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Travel Technology Research Ltd is one of the leading analysts of the market for airline IT services.  Documents in this section represent our insight into the underlying trends and expectations behind the data.  They are available for subscribers to download but remain proprietary to T2RL.  You may not publish or circulate any part of these documents without express written permission from T2RL. 

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American Airlines (AA) has led the charge to direct connections and always been willing to take on the challenges associated with GDS distribution. This step is a move to incentivise those agents and drive adoption of the NDC standard. By paying $2 per segment for all AA marketed flights they are now competing with the GDS in some segments of the agency market that currently receive little or nothing in terms of incentives. T2RL's research suggests that GDS incentive money is not evenly spread. The OTAs and larger TMCs receive far more than their fair share of the booking fee incentives. This allows smaller agents to compete with their larger rivals with AA content.
23 June 2017

Malaysia Airlines completed their migration from the SITA PSS to Amadeus on June 11th. The airline, which reported over 15 million pbs in 2016 (Source: T2RL) migrated their Reservations, Inventory and IBE over to Amadeus along with their subsidiary MasWings.
12 June 2017

Hitit continue to grow their customer base in Africa as they take another customer from TTI. The region, which saw a total increase in passengers of 7.9% from 2015-2016 (T2RL data) is a key growth region for Hitit and T2RL will be watching their progress here closely.
01 June 2017

T2RL have now completed their annual research exercise into global passenger volumes. The findings are based on a bottom up approach (airline by airline) and take into account some 1000+ carriers. The addressable market for solutions based on passengers boarded is therefore around 5% larger than that provided by IATA which was reported at 3.7Bn. T2RL's growth for passenger volumes from 2015 is 8.6%.
27 May 2017

Finally after considerable speculation, British Airways and Iberia have written to the travel agents to indicate they will levy a surcharge on bookings made via the GDS. The surcharge will incentivise travellers to book with those travel agents that use direct connection technology over a GDS or to move to the airlines own websites. British Airways will also provide an agent portal for bookings for those that do not have direct connect technology. This move has been anticipated for some time and is not a surprise.
26 May 2017

Sabre have filed a document to indicate they will be recording a charge of between USD 80 million and 100 million less sums due from Air Berlin in their accounts. Generally PSS providers capitalise the costs associated with implementation and set up of new customers and then amortise this amount over the term of the agreement according to their accepted accounting principles. The amount Sabre have quoted seems very high for a carrier the size of Air Berlin. T2RL conclude that there must have been considerable customisation of the solution combined with implementation services delivered over an unusually long period of time for the amount to be so high. It is also clear from the filing that there is a termination fee in the PSS contract and that Sabre expect to get this fee. Given Air Berlin are not moving to Sabre it is very likely that they remain on Amadeus and other custom developed solutions for the forseeable future.
25 May 2017

Amadeus have completed the first phase of their migration to reservations, inventory and ticketing (RIT) for Kuwait Airways. Departure control rolls out on a station by station basis until migration is concluded completely in Q3, 2017.
21 May 2017

The last few days has seen Amadeus and Southwest conclude the migration from the Sabre hosted and run SAAS system with Sabre e-ticketing. Amadeus has delivered a platform that supports industry standard capabilities including codeshare, interline, interactive GDS distribution and even more sophisticated inventory management. Southwest are no longer constrained by technology in their business development. T2RL expect Southwest to evolve their market offerings based on these new capabilities. The data migration strategy was simple based on a drain down of bookings from their existing solution and a slow and steady growth of volume inside the Amadeus platform. This approach reduced the risks associated with a big-bang migration and allowed any performance issues to be identified and fixed as they appeared. This approach is obviously reserved for those that can control their existing environment. Future migrations will incur significant switching costs, so despite a long-term agreement Southwest are likely to remain hosted by Amadeus for many years to come. Ultimately Amadeus is now supporting Southwest as they compete for online bookings with those such as Expedia. T2RL's research suggests that Amadeus have increased their share of Expedia's bookings and will continue to do so. Either way Amadeus now has a significant share of the total passengers bookings in North America. Eventually this could make their GDS more attractive to agents should Southwest make a decision to adjust their strategy. Amadeus' GDS adjacency to the Southwest inventory in the PSS will put them in a strong position to deliver personalised solutions via the Amadeus GDS.
09 May 2017

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British Airways system outage has caused chaos for some 75,000 passengers. T2RL believe BA can not risk their business and brand by designing and specifying the build of their own systems by third-parties, unless they can obtain the same performance or better as those such as market leaders Amadeus or Sabre.
29 May 2017

