Travel Weekly's Tech E-letter: Oct. 22, 2003: Travel Weekly

Travel Weekly's Tech E-letter: Oct. 22, 2003

SABRE PLANS TO OFFER a private-label version of Trisept Solutions' tour-booking engine, VAX VacationAccess [www.vaxvacationaccess.com], to GDS subscribers by first-quarter 2004. Trisept has a similar arrangement with Amadeus. The Web-based booking engine gives agencies access to VAX's preferred brands, which include Club Med, Funjet Vacations and many others. Sabre said the private-label product will eventually include its own preferred brands, as well as VAX's. Sabre said GDS subscribers will be able to use the VAX tool free of charge. Trisept Solutions is owned by Milwaukee-based LaMacchia Enterprises.

STARWOOD HOTELS AND RESORTS is testing self-service, check-in kiosks for guests. Kiosks have been installed at two Starwood properties, the 1,215-room Sheraton Boston Hotel and the 509-room W New York in Times Square. To check in, guests swipe a credit card at the kiosk and confirm their reservations. The kiosk dispenses card-keys and the room number. Following the test, Starwood plans to expand the service to an undetermined number of downtown, convention and airport hotels next year. Starwood isn't the only one testing self-service kiosks. In September, Hilton began testing them at two of its properties, the Hilton New York and the Hilton Chicago.

UNITED AIRLINES joined Galileo's Preferred Fares Select program, giving Galileo-wired agencies access to all of United's published fares, including Web fares. In return, United pays Galileo a locked-in, discounted GDS fee for the next three years [Galileo won't say how much United will save]. United had joined Galileo's Momentum program, which discounted GDS fees but required agencies to help the cause by accepting a cut in GDS incentive payments. However, Galileo scrapped Momentum this summer immediately after competitor Sabre signed up most of the major network carriers for its fee discount program, Direct Connect Availability (DCA) Three-Year Option. So far, four network airlines--United, Northwest, Continental and US Airways--participate in Preferred Fares Select. Sabre has all four of those airlines in the fold for DCA, plus American and Delta.

IT'S THE HOTELS VERSUS THE AIRLINES. Travelweb [www.travelweb.com], the online seller of merchant-rate hotel rooms owned by five major hotel chains, Pegasus and Priceline.com, sued airline-owned Orbitz [www.orbitz.com] for breach of contract. The suit, filed in the Circuit Court of Cook County, Ill., in Chicago claims Orbitz cut its own merchant deals with hotels already participating in Travelweb's program, which Travelweb said violates their agreement. The suit also alleges Orbitz did not display Travelweb properties in accordance with the agreement, which expires in June 2005. Travelweb expects a hearing to occur in November. Orbitz is Travelweb's primary distributor, as sales on Orbitz.com account for 90% of Travelweb's revenue. Travelweb said it is trying to decrease that percentage as it signs up more distributors.

Travelocity [www.travelocity.com] said it decided to end its distribution agreement with Hotels.com, avoiding litigation. Terms of the settlement weren't revealed. Last month, Hotels.com [www.hotels.com] pulled its hotel inventory off Travelocity.com, claiming Travelocity breached their contract on Aug. 29 by terminating "the exclusivity to which Hotels.com was entitled under the hotel supply agreement." In other words, Hotels.com claimed Travelocity's expansion of its own hotel program infringed on Travelocity's commitment to market Hotels.com inventory.

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