognised as the worldwide leading hotel portal for corporate customers, offers business travellers a vast choice of hotels worldwide, with detailed and high quality shopping information in 32 languages, best price guarantee for all properties as well as flexible and customer-friendly booking conditions. By seamlessly integrating this standardised hotel content to Amadeus’ newly re-engineered hotel search and reservation system, Amadeus and HRS are responding to customers’ demands for efficient, integrated access to the most relevant hotel content. The integration of HRS hotel offers to Amadeus will eliminate labour-intensive, hotel shopping and servicing by bookers, who typically compare rates for the same hotel across multiple channels before booking. It also brings a vast new array of highly-demanded independent hotels to the GDS environment for the first time. Tobias Ragge, Chief Executive Officer, HRS, commented “This

strategic agreement with Amadeus is a key milestone in our multichannel strategy to offer our hotel partners extended, integrated distribution reach from a single source. By distributing our content through the GDS channel for the first time, we will make our hotel partners bookable through more than 91,000 travel agencies and over 65,000 airline sales offices, which use the Amadeus system worldwide. HRS’s integrated end-to-end solution, which connects independent properties directly with the GDS, helps to reduce our hotel partners’ distribution cost by 10 per cent compared to competing solutions. At the same time we respond to the demand from bookers worldwide to find our vast choice of independent hotels efficiently through Amadeus distribution solutions. Our corporate customers will benefit from higher adoption rates when it comes to hotel bookings, as their travel agency partners now have also access to more extensive hotel content.”


4 Market Trends

Amadeus and Travelodge sign global distribution deal UK’s fastest growing budget hotel company now bookable through Amadeus Amadeus announces a distribution deal with Travelodge, the UK’s long-established and fastest growing budget hotel chain, with more than 490 properties in the UK, Ireland and Spain. This deal enables Travelodge to expand its distribution reach to budget conscious travellers using the services of travel professionals. Around 80% of Travelodge hotels are located in major city centres and popular holiday locations. The budget hotel chain is also growing rapidly with plans to operate 70,000 rooms (approximately 1000 hotels) by 2020 and today is the biggest hotel operator in London. This distribution agreement will help Travelodge to attract more business travellers to their properties, as rooms for the chain will be

seamlessly integrated into Amadeus Selling Platform and its user-friendly Hotels Plus booking tool – used in more than 90,000 travel professional points of sale worldwide. Travelodge rooms will also be bookable through Amadeus e-Travel Management, the self-booking tool for corporate travellers, as well as being made available to online travel sites and 3rd party developers using Amadeus Web Services. The 490 Travelodge properties will be available to Amadeus customers to book from 10 January 2012. Travelodge has also signed up to the Amadeus Best Available Rate guarantee, which means travel agents can book with confidence in the knowledge that their customers are getting the best deal. No special training is required to book the new content and the data is fully integrated with the Amadeus Passenger Name Record (PNR) which speeds up the booking process.

ASC 2012 Gala Dinner 12th of January 2012 the ASC Gala Dinner was a glamorous night with Jazz music in the background and sparkling Awards on stage awaiting their recipients. ASC’s Gala Dinner brought together the best and the privileged at the Regency Hotel Fotouh Ballroom to enjoy a night where the Elite, Platinum and Stars of Amadeus where center stage. The night started with a speech from Mr. Shafiq Hamid, highlighting the challenges to come, followed by a warming and supportive Video recorded speech from the Chairman of Kuwait Airways Mr. Yousef Al Humaidi. ASC’s Board members, Kuwait Airways management and Amadeus Mena Vice president Mr. Antoine Medawar were among the guests including leaders from Travel Management Companies, Hotels and Airlines. The three award categories were the highlight of the night where the deserving winners gained them based on their GDS productivity. The Elite Partner Award went to the 25 Agencies that made 100% of their segments through Amadeus, The 5 Platinum Partners got their award for the highest productivity on Amadeus and the 5 Amadeus Stars got their Award for their individual highest Productivity on Amadeus. At the end of the night, a raffle with great prizes took place and a gift travel bag was given to all the attendees on their way out leaving the Ballroom. congratulations to the winners

Elite Partners Awards: Al Athla Travels Al Deera Travels Al Dhamer Travels Al Madina Al Munawwara Travels Al Sawan Travels Asfar Travels Canary Travels Dahab Travels Al Farwaniya Travels IFA Travels Jumbo Travels Kapico Travels Kazema Travels Majestic Travels Masader Travels MEBS Travels Al Mubasher Travels Al Nukhetha Travels Ramsis Travels Sama Al Kuwait Travels Sanam Travels Soor Travels Tamayeez Travels Tami & Marouf Travels Al Yousify Travels Platinum Partners Award: 5th- Farwaniya Travels 4th- Al Deera/al Watan Travels 3rd- Caesars Travels 2nd- Al Waseet Travel 1st- Jumbo Travels Amadeus Star Award: 5th- Mr. Jomon Koshy, Discovery 4th- Mr. John Hachem, Sanam 3rd- Mr. Altaf Hussain, Eternity 2nd- Mr. Shaji Thandora, Al-Dhamer 1st- Mr. Majed Rofail, Sayed


