Wednesday, June 3, 2015

A decision of Lufthansa shares plunges Amadeus – iprofesional.com

Amadeus, a leading provider of technology solutions for the travel industry, leading the Spanish stock market falls with a fall of 10%.

main business is its travel reservation system , mainly flights and airline Lufthansa yesterday fired on the waterline of your bottom.

According to Cinco Dias, the company’s technology solutions joined 984 million in the first quarter of 2015, of which 721.6 million came from its range, which travel reservations fits.

Within this segment, airline bookings accounted for 139.9 million after growing 11.4%. Its adjusted profit reached 209.9 million euros, 9.7% more than in January-March 2014.

Lufthansa has declared war on the Global Distribution Systems (GDS), used by almost all travel agencies online and offline for the sale of airline tickets, companies such as Amadeus, Sabre and Travelport.

The German airline group origin charged from September 1 a rate of 16 euros to all those who purchase a ticket -Lufthansa any of its airlines, Austrian Airlines, Brussels Airlines and Swiss- from outside channels direct selling, that is, its websites, including a specific platform for travel agents.

include German airline group seeks to reorient their sales strategy to improve profitability. Thus, the group expects to achieve an adjusted operating profit of over 1,500 million euros this year. The company has said in a statement that “the aim of the new commercial strategy is to ensure that in future there is a further increase in revenues from flight operations, which are the current area of ​​services to users,” according the German company.

From the travel agencies it has ensured that This announcement makes the work of companies and expensive platforms, having to integrate from now on the platform Lufthansa specifically for them in their systems.

Amadeus one of the suppliers of GDS for travel agents is one of the companies affected by this new tax .

Holger Taubmann, Senior Vice President Distribution, Amadeus IT Group, said Lufthansa’s decision will mean that the Travelers “will pay more for the same service” .

In his view, the new rate will also affect the travel agencies, which “will be forced to accept a new commercial strategy by which they will have to change the way they access the specific content of Lufthansa and increase the cost in technology, which will eventually probably being affected travelers. All this, ultimately, will disadvantage travel agents and end customers. “

decision Lufthansa continues the steps taken by American Airlines , airline that already launched a similar rate for years.

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