Amadeus: The IT Backbone of Travel - [Business Breakdowns, EP.237]

In this episode of Business Breakdowns, Matt Reustle interviews Ben Needham, a Portfolio Manager at 91 Asset Management, about Amadeus, a travel IT company. Ben describes Amadeus as the "gorilla of travel IT," highlighting its diversification, growth, and inflation-linked revenue model. The discussion covers Amadeus's three main business areas: distribution, Air IT, and Hotel IT, detailing their roles in connecting travel sellers with providers, managing airline inventory, and enabling hotel reservations. They explore Amadeus's history, competitive advantages, and the potential impact of AI on the travel industry, as well as the company's revenue model, pricing mechanics, and capital allocation strategies. Ben emphasizes Amadeus's strong market position, high margins, and growth opportunities, particularly in Air IT and Hotel IT, and addresses potential risks such as technology disruptions and traffic downturns.