Galileo Increases Momentum: Adds More Agencies and Unveils Incentives to Enroll

Galileo International today announced that four additional travel agencies - Casto Travel, Royal Travel & Tours, Conference & Travel Services and Berkshire Wyomissing - are now participating in the Companyå‘s Momentum pricing and promotions program, which went into effect March 1.
Travel agencies representing more than 25 percent of Galileo’s U.S.-originated bookings are currently enrolled in Momentum, which has been hailed as an “evolutionary leap” in the global distribution system (GDS) model, according to Travel Weekly.

“This is a great marketing and productivity development,” said Gus Vallejo, chief operating officer of Casto Travel. “Our clients want and need access to all fares, including Web fares, especially at a time when every travel dollar is critical. Having easy access through Galileo enhances our agency`s service delivery and sets us apart from the rest.”

In addition to previously announced benefits of enrollment, U.S. travel agencies that participate in Momentum will now have access to even more revenue-generating benefits through Business Builders Select, a premium level of Galileo’s growing Business Builders program.  Effective March 1, 2003, participating agencies are eligible for an additional cash bonus payout from Galileo
for any incremental rental car and hotel bookings processed through Galileo that exceed the participating agency’s 2002 booking baseline.  The incremental cash bonus payout is exclusive to U.S. agencies participating in Momentum and Business Builders Select and is valid for bookings with all rental car and hotel suppliers.

Participating Momentum travel agencies already have access to a growing list of Business Builders Select revenue generators - double commissions when booking RCI Holiday Network vacation rentals, up to 5 percent more for incremental commissionable rentals from Avis and Budget, up to 5 percent more for incremental reservations at any of Cendant’s nine affiliated hotel brands, and 2 percent more for Lodging.com bookings processed through Galileo’s e-Agent.  Additionally, participating agents will gain access to Budget’s lowest-available “association” rates.

These value-add benefits can deliver real revenue.  For example, a $12 million ARC agency could easily achieve more than a $6,000 return with these Business Builders Select features. Combined with the overall profit-generating Momentum components, the same agency is looking at least a net $23,000 contribution to their bottom line.

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” ‘Momentum’ is growing as more visionary agencies join us and there is no doubt we’ll continue to see even greater participation from both agencies and airlines,” said Mitch Gross
, executive vice president of Galileo Americas region.  “In today’s tough travel market, more of our agency partners want the advantage of the best fares and availability and real earning power generated through Business Builders Select.  An added bonus is that Momentum stabilizes the distribution model and dramatically reduces cost for carriers - just when they need it most.”

Momentum benefits all industry participants - travel agencies, airlines, Galileo, and consumers.  As of March 1, each participating agency gains the competitive benefit of more attractive airline inventory from participating airlines, including Web fares, access to enhanced revenue-generating bookings through Business Builders Select, and locked-in financial incentives for three years at a reduced rate. 

In exchange for providing access to all publicly available fares, participating airlines receive an approximate 20 percent reduction in segment fees for bookings processed by a Momentum agency.  These savings will translate to millions for participating airlines on an annualized basis. United Airlines and US Airways are already committed to Momentum.
Momentum is currently available to only Galileo-connected U.S. travel agencies, but the company is exploring opportunities to expand the program globally.

Related stories on ITN:

(21/02/2003) Momentum Gains Traction with New Travel Agencies

(22/01/2003) Galileo, Rosenbluth International, United Airlines and US Airways Join Forces to Deliver Momentum

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