SIDESTEP LAUNCHED a hotel search engine at www.sidestephotels.com, where Web shoppers can conduct
a search without downloading SideStep's tool. VP-marketing Phil
Carpenter explained that the California-based travel tech firm is
trying to expand its reach, as there were consumers who "wouldn't
or couldn't" download the search tool (the software is not
compatible with Mac computers). Similar to the downloaded version,
when consumers decide to make a purchase on www.sidestephotels.com, they are taken to the hotel
supplier's Web site to book. Suppliers pay Sidestep a referral fee
for each completed booking. In the next three to four months,
Carpenter said, Sidestep plans to introduce air fare and rental car
search engines that don't require downloading. Today, consumers can
conduct searches for air, car and hotel by downloading the software
from www.sidestep.com.
IN A MOVE to cut costs and control
distribution, the Cendant Car Rental Group said it will stop doing
business with Web sites that do nothing more than redirect Internet
users to Cendant's own car rental Web sites. Cendant, the parent of
Avis and Budget, said these linking sites "exist solely to collect
fees from car rental suppliers for referring Internet users to
supplier Web sites." In a statement, Scott Deaver, executive vice
president of marketing for the Cendant Car Rental Group, said,
"Unlike travel agents and travel portals, some travel Web sites
simply take a piece of the rental car transaction without adding
any value to either travelers or car rental suppliers." These
intermediaries, Deaver said, "do little more than intercept
customers already looking to find us."
IATA TRAVEL Settlement Services (ITSS), created
by IATA to provide Web-based electronic billing and settlement
services for agents and suppliers worldwide, will launch in the
U.S. on a pilot basis in the second quarter, according to Kathryn
Baltz, project director. Currently operational only in Canada, ITSS
was rolled out there in October 2002. Air Canada Vacations, Royal
Bank of Canada Travel Insurance, SkyLink, VIA Rail and WestJet
Airlines use ITSS to handle financial transactions (partial or full
trip payments, refunds and post-travel commissions) with 4,300
travel agencies, Baltz said. She added that ITSS aims to have most
of Canada's major nonair travel suppliers and low-cost air carriers
on line by the end of this year. Free to travel agents, ITSS
enables retailers and suppliers to settle across national frontiers
in their currency of choice.
ORBITZ president and CEO Jeff Katz said he
expects his company's dispute with Travelweb will be settled in the
next two to three months. Travelweb -- the Web distributor of
merchant hotel rates owned by five major hotel chains,
Priceline.com and Pegasus Solutions -- sued Orbitz last year,
claiming Orbitz violated their distribution agreement by
negotiating merchant deals with properties already participating in
Travelweb's program. The Circuit Court of Cook County in Chicago is
reviewing the merits of the complaint, according to a Travelweb
spokeswoman. Orbitz has its own issues with Travelweb. Katz,
addressing reporters at a press luncheon last week, said the
relationship "has not worked out" because of Travelweb's inability
to produce the lowest rate 70% of the time, which Katz said
Travelweb is contractually required to do. Orbitz is by far
Travelweb's largest distributor. The Travelweb spokeswoman admitted
that losing Orbitz would be a big blow.
THE INTERNET travel market in the U.K. will
consolidate, as Lastminute.com agreed to buy Online Travel Corp.
for approximately $100 million. There has been speculation in the
U.K. that further consolidation could occur, as Lastminute.com has
been tabbed by analysts as a potential target for Expedia or
Travelocity.
ORBITZ MATCHED Expedia's and Travelocity's lead
by adding destination activities and services to the Orbitz
palette. Tickets are available to attractions and activities like
Sea World in Orlando, Red Rock Canyon Jeep Tours in Las Vegas, and
tours of Mayan ruins in Mexico. Orbitz president and CEO Jeff Katz
said destination activities and services are "high-margin products"
that Orbitz can mark up 25% to 45%.