Chicago, Aug. 25, 2004 - "As suppliers take steps to reduce their costs of selling travel, Orbitz is continuing to make available the benefits of its low-cost distribution model to businesses and travel agents, as well as suppliers," Orbitz Chief Technology Officer Christopher Hjelm said today.
Orbitz' Supplier Link Technology, launched two years ago, was designed in response to suppliers' growing desire for lower distribution costs. Orbitz charges a $4 flat fee per ticket processed through Supplier Link. In comparison, airlines typically pay about $12.50 to $14 for each ticket processed through other booking systems.
Orbitz has become a leader in providing low-cost direct connections to airlines and one of the leaders in seamless electronic connections for hotels. Currently, six U.S. airlines use Orbitz' Supplier Link, and additional carriers are in the implementation phase. More than 5,500 hotel properties use OrbitzConnect, a seamless hotel booking channel.
"Orbitz' technology solutions, such as Supplier Link, are the key to sustaining low distribution costs in the future. And our low distribution costs are the key to offering customers more choices and the widest possible selection of low fares and rates," Hjelm said.
"Travel agents can keep their costs low by taking advantage of 'Orbitz economics' and joining our Premier Affiliate Program," Hjelm said. "Likewise, businesses can reap the benefits by booking their travel through Orbitz for Business, a full-service travel management program offering a highly attractive $5 per ticket fee."
Orbitz' proven technology currently processes more direct connection air transactions than any other online travel agency. Supplier Link transactions represented 40 percent of Orbitz' air transactions in the first half of 2004.
Alaska Airlines, American Airlines, America West Airlines, Continental Airlines, Northwest Airlines and US Airways have all implemented Orbitz' Supplier Link.
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. On www.orbitz.com, consumers can search more than 455 airlines, as well as rates at over 65,000 lodging properties and at 22 car rental companies. 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.