PARSIPPANY, N.J., April 17 /PRNewswire-FirstCall/ -- Galileo
International, a subsidiary of Cendant Corporation (NYSE: CD) and a leading
global distribution services (GDS) company, today announced that Continental
Airlines (NYSE: CAL), the nation's fifth largest air carrier, has partnered
with Galileo to take advantage of Momentum: an innovative, three-year program
providing unique benefits to airlines and travel agencies, which choose to
enroll.
Continental joins United Airlines, US Airways, Rosenbluth International
and more than 250 U.S. travel agency locations in Momentum, which went into
effect March 1, 2003. As a participating airline, Continental will receive an
approximate 20 percent reduction in GDS fees for bookings processed through a
participating Galileo-connected agency. These prices are reduced from 2003
levels and locked in for three years and can easily equate to millions in
annualized savings for Continental and other major airlines, while also
increasing sales volume through the GDS, the airlines' highest-yielding
channel. In exchange, Continental and other participating airlines agree to
provide Galileo-enrolled agencies access to all publicly available fares,
including Web fares.
With the addition of Continental, more than 38 percent of Galileo's
U.S.-originated airline bookings are now included in Momentum.
"We are extremely pleased to welcome Continental to Momentum and applaud
their leadership in taking this important step to reduce costs and increase
distribution," said Robert Coggin, executive vice president of airline
services for Galileo and Cendant's Travel Distribution Services Division. "At
Cendant, we are working to revolutionize travel distribution by creating
compelling and cost-effective programs to help increase the long-term
viability of all industry players. Momentum is an important example of the
progress that can be achieved when airlines, GDSs and travel agencies come to
the table prepared to compromise for the sake of our industry's health and
future."
"We are pleased to join in Momentum as it represents an important first
step in working to change the traditional distribution model," said Jim
Compton, senior vice president of marketing at Continental Airlines. "The
Momentum program demonstrates fresh thinking by all parties in the
distribution chain to craft a solution that addresses the needs of everyone.
In exchange for the cost savings offered by this program, Continental is
pleased to provide Momentum subscribers and their customers with all publicly
available fares, including Web fares. We look forward to working with Galileo
to expand participation in this innovative program."
Travel agencies are also primary beneficiaries of Momentum as enrolled
agencies gain the competitive benefit of Web fares and other attractive
airline inventory, including all publicly available fares distributed through
the airlines' own Web site and reservations system, or any other competing GDS
or Web site. Travel agents also get the unique benefit of incremental sales
and revenue opportunities in exchange for accepting a reduced level of
financial incentives for the three-year term.
To offset the reduced financial incentives, Galileo and Cendant have
created a growing portfolio of revenue-generating benefits through Business
Builders Select, a Momentum-exclusive premium level of Galileo's successful
Business Builders program. As previously announced last month, U.S. agencies
participating in Momentum are now eligible for cash bonus payouts from Galileo
for any incremental rental car and hotel bookings processed through Galileo
that exceed the participating agency's 2002 booking baseline. This bonus
payout is valid for bookings with all rental car and hotel suppliers, not just
Cendant-affiliated brands, and will be paid at the end of each calendar year.
This cash bonus is in addition to the enhanced commissions travel agencies
can generate as part of Business Builders Select, including: double
commissions when booking RCI Holiday Network vacation and condo rentals; up to
5 percent more for incremental commissionable rentals from Avis and Budget; up
to 5 percent more for incremental reservations at any of Cendant's nine
affiliated hotel brands; and 2 percent more for Lodging.com bookings processed
through Galileo's e-Agent. Additionally, participating agents have access to
Budget's lowest-available "association" rates.
"We're thrilled Continental has decided to join Momentum," said Alex
Wasilov, president and COO, Rosenbluth International. "As the third major
carrier to enroll, Continental has demonstrated its commitment to building a
more sustainable distribution model, providing customers greater access to
competitive fares. We're excited about the value this partnership offers to
the industry and, most importantly, our clients. Momentum is a win for
Rosenbluth, our customers, and Continental."
Currently, agencies representing more than 25 percent of Galileo's U.S.
originated bookings are enrolled in Momentum. These include Rosenbluth;
Berkshire Wyomissing; Casto Travel; Conference & Travel Services; Mokihana
Travel Service; Nittany Travel; Plaza Travel; Royal Travel & Tours, Inc.;
Rubinsohn Travel; Seawind Tours and Travel, Inc.; Shangri-La Express; and
Cendant's affiliated travel agency operations.
While Momentum is currently available only to Galileo-connected U.S.
travel agencies, the company continues to have productive dialogue with
partners around the globe to provide similar services and programs.
About Galileo International
Galileo International (http://www.galileo.com) is a global technology
leader. Its core business is providing electronic global distribution services
for the travel industry through its computerized reservation systems, leading-
edge products and innovative Internet-based solutions. Galileo is a value-
added distributor of travel inventory dedicated to supporting its travel
supplier, agency and corporate customers and, through them, expanding traveler
choice. A subsidiary of Cendant Corporation (NYSE: CD) and part of Cendant's
Travel Distribution Services Division, Galileo is headquartered in Parsippany,
N.J., and has offices worldwide.
About Continental Airlines
Continental Airlines is the nation's fifth-largest airline and has more
than 2,200 daily departures. With 130 domestic and 95 international
destinations, Continental has the broadest global route network of any U.S.
airline, including extensive service throughout the Americas, Europe and Asia.
Continental has hubs serving New York, Houston, Cleveland and Guam, and
carries approximately 41 million passengers per year on the newest jet fleet
among major U.S. airlines. With 48,000 employees, Continental is one of the
100 Best Companies to Work For in America. In 2003, Fortune ranked Continental
highest among major U.S. carriers in the quality of its service and products,
and No. 2 on its list of Most Admired Global Airlines. For more company
information, visit continental.com.
SOURCE Galileo International; Continental Airlines
 back to top
Related links:
http://www.galileo.com
http://www.continental.com
CONTACT:
Dawn Lyon of Galileo, +1-973-496-5870, or
Rahsaan Johnson of Continental, +1-713-324-5080
|
