Pegasus Solutions

, Inc.
announced the World Travel Market exhibition
in London that it is extending its commission and merchant payment
processing services beyond the hotel industry.  For the first time,
Pegasus will begin processing travel agency commission payments from
car, cruise and rail suppliers, tour operators, non-ARC affiliated
airlines, and other travel-related suppliers. 
This 2003 service
expansion will also apply to PegsPayä, Pegasus` new net rate
payment service, allowing merchant travel distributors, such as
discount Web sites, tour operators, onward distributors, and
wholesalers, an opportunity to process streamlined payments for all
travel suppliers.  Dallas-based Pegasus Solutions is a prominent
worldwide provider of hotel reservations-related services and
technology.

Pegasus Commission Processing, one of the hotel industry`s leading
travel agent commission services, was created in 1992, and PegsPayä
was launched earlier this year.

“This enhanced service offering is the first of its kind - a
comprehensive payment and information solution for travel agencies and
suppliers around the world.  In bringing our expertise and technology
to other travel markets, we can use proven practices learned over
years of working with hotels and agencies to provide best-in-class
payment solutions for air, car, cruise and rail suppliers, as well as
tour operators and other travel-related suppliers,” said John F. Davis
III, chairman and chief executive officer of Pegasus.  “Most of the
world`s leading hotel companies have realized significant efficiency
gains from the use of Pegasus` automated services over the past 10
years.  The time is right - and the demand is apparent - for other
travel industry suppliers to benefit from our commission and payment
processing services.  Moreover, travel agencies will benefit by
getting single, timely payments from multiple industry sources,
noticeably decreasing back-office accounting and administrative
activities.”

“We`re pleased to see Pegasus take this important step - not just for
our agency, but for the travel industry as a whole,” said John
Coffman, vice president and corporate controller for Navigant
International.  “Pegasus enjoys a well-deserved reputation for
delivering revenue-enhancing commission services for agencies.  The
expansion of its payment processing services beyond hotels will
deliver efficiencies and cost savings to agencies and suppliers at a
time when both critically need every service that helps improve the
bottom line.”

Among a host of accompanying technology upgrades, Pegasus intends to
Web-enable three key components of its payment processing services,
allowing agencies, merchants and suppliers to go online to:

* send reservation and payment information in industry-standard
formats using proven data migration techniques;

* access critical, analytical commission processing and supplier
relations information; and

* monitor reconciliation and tracking of commission and net rate
payments for suppliers, merchants, and agencies.

Pegasus customers will be able to choose a payment schedule best
suited to their unique and dynamic requirements through a flexible,
newly configured payment process, allowing for enhanced cash
management practices among all parties.

This announcement comes shortly after Pegasus introduced PegsPaySM, an
ASP-based net payment processing service for travel businesses that
operate under a merchant business model.  “With the addition of
commission and net rate processing for non-hotel suppliers, Pegasus
now offers an unrivaled combination of automated payment processing
services across all segments of the travel industry,” Davis said.

“We`re enthused about the initial reaction of non-hotel travel
suppliers to this service expansion,” said Jeff Bzdawka, senior vice
president of Pegasus Financial Services.  “Our analysis shows that,
excluding airline commissions, travel industry suppliers paid
approximately $5.7 billion in gross commissions in 2001, only $1
billion of which was paid by hotels.  The sheer volume of paperwork
and resources associated with these commission payments today demands
an automated solution.  This extension of our commission and payment
capabilities once again demonstrates Pegasus` leading role in the
arena of automated financial services for the travel industry.”

Related stories on ITN:

(30/10/2002) Pegasus Solutions Reports Solid Third Quarter 2002 Results

(29/10/2002) Pegasus to Unveil New Service Offering at World Travel Market

(22/10/2002) TravelCLICK To Partner With Pegasus Solutions on New Internet Hotelligence Service

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