wish I owned orbitz. sob back to work
Business 2.0 had a prescient article on travel website consolidation this month in the October issue. I highly recommend it.
From $300 mn to 1.2 billion in 1 year. Not bad. I never would have put that kind of price tag on Orbitz.
Is Cendant overpaying?
amazing what a good mgmt team, great product and 10 billion pop-ups can do for ya ;)
10 billion popups and a good investment turns a great profit....
I am a dromomaniac (I get off on constantly planning travel) and can tell you that orbitz's product is indeed a good one.
One thing that many don't know is that orbitz drives the reservation systems of a few airlines, so they probably make hefty fees off every transaction at ual.com, for example.
Whether the brand is worth 1.2 billion...? I don't know.
Someday I'll sell my cr@ppy little site for 1.2 bln!
I could be wrong, but I'm pretty sure United's web system is based on software by ITN (i.e. American Express), not ITA-- to United's regret (and mine, as a 2nd tier United frequent flyer). Besides Orbitz, ITA software is also the back-end for Air Canada and Continental, and for the Galileo travel agents' system.
While thatt has to make Barry Diller smile as his travel brands smoke orbitz in transactions, me thinks notsosmart is smarter than he says.;)
Upon further review, choster is right.
What gets me, is that Orbitz was started by the big 6. NOW they are in effect managing the feat of seling a channel to the backend that allows consumers to purxhase their product, while at the same time continuing to charge commission for every transaction.
Brilliant. It's too bad 2 out of six are doomed.
Cendant own in the hotel & travel business alone
gives their complete list of subsidiaries. The hotel and travel ones are:-
..and this is how they are doing it