<B> InsideTrack</B>
<B>Amadeus Goes Public</B>
Amadeus Global Distribution System last week launched an initial public offering that was expected to result in a market capitalization of around US$3.6 billion (EUR3.4 billion). The offer was around 10 times oversubscribed and all shares are going to institutional investors. As a result, 25 percent of the equity will be in the public domain. Air France, Iberia and Lufthansa also will hold 25 percent each, plus 31.9 percent each of the voting rights. The remaining 4.3 percent will be allocated to public shareholders. As part of the IPO, Continental Airlines sold its interest for $408 million. Class A shares were priced at US$6.17 (EUR5.75) for listings on the Madrid and Barcelona stock exchanges. Amadeus also is exploring the possibility of further listings on the Paris and Frankfurt Stock Exchanges.
<A NAME="2"><B>AA Brings E-Tix To Europe</B>
American Airlines last week enabled Sabre-equipped travel agencies in Germany and the United Kingdom to issue electronic tickets. The carrier said the two countries are its largest European markets. Next year, it hopes to do the same for agents in Mexico and countries throughout Latin America. American was the first airline to offer e-tickets on flights from the United States to every destination throughout its network.
<A NAME="3"><B>Navigant Continues Stock Repurchase</B>
Navigant International Inc. last week announced its board of directors has extended the company's stock buy-back program for another year. "The extension of the share repurchase program demonstrates the board of directors' and managements' continued confidence in Navigant's long-term prospects," said CEO Edward Adams. The company plans to continue to expand internally as well as pursue acquisitions as it repurchases shares. It plans to fund the repurchase program either by drawing on its existing credit facility or from its current cash flow. Since authorizing the repurchase of up to 1.3 million shares of outstanding common stock a year ago, Navigant repurchased 205,000 shares.
<A NAME="4"><B>Maritz Travel Head To Retire</B>
Maritz Travel Co. this month said president and CEO Michael Boland will retire March 31, 2000. Boland, president for seven years and CEO for five years, said, "Very simply, I want to spend more time with my family, my church and my community." A replacement has yet to be named.
<A NAME="5"><B>Marriott Commissions Training Program</B>
The American Society of Travel Agents blasted Marriott this month for its new Preferred Travel Agent Program that makes a full 10 percent agency commission dependent on passing the Marriott Hotel Excellence training program and cuts commissions to 8 percent to agencies that do not participate. Senior vice president of distribution sales and marketing Bruce Wolff said that to get the traditional 10 percent commission, an agency need only have one agent get the free Hotel Excellence training manual and complete the 40-question, open-book, multiple-choice test inside. "This is the first time a hotel company has tied commissions to training, but to characterize it as a commission cut is very short-sighted," Wolff said. "If anything, we've put our stake in the ground and said, 'If you achieve this standard, you will get a 10 percent commission.' " Wolff added that the percentage of Marriott's bookings coming in through travel agencies is "clearly above the industry average of 25 percent," though he declined to cite an exact figure.
<A NAME="6"><B>Crowne-ing Checkin Achievement</B>
Crowne Plaza Hotels and Resorts last week took its early checkin program to 50 properties in Europe. Members of Crowne Plaza's Priority Club Worldwide frequency program can check in to their rooms as early as 8 a.m.--a benefit that lets weary red-eye passengers whose flights arrive in Europe in the early morning head directly to bed.