Simplifying the global market for hotels:
Interview with Pierre Matuchet, Amadeus

Asked what he does for a living, Pierre Matuchet – Amadeus Head of Hotel Distribution - says his job is about simplicity. “I want to cut through complexity – and enable a marketplace that delivers for both hotels and travel agents.”

“Travel agencies and hotels are getting lost between the multiplicity of distribution channels. They want someone to tidy up the mess.” A hotel industry veteran, although young in age and spirit, Pierre Matuchet has seen both hotels and travel agents struggle with increasing complexity in today’s multichannel world.

By providing a common platform that brings together bookers and buyers on a global scale, the global distribution system (GDS) provides an answer to this complexity. Hotel bookings through the GDS are growing. “The GDS continues to be a great tool for travel agents. In Western Europe and Latin America, for example, hotel bookings are enjoying double-digit growth. But there is still work to do if the travel industry as a whole is to harness the power of the GDS.”

This is where Pierre believes Amadeus is uniquely positioned to make a difference. “Amadeus is a bridge between the world’s hoteliers and travel agents. For more than a decade we have been building trusted relationships with travel agents, including global giants like American Express and Carlson Wagonlit Travel. At the same time we have steadily grown our relationships with hoteliers. The result is that we are learning more and more about what both sides of the equation want from distribution.”

Pierre’s team is at work on four critical areas – content, rates, commission payments and user interfaces – to overcome complexity and make Amadeus the most compelling distribution and booking platform for hotels and travel agents alike.

Content

In the last six months, Amadeus saw the number of properties distributed rise by nearly 20%. Choice is a critical factor for getting travel agencies into the market place. As important, however, is the quality of the content. “We want more hotels to take advantage of the multimedia content. 75% of hotels have an image online: we want more. Why miss out on the opportunity to show the world what you can offer?”

Rates

Over 70 hotel brands, including Accor, Hilton, Wyndham and more. have signed up for the Amadeus Best Available Rate (BAR) programme. This guarantee by hotels to provide Amadeus with their best rates is important for travel agents seeking best value for their clients. “For hoteliers, more travel agents making the GDS their first port of call is good news. Yield on GDS bookings can be up to 30% higher.”

Commission payment

“We listen to the market’s concerns and we try to deliver. Commission payment is an issue that travel agents raise again and again.” Here, Amadeus is taking the lead to build a system for swift and sure payments on every booking. This initiative will see Amadeus make the global hotels marketplace work better for everyone. Piloting of the commission management system will begin end 2006 with some key players like ACCOR. “At the end of the day, the travel agency will prefer to book the hotel that it trusts to pay commission.”

User interfaces at point of sale

The final piece in the puzzle is user interfaces. Travel agents want a simple Web-oriented tool that is easy for agents to use. A new user interface – integrated into the Amadeus Selling Platform (and available as a standalone tool for travel agents using GDSs other than Amadeus – will launch in 2007. “Like everything else we are doing, simplicity is the key,” said Pierre.

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