Market Trends 5

Amadeus and ForwardKeys reveal major growth in travel volumes during the London 2012 Olympics •

Travel to London set to be 31% higher in arrivals (143% increase compared to the than in 2011, with travellers from the US same day 2011) on 26 July, the day before the opening of the Games. When the and Germany representing the highest number of in-bound visitors to date. period of analysis is broadened to include the four days before the event, scheduled The positive impact of the Olympic future arrivals show an overall increase of Games can also be seen in other European cities connected to London via high speed 31% when compared to the previous year. rail • European high speed cities benefit from the Games Amadeus in conjunction with Forward are not flocking en mass to rent out their Brussels, Amsterdam and Paris are all Data SL, a market research and consulting homes and to travel abroad. Instead, it company publishing ForwardKeys.com, linked to London by high speed rail and all seems that the vast majority of Londonthree cities have registered surges in today unveil a range of travel data trends, ers are keen to play an active role in the arrivals during the period of the Games. based on actual global air reservations, event. During the three week period of the which details the impact of the London Olympics, future scheduled arrivals in 2012 Olympics. With approximately 150 The forecast provided by Brussels are up 49% compared to 2011; days to go before the Games, the findings ForwardKeys.com, a business intelligence Amsterdam 28%; and Paris 5%. These reveal that travel volumes into London tool launched by Forward Data in partnerfigures suggest that travellers are increaswill significantly increase during the ship with Amadeus, is based on actual ingly adopting high-speed rail links in Games-time period. Importantly, the statistical aggregated air booking data conjunction with air travel in order to research demonstrates the global impact currently available and covers the period reach London. of the Games as other European cities, from 23 July though to 12 August 2012. connected to London via high speed rail, This analysis is the first in a series of see increased traffic, while long-haul • Londoners show appetite to stay in the forecast reports examining how the city to experience the Games routes experience heightened volumes. London 2012 Olympics is affecting global Analysis of scheduled departures from all travel trends. London airports shows that Londoners Key findings from the research include: are 11% more likely to stay in the city In-bound traffic boosts travel to London during the Olympics period than they did during Games-time in 2011. This finding suggests that For more information, please download Analysis of all in-bound air travel reservacontrary to popular opinion, Londoners the Research Snapshot at tions for London reveals a massive spike http://www.amadeus.com/blog/01/03/ olympics/


6 Reports & Products

ASC ATM X 2012 Every Year ASC holds the ATMX Trip (Arabian Travel Market Experience Trip) where the 100% Amadeus users and high producers on Amadeus are selected to experience the main Travel and Tourism Event Regionally. The selected agents will experience and witness how large the industry is and where it has reached with Amadeus being the Leader in the Travel and Tourism Technology Market. The guests get to stay at one of Dubai's Luxury Hotels and enjoy the true meaning of Travel and Tourism. During the ATM the participants got to see the newly released Amadeus products and try them first hand, one of the main releases was the Amadeus Mobile in which the new Mobile technology demonstrated how travel agents can diversify their revenue channels and provide more services to their customers and attract new customers. All the groups got to see what Amadeus had to offer being the undisputed market leader in the MENA region and witness the strong differentiators from its competitors by the many new innovative technologies from its online presence, Air & Non Air content and mobile solutions. We want to thank the ATMX 2012 Groups and wish them all the best.

Global study identifies trend-setting travellers´ online shopping behaviour and future motivations • ¨Empowering Inspiration: the future of travel search¨ highlights that for the destination, shopping and booking process, consumers in emerging markets are more frustrated than their developed country counterparts due to information overload and a lack of confidence that they are getting a good deal A new industry study released today, Empowering inspiration: the future of travel search identifies trend-setting consumers´ behaviour and motivations when shopping for travel online, and identifies their experience during the destination selection, shopping and booking processes. The study also details the key trends and predictions for how consumers want to be able to search for travel online in the future. The Amadeus-commissioned study, conducted by travel industry research authority PhoCusWright Inc., surveyed 4,638 travellers in the U.S., U.K., Germany, India, Russia and Brazil. In addition to consumer insights, PhoCusWright conducted 18 executive interviews with thought leaders around the world to gain industry perspective on where travel search is headed. Although the travellers under review are not representative of the mainstream consumer, they have the most sophisticated shopping needs and represent the early adopters whose current behaviours and preferences are leading indicators of behaviour in the future. Key findings include but are not limited to:

The frustrations and pain points travellers face when planning and booking travel All consumers face frustrations during the destination, shopping and booking process, however, those in emerging markets are more frustrated than their developed counterparts. For example in the shopping process, 47% of U.S. travellers experience frustration online, compared to over 78% of Russian travellers. This is due to information overload and the lack of confidence that they are getting a good deal. New ways in which travellers would like to search for travel In the developed markets, nearly 50% of travellers had a particular place in mind, whereas in the emerging markets, it was only about a third of travellers. Catering to these travellers is advantageous, as attracting shoppers earlier in the purchase funnel broadens their audience and reduces their reliance on search and referral traffic. Furthermore, more than four in 10 travellers across the markets are flexible about travel dates, thus tools that help determine where and which travel dates have the lowest price have widespread appeal. It is time to think outside of the traditional city pair/travel date box. To download a copy of the Empowering Inspiration: The future of travel search study, please visit www.amadeus.com/onlinetravelsearch


