The new e-business division will focus on streamlining the Group�s business practices, which will include its sales and marketing activities and procurement processes. Sol Meliá has committed start-up funds of over 30 million euros to the new e-Business division with a view to the eventual transformation of Sol Meliá to �solmelia.com�.

According to Luís del Olmo Piñero, Executive Vice-President of Sol Meliá�s new e-Business Division, this new initiative is part of the group�s B2C strategy (business to consumer), which is aimed at actively promoting the distribution and direct sales of the group�s products and services through the use of the internet.

He said: �Our aim is to increase our ability to attract and retain customers not only by improving the loyalty programmes and  services that we provide to current and potential customers, but also by giving them easy access to extensive information on our hotels and on travel and tourism in general. With travel being one of the most popular categories for purchases over the internet, we are confident that this approach will provide incremental sales for our hotels all over the world and generate greater revenues for the company as a whole�.

On the group�s B2B strategy ( Business to Business) Mr del Olmo said: �The integration and better use of technology will enable us to centralise our purchasing processes, and create an on-line environment  which will allow us to achieve not only greater levels of efficiency in our procurement processes, but also increase our negotiating power with suppliers, which will in turn lead to consequent cost reductions and savings.�

As part of the overall �e-transformation� roll out, Sol Meliá will also be optimising the internal management of its business and the globalisation of its operating procedures and processes through greater use and development of in-house Intranet systems.

Sol Meliá�s Commitment to the Internet

• 1995 Launch of Sol Meliá Website
• 1996 Provision for real-time on-line reservations
• 1997 Inclusion of information relevant to shareholders and media; Creation of Sol Meliá Intranet
• 1998 First international hotel chain to offer on-line registration of loyalty programme
• 1999 Upgrading of all Sol Meliá systems to ensure Y2K compliance
• 2000 E-transformation of all of the company�s internal and external management processes