Travelocity to acquire for $43M


FORT WORTH, Texas -- Travelocity agreed March 25 to buy the 2-year-old, the online seller of last-minute air, hotel and rental car inventory. Under terms of the deal, Travelocity will acquire Site59 for $43 million in cash.

Travelocity said Site59 will broaden its focus to provide higher-margin hotel inventory to the Web-based agency. That inventory will complement the product that Travelocity obtains through its long-term agreement with Hotel Reservations Network.

Meanwhile, Site59 will continue to provide last-minute travel products to travel agents through Worldspan Go! and through the agent program that is available to any retailer at

Site59, through its proprietary software, allows agents to create and book packages in real time. It pays uncapped commissions on its packages.

A Site59 spokeswoman said the operation also will continue its reliance on Worldspan as its underlying reservations system despite the fact that Sabre controls 70% of Travelocity and may soon own considerably more.

Travelocity said it intends to operate Site59 as a separate unit and that it expects to begin generating revenue from last-minute travel operations immediately.


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