Reports & Products

7

Seven out of ten of the world’s busiest inter-city routes are within Asia as the region leads global travel growth •

Passenger demand analysis by Amadeus reveals Indonesia, the Philippines and Chile join BRIC countries as fastest growing travel markets

Asia leads the world’s growth in travel and holds seven out of the ten busiest inter-city routes. In addition to the BRIC markets, Indonesia, the Philippines and Chile showed an impressive growth, according to analysis by the market intelligence solution Amadeus Total Demand. The review looks at trends in worldwide passenger demand between regions, countries and specific airports, comparing the full 2011 passenger volumes with 2010 data. All figures relate to passengers travelling between a given origin and final destination airport, irrespective of the number of connecting stops. The most important inter-regional growth patterns of last year are led by Asia. Traffic between Asia and Europe, and between Asia and North America, grew by 9%. Traffic between Asia and the Middle East grew 6% reaching 38 million travellers in the year. Compared with the previous year, 2% fewer passengers travelled between Africa and Europe in 2011; this was the only region pair with a significant traffic flow decrease over the period. Traffic between North America and Europe remains the busiest inter-regional flow with over 60 Countries showing highest % growth in million passengers in 2011, followed by Asia and Europe with over 53 million, and Latin America passengers between 2010 and 2011 and North America with 47 million passengers. Country Pax 2011 Growth Brazil (17%), India (13%) and Russia (15%) also featured in the top ten fastest-growing countries by % growth. Chile (21%), the Philippines (15%) and Indonesia (11%) are also among the fastest growing travel markets. Egypt and Japan are among the fastest shrinking markets, probably due to the Arab Spring and the Tsunami. It is interesting to note that the strongest traffic in between cities takes place within the same country. From the world’s top ten inter-city routes, seven are within the domestic borders of Asian countries, out of which three are in Japan. In terms of volume, the route between Jeju and Seoul is the most important (almost 10 million passengers) followed by Rio de Janeiro and Sao Paulo (circa 8 million passengers).

(5 m annual passengers and above)

(000s)

vs 2010

Chile Brazil Philippines Russian Federation Saudi Arabia Turkey India Vietnam Indonesia

9,306 82,334 24,392 44,541 23,345 34,398 71,634 16,097 53,701

21% 17% 15% 15% 15% 15% 13% 12% 11%

Amadeus Total Demand is able to provide detailed demand data for any origin and destination pair in the world. Data is mined from a large number of sources including commercial and government airline and airport traffic statistics as well as major GDSs. The data is then processed by a cutting edge computing algorithm and robustly tested to ensure the highest accuracy of results.


8 Reports & Products

Reports & Products

Global industry study reveals how new technologies and social change will combine to transform travel by 2020 ‘From Chaos to Collaboration’, a new research study commissioned by Amadeus, challenges the travel industry to overcome the uncertainty and stress of modern-day travel, through the application of new technologies and innovations A major new global study released outlines how transformative technologies and evolving social values and trends will combine to establish a new era of collaborative travel over the next decade and beyond. The report, ‘From chaos to collaboration: how transformative technologies will herald a new era in travel’, demands increased partnership across the travel industry, in turn removing the stress, uncertainty and chaos which is usually associated with travelling in the 21st Century, as well as providing much richer, deeper and more personal travel experiences at the same time. Developed by The Futures Company, a leading global foresight and futures consultancy, and commissioned by Amadeus the report details a clear qualitative shift where service-users become partners rather than customers and where context is as important as the transaction. Of course at the heart of this new era of collaboration is a set of discrete ‘enabling’ technologies and innovations. Based on extensive research and input from key industry experts – including technologists, leading travel industry representatives, social trends experts and futurists – as well as quantitative traveller research in Brazil, China, Russia, Spain, United Arab Emirates,

