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Out and Orbitz in as privatelabel-supplier for American Express travel site
Within what Orbitz Worldwidebelieves is a very important transaction, its privatelabel services is planned to substitute Travelocity's as the force behind the American Express Consumer Travel website in the second half of 2012. The Travelocity Partner Network's relation to the Amex Travel Site goes back to this notice at the end of 2004.
The Orbitz Worldwide says that its Orbitz Worldwide Distributor will create a" very individual website" and a full range travel package for Amex. While Orbitz will supply the website with aerial, automotive, hotel, vibrant parcels, activity and support while Amex will offer dual membership rewards for on-line bookings and fine hotels & resorts.
"Once the agreement is in place, the company is anticipated to generate higher overall revenue and higher overnight room rates, which will support our strategy to grow our hospitality business," said Orbitz Worldwide in a comment. Orbitz Worldwide's submission to the U.S. Securities and Exchange Commission of a disclosure declaration on the Amex transaction means that the collaboration will have a beneficial "significant" effect on Orbitz's operations.
Whilst that may indeed be the effect, the Amex Recreational Travel site does not usually show up in the Experian Hitwise Transport Top 10 listings for U. S. Travel sites, and American Express has never really been living up to its perceived potential within the on-line recreational travel. The Orbitz distributor is an important part of its expansion and the Amex transaction follows recent transactions, among others with Eurostar and Virgin Australia.
In the first and second quarter of 2011, however, Orbitz Worldwide's worldwide overnight stays decreased by 2% and 1%, respectively, although hospitality expansion is a cornerstone of its survivability and expansion strategies. There is probably not a single mention from Amex or Orbitz as to why Amex is substituting Traveocity as a mate.