Cendant Offers Fulfillment Services

Cendant Corp.'s Travel Distribution Services division at the National Business Travel Association convention in Dallas today launched a new company to offer corporate travel clients ticketing and fulfillment in addition to online bookings and a global distribution system. Cendant is making available to midsize and large companies its $1.5 billion ARC Cendant Travel agency, whose corporate clients thus far include only Cendant companies.

With the new structure, Cendant is positioning itself, in part, to compete with its own travel management company subscribers. Responding to questions on that, president and CEO of Travelport Corporate Solutions Marka Jenkins said that while Cendant could be bidding against corporate agencies, the new offering is not designed to replace the model in which corporations buy online booking and GDS systems in partnership with traditional travel management companies. That model remains an option alongside Cendant's new fulfillment offering within Travelport, she said. "Working with the agency partner is correct right now because it's what the market is looking for, but if customers want to evolve" to a single-source solution, Jenkins said, Cendant will "make sure we're listening to the corporate accounts and responding to what they need."

According to Jenkins, Cendant will be piloting its fulfillment offer with midsize corporate accounts beginning in the fourth quarter.

"We recognize a significant opportunity to reduce distribution expenses in corporate travel," said Cendant Travel Distribution Services president Sam Galeotos. "We still believe the GDSs are the most economical and efficient channel, but technology platforms and structures will need to evolve over time. Whether it's through Travelport or an existing travel management company, we must reduce the costs of distribution."