What’s the real story with Amadeus and its Fare Families?
On September 23, 2016, an article was published by Tnooz with the following headline:
“Amadeus admits fare families are not working for all its airlines”
That same day, the headline from the story was changed as follows:
“Amadeus says fare families work well for some airlines but not all [UPDATED]”
So what is all this about? Why the different headlines? In my book, it’s called editorial influence and it is usually quite rare to update an article with a different title, but we’ll leave that for what it is.
The real story is not the change of headlines, or even that some (or all) of the airlines that invested in the Amadeus merchandising offering are not getting the results they expected. The real story, if you are an airline, is getting a better understanding of the technology tools available so you don’t make costly mistakes that will significantly limit your airline’s future when implementing one of the most revolutionizing aspects in ensuring Happy Customers, and More Revenue.
Is the Amadeus offering a true merchandising engine? Perhaps you should Ask the Question. In my view, it’s actually just a merchandising “program” that airlines sign up for and Amadeus, rather than the airline, sets up and determines how the airlines will participate. If my thinking is correct, then frankly, it’s no surprise that the results can be sub-optimal. Any attempt to utilize existing GDS and PSS systems and industry processes – that were never designed for anything close to airline merchandising – to implement an airline merchandising program is bound to be fraught with difficulties.
From the Farelogix point of view, our FLX Merchandise airline merchandising engine was created from scratch, and designed as a “built-for-purpose” technology solution for airline merchandising. It was created with input from the airlines so that it addressed their particular needs. Our technology solution is designed to be integrated into the airline’s actual technology stack servicing all distribution channels. This is a fundamentally different approach and yields fundamentally different results. Just ask our FLX Merchandise customers*.
We’ll spend some more time in the near future providing more details of the different approaches to building and delivering airline merchandising solutions. And, of course, we will continue to Ask the Question.
* Skift published the following headline…and only once:
United Generates More Ancillary Revenue Than Any Other Airline – Brian Sumers, Skift – Sep 21, 2016 6:30 am