Amadeus: Q4 bookings up despite challenges

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Bookings in Amadeus’ global distribution system in the fourth quarter
increased 6.9 per cent year over year to 102.2 million, the company
announced this week.

The bookings growth came despite a spike in
cancellations related to a conflict in the Middle East in October as
well as a large North American customer, whose identity Amadeus did not
disclose in its earnings report, that has expanded direct-connect
distribution with some carriers.

Amadeus estimated those two occurrences
cut about 6 percentage points off year-over-year growth in the fourth
quarter. Air distribution revenue in the fourth quarter was up 16.9
per cent year over year to €627.4 million.

The company said it renewed
or signed 13 distribution agreements in the fourth quarter and that it
has also expanded the customer base for its Cytric technology, including
Radisson Hotel Group, which has signed on as a customer, and Deloitte,
which will use the technology for its offices in Spain.

For the
full year, Amadeus bookings increased 13.6 per cent year over year, with
air distribution revenue up 23.6 per cent year over year to €2.66
billion. The average revenue per booking was up 8.8 per cent year over
year in 2023.

The Asia-Pacific region, which had the largest
lingering effects of Covid-19 shutdowns throughout 2022, had the largest
year-over-year growth in bookings for Amadeus, up 63.7 per cent and
comprising 18 per cent of total bookings for the year.

Western Europe,
which had the largest share of Amadeus’ bookings in 2023 at 28 per cent,
had the second-highest growth rate of 13.3 per cent. Bookings in North
America were down 0.4 per cent year over year and comprised 27 per cent of
total bookings.

In Amadeus’ other businesses, air IT solutions
revenue increased 20.4 per cent year over year in the fourth quarter to
€495 million, and revenue from hospitality and other solutions increased
5.2 per cent year over year to €232.3 million. Total fourth-quarter
revenue increased 15.9 per cent year over year to €1.35 billion.

Amadeus
reported a profit of €210.1 million for the fourth quarter, up 47
per cent year over year. For the full year 2023, profit increased 68.3
per cent year over year to €1.05 billion.

Luis Maroto, president and CEO of Amadeus said: “In 2023, Amadeus experienced strong growth, expanding profitability and high cash flow generation. This has allowed us not only to resume a dividend payment, but also to announce share repurchase programmes in aggregate amounting to over €1 billion in 2023.”

Maroto added that the company wanted to make more positive impact through technology at “more touchpoints along the traveller journey, which means expanding our addressable markets and customer base.”

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