the United Kingdom and the United States, representatives will give travellers the tools they need to enrich their experience the study explores six key areas in which future technology and innovation could be 5. Taking the stress out of travel: The wellbedeployed. ing agenda and changing demographics will place greater emphasis on removing Key findings travel stress. Intelligent luggage tags and tickets will give greater reassurance 1. The next generation of experience: Travel whilst m-Health (mobile-Health) applicais increasingly about depth rather than tions will allow travellers to manage and breadth of experience. Technologies such monitor their health and wellbeing as if as augmented reality, gamification they were at home mechanisms and smart mobile devices will transform the travel experience 6. The business tourist: Continued emphasis on work-life balance and wellbeing at 2. Automatic transit: Checking-in could work may see the rise of the business become the exception rather than the tourist which will demand speed and norm, with the rise of faster and more efficiency as well as a home-away-fromefficient identity management systems. home Chips, biometrics, long range fingerprinting and near field communications (NFC) can be deployed in a more integrated way According to Eberhard Haag, Executive Vice to fast-forward how people move around President, Global Operations, Amadeus: “Over the next decade, there is a significant 3. Payment with memory: All data on opportunity to redefine how the industry payments made before and during a trip delivers and packages services to meet changwill be integrated, acting as a digital ing traveller needs. Key to this is more memory of expenditure and activity for intelligent information exchange, a willingindividuals, groups and travel industry ness to challenge the status quo and greater operators. Intelligent passenger records, two-way partnership between travellers and ‘digital breadcrumbs’ and contactless travel players. We are committed to stimulattechnologies could be used to personalise ing debate within the travel sector about how and bundle services delivering higher the world is changing, what travellers will increasingly expect and how the industry can value and more profitable relationships evolve in a way that secures growth and 4. Intelligent recommendation: As technolo- profitability for our customers’ future gies make it easier for people to tag and success.” review all aspects of travel experiences, travellers will be more influenced by peer To download a copy of the report, please visit: groups and expert curators. The prospect www.amadeus.com/blog of personal travel guides and mobile tour

Amadeus creates world’s first interline EMD link •

Move enables launch partner airlines Finnair and Egypt Air to grow revenue by facilitating the interline sale of ancillary services

A significant percentage of bookings made through the Amadeus system are created through interline partnerships, which represent a huge commercial opportunity for the industry

Amadeus has announced the creation of the world’s first interline Electronic Miscellaneous Document (EMD) link. The application of EMD to interline partnerships means that participating airlines can now facilitate payment for and delivery of ancillary services across their partnerships and alliances. Amadeus estimates that up to 20% of air bookings made through its system are the result of interline partnerships, representing a huge opportunity for airlines to increase revenues through the sale of ancillary services via their partner carriers. In addition, EMDs remove the need for paper documents to account for the sale of ancillary services, which IATA believes will save the industry 0.9 USD billion annually.

9

The internet penetration rate in Kuwait is 44% . The internet has been one of the factors to drive sales for budgeted airlines such as Jazeera and Air Arabia. On the other hand, increased competition within the travel industry and growing consumers demands have forced travel agencies need to explore new revenue streams. Taking your business By Aqeel Hazi online is interesting as well as challenging. With an online sales department in place and Some of the core benefits that our solutions enhanced customer satisfaction, you will portfolio offers are definitely experience a surge in your • Creating the perfect fit – the tailored revenues. solution for your specific business needs. • Access to functional consultants with key E-Power is a complete and advanced online expertise of the travel distributor environbooking engine that can be customized to ment and the Amadeus product portfolio. the agency's own look and feel, functionality • Minimised risk from using experienced and preferences that can be deployed within Amadeus resources and Amadeus 4 working weeks at an affordable budget. Products and Solutions. E-Power makes the booking process simple • Controlled cost because we build on and easy, driving conversions on your own existing industry solutions website. E-Power allows your customers to easily and securely book air, hotels, car and E-Power packages online - converting lookers to bookers. E-Power is an Internet Booking Engine for travel agencies and travel portals, by which E-Power is a truly online booking engine that their clients can book air, hotel, car and provides our corporate customers, leisure and packages online. E-Power has a user-friendly online customers with an easy to use, search interface, so it’s easy for your customers to and book platform in a real time environment check schedules and fares, make bookings, that is custom designed to our specific and access travel information. E-Power drives business requirements. I am confident that conversions online while controlling your with E-Power in use, we foresee immediate operating costs. Your business is travel and growth in online revenue with in a short span ours is technology. Reservations made by of time. your customers through E-Power are automatically queued to a Travel Agency Internet Office ID for further processing, leaving you to concentrate your energies on growing high-value sales.

e-Packages

Take your business to new places

The business structure of the travel and tourism industry has undergone incredible changes over the last decade especially with the emergence of the Internet. New technologies have improved the current business process tremendously and had a major impact on transforming the travel industry. The technology trends have increased the bargaining and negotiating power for the customers and suppliers simply because of their capability to communicate directly using a web services. Amadeus, the leading GDS in the State of Kuwait supports travel agencies in benefiting from this trend. Thanks to its customer centric approach: listening to your expectations, understanding your business practises and adapting our wide ranging product and solution portfolio to help you achieve your business objectives. Amadeus goes beyond your expressed needs to offer you a solution portfolio that helps you anticipate the future. As your technology provider, Amadeus delivers you the right solution to help you prove your value to your customers and therefore strengthen your market leadership.

