Travel Weekly's Technology E-Letter: March 19, 2003: Travel Weekly

Travel Weekly's Technology E-Letter: March 19, 2003

PAUL BLACKNEY will step down as president and CEO of Worldspan when its acquisition is completed. After the Travel Transaction Processing Corp.--a company formed by Citigroup Venture Capital Equity Partners and Teachers' Merchant Bank--purchases Worldspan from Delta, Northwest and American, Blackney will assume the role of "special advisor to the company" and serve on the company's board of directors. Blackney said the prospective new owners were "looking for a CEO to commit to five to seven years. I'm almost 57 years old. I don't want to work that long."

WORLDSPAN announced March 4 that its airline owners were selling the company, which is a leader in booking engine services for Internet travel sites like Orbitz, Expedia and Priceline. If the acquisition, which is subject to financial and regulatory approvals, falls through, Blackney said he would stay on as Worldspan's president and CEO. Blackney, who prior to his Worldspan stint held executive posts at United and was president and CEO of Apollo Travel Services, was named president and CEO of Worldspan in 1999. When this recent sale was disclosed, Blackney said his tenure at Worldspan has been "enlightening and staggeringly productive."

EXPEDIA said if the U.S. declares war or implements a code-red security alert, then it will waive cancellation penalties and change fees for hotel, rental car and destination-attraction purchases, if travel is scheduled within 60 days of either the war declaration or code-red status. Customers will get full refunds on these purchases, if they so desire, the company said. Customers must call Expedia within 14 days after war is declared or code-red status is implemented, however. For cruise and airline purchases, Expedia said it will adhere to the cancellation policies of suppliers.

TRAVELOCITY, meanwhile, launched a travel information center at www.travelocity.com/update, which is intended as a source where consumers can read about the latest travel developments, including airline exchange policies that recently have been altered due to the threat of war with Iraq.

ORBITZ launched a merchant hotel program in which the airline-owned Web site will negotiate net rates with individual hotel properties. Orbitz said participating hotels can update rates and availability via the Web and receive reservation confirmations by e-mail. The new program, Orbitz said, supplements its affiliate deal with Travelweb, the distributor of wholesale inventory owned by major hotel chains and Pegasus. An Orbitz spokeswoman said nothing in its Travelweb deal precludes Orbitz from negotiating rates with individual properties affiliated with Travelweb's owners if the properties do not participate in Travelweb itself. Two Harrah's properties in Las Vegas--Harrah's Casino & Hotel and Rio All-Suites--are among Orbitz's first clients in the merchant program.

STEVE PERILLO, president of Italy specialist Perillo Tours, said 3,000 travel agents have registered to use its online booking engine at www.perillotours.com since it was introduced in January. With the booking engine, powered by White Plains, N.Y.-headquartered HyperTech Solutions, agents can book land/air packages. "It's a good tool for booking and for checking availability" if Perillo agents are busy on the phone, he said.

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