Bookings in Amadeus’ global distribution system in the fourth quarter increased 6.9 percent year over year to 102.2 million, the company announced.
The bookings growth came despite a spike in cancellations related to a conflict in the Middle East in October as well as a large North American customer, whose identity Amadeus did not disclose in its earnings report, that has expanded direct-connect distribution with some carriers. Amadeus estimated those two occurrences cut about 6 percentage points off year-over-year growth in the fourth quarter. Air distribution revenue in the fourth quarter was up 16.9 percent year over year to €627.4 million.
Amadeus said it renewed or signed 13 distribution agreements in the fourth quarter and that it also has expanded the customer base for its Cytric technology, including Radisson Hotel Group, which has signed on as a customer, and Deloitte, which will use the technology for its offices in Spain.
For the full year, Amadeus bookings increased 13.6 percent year over year, with air distribution revenue up 23.6 percent year over year to €2.66 billion. The average revenue per booking was up 8.8 percent year over year in 2023.
The Asia/Pacific region, which had the largest lingering effects of Covid-19 shutdowns throughout 2022, had the largest year-over-year growth in bookings for Amadeus, up 63.7 percent and comprising 18 percent of total bookings for the year. Western Europe, which had the largest share of Amadeus’ bookings in 2023 at 28 percent, had the second-highest growth rate of 13.3 percent. Bookings in North America were down 0.4 percent year over year and comprised 27 percent of total bookings.
In Amadeus’ other businesses, air IT solutions revenue increased 20.4 percent year over year in the fourth quarter to €495 million, and revenue from hospitality and other solutions increased 5.2 percent year over year to €232.3 million. Total fourth-quarter revenue increased 15.9 percent year over year to €1.35 billion.
Amadeus reported a profit of €210.1 million for the fourth quarter, up 47 percent year over year. For the full year 2023, profit increased 68.3 percent year over year to €1.05 billion.