Amadeus is committed to providing a wide variety of industry-leading products and solutions that increases the functionality, In addition, all the relevant information from productivity and profitability of travel the user’s profile is automatically transferred management companies handling both to the PNR. business travel and leisure customers. Interline EMD processing between Finnair and Egypt Air means the carriers’ customers can now buy ancillary services across interline flights, safe in the knowledge that the operating airline will know the service has been purchased. Previously, the only way the operating airline would know a customer had purchased an ancillary service, such as extra baggage allowance, was through a paper document provided by the traveller at the airport. Julia Sattel, VP Airline IT, Amadeus commented: “Our research estimates ancillary services were worth over $35 billion to airlines in 2011, with ancillary services contributing upwards of 20% of total revenues for some carriers. A well implemented ancillary services strategy is now the difference between reaching profitability and incurring a loss for a large number of airlines. We are naturally absolutely delighted to be able to welcome Finnair and Egyptair to be our launch partner airlines for what is the world’s first interline EMD link”. Petteri Skaffari, Head of Customer Experience and Sales Applications, Finnair commented: “Our commercial strategy means we always aim to be at the forefront when it comes to new developments. With this in mind, we’re incredibly pleased that Amadeus has given us the opportunity to be a launch airline on Interline EMD. Ancillary services are clearly always critical to airline profitability. To

maintain our focus on service excellence we must ensure that when we sell ancillary services they are delivered in the way the customer expects. That’s especially true when our interline partner airlines deliver services sold under the Finnair brand. That’s where EMDs will make a big difference for our customer experience”. Mr. Yasser EL Ramly, VP Commercial, Egypt Air said: "We are proud to be a pioneering airline which is putting into production a true interline EMD. This is clearly a landmark achievement for the industry, and we would like to extend our sincerest thanks to both Amadeus and Finnair for working together with us to make this happen. Our customers will absolutely notice the difference - the improved efficiency and more convenient service are principal and tangible benefits, whilst the EMD will also save on time. It is clear also that we are far ahead of the IATA target date of 2013 for full application of EMD across the industry." 56 airlines have contracted Amadeus’ EMD Server to enable the provision of EMDs in order to facilitate the sale of ancillary services. To date, 22 carriers have implemented Amadeus’s EMD Server resulting in 4,098,842 EMDs processed during 2011 and IATA states that 47 are currently EMD compliant.


8 Reports & Products

Reports & Products

Global industry study reveals how new technologies and social change will combine to transform travel by 2020 ‘From Chaos to Collaboration’, a new research study commissioned by Amadeus, challenges the travel industry to overcome the uncertainty and stress of modern-day travel, through the application of new technologies and innovations A major new global study released outlines how transformative technologies and evolving social values and trends will combine to establish a new era of collaborative travel over the next decade and beyond. The report, ‘From chaos to collaboration: how transformative technologies will herald a new era in travel’, demands increased partnership across the travel industry, in turn removing the stress, uncertainty and chaos which is usually associated with travelling in the 21st Century, as well as providing much richer, deeper and more personal travel experiences at the same time. Developed by The Futures Company, a leading global foresight and futures consultancy, and commissioned by Amadeus the report details a clear qualitative shift where service-users become partners rather than customers and where context is as important as the transaction. Of course at the heart of this new era of collaboration is a set of discrete ‘enabling’ technologies and innovations. Based on extensive research and input from key industry experts – including technologists, leading travel industry representatives, social trends experts and futurists – as well as quantitative traveller research in Brazil, China, Russia, Spain, United Arab Emirates,

the United Kingdom and the United States, representatives will give travellers the tools they need to enrich their experience the study explores six key areas in which future technology and innovation could be 5. Taking the stress out of travel: The wellbedeployed. ing agenda and changing demographics will place greater emphasis on removing Key findings travel stress. Intelligent luggage tags and tickets will give greater reassurance 1. The next generation of experience: Travel whilst m-Health (mobile-Health) applicais increasingly about depth rather than tions will allow travellers to manage and breadth of experience. Technologies such monitor their health and wellbeing as if as augmented reality, gamification they were at home mechanisms and smart mobile devices will transform the travel experience 6. The business tourist: Continued emphasis on work-life balance and wellbeing at 2. Automatic transit: Checking-in could work may see the rise of the business become the exception rather than the tourist which will demand speed and norm, with the rise of faster and more efficiency as well as a home-away-fromefficient identity management systems. home Chips, biometrics, long range fingerprinting and near field communications (NFC) can be deployed in a more integrated way According to Eberhard Haag, Executive Vice to fast-forward how people move around President, Global Operations, Amadeus: “Over the next decade, there is a significant 3. Payment with memory: All data on opportunity to redefine how the industry payments made before and during a trip delivers and packages services to meet changwill be integrated, acting as a digital ing traveller needs. Key to this is more memory of expenditure and activity for intelligent information exchange, a willingindividuals, groups and travel industry ness to challenge the status quo and greater operators. Intelligent passenger records, two-way partnership between travellers and ‘digital breadcrumbs’ and contactless travel players. We are committed to stimulattechnologies could be used to personalise ing debate within the travel sector about how and bundle services delivering higher the world is changing, what travellers will increasingly expect and how the industry can value and more profitable relationships evolve in a way that secures growth and 4. Intelligent recommendation: As technolo- profitability for our customers’ future gies make it easier for people to tag and success.” review all aspects of travel experiences, travellers will be more influenced by peer To download a copy of the report, please visit: groups and expert curators. The prospect www.amadeus.com/blog of personal travel guides and mobile tour

