Cendant Travel Distribution Completes Integration of Galileo

26th Sep 2002

In a move to further leverage the strengths of Galileo International
and its affiliated travel distribution brands, Cendantå‘s Travel Distribution Services Division unveiled a new integrated operating structure aligned around key customer segments, and announced its new senior management team.
, president & CEO of Galileo International
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.

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. 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).




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