Amadeus and Microsoft Collaborate to Transform Air Travel into an Amazon Shopping Experience

Amadeus introduces AI-driven retail system, Nevio, revolutionizing airline sales for an Amazon-like travel shopping experience.

The ultimate objective is to streamline the complexities and eliminate the confusion surrounding various airline-related services, such as ticketing, check-in, ancillary airfare offerings, airport lounge access, and more, all integrated into a user-friendly app for comprehensive tracking.

Cyril Tetaz, the Executive Vice President of Airline Solutions at Amadeus, explained:

"It’s about getting all this to the next level, connecting the dots, tying it together. Like when I’m on Amazon, I can simply pass from the stage of having a shopping basket where you may order, which is going to be the basis for delivery. And that’s going to be cascaded to all the partners that are going to contribute to that delivery, because they’ve been contributing to that offer.”

The Amadeus Nevio system leverages AI technology in collaboration with Microsoft, an early investor in OpenAI, granting exclusive access to ChatGPT's tech. The envisioned app will be capable of tailoring personalized offers, proactively addressing issues, and automating flight rescheduling.

Traditionally, the aviation industry has been characterized by fragmented data systems and outdated technology, making it challenging to share information efficiently, even within a single company, let alone with third-party entities like hotels. However, the industry is gradually evolving in this regard.

The platform will feature functions like recognizing a traveler's browsing history and offering customized holiday packages and ancillary product recommendations, such as premium seating and airport transfers. In case of flight disruptions, the traveler will receive alternative flight and hotel options on their mobile device, potentially including discounted lounge access. These updates will be automatic throughout the entire journey, encompassing modifications to hotel bookings and transportation.

The technology aims to eliminate the need for traditional check-in, replacing it with biometric authentication to expedite the airport journey.

Amadeus is encouraging its airline clients to transition from the legacy system Altéa to Nevio. Nevio aligns with the "offer and order" model of airline retailing, which focuses on personalized product offerings—an approach that industry leaders have been advocating for years. McKinsey estimates that this model could be worth $40 billion by 2030, representing up to 4% of current industry revenue or approximately $7 per passenger.

Saudia, the national flag carrier of Saudi Arabia, is among the initial customers adopting Nevio. Arved von zur Muehlen, Chief Commercial Officer of Saudia, stated:

"We want to refocus every aspect of our business around the guest, which is in line with Saudi Arabia’s Vision 2030. From the offers we make, to the schedules we operate and the level of flexible and personalized service we provide across all our touchpoints.”

Finnair is also piloting Nevio as part of its partnership with Amadeus. The plan is to extend the system to more airlines, in line with the International Air Transport Association's aspirational goal to fully transition to next-generation airline retailing by 2030. This transformation will necessitate industry-wide cooperation and a shift in mindset, involving not just airlines and travel agencies, but also technology providers, airports, ground handlers, and governments.

Tetaz emphasized that the focus is on encouraging customers to view each product as a modular component that can be added as needed, enabling airlines to adapt their offerings swiftly in response to market changes. The goal is to foster a business transformation rather than just an IT transformation.

 

Source: skift.com