Amadeus creates world’s first interline EMD link •

Move enables launch partner airlines Finnair and Egypt Air to grow revenue by facilitating the interline sale of ancillary services

A significant percentage of bookings made through the Amadeus system are created through interline partnerships, which represent a huge commercial opportunity for the industry

Amadeus has announced the creation of the world’s first interline Electronic Miscellaneous Document (EMD) link. The application of EMD to interline partnerships means that participating airlines can now facilitate payment for and delivery of ancillary services across their partnerships and alliances. Amadeus estimates that up to 20% of air bookings made through its system are the result of interline partnerships, representing a huge opportunity for airlines to increase revenues through the sale of ancillary services via their partner carriers. In addition, EMDs remove the need for paper documents to account for the sale of ancillary services, which IATA believes will save the industry 0.9 USD billion annually.

9

The internet penetration rate in Kuwait is 44% . The internet has been one of the factors to drive sales for budgeted airlines such as Jazeera and Air Arabia. On the other hand, increased competition within the travel industry and growing consumers demands have forced travel agencies need to explore new revenue streams. Taking your business By Aqeel Hazi online is interesting as well as challenging. With an online sales department in place and Some of the core benefits that our solutions enhanced customer satisfaction, you will portfolio offers are definitely experience a surge in your • Creating the perfect fit – the tailored revenues. solution for your specific business needs. • Access to functional consultants with key E-Power is a complete and advanced online expertise of the travel distributor environbooking engine that can be customized to ment and the Amadeus product portfolio. the agency's own look and feel, functionality • Minimised risk from using experienced and preferences that can be deployed within Amadeus resources and Amadeus 4 working weeks at an affordable budget. Products and Solutions. E-Power makes the booking process simple • Controlled cost because we build on and easy, driving conversions on your own existing industry solutions website. E-Power allows your customers to easily and securely book air, hotels, car and E-Power packages online - converting lookers to bookers. E-Power is an Internet Booking Engine for travel agencies and travel portals, by which E-Power is a truly online booking engine that their clients can book air, hotel, car and provides our corporate customers, leisure and packages online. E-Power has a user-friendly online customers with an easy to use, search interface, so it’s easy for your customers to and book platform in a real time environment check schedules and fares, make bookings, that is custom designed to our specific and access travel information. E-Power drives business requirements. I am confident that conversions online while controlling your with E-Power in use, we foresee immediate operating costs. Your business is travel and growth in online revenue with in a short span ours is technology. Reservations made by of time. your customers through E-Power are automatically queued to a Travel Agency Internet Office ID for further processing, leaving you to concentrate your energies on growing high-value sales.

e-Packages

Take your business to new places

The business structure of the travel and tourism industry has undergone incredible changes over the last decade especially with the emergence of the Internet. New technologies have improved the current business process tremendously and had a major impact on transforming the travel industry. The technology trends have increased the bargaining and negotiating power for the customers and suppliers simply because of their capability to communicate directly using a web services. Amadeus, the leading GDS in the State of Kuwait supports travel agencies in benefiting from this trend. Thanks to its customer centric approach: listening to your expectations, understanding your business practises and adapting our wide ranging product and solution portfolio to help you achieve your business objectives. Amadeus goes beyond your expressed needs to offer you a solution portfolio that helps you anticipate the future. As your technology provider, Amadeus delivers you the right solution to help you prove your value to your customers and therefore strengthen your market leadership.

Amadeus is committed to providing a wide variety of industry-leading products and solutions that increases the functionality, In addition, all the relevant information from productivity and profitability of travel the user’s profile is automatically transferred management companies handling both to the PNR. business travel and leisure customers. Interline EMD processing between Finnair and Egypt Air means the carriers’ customers can now buy ancillary services across interline flights, safe in the knowledge that the operating airline will know the service has been purchased. Previously, the only way the operating airline would know a customer had purchased an ancillary service, such as extra baggage allowance, was through a paper document provided by the traveller at the airport. Julia Sattel, VP Airline IT, Amadeus commented: “Our research estimates ancillary services were worth over $35 billion to airlines in 2011, with ancillary services contributing upwards of 20% of total revenues for some carriers. A well implemented ancillary services strategy is now the difference between reaching profitability and incurring a loss for a large number of airlines. We are naturally absolutely delighted to be able to welcome Finnair and Egyptair to be our launch partner airlines for what is the world’s first interline EMD link”. Petteri Skaffari, Head of Customer Experience and Sales Applications, Finnair commented: “Our commercial strategy means we always aim to be at the forefront when it comes to new developments. With this in mind, we’re incredibly pleased that Amadeus has given us the opportunity to be a launch airline on Interline EMD. Ancillary services are clearly always critical to airline profitability. To

maintain our focus on service excellence we must ensure that when we sell ancillary services they are delivered in the way the customer expects. That’s especially true when our interline partner airlines deliver services sold under the Finnair brand. That’s where EMDs will make a big difference for our customer experience”. Mr. Yasser EL Ramly, VP Commercial, Egypt Air said: "We are proud to be a pioneering airline which is putting into production a true interline EMD. This is clearly a landmark achievement for the industry, and we would like to extend our sincerest thanks to both Amadeus and Finnair for working together with us to make this happen. Our customers will absolutely notice the difference - the improved efficiency and more convenient service are principal and tangible benefits, whilst the EMD will also save on time. It is clear also that we are far ahead of the IATA target date of 2013 for full application of EMD across the industry." 56 airlines have contracted Amadeus’ EMD Server to enable the provision of EMDs in order to facilitate the sale of ancillary services. To date, 22 carriers have implemented Amadeus’s EMD Server resulting in 4,098,842 EMDs processed during 2011 and IATA states that 47 are currently EMD compliant.


