Amadeus is beginning to "unbundle" its airline pricing so that carriers can opt out of certain features they do not require. Six yield management tools are currently available on the "take it or not" basis, said Edward Ross, Amadeus' director of corporate and marketing communication. Among them is the "married segment control" feature, which long-haul carriers use to ensure that feeder flights do not fill up with passengers who are not connecting to their long-haul services. That tool would be of little use to a low-cost carrier, Ross said. "This is the first step to an itemization policy," he said. "We believe it will demonstrate the value of what we offer. It will be a gradual evolution." Amadeus is "continuing down the same road" of the value-based pricing approach to airline fees that it introduced two years ago, Ross said. That pricing system assesses fees according to the value that a booking brings to the carrier; for example, an American Airlines booking initiated in Dallas for Dallas-New York will be assessed a lower fee than an American booking initiated in India. Amadeus added a third intermediate pricing category for regional bookings. "It was too simplistic" with just the domestic and international categories, Ross said.
It also created two levels in each geographical category to take into account where the booking was sold. "The idea is to keep on breaking it down," Ross said. "We need to move away from the flat fee to a lot more complexity" in pricing.
Ross said Amadeus will make individual deals with airlines, particularly low-cost carriers, in the deregulated areas of the world. "In Europe, we still have lots of rules and must offer the same deal to everyone," he said.