AMADEUS ANNOUNCES NEW VALUE-BASED PRICING FOR AIRLINE CUSTOMERS

Madrid, 25 November 2003: Amadeus has announced its 2004 pricing for distribution services offered to airlines.

Effective 1 January 2004, the company will introduce a new, value-based pricing model, which recognises airlines’ diverse commercial strategies and the different benefits that the GDS channel brings to airlines today.

This new pricing model consists of a segmented booking fee structure, defined by the nature of each airline’s business profile and reach of operations. In the new structure, a booking is valued as standard or premium, depending on the worth of the reservation to the airline and the value added by the GDS to the process. The two pricing parameters are as follows:

Standard value: domestic and intra-continental reservations made within an airline’s home/prime market.
Premium value: inter-continental bookings, domestic and intra-continental reservations made outside an airline’s home/prime market.

The 2004 pricing will apply the following percentage changes, broken down by region, compared to Amadeus’ 2003 pricing.

% change in standard value booking fee
Europe -5%
North America -5%
Middle East -5%
Latin America no change
Asia Pacific no change

%change in premium value booking fee
Europe +5%
North America +5%
Middle East +5%
Latin America +4%
Asia Pacific +4%

This pricing, detailed by region, will have no impact on contractual agreements that Amadeus currently has in place with travel agencies.

Itemised pricing for specific content and services
Additionally, Amadeus will be introducing an itemised pricing arrangement for specific optional distribution services in line with the requirements of each airline. This ensures greater choice and flexibility for airline customers in terms of the services they select from Amadeus. Itemised pricing will come into effect in 2005.

Low fare content
In order to provide its travel agency customers with the widest possible range of content, Amadeus will pilot in 2004 a reduced fee option for airlines to distribute selected low fare content through specific reservation classes. Travel agents will be able to choose to participate in this programme and could be asked to share in the distribution cost.

The pilot phase will allow Amadeus to work with both its travel agency and airline customers to determine the most suitable framework for the needs of the different markets.

A first step of a strategic evolution
Amadeus has presented this range of unprecedented and strategic pricing reforms as it recognises that the radical changes in the airline industry require a similar fundamental evolution in distribution pricing. An approach that goes beyond the current short-term, tactical response being offered in the market.

The Amadeus 2004 pricing is a first step towards the establishment of a value-based pricing framework. This will provide airlines worldwide with the flexibility they need to compete and will contribute to the long-term success of the travel industry as a whole.

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Notes to Editors:

Amadeus Global Travel Distribution (MAD: AMS)
Amadeus is the leading global distribution system (GDS) and technology provider, serving the marketing, sales and distribution needs of the world’s travel and tourism industries. Its comprehensive GDS data processing centre serves some 64,500 travel agency locations and more than 10,000 airline sales offices, which together total around 290,000 points of sale located in over 210 markets worldwide.
Through the Amadeus GDS, travel agencies and airline offices are able to make bookings on more than 95 per cent of the world’s scheduled airline seats. The system also provides access to 56,000 hotels, 50 car rental companies serving some 25,300 locations, and other provider groups including: ferry; rail; cruise; insurance and tour operators.

Amadeus is a leading application service provider (ASP) to the airline industry. 139 airlines use the Amadeus Sales System in their offices to provide passengers with superior and seamless service at optimal cost.
Amadeus’s new generation of Passenger Service Systems, which include all IT systems associated with inventory management and departure control, will be implemented by British Airways, Qantas and Finnair.

e-Travel, Amadeus’s e-commerce business unit, is global leader in online travel technology and corporate travel management solutions. It powers the Web pages of more than 900 travel agencies, 264 corporate sites, 10 hotel sites and 54 airlines.

Amadeus is headquartered in Madrid, Spain and quoted on the Madrid, Paris and Frankfurt stock exchanges. For the year ended 31 December 2002, the company reported revenues of EUR 1856m and net income of EUR 148.6m. The Amadeus data centre is in Erding (near Munich), Germany and its principal development offices are located in Sophia Antipolis (near Nice), France. The company has some 5,100 employees worldwide.

For further information please contact:

Amadeus Press
Bridget Agnew / Anya Velzeboer
Financial Dynamics
T: 020 7269 7219/7174
F: 020 7831 8438
E: [email protected]

Corporate and Marketing Communication
Amadeus Global Travel Distribution
Tel : +34 91 582 0160
Fax : +34 91 582 0188
E-mail : [email protected]

Amadeus UK
Rob Golledge
T: 0870 990 7851
F: 0870 990 9299
E: [email protected]
W: www.amadeusuk.com
E-mail : [email protected]