By Keith Regan E-Commerce Times
05/17/02 9:42 AM PT
Published reports have speculated that Orbitz may be considering an initial public
offering, possibly as soon as the third quarter of this year.
How Much is 'Free' Costing You? Learn how DaveRamsey.com saw a 567% uplift in ROI with Omniture. This complimentary guide and webinar cover the most important factors in selecting an analytics solution. Download Now.
In an effort to reach the 85 percent of consumers who do not yet buy travel online,
Orbitz (NYSE: OWW) has announced it will make
its airfares available to travel agents.
The company will work with Aqua Software Products, a unit of
Navigant International (Nasdaq: FLYR), to
provide travel agents with direct desktop access to its fares and its online search
engine, starting in August.
With Orbitz' technology, agents will be able to search 2 billion fares on 455 airlines,
the companies said.
Eventually, the Orbitz database will work in conjunction with Aqua's Global Distribution
Systems, used by many corporate and consumer travel agents to book trips. Orbitz said
this integration will allow corporate travel agents to book flights on Orbitz while still
receiving the volume discounts they often negotiate directly with airlines.
Well-Traveled Path
Orbitz is following a well-worn path to travel agents' desktops. Both
Travelocity and
Expedia (Nasdaq: EXPE), the company's two main
competitors in terms of number of visitors, have unveiled
deals to merge their listings with those already provided by airlines to travel agents.
"Online travel is growing much faster than the travel sector overall, but there are still
a lot of consumers who don't go online to buy or even to research, so that type of a move
makes sense," Nielsen//NetRatings analyst Lisa Strand told the E-Commerce Times.
The companies noted that additional fees charged to travel agents for booking through
traditional means have prompted airlines to sell discounted fares directly to consumers
online. In fact, Orbitz has been repeatedly criticized for listing Web-only
fares offered by the airlines that back the site.
"The vast majority of airline discounts are available on Orbitz," Aqua president Mark
Ferguson noted.
License, Please
The offline deal came shortly after Orbitz announced that its reservation and booking
engine will be used to run the American Airlines Web site,
AA.com.
That alliance is part of Orbitz' plan to license its technology -- an approach that has
proved successful for other e-commerce companies, such as eBay (Nasdaq: EBAY) and Amazon.com (Nasdaq: AMZN).
IPO ASAP?
Meanwhile, published reports have speculated that Orbitz may be considering an initial
public offering, possibly as soon as the third quarter of this year. Such a move might
help alleviate some of the antitrust
concerns that have plagued the site since its inception by opening up its business
practices and financials to more public scrutiny.
Orbitz continues to face government probes of its operations. Both the U.S. Department of
Transportation and the U.S. Department of
Justice (DOJ) have opened investigations into the
company. Last month, two dozen members of Congress called for a stepped-up
DOJ investigation.
The company has maintained that antitrust talk is being fueled by its competitors in
the fiercely competitive online travel sector.
Following the E-Commerce Money Trail May 16, 2002
While the money trail is long and convoluted, it generally works seamlessly and quickly
because technology has advanced sufficiently to remove many obstacles.
Related Stories
Lawmakers Seek Tougher Probe of Orbitz April 25, 2002
Orbitz president and CEO Jeff Katz said the company has increased competition in the
online travel sector, prompting other sites to improve their offerings.
Report: Travel Sites Take Off in March April 17, 2002
According to NetRatings, the average user spent 19 hours and 50 minutes online in March,
up from 18 hours and 44 minutes in February.
U.S. Steps Up Orbitz Monopoly Inquiry March 20, 2002
For its part, Orbitz came out swinging against its competitors. In a statement, Orbitz
general counsel Gary Doernhoefer said the DOT also should look into other travel sites.
Airlines Will Rule Online Ticket Sales February 13, 2002
Travel sites hate to lose market share to anyone, but in the case of airline tickets
they may be crying all the way to the bank.
And the Winner Is - Online Travel January 22, 2002
Booking travel online gives consumers a greater sense of control - especially compared
to placing their trust in a travel agent or a faceless phone sales rep.
Related News Alerts
More by Keith Regan
Yahoo Slaps Fresh Coat of Gloss on Microsoft Deal Defense June 30, 2008
With its shareholders meeting set to take place in less than five weeks, Yahoo has put together a 32-page presentation, emphasizing why the investors should vote to keep the current board in place. The company also reiterated why it chose to partner with Google instead of letting Microsoft buy part of it.
French Court Stings eBay With $63M Judgment Over Knockoff Sales June 30, 2008
eBay is planning to appeal a ruling by a French court that ordered it to pay $63 million to the luxury goods maker Louis Vuitton Moet Hennessey. The court also barred the online auctioneer from selling four brands of perfume on its Web sites accessible in France.
New Auto Loan Leads Marketplace Shifts Into Drive June 30, 2008
Reply.com's move into the auto finance market is a logical one the company, as automotive advertising spending is moving online in increasingly greater amounts. The company is partnering with the Detroit Trading Company to create a massive repository of auto finance leads online.
Headline Feeds
Talkback: 
