Travelocity and longtime partner, America Online, Inc., the world’s leading interactive services company, have extended and revised the terms of their marketing agreement through March 2006.
Under the terms of the agreement, Travelocity will benefit from more strategically aligned terms for placement within several AOL brands over two years starting April 1, 2004. This will result in significant savings for Travelocity over the final year of the previous agreement, with savings commencing in the second quarter of 2004. In addition to annual fixed payments, America Online will also benefit by reducing the amount of advertising revenue within the AOL brands that it shares with Travelocity, and increasing the potential revenue earned from Travelocity based on increasing transactional performance.
“Travelocity has always enjoyed a deep, meaningful relationship with America Online, and it is an alliance that our mutual customers have benefited from as well,” said Michelle Peluso, president and CEO of Travelocity. “To reach a new accord more than a year ahead of schedule is a testament to the strong links we’ve forged with AOL.”
“America Online greatly values its ties to Travelocity,” said Michael Barrett, Executive Vice President of AOL Networks Sales and Solutions. “The true winner here though is the traveling public, who will continue to reap the rewards of our partnership with a service offering featuring only the best in products, customer service, compelling deals and cross promotional opportunities.”