Company Expects Improved Revenues and Margins on Vacation Packages While Offering Travelers New Opportunities to Save
Chicago, Aug. 26, 2004 - Orbitz (Nasdaq: ORBZ), the site that makes it easy to find more travel deals, has completed the full implementation of its dynamic packaging engine. As a result, Orbitz expects to improve packaging revenues and packaging margins per transaction while offering travelers new opportunities to save by booking flights, hotels or rental cars together in a single transaction.
The company's dynamic packaging engine now integrates package-only travel offerings, such as specially negotiated OrbitzSaver™ discount merchant hotel rates, special package airfares, web-only airfares and package-only rental car rates. By transitioning from a third-party service in most markets, Orbitz can better tailor its package offerings, pricing and merchandising to consumer demand. Orbitz' packaging engine now displays up to twice as many air itineraries and three times as many hotels as part of its vacation packages than were previously displayed on the search matrix. The company is able to offer more flexible last-minute travel capabilities, as well. Users can book travel packages up to eight hours before the scheduled departure time.
"Orbitz continues to expand the convenience, choice and savings we offer vacationers," said John Samuel, Orbitz' executive vice president of consumer travel. "For example, earlier this summer Orbitz.com became the first travel site to display multiple hotel and car options on a single screen with estimated total pricing that includes all rental taxes and fees. In fact, vacation travel packages have become one of Orbitz' fastest-growing categories."
Orbitz is a leading online travel company that enables travelers to search for and purchase a broad array of travel products, including airline tickets, lodging, rental cars, cruises and vacation packages. Since launching its website to the general public in June 2001, Orbitz has become the third largest online travel site based on gross travel bookings. Orbitz, Inc. became a publicly traded company on Dec. 17, 2003, when its shares were listed on the Nasdaq National Market under the ticker symbol ORBZ. For more information on the company, visit www.orbitz.com.
Statements in this news release regarding Orbitz that are not historical facts are forward-looking statements and are subject to risks, assumptions and uncertainties that could cause such statements to differ materially from actual future events or results. Any such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause Orbitz' actual results to differ materially from those described in a forward-looking statement: Orbitz' ability to retain and attract customers on a cost-effective basis; increasing competition from existing or new competitors; relationships with Orbitz' controlling stockholders and with other travel suppliers; limitations that could affect the expansion of our Supplier Link business; risks relating to our ability to expand our business generally; specific risks that could affect our ability to achieve growth plans for portions of our business, such as hotels; rapid technological change affecting our industry; technical and operational issues, such as journey control restrictions, that result from changes in travel suppliers' distribution methodologies that could affect our results; risks associated with litigation or government regulation; declines, disruptions or events affecting the travel industry; potential fluctuations in our quarterly and annual results. This list is intended to identify only certain of the principal factors that could cause actual results to differ. Readers are referred to the reports and documents filed from time to time by Orbitz with the Securities and Exchange Commission for a discussion of these and other important risk factors. Readers are cautioned not to place undue reliance on forward-looking statements, which are made as of the date of this news release. Orbitz undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason.