<B>InsideTrack</B>
<B>Worldspan Buys Into Datalex</B>
On the heels of Sabre's purchase of GetThere (BTN, Sept. 4), Worldspan last week said it bought a stake in Dublin-based Datalex. Brian Dent, senior vice president for corporate development at Datalex, would "not confirm nor deny" that the investment amounted to about $11 million, but he did say the deal was not a response to Sabre and GetThere. "The discussions have been going on awhile," he said, adding that unlike GetThere, Datalex will remain independent. Datalex runs the Web page booking engines for American and Delta; GetThere runs booking for America West, Northwest, the Star Alliance, TWA and United. Both serve British Airways. Datalex and Worldspan signed a five-year commitment both to promote each other and for Worldspan to license Datalex's consumer booking engine.
<B><A NAME="2">EC Takes On Overbooking</B>
The European Commission is planning to put an end to the problem of denied boarding (a.k.a. bumping) by limiting or banning the right of airlines to overbook flights. Transport commissioner Loyola de Palacio is considering two options: establishing a distinction between an intention to fly and a paid-up, confirmed reservation. In the case of the latter, airlines would not be permitted to give away the seat but neither would the traveler be able to claim a refund on a no-show. In the second option, the commission would set a limit on the amount by which airlines can overbook. This would be accompanied by the encouragement of compensation auctions to find someone who will bump voluntarily. De Palacio's newly signaled intention to get tough on overbooking, which could succeed in angering both corporates and airlines, will slot into a raft of air passenger rights legislation that will be unveiled formally by the beginning of next year.
<B><A NAME="3">Travel Fair Changes Name To RiserGroup</B>
Travel Fair, the largest privately owned agency in the San Franciso Bay Area, last month changed its name to RiserGroup, stressing its independence by attaching to it the name of its owners George and Donna Riser. "With so many dynamic shifts in the industry, we wanted to reposition ourselves to show that we are committed and here to stay," said sales and marketing manager John Whitfield. The company, which is 65 percent corporate business, services many small high-tech and dot.com companies, and has a projected air volume of $70 million for 2000 and 25 percent over that for 2001.
<B><A NAME="4">Pritzker Plans For USFS</B>
The announcement two weeks ago that the Pritzker family would acquire U.S. Franchise Systems, franchisor of the Hawthorn Suites, Microtel Inns & Suites and Best Inns & Suites brands, caused speculation that the Pritzkers, who already own Hyatt Hotels Corp., would combine the USFS brands under a Hyatt umbrella. But lodging industry observers quickly dispelled such notions, arguing that if the Pritzkers had an interest in building Hyatt into a multibrand company, they already would have done so.
<B><A NAME="5">Marriott Confirms End Of Kimpton Talks</B>
Responding to recent speculation, Marriott International chairman J.W. Marriott Jr. recently confirmed that Marriott had been in talks to acquire the Kimpton Hotel and Restaurant Group. Based in San Francisco, Kimpton owns 29 boutique hotels in seven U.S. and two Canadian cities. Marriott said that initial talks "didn't go anywhere" and that there were no plans to reopen them. "Boutique hotels can be successful in big cities," Marriott said, "but how will they fare in Omaha and Jacksonville?" Yet, Marriott wouldn't rule out that the company wouldn't acquire boutique hotels, if the right opportunity came along. He speculated that such an acquisition might be a "possible offshoot" for Renaissance, an existing Marriott brand.
<B><A NAME="6">CWT Forms E-marketplace Group, More to Come</B>
Carlson Wagonlit Travel recently formed an e-marketplace group, about which it refused to reveal details until after Oct. 12. Among other new relationships, GetThere will provide Carlson with booking functionality customizable by its clients (see story, page 22).
<B><A NAME="7">Gelco Separates Units</B>
Gelco Information Network split its two operational groups, trade management and expense management, into separate companies. As part of the move, Jon Klem, previously senior vice president and general manager, was named president and CEO of the Expense Management Group in Reston, Va. "Going forward, the two groups will operate as independent businesses with the support of our board of directors," said Neil Vill, now president and CEO of the Trade Management Group.