Amadeus and Microsoft Aiming to Amazonize Air Travel
Amadeus is testing a new retail platform called Nevio to modernise airline sales through AI, making the experience more like shopping on Amazon. The system will integrate ticketing, ancillaries, lounges, and other travel purchases into one streamlined customer app. Microsoft's investment in ChatGPT developer OpenAI will provide Amadeus access to conversational AI to enhance service. The goal is to unify airline retail channels and connect the dots for travellers.
Envisioning a Revolution in Airline Retail
Amadeus is proposing a revolutionary mobile app to transform airline retailing by delivering personalised offers, addressing travel disruptions proactively, and automating rebooking.
The Amadeus mobile app would recommend relevant ancillary offers to travellers based on their context, such as their travel history, browsing behaviour, and current needs. This would allow airlines to upsell and cross-sell more effectively, while also providing travellers with a more tailored experience.
In the event of a travel disruption, the Amadeus mobile app would automatically provide travellers with alternate flight and hotel options, potentially bundled with discounted lounge access. The app would also keep travellers updated on the status of their flights and make adjustments to their itineraries as needed.
If a traveller's flight is cancelled or delayed, the Amadeus mobile app would automatically rebook them on the next available flight. This would save travellers the hassle of having to contact the airline and rebook themselves.
The Amadeus mobile app would also use biometrics to eliminate traditional check-in, expediting airport passage. This would make the travel experience more convenient and efficient for travellers.
Adoption Challenges for Amadeus's Innovative Airline Retail Platform
Amadeus is promoting its Nevio platform, employing the "offer and order" model to revolutionise airline merchandising for enhanced personalization, with McKinsey forecasting a potential billion industry revenue boost by 2030.
However, there are a number of challenges to adopting Amadeus' Nevio platform.
- First, airlines are slow to undertake costly overhauls of their entrenched legacy systems.
- Second, many established carriers with complex operations prefer incremental changes over transformational platform migrations.
- Third, airlines may hesitate to abandon legacyIT infrastructure that still functions and invest significant capital and resources into unproven innovations, despite their long-term potential.
Here are some more specific examples of the adoption challenges that Amadeus faces:
- Cost: Replacing legacy systems is a costly undertaking. Airlines need to invest in new hardware, software, and training.
- Complexity: Legacy systems are often complex and interconnected, making them difficult to replace.
- Risk: Investing in a new, unproven platform is a risk. Airlines need to be confident that Nevio will deliver on its promises.
- Inertia: Airlines are often reluctant to change their existing systems and processes.
- Competition: Amadeus faces competition from other technology providers that offer similar solutions.
What is the partnership between Amadeus and Microsoft aiming to achieve in the air travel industry?
Amadeus and Microsoft have partnered to enhance the air travel experience, making it more personalised and seamless, similar to shopping on Amazon. Their goal is to leverage technology to provide travellers with tailored offers, automate processes, and anticipate and address travel disruptions effectively.
How does this initiative plan to make air travel resemble the Amazon shopping experience?
The initiative aims to achieve this by utilising data-driven insights to offer personalised travel options, including tailored packages, ancillary products, and solutions for travel disruptions. It also seeks to streamline the booking and check-in process and deliver a more convenient, customer-centric experience.
What are some of the key features and benefits of this partnership for travellers?
Travellers can expect features like personalised offers, seamless shopping based on browsing history, automatic updates during travel disruptions, and a streamlined airport experience with biometric check-in. These features aim to enhance convenience, choice, and efficiency throughout the journey.
Will this initiative impact third-party companies like hotels and transportation providers?
Yes, this initiative has the potential to benefit third-party companies as well. By improving the flow of information and data sharing, it can create more efficient and accurate sales processes within the entire travel ecosystem, including hotels, transportation, and other travel-related services.
Is the transformation of the air travel industry a fast or slow process?
The transformation of the air travel industry is a gradual process. While the partnership between Amadeus and Microsoft represents a step toward modernization, the industry still relies on legacy systems and faces challenges in adopting new technologies. Change is happening, but it may take time to fully realise the vision of a more Amazon-like travel experience.
How will biometrics be used to expedite the airport journey?
Biometrics will replace traditional check-in processes, allowing travellers to use their unique physical characteristics, such as fingerprints or facial recognition, to verify their identity. This will speed up the airport journey, making it more efficient and reducing the need for manual checks.