Utell Sees Resurgence in US Bookings

6th May 2004

Pegasus Solutions, Inc. announced hotel booking
statistics confirming that Americans are returning to Europe in
considerable numbers for both business and leisure.  Pegasus recorded a 25
percent increase in bookings made by U.S.-based travelers at Utell by
Pegasus(tm) member hotels in Europe during the first quarter of 2004,
compared to the same period in 2003.With more than 2,700 independent European hotels participating in the
company’s Utell by Pegasus representation service, Pegasus has the unique
ability to monitor wide-scale lodging trends in the fragmented European
hotel industry.  Dallas-based Pegasus Solutions (Nasdaq: PEGS) is a
leading worldwide provider of hotel reservations-related services and
technology.  The company is also the world’s No. 1 provider of hotel
representation services, with more than 1 million rooms in 140 countries.

The United Kingdom led the pack in impressive returns of American
travelers.  U.K.-based properties represented by Pegasus experienced a 71
percent increase in bookings from the U.S. during the first quarter of
2004.  Other notable upswings in American travelers booking at Utell
member hotels were in Portugal (up 60 percent), Switzerland (up 36
percent), Austria (up 33 percent), Germany (up 32 percent), Spain (up 30
percent) and France (up 20 percent).

“The increase in travel from America is evident not only in our bookings,
but in the everyday conversations in our hotel lobby and restaurant, “
said Neil Miller-Chalk, deputy general manager for the Dolphin Square
Hotel, a four-star Utell member hotel located near the River Thames in
central London.  “The Utell by Pegasus service generated more than 1,500
room nights from the U.S. for our hotel in the first quarter, a remarkable
416 percent increase over 2003.”

Pegasus’ analysis focused on bookings made for Utell member hotels through
the global distribution systems (GDSs) generally used by travel agents.
Reservation trends at Utell by Pegasus member hotels coincide with recent
reports from U.S. air carriers’ citing notable gains in international air

“Several indicators suggest that both domestic and international corporate
travel is rebounding,” said Bob Boles, executive vice president of sales
and marketing at Pegasus Solutions.  “The increase in travel from America
to Europe is evident in our booking data, as well as in the anecdotal
exchanges we have with leading U.S. travel agencies,” he said.


Independent hotels and small groups in Europe are gaining from the return
of the American business traveler.  “Corporate travel managers in the U.S.
are more open to adding independent hotels to their managed international
travel programs,” said Earl Foster, chief operations officer and president
of Partnership Travel Consulting.  “With travel managers focusing more on
price, independent hotels with competitive rates are well positioned to
capitalize on the increase in business travel to Europe and other overseas

Through their Utell by Pegasus membership, independent and small hotel
groups have their room inventory and rates electronically distributed to
the major GDSs and the Internet.  The hotels also receive call center
services and marketing and promotional support targeted at travel agencies
and corporate travel managers.

Travel agents earn full commission on any Utell by Pegasus booking made at
Pegasus’ travel agent-focused Web site, www.utellagent.com.  Consumers can
book any Utell by Pegasus member hotel at www.utell.com.


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