On November 3, 2016, Amadeus and Optym jointly issued a press release announcing that the two firms have formed a partnership for the purpose of creating a new generation of airline network planning and flight scheduling tools. The two firms will jointly offer a suite of five schedule planning tools covering (1) schedule optimisation, (2) schedule reliability, (3) market forecasting, (4) schedule management, and (5) route frequency optimisation. Product branding will include both companies’ names.
08 November 2016

IBS PLC will supply Lufthansa and Turkish Airline's joint venture SunExpress with their PSS, replacing Hitit. T2RL see the deal as significant for a number of reasons other than the market volume of passengers boarded processed.
22 January 2016

T2RL have updated market shares and business model data. T2RL believe Hitit and Radixx will be attractive to larger providers wishing to grow their business in the fastest growing segments of the PSS market.
26 November 2015

Amadeus' bid for Accenture's Navitaire has the potential to change the PSS market structure for some time. Most customers are unlikely to oppose the deal, but a few commercially savvy airlines will seek to lower cost and improve terms from the acquisition. The deal presents some regulatory risk specifically in Europe, although Amadeus will have undoubtedly taken advice that the markets are quite different.
02 July 2015

In response to Lufthansa's announcement with respect to passing on charges in the GDS channel from 1 September 2015, T2RL have developed a First View perspective and insight for clients.
03 June 2015

LATAM announced their decision to select Sabre as their single PSS platform on 05 May 2015. This is a big deal for Sabre as it secures their inventory footprint in Latin America with the largest regional carrier. Securing inventory is a critical piece of the puzzle for any PSS/GDS supplier and Sabre will be the dominant PSS provider in the region following cutover to Sabre. Combined with COPA's recent win, Sabre now have a solid, long term IT platform in Latin America. Execution will be challenging, however the current economic climate provides urgency to get this work done.
08 May 2015

T2RL consider the Flydubai / Radixx news and agreement as important for airline buyers of PSS. The source code licence option is unusual for such a small carrier. The last major source code deal was Delta Airlines with Travelport. The deal is therefore worth commentary from T2RL's analyst community.
20 April 2015

Full reports are available for subscribers to download. Feel free to download the extracts which give an introduction and contents table of the full report.

This is the third edition of T2RL’s report on retailing in the airline industry. The first edition was prepared and distributed in August 2011. It was updated again in 2016. This edition, published in May 2017, follows on from the six airline retailing opportunities detailed in the last report (Upsell, Cross-sell, Loyalty & Redemption, Digital Marketing & Conversion Optimisation, Revenue Management Optimisation and Multiple Distribution Channels) and expands this model to include three more in the areas of Mobile, Air Pricing and Servicing. The data is derived from T2RL’s extensive research and experience of working with airlines and vendors on the application of information technology to real airline distribution and retailing challenges.
31 May 2017

T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) including details of pilot projects, vendors and solutions. The report will be updated on a quarterly basis with the next update planned in July 2017.
10 May 2017

T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) including details of pilot projects, vendors and solutions. The report will be updated on a quarterly basis with the next update planned in April 2017.
27 January 2017

The 2016 version of the T2RL annual report into the state of the market for airline Passenger Services Systems. It covers all of the main activity in 2015 and H1 2016.
28 October 2016

T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) including details of pilot projects, vendors and solutions. The report will be updated on a quarterly basis with the next update planned in January 2017.
05 October 2016

The ability to turn aircraft quickly is a key attribute for airline success. Every airline needs processes for offloading arriving passengers and their baggage, provisioning the aircraft for its next departure, on-boarding the departing passengers and their baggage, and departing on time. Faster is better, because shorter ground times translate to higher aircraft utilisation and lower costs per flight long-term.
01 September 2016

In spite of significant general improvement in dispatch reliability with each new generation of aircraft, delays and cancellations due to mechanical problems will continue to be a thorn in the side of the airline industry for the foreseeable future. Though expensive, spare aircraft are a major part of the solution, where the availability of a backup airplane can turn a major aircraft system failure into a non-event.
01 September 2016

Since 2009, T2RL have been publishing an annual report on the market for Airline Passenger Service Systems. This report is the first of what will be an annual series representing a similar analysis on the market for Airline Operations systems. We will look at what capabilities already exist, the new capabilities airlines are demanding, and what software providers are developing. We will analyse current activities and assess where the market is going. By highlighting current activities and trends, we hope to add some value and provide some transparency to the marketplace. It is our hope that, as a result of this report, airlines searching for systems and vendors searching for customers will find it an easier task.
21 June 2016

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