10 Guidelines

Offers

Managing demand and travel offers

Amadeus Offers is a unique, industry-leading solution that revolutionises demand management for travel agents, delivering more efficient and transparent management of pre-booking activities together with smarter business intelligence that benefits both your business and your customers. The management of pre-booking activities typically constitutes about a half of the daily agency workload, but to date there has been a lack of any appropriate tools to facilitate this complex and essential phase of the reservation process. Amadeus Offers is an innovative central, cross-channel solution that allows you to manage your pre-booking activities by storing travel data in a single location, with the possibility to exchange trip proposal details with travellers via e-mail. In addition, the travel data stored provides the opportunity to generate reports for analysis, as well as business intelligence on pre-booking behaviours and trends, giving you a valuable source of information to optimise your operations management.

Streamline demand management Amadeus is the first global distribution system to provide travel professionals with a comprehensive demand management solution, from handling trip proposals in the pre-booking phase to offering alternative travel arrangements after departure. Employing automated processes, Amadeus Offers replaces time-consuming workarounds that delivers impressive productivity gains, reducing the average time spent on trip management by as much as 60%. Using the existing booking flow, trip quotations are stored in the same passenger name record as the itinerary, providing an instant view of a traveller’s options. Proposals can be quickly and easily exchanged via e-mail using the Offer

Notice, providing clear information for decisionmaking. The pricing and availability can be refreshed to ensure they are kept up-to-date and once selected, an offer can be quickly retrieved and confirmed into a booking in a single transaction. The single view of your customer’s travel options allows for easy servicing, and gives you the means to manage any constraints during a trip with alternatives instantly accessible. The information also allows you to propose the sale of additional services, based on the stored trip proposal data.

Communicate efficiently with your customers Amadeus Offers’ unique innovation and rewarding user experience benefits both your business and your clients. The Offer Notice is a customisable, preformatted e-mail that includes flight and/ or hotel details, pricing and a summary of fare conditions. Sent in either HTML or PDF format that can be translated into one of 5 languages, it provides fast and efficient communication with your customers. Customisable fields allow the

Offers stored in an Amadeus PNR

information to be adapted and branded to your agency’s specification, including your logo and contact details.

The Offer Notice simplifies customer followup, saving valuable time and enhan ing the support you deliver. Your customers will benefit from a transparent, dynamic and more convenient travel experience, with clear information immediately available to make their choice.

Key benefits of Amadeus Offers > Save time and money with an automated process, replacing time-consuming workarounds > Propose the sale of additional services based on stored trip proposal data > Develop new revenue streams, such as charging for trip proposals/quotes

Increase productivity & revenues

> Manage constraints during a trip with alternatives accessible at any time through your preferred channel > Transparent and efficient communication channels provide your customers with a faster, more convenient travel experience > Demonstrate the value you deliver, detailing realised and missed savings using Amadeus Offers

Enhance customer satisfaction & retention

> Prove your contractual obligations to propose several alternatives for a trip > Tailor products to your customer’s needs by tracking the details of confirmed bookings with offers made > Benefit from a synchronised management of customer requests > Improve your negotiating power with providers using business intelligence from compared offers

Optimise operations management


Guidelines 11

Reissue Guidelines In this issue you will find the final ticket Reissue scenario guide as we have published all possible Ticket Reissue scenarios with easy steps, check out our previous news letter issues. Generally Reissue is required when a passenger changes the booking date after ticket issuance, or upgrades the booking class, at times Reissue is required when the Airline changes the flight timings. It all depends on the policy of the Airline (Validating carrier).

To save time on handeling manual reissue, ask your Account Executive about Amadeus Ticket Changer. Benefits of ticket Reissue on Amadeus GDS 1- Minimum steps to reissue ticket on Amadeus. 2- Adding penalty charges for more than one passenger with one step. 3- Storing the fare quote (TST) for partially used ticket. 4- Display the fare notes from the fare quote (FXP). Scenario 6: Reissue partially utilised e-ticket with increase of KD 30.000 in fare and Penalty KWD 10.000 (TAX code as XP, RF, SF etc.. as per airline)

1. ALI/ASEM MR 2. BA 156 M 10APR 4 KWILHR HK1 3 BA 157 F 30APR 3 LHRKWI HK1 TTE/ALL FXP/S2, 3/R, 05APR09 TTU/S3 TTK/EXCH TTK/X10XP/T40 XE10 FPO/CASH+/CASH TWD/L8 FO*L8/P1 RFKK;ER TTP/S3/P1

