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Finally Air Canada has announced their plans to retire their in-house mainframe solution, ReservAC and move to the Amadeus PSS solution. T2RL believe that Amadeus and Sabre competed head to head in a tough duel for this business. It is almost certain that Air Canada would have been seeking solutions for both PSS and GDS services. Air Canada has been stubborn in their strategy to build out their direct sales channels and as a result has paid a premium on GDS fees for many years. T2RL believe the deal with Amadeus will significantly reduce Air Canada's operating costs and system landscape complexity with significant upgrade in capabilities. Sabre will continue to generate their GDS fees given their strong North American market position. Amadeus' share of the GDS market in North America will likely improve in the longer run as a result of the deal too. It will be interesting to see how Air Canada's relatively unique architecture with a PROS centric inventory approach plays out during implementation. The press release suggests implementation in 2019, but gives no indication of the date. T2RL believe it is likely to be in the last quarter of 2019 and not before given the complexity of systems in operation at Air Canada.
05 October 2017
Jin Air, the South Korean airline carried 7.7 million passengers in 2016 is set to migrate from their Amadeus and Korean Air Topas system in March 2018. The airline will migrate both it's international and domestic traffic to IBS' iFly Res. iFly provides extensive capabilities in NDC reservations, inventory, ticketing and departure control. Jin Air will also rollout the IBS frequent flyer platform, iFly Loyalty in March 2018.
04 September 2017
Sabre have renewed their contract for supply of PSS with Ethiopian Airlines. T2RL believe that the extension takes Ethiopian out of the addressable market until at least 2024 and secures an important revenue stream for Sabre going forward with this ambitious and fast growing airline.
31 August 2017
PROS have made the step from revenue management and dynamic pricing to a full offer management solution set by acquiring Vayant. PROS are by far the market leader in the provision of revenue management technology to airlines as measured by total passengers boarded. The acquisition of Vayant creates significant new opportunities for PROS to expand their footprint in their customers and challenge the PSS providers for priced availability as a cloud based service. This offering is particularly relevant today as airlines look to new ways of doing business including IATA's NDC and One Order.
03 August 2017
American Airlines (AA) has led the charge to direct connections and always been willing to take on the challenges associated with GDS distribution. This step is a move to incentivise those agents and drive adoption of the NDC standard. By paying $2 per segment for all AA marketed flights they are now competing with the GDS in some segments of the agency market that currently receive little or nothing in terms of incentives. T2RL's research suggests that GDS incentive money is not evenly spread. The OTAs and larger TMCs receive far more than their fair share of the booking fee incentives. This allows smaller agents to compete with their larger rivals with AA content.
23 June 2017
Malaysia Airlines completed their migration from the SITA PSS to Amadeus on June 11th. The airline, which reported over 15 million pbs in 2016 (Source: T2RL) migrated their Reservations, Inventory and IBE over to Amadeus along with their subsidiary MasWings.
12 June 2017
Hitit continue to grow their customer base in Africa as they take another customer from TTI. The region, which saw a total increase in passengers of 7.9% from 2015-2016 (T2RL data) is a key growth region for Hitit and T2RL will be watching their progress here closely.
01 June 2017
T2RL have now completed their annual research exercise into global passenger volumes. The findings are based on a bottom up approach (airline by airline) and take into account some 1000+ carriers. The addressable market for solutions based on passengers boarded is therefore around 5% larger than that provided by IATA which was reported at 3.7Bn. T2RL's growth for passenger volumes from 2015 is 8.6%.
27 May 2017
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British Airways system outage has caused chaos for some 75,000 passengers. T2RL believe BA can not risk their business and brand by designing and specifying the build of their own systems by third-parties, unless they can obtain the same performance or better as those such as market leaders Amadeus or Sabre.
29 May 2017
On November 3, 2016, Amadeus and Optym jointly issued a press release announcing that the two firms have formed a partnership for the purpose of creating a new generation of airline network planning and flight scheduling tools. The two firms will jointly offer a suite of five schedule planning tools covering (1) schedule optimisation, (2) schedule reliability, (3) market forecasting, (4) schedule management, and (5) route frequency optimisation. Product branding will include both companies’ names.
