Trenitalia partnership to improve Spanish Amadeus’ client loyalty rate

MADRID | Trenitalia, the transport division of the Italian FS Group, and travel technology firm Amadeus, which is a transaction processor for the global travel and tourism industry, announced this week their partnership. Trenitalia will distribute its content through all Amadeus channels.

In Thursday's investor notes, financial analysts in Madrid welcomed the business agreement as good news for the Spanish company. Amadeus' bet is that high speed train will be the main transport for business and leisure travels by 2020, the reports said, and this move enhances the revenue possibilities of its 91,000-branches network.

Bankia Bolsa indicated that the decision will contribute to improve the rates of loyalty of current clients:

“Contracts with Amadeus have an average duration of one to three years, and there is a 25 percent to 30 percent rate of contracts ending per year, so this partnership makes the platform more attractive and renewals more likely to be signed.”

Travel agents around the world will be able to book both Trenitalia’s high speed rail products Frecce Alta Velocità (namely Frecciarossa and Frecciargento), and Frecciabianca through the existing sales channels and

through the Amadeus global distribution system. The rest of the medium and long-distance Trenitalia routes will follow shortly.

Trenitalia will be able to draw on new market segments whilst expanding distribution beyond its traditional channels, developing its presence in such strategic markets as Central Europe, North America and Asia.

“This innovative solution will provide travel agencies with greater ease and flexibility when selecting and booking Trenitalia travel and, as a result, Trenitalia customers will be able to enjoy a more convenient booking and connection service,” the Italian associate said in a press release.

According to a recent Amadeus study, by 2020 high-speed rail will see global passengers increase by 330 million. In recent years, the number of passengers on Trenitalia's AV high-speed service has grown exponentially, reaching 25 million in 2011. Throughout Europe there has been an evolution in the train travel experience, and it is now recognised as a valid alternative to flying.

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.