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The Vision-Box acquisition equates to 5.4 million in revenue for Amadeus in 2023

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Amadeus as the leading distribution and technology company has drawn some conclusions after the end of 2023 regarding increases in distribution, Air IT Solutions and the hospitality industry.

In the fourth quarter of the year the distribution and technology company reported a 17% increase year over year in air distribution revenue to €627 million. Air IT solutions revenue was up 20% to €495 million while hospitality solutions revenue increased 5% to €232 million.

Revenue for the quarter increased 18% year over year to almost €1.4 billion with EBITDA up 18% to €469 million and a 47% increase in profit to €210 million.

Luis Maroto, president and CEO of Amadeus, said: ”In 2023, Amadeus experienced strong growth, expanding profitability and high cash flow generation. This has allowed us not only to resume a dividend payment, but also to announce share repurchase programs in aggregate amounting to over €1 billion in 2023. We believe we can make a positive impact through technology at more touchpoints along the traveler journey, which means expanding our addressable markets and customer base. This is evidenced in our recent announcement that we are acquiring a leading provider of biometric solutions for airports, airlines, and border control customers”.

Amadeus’s strategic moves contributed to this success. Notably, the recent acquisition of Vision-Box, a biometrics specialist, for €320 million promises to enhance their capabilities. Vision-Box’s solutions will extend beyond airport services, impacting areas such as hotels and other segments.

Business evolution in the year 

In 2023, Air Distribution revenue increased by 23.6% relative to the previous year. Over the year, Western Europe and North America were our largest regions in terms of bookings, each representing 28.2% and 27.0% of Amadeus’ bookings, respectively. Priceline, part of Booking Holdings, a major online travel agency in the U.S., will be able to access NDC-sourced content from some of the world’s leading airlines via the Amadeus Travel Platform.

In Air IT Solutions, revenue grew by 21.6%, supported by our passengers boarded evolution, which increased by 26.8%, driven by global air traffic growth and Amadeus’ new customer implementations, mainly Etihad Airways, ITA Airways, Hawaiian Airlines, Bamboo Airways and Allegiant Air in 2023.

Our Hospitality & Other Solutions revenue grew by 14.2% in 2023. Both Hospitality, which generates the majority of the revenues in this segment, and Payments, delivered strong growth, supported by new customer implementations and volume expansion.

On the impact of direct connects between airlines and online travel agencies, Maroto said it was marginal so far, adding that direct connects are mostly related to big domestic carriers and home bookings and require big volumes because of the need for maintenance, investment and integrations.

Full-year 2023 revenue increased 21% year over year to €5.4 billion with EBITDA up 30% to just over €2 billion. Adjusted profit increased 60% to just over €1 billion.

Air IT distribution revenue increased almost 24% to €2.7 billion, while the air IT solutions business was up 22% to €1.9 billion. Revenue in the hospitality & other solutions business unit increased 14%, to €883 million.

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