David Brett, president, Amadeus Asia-Pacific
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| Fear of change is the biggest hurdle for IT departments. | ||
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Q: What was the biggest trend that affected your company last year?
The travel landscape has without a doubt undergone quite an evolution in the past year. The credit crisis in the United States peaked and quickly split across borders to cause a global economic downturn across a broad range of industries, including travel, which has a direct impact on Amadeus' business.
Travel companies are seeking ways to streamline processes and cut costs, as well as trying to differentiate themselves from competitors. They are looking to new technologies as a means to achieve all these objectives.
Do you expect it to be business as usual with the recession?
Amadeus and its customers are naturally impacted by any downturn in the economy which results in a decrease in travel. Over the past six months, we have seen a definite slowing in growth of travel bookings, from both the corporate and leisure travel sectors.
However, the need for travel has not evaporated, particularly here in the Asia-Pacific region. This region is growing in popularity as an international tourist destination, and is also a high-volume region for business travel. Many executives based here work in regional roles, and hence, must travel--especially when Asian business culture prizes face-to-face meetings.
Our business continues to grow because our customers--airlines, travel agents, hotels and other travel players--are increasingly looking to technology to help make their operations more efficient and streamlined, and subsequently cut costs and maximize revenues at the same time.
What technology innovation is the travel industry looking forward to this year?
At Amadeus, we are very excited to watch the travel industry evolve towards integrated IT systems--one technology system that connects all aspects of their business. This helps them to become more streamlined and cut costs, as well as increasing visibility of internal processes.
For example, some airlines are still operating on legacy systems to manage each different part of their business, from reservations to check in to baggage control. In some cases, this could mean extremely high costs and hundreds of different IT systems operating at once. Now, we see airlines wanting to move all these systems to one common platform.
During 2008, Qantas became the first airline to complete its move to all modules of this solution, and others including Singapore Airlines, Cathay Pacific and V Australia are also in the process of migration. These airlines recognize that in order to handle the demands of today’s travelers, control finances and reap long-term benefits, they need an IT system that is integrated and streamlined-providing a simple solution to complex issues.
We expect that in 2009, many of our travel partners will make the decision to migrate towards integrated IT, whether they be airlines, travel agencies or hotels.
Will there be new challenges for your clients this year?
Moving into 2009, organizations around the world will be focused on recovering from the downturn of second half 2008, as well as future-proofing their businesses. Many IT departments recognize that the best way to achieve this is through an overhaul of corporate IT, to increase efficiency and improve processes.
However, such a change will be met with some resistance--it is this ‘fear of change’ that is the biggest hurdle for IT departments. There is often a fear of change, particularly in Asia, as decision makers may be concerned that any major change in the company could disrupt business, unsettle employees, and ultimately lead to a loss of productivity and business output.
However, there are ways to initiate change, even major change, without disruption to normal business. The critical factors for a smooth transition are an open attitude towards change, and support from the partner ecosystem.
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