Priceline & Travelweb Form Hotel Distribution Agreement

Priceline.com and Travelweb have announced a distribution agreement that
gives web sites owned and operated by priceline.com access to Travelweb`s
network of more than 4,000 brand-name hotels and their net rate inventory.


Caption: Joe
Humphry, President and Chief Executive Officer - TravelWeb

Travelweb
is revolutionizing the online travel industry with the
first-ever, full-service, automated hotel distribution network and is owned by
Marriott, Hilton, Hyatt, Six Continents,
Starwood Hotels and Pegasus Solutions. All of Travelweb`s founding
hotel chains already participate in priceline.com`s Name Your Own Price(R) hotel
service.

Under the agreement, Travelweb will become the exclusive provider of
published-price, net rate inventory in the U.S. and Canada that will be
available on both Lowestfare.com, the retail travel service operated by
priceline.com, and on priceline.com. The companies said they expect to integrate
Travelweb`s hotel inventory on these sites beginning in the 2nd quarter 2003.
Also as part of the agreement, priceline.com will take an equity stake in
Travelweb LLC through an $8.5 million investment and priceline.com President and
Chief Executive Officer Jeffery H. Boyd will assume a seat on Travelweb`s Board
of Directors.


“Priceline.com is delighted to have this agreement with Travelweb because we
believe that Travelweb`s distribution network will offer the best selection of
disclosed-price hotel rooms and rates available for our customers,” said Mr.
Boyd.


“Travelweb was born out of a need for a smarter, more supplier-friendly way to
sell hotel rooms online. Now we have a strategic relationship with
priceline.com, a premier online travel distributor, which is a further testament
to our business model,” said Travelweb President and Chief Executive Officer Joe
Humphry. “Teaming with priceline.com will significantly increase the reach of
our distribution network giving consumers greater access to hotel rooms and
rates, and increasing hotels` visibility, brand identity, and revenue.”

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Priceline.com
said that the addition of Travelweb`s hotel inventory and prices
will add to the options and savings available to priceline.com and
Lowestfare.com customers. It will also minimize reservation error because
Travelweb is the first-ever integrated hotel distribution network with a direct
connection to the hotels` central reservation systems. Priceline.com and
Lowestfare.com currently offer top-quality hotel accommodations through more
than 9,000 participating hotel properties in the U.S., Europe, Asia, Canada,
Mexico and the Caribbean, which represents the most properties of any leading
Internet hotel reservations service, according to the travel research group
PhoCusWright
.


On priceline.com, flexible travelers choose the exact neighborhood they want,
the star quality of hotel they want, the dates they want and the price they want
to pay for a room in a top-quality hotel. Priceline.com then works with its
hotel partners to try to find one willing to accept the customer`s price. “For
customers whose travel needs require a particular hotel and for those who aren`t
successful in getting the price they name , priceline.com and Lowestfare.com
can
now offer them special savings through the net rate inventory being made
available to us through Travelweb`s distribution network,” said Chris Soder,
Executive Vice President of priceline.com`s Lodging and Vacation Products.

Related stories on ITN:

(28/02/2003) Priceline Survey Reveals Popular Destinations

(23/02/2003) Priceline.com Hotel Sales up 35% for First Quarter

(11/02/2003) Priceline.com Reports 4Q & Full-Year 2002 Results

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