CHICAGO -- Orbitz launched its site June 4 with 35 airline, four
hotel and seven car rental charter associates, plus a big pile of
money to promote the airline-owned Web site.
Chief executive officer Jeffrey Katz estimated that Orbitz will
be in the black in "early 2003," but in the meantime, it will spend
heavily to create brand awareness for the site.
The marketing drive will include an ad campaign this month, an
hourly giveaway of domestic roundtrip tickets and a weekly prize of
an international trip for two. 
Half of the marketing campaign will take place on line, Katz
said, noting that it's a "wonderful time" for that focus as ad
rates have dropped.
Katz noted that the company's main on-line rivals, Travelocity and Expedia, spend
$75 million to $125 million each on marketing and promotion.
"We know what it costs," Katz said. "That's in the ballpark on
where we're planning to be on a full-year basis."
Since it launched a beta site Feb. 20, Orbitz has sold $3.5
million in tickets, according to the company. It has 175,000
registered users, a number that is growing by 400 an hour.
Prior to its launch, Orbitz commissioned Arthur Andersen to do
2,000 fare searches on 100 domestic routes. The survey found that
Orbitz's fares met or beat those on Travelocity and Expedia 80% of
the time.
"No other site provides such a comprehensive list of Web fares,"
He added. "We're the first to integrate them for as many airlines.
"
Katz said he is "not concerned" about the ongoing Department of
Justice antitrust investigation of Orbitz.
The site has been attacked on antitrust grounds as critics
charged that its airline ownership confers an unfair advantage and
will spur collusion.
Another distraction to the Orbitz launch is a suit by Southwest alleging that Orbitz is
misusing the carrier's proprietary schedule and fare
information.
Katz said some 20,000 visitors on the site voted 10 to 1 that
Orbitz should continue to display Southwest -- even though it can't
be booked on Orbitz.