Product to Be Integrated Across Cendant Travel Distribution Assets, Providing
Better Value for Consumers, Competitive Deals for Travel Agents, and Enhanced
Distribution for Suppliers
PARSIPPANY, N.J., April 4 /PRNewswire/ -- The Travel Distribution Services
Division of Cendant Corporation (NYSE: CD) today announced that it has signed
a definitive agreement to acquire substantially all the assets of Neat Group,
Inc., a leading developer and operator of innovative dynamic packaging
technology for the travel industry. The transaction is not material to
Cendant and is expected to close during the second quarter of 2003, subject to
customary and other approvals. Financial terms were not disclosed.
Neat's dynamic packaging engine enables customers to build customized
travel packages from a vast array of discounted air, car and hotel inventory
through one simple search at one low price. A customer can expect to save 30
percent or more compared to purchasing each travel item separately.
Cendant plans to integrate Neat into CheapTickets.com and across its other
travel distribution businesses to provide consumers and travel agencies access
to dynamic and discounted travel packages.
"Neat Group is a great addition to Cendant's extensive travel portfolio
which we expect to accelerate growth of our Cheap Tickets Web site and enhance
Cendant's value proposition in the leisure, corporate and travel agency
markets," said Sam E. Galeotos, president and CEO of Galileo International and
Cendant's Travel Distribution Services. "Neat addresses the primary interests
of our key customers - Galileo travel agencies will gain competitive pricing
and merchant revenue streams; suppliers will obtain an effective "brand-
friendly" 'opaque' channel that helps shield pricing from consumers and
competitors; and consumers ultimately win with access to even more travel
options -- including 3,500 additional hotel properties -- at a lower total
price."
"We are excited about becoming a part of Cendant and its growing presence
in travel services," said Steve Cossette, co-founder and president of Neat
Group, Inc. "Our supplier and agency customers will benefit greatly from this
relationship through expanded distribution, access to more content, as well as
the long-term commitment Cendant has made to strengthening its position as a
leader in the travel distribution industry."
Cendant intends to make Neat's dynamic packaging technology available to
travel agencies to offer their customers competitive deals and enable them to
act as true merchants with more pricing control.
"We are excited about Galileo providing access to Neat's dynamic packaging
to help our agents and members find the best inventory at the best available
prices," said Lee Granger, managing director of travel technology at AAA. "We
have already previewed the Neat product and can see the advantages it will
give us in terms of content and pricing. We look forward to working with
Cendant and Galileo to introduce this to our travel agencies and members
through aaa.com."
As part of Cendant, Neat will continue to offer air, car and hotel
suppliers the dual benefits of a private label booking engine for their own
Web sites, as well as wider inventory distribution through a growing number of
channels. Neat's rules-based technology provides suppliers flexibility and
real-time control over inventory and pricing, enabling improved revenue
management over "published" and "net" rates. Neat also provides suppliers with
easy-to-access detailed transaction reports by channel. A few of the leading
suppliers that currently utilize Neat's dynamic packaging product include
Continental, US Airways, United Airlines, Avis, Budget, Hertz, Hyatt,
Marriott, Harrah's, Omni, Outrigger, Ramada and Six Continents hotels.
About Cendant Corporation
Cendant Corporation is primarily a provider of travel and residential real
estate services. With approximately 90,000 employees, New York City-based
Cendant provides these services to business and consumers in over 100
countries. More information about Cendant, its companies, brands and current
SEC filings may be obtained by visiting the Company's Web site at
http://www.cendant.com or by calling 877-4-INFOCD (877-446-3623).
About Cendant's Travel Services Distribution Division
Cendant's Travel Distribution Services Division is one of the world's
largest and most geographically diverse collections of travel distribution
businesses. The division, employing some 5,000 people in more than 110
countries, includes: Galileo, a leading global distribution system (GDS)
serving more than 47,000 travel agencies and over 51,000 hotels; hotel
distribution and services businesses (Trust, THOR, WizCom); leading travel
agencies, including Cheap Tickets and Lodging.com; an airline market
intelligence company; and Highwire, a corporate travel booking company.
About Neat Group, Inc.
Neat Group, Inc. (Neat) is a travel distribution and technology company
that develops, markets and operates innovative electronic distribution
technology for the travel industry. Neat was the first company to enable
consumers, travel suppliers and travel agents to better manage their travel by
leveraging Neat's patent pending packaging and merchant model technology in a
low cost electronic environment. The company, founded in 1999, is located in
The Woodlands, Texas, and counts among its customers 40 of the world's leading
airline, hotel, and car rental brands and travel service companies. For more
information, visit http://www.neatgroup.com.
SOURCE Cendant Corporation
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Related links:
http://www.cendant.com
http://www.neatgroup.com http://www.galileo.com
CONTACT:
Media, Dawn Lyon, +1-973-496-8079, or Kate
Sullivan, +1-973-496-4540, both of Cendant Travel Distribution
Services; or Investor, Sam Levenson, +1-212-413-183, or Henry A.
Diamond, +1-212-413-1920, both of Cendant Corporation; or Steve
Cossette of Neat Group, Inc., +1-281-298-4545
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