Competition from low cost carriers is a challenge but also a potential opportunity for conventional full service carriers, delegates at Amadeus’ Altitude25 conference were told.

Cyril Tetaz, senior vice president for airline product, said there are many trends in aviation pointing to accelerated change over the past 18 months as traveller demands increase due to digital innovators.

“Travellers want us to do things differently, they expect us to do things differently,” Tetaz said pointing to how native digital brands like Uber have set the bar high for consumer engagement in the modern world.

Tetaz said Amadeus had itself changed with the launch of new solutions like the Nevio modern retailing platform, new divisions like Outpayce looking to “take the pain out of payments”, and acquisitions like Vision Box, a leader in airport biometrics.

Amadeus has now completed the full migration of its Navitaire airline and rail operating platform to the cloud and is at 60% for the remainder of its applications.

This once in a generation transformational IT change for Amadeus is expected to complete this year. Tetaz said the pace of change is quickening due to the “environment we are operating in”.

“It starts with the traveller,” he said, which requires more simplification and reduced complexity that will improve NPS [Net Promoter Score], a widely used gauge of customer satisfaction.

“This is really where we want to help you to become better retailers….I think that the time to act is now,” added Tetaz.

Another key driver of growth is marketplace trends with the airline industry globally on track to hit a record five billion customers in 2025 and profits forecast to reach $37 billion.

However, constraints in terms of access to new aircraft and competition from low cost carriers are challenges that put even more focus on being relevant to customers, although Tetaz said this could also be viewed as an opportunity.

“A lot of you are looking for partnerships not only within your group, but outside of your group, with low cost carriers.”

Tetaz added: “I feel very positive. I believe we are very aligned on what we are looking for. The benefits are of scalability, of modularity, of the capacity to localise.

“They are also around transparency, resilience and security. We are very aligned around these principles.”

The next generation of open Amadeus platforms are being built with data orchestration and management in mind, as well as transparency. Tetaz said: “AI is going to be a game changer.”

“We will increase budgeted investment by 50% in 2025. It’s a big commitment but it’s not the only commitment.

“We want to help each and everyone of you to become better retailers but we want to do it at your pace based on your priorities to ensure that the transition is safe and simple.”