New Business Lines Created to Serve Travel Suppliers, Travel Agencies,
Corporate Clients and Consumers; Galileo Restructures Americas Unit as Part of
Original Integration Plan
PARSIPPANY, N.J., Sept. 24 /PRNewswire-FirstCall/ -- In a move to further
leverage the strengths of Galileo International and its affiliated travel
distribution brands, Cendant Corp.'s (NYSE: CD) Travel Distribution Services
Division today unveiled a new integrated operating structure aligned around
key customer segments, and announced its new senior management team.
To provide more customized services for suppliers, travel agencies,
corporate customers, and consumers, Cendant's distribution businesses have
been integrated into customer-focused business lines: Airline Services;
Hospitality & Leisure Services; Galileo Client Services; Highwire Corporate
Services; and, Retail Travel Services.
"The travel industry has entered a new era, and we are fundamentally
changing how we manage our businesses to better serve our customers," said Sam
E. Galeotos, president & CEO of Galileo International, who assumed this
expanded post last month. "Cendant has assembled an impressive portfolio of
travel distribution assets and people over the last year and this is the next
step in integrating these businesses. Our new structure makes it easier to
leverage our expertise, content, products and technology across our brands."
Travel suppliers will see immediate benefits through a single, dedicated
team, providing easy access to Cendant's suite of distribution businesses,
which includes Galileo, WizCom, TRUST International, Lodging.com, RCI Travel,
Traveler's Advantage, and Web sites Cheaptickets.com and Trip.com, through its
affiliation with Trip Network, Inc.
"We continue to listen to suppliers and subscribers and are positioning
ourselves to be a more valuable marketing partner and distribution channel,"
added Galeotos. "Cendant is keenly focused on providing new and innovative
programs to help our business partners reduce costs and increase revenues."
In addition to the realignment, Galileo will reduce layers of management
and streamline the decision-making and product-delivery processes as it
completes its integration into Cendant. This action will displace
approximately 8 percent of the 2,650 Galileo global workforce, primarily in
The Americas region. This is a culmination of several actions initiated when
Cendant acquired Galileo in October 2001.
"These actions and our realignment are integral to Cendant's travel
distribution initiative, and critical to our future success," said Samuel L.
Katz, chairman and CEO of Cendant's Travel Distribution Division. "I am very
excited about our prospects and believe this new organization, supported by
our experienced management team and global employee base, is well-positioned
to seize high-growth opportunities in key markets, and emerge as the global
leader in travel distribution services."
The core business lines, structural benefits and executive management are
as follows:
-- Airline Services is providing comprehensive low-cost, high-volume
distribution programs, and other services for airlines. Through one contact
point, airlines can easily access Galileo, Cendant's travel agency, Highwire,
and Trip Network, Inc.'s Web sites. The unit also includes Shepherd Systems, a
marketing intelligence system. The unit is headed by Robert Coggin, executive
vice president, who joined Cendant in April 2002 as executive vice president
of Supplier Development. Coggin was previously a corporate officer for Delta
Airlines.
-- Hospitality & Leisure Services is the central service point for hotels,
tour operators, cruise lines and rental car companies. This group is creating
an unrivaled, value-driven portfolio of hospitality brands to provide
hoteliers full-service, turn-key distribution and service solutions by
combining the strengths of Galileo, WizCom and TRUST International. Michael
W. McCormick has been tapped to head this unit as senior vice president.
McCormick joined Cendant in February 2002 as president of WizCom. Previously,
he was chief operating officer of PhoCusWright.
-- Galileo Client Services is providing customized tools and services for
travel agencies, suppliers, corporations and other travel retailers around the
globe to help large and small businesses reduce costs and increase revenues.
These services will be provided through the three primary geographic regions:
the Americas; Europe, Middle East and Africa (EMEA); and Asia-Pacific. EMEA
will continue to be headed by Gordon Wilson, executive vice president, and
Janie Kaung, executive vice president, will continue to lead Asia Pacific. The
Americas region is being restructured to address the current market and will
be headed by Mitch Gross, executive vice president, who joined Galileo in
April 2002 as chief marketing officer. Gross came to Galileo from Staples,
Inc. where he was vice-president of business services.
-- Highwire Corporate Services is focused on capturing market share in the
growing online corporate travel market by capitalizing on technology, client
relationships and product features of affiliated brands. Highwire was acquired
by Galileo in October, 2001, following Galileo's acquisition by Cendant.
Recognizing the significant potential in this high-growth market, Highwire
Corporate Services has been made an independent business line. Marka Jenkins
will remain president and CEO of Highwire.
-- Retail Travel Services integrates all of Cendant's consumer
distribution brands, travel products and fulfillment services into one
business line. This includes Lodging.com, Cendant's Travel Agency, which
provides reservations and sales, ticketing and other fulfillment services for
RCI Travel, Fairfield, Traveler's Advantage, and affiliated brands, Cheap
Tickets and Trip.com. Retail Travel Services is focused on providing travel
consumers great value and superior service that is easily accessible 24/7,
online or offline. Chris Annese will head this unit as interim chief
operating officer. Annese has worked for Cendant for five years, in
progressive management positions in Finance, Strategic Development, and Travel
Distribution.
-- Shared Services - To support and share critical applications and
knowledge across the business lines, key shared service groups have been
established, reporting to Galeotos: Product Innovation, Marketing & Strategy,
headed by Ken Esterow, chief development officer; Technology headed by Mickey
Lutz, chief information officer; Finance and Administration, headed by Ted
McNamara, chief financial officer; Human Resources lead by Jo-Anne Kruse,
senior vice president; and Legal headed by Cathy Cupp, general counsel.
ABOUT CENDANT TRAVEL DISTRIBUTION SERVICES DIVISION
Cendant's Travel Distribution Services Division is Cendant's newest
division, formed in October 2001, following the Company's acquisitions of
Galileo International and Cheap Tickets, Inc. The division employs more than
5,000 people around the globe. In the second quarter, the Travel Distribution
Services Division accounted for approximately 12 percent of Cendant's revenues
($438 million) and 16 percent of its EBITDA ($130 million).
SOURCE Cendant Corp.
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