FLWN 2225 0630

30APR

E

BA/

Delete old fare (Price Itinerary with Flown segment and with the date of issue of the ticket) (update segment no.3) Exchange mode (Delete FP element #10) Add FP element Display ETR Copy ETR Receive+ER Issue Seg 3, Pax 1

Step 1 – Change the reservation as per required dates in existing PNR and delete the old fare (TST). Step 2 – Price the PNR with selecting the FLWN segment and the new segment with the “R” qualifier for the date of issue of the ticket Step 3 – Update TST for the segment that required for reissuing the ticket Step 4 – Update TST with exchange Step 5 -Update TST with KD10.000 penalty charge as TAX code XP and show the total as KD 40.000 (where 10 KD is penalty charge and fare increase 30 KD) Step 6 - Delete FP element where number 10 is the FP element in the PNR Step 7 – Add FP element as an original form of payment is “cash” and additional payment is also as “cash” Step 8 – Display electronic ticket record from the FA element number of the PNR Step 9 – Enter Automatically Issued e-ticket number, entry: FO*L8/P1 Where L8 is the line number of ‘’FA’’ or ‘’FHE’’ element of the displayed PNR. FO PAX 157-4810015524KWI11FEB09/77777722/15748100155240E1/P1 Place the cursor at the end of the last letter of the display ‘’ FO’’ element and press enter. Step 10 – Save the ‘’FO’’ element, entry: RFKK; ER Step 11 – To issue E-ticket, enter: TTP/T1 or TTP/P1

Automated e-Ticket refund REFUND FULL TICKET NO PENALTY

TRF125-1234567890/FULL REFUND FULL TICKET WITH PENALTY 10.000KD

TRF125-1234567890/FULL/CP10.000A PARTIALLY USED ETKT REFUND WITH PENALTY

TRF125-3783778787 TRFU/CP10A TRFU/U120.000 TRFT TRFU/TU1-20.000 TRFU/TX3 TRFU/TA7.000YQ TRF TRFIG TRFP

(Display Refund) (Add penalty 10KD Amount) (Update USED amount) (Display Tax mask) (Update Tax1 with 20KD) (Delete Tax3) (Add Tax YQ) (Save Refund) (Ignore Refund if required) (Process Refund)

All the information you need on your Amadeus Selling platform with 24/7 Support Information on our online e-Support Center, Register Now https://mye-supportcenter.amadeus.com/eTass


12 Sports

ASC New Dawliya office As ASC is determined to always be closer to its valued customers in order to assure that their needs are serviced and attended to intimately, located in the heart of Kuwait City and at the Main Hub of the Kuwait Travel and Tourism Industry, on the 28th May 2012 Chairperson of ASC Eng. Hadeel Al Ghunaim Officially Opened ASC's New Product Demonstration Office on the Mezanine floor of the Dawliya Commercial Complex in a Ribbon Cutting ceremony with the presence of Mr. Ali Al Bader, ASC Board Member, and Mr. Shafiq Hamid ,ASC General Manager, including a number of ASC’s key clients joining in the celebration. The purpose of the Product Demonstration Office (PDO) is to quickly and Ask about easily showcase the many Amadeus products and solutions and at the our weekly Pizza Demo same time be located in close proximity to Travel Agency Offices.

AMADEUS Quiz ASC offers 3 Amedeus Trainings on a regular basis, each one tackling certain issues faced by Amadeus users and each is for a diffrent level of staff. Name the 3 Training Courses offered by ASC. Hint : Check our new website Please reply on quiz@asc-me-net by August 15th 2012. Provide your name, contacts and amadeus office ID

Amadeus User Forum March 2012

We thank the travel agency managers that attended the ‘Amadeus User Forum 2012’ in March, for giving us an insight into current travel trends and also for their valuable feedback on Amadeus products and services. Mr. Shafiq Hamid, started the Forum by welcoming the participants, then a review of the previous User Forum action list to assure progress in all of the topics discussed. From there on the discussions started to include the many topics related to the market. In every user forum ASC encourages the Travel Agency Managers to send in their topic or issue of concern to be discussed in the Travel Agencies Market Topics sessions which this year was dominated by the discussion of the new structure and business proposal. If you would like to know what was discussed and what are the action points of the last user forum please ask your account manager to provide you with the Minutes of the March2012 user Forum Amadeus Help Desk 1-888-272 Amadeus Sales ae@asc-me.net Amadeus Product & Solutions solutions@asc-me.net

Automated Systems Co. P.O. Box: 27159, Safat 13132 Kuwait Tel.: +965 24822286 Fax: +965 24824300 www.asc-me.net

www.amadeus.com/kw

ASC Amadeus

ASCAmadeus

ASC Amadeus Kuwait Newsletter #5 SE  

A publication on the Travel and Tourism market brought to you by the Automated Systems Company, Kuwait.

Advertisement