General presentation of Amadeus:
The Spanish group Amadeus owns the largest computerized online travel reservation system. It provides the means for travel agencies and airline sales offices to book hotels, cars or services online to be specific. It also provides IT and online booking software sales services. Most of Amadeus' turnover is made in Europe, but the group also reaches the Asian, American and African market.
Knowing Amadeus shares competition:
The Amadeus group publishes and operates one of the largest GSDs or Global Distribution Systems in the travel and flight sector in the world. They're computerized service delivery systems that are used by travel agencies and airlines. As a matter of fact, the company was founded and belongs to several airlines which gives travellers the possibility to book their seats online in addition to other services such as hotel rooms or car hire.
Amadeus ranks first worldwide for these online booking systems in terms of turnover and number of users. As such, it faces weak competition since only three other large companies overshadow it. The companies are Galileo which is second in the ranking, Saber which is in third place and Worldspan which is fourth.
You must take the events and news that affect these competitors of Amadeus into account if you want to trade this share effectively on the stock market. You'll be able to find this information and the results of each of these companies on their websites or with your CFD broker.
The strategic alliances set up by the Amadeus group:
- GSD: In 2014, the Ryanair group signed a partnership with the Amadeus GSD in order to appear on its flight comparison and online booking platforms just like Lufthansa or Air France, which hold shares in the group.
- Plusgrade: In 2015, a partnership established between Amadeus and Plusgrade allowed passengers to bid on the price of seats aimed at being upgraded or not having a seat-mate.
- Zingle: In 2016, the Amadeus group joined forces with the Zingle company to allow hoteliers to send SMS and other instant messages to their customers in order to personalize their relationships as best as possible.
Introduction and stock quote of the Amadeus share:
The Amadeus share price is currently listed on the Spanish Mercado Continuo market and is included in the calculation of the Ibex 35 stock index.
Stock market data
We have just given you some useful information about the Amadeus share and its history. The collected data will allow you to set up a more precise analyses of the stock. But before embarking on its online speculation, it's also important to know the overall positioning of the company on the stock market. Here's some general information you should know about the company and its stock market listing.
- In 2017, the total market capitalization of Amadeus was around EUR 27,575.61.
- The number of securities issued by Amadeus and in circulation on the market is currently 250,172,000.
- The Amadeus share price is currently listed on the Mercado Continuo of the Spanish Mercado Continuo market.
- Amadeus is also part of the composition of the Spanish national stock market index Ibex35.
- Amadeus shareholding is made up of 3.11% of MFS International Ltd shares, 3.04% of GIC Pte Ltd shares, 2.82% of Fundsmith LLP shares, 2.52% of Fidelity Management & Research shares, 2.37% of The Vanguard Group shares, 2.01% of Jupiter Asset Management Lt shares, 1.84% of Massachussets Financial Services Co shares, 1.79% of Allianz Global Investors GmbH shares, 1.77% of FIL Investment Advisors shares and 1.54% of Black RockFundAdvisors shares.
As you will no doubt have already understood, the Amadeus Group's results are closely linked to the needs of its major clients. Therefore, as part of your fundamental analysis of this title, you will need to research the growth of the airline industry and these Amadeus clients. To help you do so, here are some additional indications of the different sectors and types of businesses that represent a prime target for this group:
Travel suppliers are of course the core target of Amadeus, which offers its services throughout the entire tourism chain. Of course, we mainly find airlines, most often regional or network airlines, but also low-cost transport or leisure companies. But this sector also includes other activities. Hotels and hotel chains are also prime targets for Amadeus and its online reservation system, regardless of the type of service (chains or independent hotels). Amadeus' customers also include various land and maritime companies such as car rental companies, rail transport companies, ferry companies, cruise ship sales agencies and certain insurance companies. Finally and more generally, Amadeus also targets specific tour operators, whether integrated tour operators or general public tour operators.
The second category of Amadeus' customers is the travel sales sector. This is of course mainly travel agencies such as Travel Management Companies or TMCs, but also travel agencies specialising in business travel or those specialising in tourist holidays. Online travel agencies are also to be taken into account, as are consolidators.
Finally, it is important to take into account a third important target of the Amadeus company, which this time concerns buyers in the travel sector, i.e. people or companies that use online travel search, comparison and reservation services. Among these buyers are mainly companies dedicated to companies that wish to reduce their travel expenses and that offer self-booking tools, but also individuals who use Amadeus' services to organize and book their trips (transportation and stays), notably via the Opodo platform.
Benefits and drawbacks of Amadeus shares as a stock market asset:
First of all, let's take a closer look at the rather positive elements regarding this share which reflect the strengths of the Amadeus group:
- Amadeus is essentially one of the leaders in its sector of activity and was one of the first to offer its technological solution of online booking platforms on its market. As a result, it has a slight advantage over the competition.
- One of the great assets of the group is also the fact that it has managed to set up numerous strategic partnerships over time. These alliances mainly boosted its expansion but also made it more popular with its prospects due to a strong and solid brand image.
- Another of the assets is the group's capacity for innovation and its desire to consistently meet the needs of its customers. This pushes the group to improve its products and services to gain loyalty and conquer more prospects.
The disadvantages of Amadeus stock as an asset:
After learning about the strengths of the Amadeus group, take a look at its main weaknesses. The company also has some weak points which can have a negative influence on the price of its share, here are some tangible examples:
- First of all, we know that the Amadeus group's activities are closely linked to the growth of certain business sectors such as the civil and commercial aviation sector and the tourism sector in general. Both of these industries are currently experiencing a slight recession.
- Finally, the group is increasingly facing new competition due to low barriers to entry.