WASHINGTON -- The Justice Department approved a proposal by 10
travel and technology companies to form a trade association to
promote on-line travel services.
The Interactive Travel Services Association said it plans to
create better consumer awareness of on-line travel services and
present industry views to various government entities, according to
the Justice Department.
The proposed association comprises American Express,
Biztravel.com, Internet Travel Network, Microsoft, Preview Travel,
America Online, Excite, Pegasus Systems, Sun Microsystems and The
Trip.com.
Joel Klein, assistant attorney general in charge of the
antitrust division, said in a business review letter issued by the
department, "To the extent that the association confines its
activities as proposed, and does not allow itself or its members to
exchange price, consumer or other competitively sensitive
information, neither its establishment nor its activities would
raise risks to competition."
Under the proposed structure, companies actively involved in
selling on-line travel services will be eligible for full
membership, while "other interested parties, not affiliated with
the association, will be eligible for associate membership."
An independent executive director will be hired to manage the
association's activities, the Justice Department said.
Travel Weekly last June reported the group planned annual
membership dues at $15,000. A spokesman for Preview Travel said at
the time that membership was open to "anyone involved in on-line
travel."
Government officials said the group plans to make its research
and information available free to everyone through its Web site.
The address of the site was not available.
Officials at American Express, Microsoft Corp., Pegasus Systems
and Internet Travel Network were not available for comment.