08 November 2016
IBS PLC will supply Lufthansa and Turkish Airline's joint venture SunExpress with their PSS, replacing Hitit. T2RL see the deal as significant for a number of reasons other than the market volume of passengers boarded processed.
22 January 2016
T2RL have updated market shares and business model data. T2RL believe Hitit and Radixx will be attractive to larger providers wishing to grow their business in the fastest growing segments of the PSS market.
26 November 2015
Amadeus' bid for Accenture's Navitaire has the potential to change the PSS market structure for some time. Most customers are unlikely to oppose the deal, but a few commercially savvy airlines will seek to lower cost and improve terms from the acquisition. The deal presents some regulatory risk specifically in Europe, although Amadeus will have undoubtedly taken advice that the markets are quite different.
02 July 2015
In response to Lufthansa's announcement with respect to passing on charges in the GDS channel from 1 September 2015, T2RL have developed a First View perspective and insight for clients.
03 June 2015
LATAM announced their decision to select Sabre as their single PSS platform on 05 May 2015. This is a big deal for Sabre as it secures their inventory footprint in Latin America with the largest regional carrier. Securing inventory is a critical piece of the puzzle for any PSS/GDS supplier and Sabre will be the dominant PSS provider in the region following cutover to Sabre. Combined with COPA's recent win, Sabre now have a solid, long term IT platform in Latin America. Execution will be challenging, however the current economic climate provides urgency to get this work done.
08 May 2015
T2RL consider the Flydubai / Radixx news and agreement as important for airline buyers of PSS. The source code licence option is unusual for such a small carrier. The last major source code deal was Delta Airlines with Travelport. The deal is therefore worth commentary from T2RL's analyst community.
20 April 2015
Full reports are available for subscribers to download. Feel free to download the extracts which give an introduction and contents table of the full report.
T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) including details of pilot projects, vendors and solutions. The report will be updated on a quarterly basis with the next update planned in October 2017.
26 July 2017
This is the third edition of T2RL’s report on retailing in the airline industry. The first edition was prepared and distributed in August 2011. It was updated again in 2016. This edition, published in May 2017, follows on from the six airline retailing opportunities detailed in the last report (Upsell, Cross-sell, Loyalty & Redemption, Digital Marketing & Conversion Optimisation, Revenue Management Optimisation and Multiple Distribution Channels) and expands this model to include three more in the areas of Mobile, Air Pricing and Servicing. The data is derived from T2RL’s extensive research and experience of working with airlines and vendors on the application of information technology to real airline distribution and retailing challenges.
31 May 2017
T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) including details of pilot projects, vendors and solutions. The report will be updated on a quarterly basis with the next update planned in July 2017.
10 May 2017
T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) including details of pilot projects, vendors and solutions. The report will be updated on a quarterly basis with the next update planned in April 2017.
27 January 2017
The 2016 version of the T2RL annual report into the state of the market for airline Passenger Services Systems. It covers all of the main activity in 2015 and H1 2016.
28 October 2016
T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) including details of pilot projects, vendors and solutions. The report will be updated on a quarterly basis with the next update planned in January 2017.
05 October 2016
The ability to turn aircraft quickly is a key attribute for airline success. Every airline needs processes for offloading arriving passengers and their baggage, provisioning the aircraft for its next departure, on-boarding the departing passengers and their baggage, and departing on time. Faster is better, because shorter ground times translate to higher aircraft utilisation and lower costs per flight long-term.
01 September 2016
In spite of significant general improvement in dispatch reliability with each new generation of aircraft, delays and cancellations due to mechanical problems will continue to be a thorn in the side of the airline industry for the foreseeable future. Though expensive, spare aircraft are a major part of the solution, where the availability of a backup airplane can turn a major aircraft system failure into a non-event.
01 September 2016