NEW YORK, Aug. 12, 2002 - Cendant Corporation
(NYSE: CD) today announced that it has acquired Lodging.com. Lodging.com
is a leading and growing online hotel reservation travel site, generating
approximately 115,000 hotel reservations per month predominantly through
its network of web sites as well as through its call center at 888-LODGING.
The transaction is expected to be accretive to earnings but not material
to Cendant. The consideration paid was in the form of cash.
| Providing its growing customer base with access to both discounted
and regularly published lodging rates, Lodging.com spans more than 500
markets, primarily concentrated in North America and the Caribbean.
Lodging.com offers unpublished, discounted rates at approximately 3,000
hotels. Through its affiliate program, Lodging.com has partnered
with over 2,500 travel-related Internet sites. Lodging.com will further
broaden Cendant's marketing of discounted hotel rooms to consumers and
travel agencies as it is integrated into Cendant's Travel Distribution
Division.
"This acquisition fits perfectly into Cendant's Travel Distribution
strategy as it gives us immediate access to additional discounted lodging
merchant inventory, great technology and long-term lodging partnerships
while providing a platform on which to grow," said Samuel L. Katz, chairman
and CEO of Cendant's Travel Distribution Division. "We expect Lodging.com
to increase annual bookings across all travel brands, provide discounted
deals for customers that can be cross-marketed through other Cendant businesses
and affiliates, expand our agencies' and Galileo's non-air distribution,
and deliver more attractive offerings to the desktops of Galileo travel
agencies." |
|
Lodging.com
Founders Carl Marbach, Edward Silver and William Marbach began the company
as a dream of combining a passion of skiing and travel with the power of
the Internet. The company, originally called Travelbase was established
in 1995 as an online reference guide for ski destinations. The company
began taking online hotel reservations in 1997 to satisfy their customers'
needs. This evolution into Lodging.com has taken the company from a small
vision into a major player in today's online travel marketplace.
Lodging.com has quickly grown into one of the largest online travel
companies in the world. Based in Boca Raton, Florida the company has over
150 full-time employees. Lodging.com has Affiliate partnerships with over
2,750 web sites, preferred agreements with over 3,000 hotels and additional
inventory via GDS for a total of over 40,000 discounted properties worldwide. |
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It is expected that Lodging.com will add Cendant's global vacation rental,
timeshare and RCI Holiday Network inventory as well as continue to add
other hotel partner inventory into its rapidly growing portfolio of well-known
lodging brands. Lodging.com will also become the preferred hotel
distribution partner of Trip Network, Inc., an independent Cendant affiliate,
providing even greater lodging discounts to Trip.com and Cheaptickets.com
customers. It is further expected that Galileo travel agencies and
their customers will gain access to Lodging.com's discounted lodging inventory.
"Adding Lodging.com to Cendant's growing list of hotel distribution
and services businesses is yet another great value-add service to our lodging
suppliers, who receive the benefit of a new effective and flexible distribution
channel," said Sam E. Galeotos, president and CEO of Galileo International,
who assumed this post and operational oversight of all Cendant's Travel
Distribution businesses last week. "We are excited to incorporate the expertise
and entrepreneurial spirit of Lodging.com's management team as an integral
part of our distribution business."
"We are excited to become part of Cendant and its innovative and growing
Travel Distribution Division," said Carl Marbach, president of Lodging.com.
"We've been diligent in establishing a successful business model by providing
flexible, consistent and quality services for our customers and suppliers
that we expect will only improve with the power and experience of Cendant."
About Lodging.com
Founded in 1995, Lodging.com is one of the leading online travel sites
with a focus on hotel reservations. Lodging.com is a one-stop site for
travelers, providing extensive information to help travelers select the
most suitable accommodations -- at the best possible rates. Guests can
check hotels and rates online, as well as book immediately -- either through
the site or a call center. The Company provides all original content on
the site, including travel tips, destination write-ups, and city guides.
Today, Lodging.com offers proprietary discounted rates throughout the U.S.,
Canada, the Caribbean, and many major international destinations, and reservation
capabilities at properties worldwide through traditional supplier channels.
Lodging.com books approximately 115,000 reservations per month.
About Cendant's Travel Distribution Division
Cendant's Travel Distribution Division is Cendant's newest division,
formed in October 2001, following the Company's acquisitions of Galileo
International, a leading global distribution system, and Cheap Tickets,
Inc. With more than 5,200 employees in more than 100 countries, the
division includes: Galileo, a leading global distribution system serving
more than 45,000 travel agencies and over 51,000 hotels; hotel distribution
and services businesses, including Wizcom, THOR, and Trust International;
Cendant Travel Services, a top-ranked travel agency which operates eight
contact centers for Cendant-affiliated brands; and an affiliation with
Trip Network, Inc., which operates Trip.com and Cheaptickets.com, two leading
consumer leisure travel Web sites.
This press release contains "forward-looking statements" within the
meaning of federal securities law, including statements concerning business
strategies and their intended results and similar statements concerning
anticipated future events and expectations that are not historical facts. |
