ITA
SOFTWARE will remain independent for now, at least and
continue to develop its alternative distribution system and
flight-search technology. Those facts can be taken from the travel
technology companys announcement that it secured $62.5 million in
funding. Battery Ventures led the round of Series A financing,
joined by General Catalyst Partners, PAR Investment Partners,
Sequoia and Spectrum Equity. The venture capital firms took
minority ownership in the company. Employees and other unnamed
investors none are airlines have majority control of the company,
ITA said. The transaction actually was for $100 million, but around
$38 million or so was used to buy some employee shares, and thus
does not bolster ITAs development. Officials from ITA, which is
believed to have been wooed by several acquisition-minded suitors,
said the financing is the first such cash infusion since Amadeus
threw about $1 million in seed money into the kitty in the
10-year-old companys early days.
ORBITZ was slated today to introduce
OrbitzTLC , a sub-brand that will highlight its care alerts for
flight delays as well as new alerts informing travelers car
services of delayed flights. We are repackaging what customers want
but dont know we offer, said Randy Wagner, chief marketing officer
for Cendants Consumer Travel Americas. A former marketing executive
at McDonalds, Wagner noted that sub-brands can modify a brand and
stand on their own, like the Big Mac does for McDonalds. Wagner
said OrbitzTLC will emphasize high-tech tools that customers
want but also the [customer service]
people behind the promise. The OrbitzTLC initiative will also
emphasize consumer-written hotel reviews and travel perks such as
free breakfasts or two-for-one-discounts, for instance.
EXPEDIA.COM rolled out a pricing guarantee,
apparently triggering a new round of best-price promises from other
Web sites and suppliers. Expedia.coms Best Price Guarantee,
introduced last week along with a new branding campaign, builds on
its existing merchant hotel and cruise price guarantees by
promising that it wont be undersold on air, vacation package, car
and destination activity bookings subject to the usual fine print.
The ink was hardly dry on the guarantees terms and conditions when
hotel site Quikbook.com extended its rate guarantee to 72 hours
from 48, and Travelocity indicated it is considering beefing up the
Travelocity Guarantee. Meanwhile, Accor Hotels Sofitel introduced a
rate guarantee last week, although an official said the timing was
coincidental. For Expedia, if consumers find a lower rate on
another U.S.-based Web site within 24 hours after booking travel on
Expedia.com, the online agency will refund the difference and
provide a $50 coupon toward certain future hotel and vacation
package bookings.
AIRTRAN AND
WORLDSPAN signed a multiyear, full-content agreement that
means the low-cost carriers availability and fares will be
available in the GDS. AirTrans schedules and fares were expected to
be back in Worldspan Jan. 24 after a several-month absence. The
companies said that AirTran will participate in the GDS at the
Limited Connect level. A Worldspan spokeswoman said Limited Connect
is for carriers that require limited functionality, but she
declined to provide specifics. The AirTran-Worldspan agreement
means that AirTrans schedules and fares may reappear on
Worldspan-customer Expedia.com if Expedia and the airline can reach
agreement. Meanwhile, AirTrans absence from Worldspan did not
greatly impact Orbitz because Cendants Orbitz began accessing
AirTran inventory from sister-company Galileo.
CONCUR TECHNOLOGIES, a public company in Redmond, Wash.,
agreed to acquire Outtask, which offers the Cliqbook corporate
self-booking tool, for $67 million to $88 million in cash and
stock. The amount of the transaction, which is subject to
government filings, depends on the satisfaction of certain
conditions as of Sept. 30, Concur said. The acquisition of Outtask,
with its travel management capabilities, with strengthen Concurs
corporate expense management services, Concur said.