Orbitz For Business Partners With GlobalStar For Global Reach - Business Travel News

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Orbitz For Business Partners With GlobalStar For Global Reach

March 24, 2011 - 04:00 PM ET

By Mary Ann McNulty

Orbitz for Business said it signed an exclusive partnership with GlobalStar to "extend its travel management capabilities into 75 new countries" in Africa, Asia, the Pacific Rim, Europe and Latin America.

GlobalStar Travel Management's partner network comprises 80 travel agencies, 3,500 office locations, 14,000 employees and $13 billion in annual travel sales. As part of the partnership, GlobalStar will "leverage its local market expertise, innovative technology platform, consolidated data management system and global account structure to deliver a consistent, comprehensive travel experience for Orbitz for Business customers," according to the companies.

Orbitz for Business long has researched global expansion options as it lost clients and passed on requests for proposals from those who needed global capabilities. "While we had the stage set for a global solution, there was a lot more that could be done," Orbitz for Business president Frank Petito told The Beat. "We had a spectacular offering for North American customers, we do a very good job with Continental Europe, but there are some regions where we weren't able to provide an offering. That impacted our ability to go after some of the large customers. One of my major priorities upon first focusing on OFB [in summer 2009] was how can we come up with a global solution that is comparable to our existing North American and Continental Europe solutions?"

Orbitz for Business executives in 2009 and 2010 "explored a small number of agency networks" as they searched for a partner, Petito said. "We have respect for the other networks, but elected to work with GlobalStar because there's certainly a strong philosophical fit, a good cultural fit and we were really impressed with the quality of the integrated reporting they have."

"Obviously, the Orbitz for Business model is a very good fit for us," added GlobalStar Travel Management president Steve Hartwell. "We can learn off each other. The online model is different from offline, but I think there are synergies."

Current and prospective Orbitz for Business customers "will be able to work with GlobalStar agencies and we certainly expect and hope that some GlobalStar agencies will elect to work with Orbitz for Business technology," Petito said.

Decisions on the best online booking technology will "very much be customer driven," Hartwell noted. GlobalStar agencies have access to the "best-in-class local market solutions."

Orbitz for Business plans to look at market needs and adapt its system accordingly. "The more work we do in different countries, the more we will let the learnings influence our product development decisions to ensure that the Orbitz for Business tool is, at the right time, available in different countries where it currently isn't available today," Petito said.

Online booking tools are "becoming very, very important" in multinational RFPs, Hartwell said. "The driver market generally for global consolidation tends to come from the United States. Where they have a pretty high level of adoption in that market, they're looking to roll that out to other markets, as well. Some markets are slower than others, but there's very much a catch-up taking place now. Everybody is looking to reduce costs in their travel budgets and the online solution is one of the ways to assist with that. Our partners are embracing it; some markets will embrace it more quickly than others. Certainly, we've seen the European market increase [adoption] quite significantly in the last two years or so and the Asia market will be the next market to see that happen."

Data Aggregation

Whichever booking tools are used to service a particular client, all data will be consistently aggregated. "That was absolutely at the top of our criteria when we were looking for an international solution," Petito said. "There are going to be certain markets where online adoption is low and people aren't actively looking for an online solution. In these instances we will provide customers with one point of accountability—Orbitz for Business—but they may choose to use a GlobalStar agency. All the GlobalStar information will be consolidated with the Orbitz for Business information and we'll provide one package of information on a regular basis to our customers. We found GlobalStar's reporting second to none. They've spent a lot of time investing in it."

TRX will continue to be a "key part of our reporting functionality and GlobalStar reporting will integrate with our TRX package to provide one consistent source of reporting and data to customers," Petito added. GlobalStar's DataStar product also "is driven by TRX," Hartwell noted.

Targeting New Customers

While the new partners intend to promote the relationship as a means to expand service with current customers, "we're finding this extremely impactful as we look to establish new relationships with corporate accounts that previously might not have been able to work with us because they had huge needs in India or China, for example," Petito said. "We've been getting tremendous traction with prospective new customers who really are supportive with this new model."

Orbitz for Business intends to maintain its existing European call center in Berlin. "This is augmenting our existing solution," Petito said, adding that the company is open to customers working with a GlobalStar agency in Europe.

Regardless of the technology or service configuration, Petito said global expansion "gives us the ability to service all customers out there, regardless of size, whether a technology startup or a BTN 100 customer. It gives us the ability to service North American points of sale, Asia/Pacific points of sale, Latin American points of sale. As has always been the case, we can work with folks on an online or offline basis, but folks that make the most sense for us are those committed to a technology-enabled online solution.

"Right now we can solve for both online travel and offline," Petito continued. "We currently are able to service the needs of both small and large customers. But what this relationship really does for us is give us the ability to service multinational companies with needs around the globe—with virtually no exception."

Meanwhile, Orbitz for Business continues to book American Airlines tickets for clients using "an inherently offline means," Petito said, following an AA decision in November to terminate its Orbitz relationship. He added that discussions between the two parties are ongoing.

The article originally was published in The Beat.

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