Inside Track - 1998-09-07
<B> Inside Track</B>
<B>WorldTravel Partners And BTI Americas To Merge</B>
Industry insiders say a WorldTravel Partners/BTI Americas merger and global alliance selection will be finalized by the end of September (<I>BTN,</I> July 20). WTP's global affiliate is GTM Travel Management, while BTI Americas uses Business Travel International. A decision will leave one of the networks looking for another United States affiliate. The merged mega agency's combined air sales will be $2.5 billion according to BTN's Annual Survey, placing it third in the ranking ahead of Rosenbluth International.
<a name="story2"><B>WTP To Test Managed Meeting Software</B>
Meanwhile, WorldTravel Partners plans next month to begin beta testing a Web-based corporate meetings booking tool. Codenamed Project Zorro, the product will let users register for a meeting and book housing, air and ground transportation. WTP plans to market the product directly to corporations through WorldTravel Meetings and Incentives, its group and event company. The tool is a rewrite of its current meetings product and is scheduled for a general release in 1999.
<a name="story3"><B>Nationwide Favors ITN Over USAir For Booking</B>
Precisely two years after signing on as the first customer for USAir's Corporate Travel Works (<i>BTN,</i> Aug. 5, 1996)--and five years after beginning its quest for an online booking system (<i>BTN,</i> Mar. 8, 1993)--Nationwide Insurance is deploying the Internet Travel Network system. Mike Maier, the company's director of corporate money management, said Nationwide will test ITN with 50 people for two months, then roll it out in January to all 3,000 travelers based in its Columbus, Ohio, headquarters. Eventually, all 9,000 Nationwide travelers will have access to the system. Maier said he went with ITN "because we were ready, and we felt they were ready to roll things out for us right away."
<a name="story4"><B>Radisson To Show Corp. Rates On Web</B>
Radisson Hotels Worldwide will beta test early next year private access pages on its Website, which will allow corporate customers to book online reservations using their preferred rates.
Radisson executives are asking fewer than five preferred accounts, including Siemens Corp. in New York and 3M in St. Paul, Minn., to join the test. Customized deals and company information also will be posted on the sites, which will be accessible by password.
<a name="story5"><B>CWT Seeking New Issuer For Corporate Card</B>
Carlson Wagonlit Travel within weeks expects to select a new card issuer for its corporate card with implementation by year-end. The search for a new bank partner in the U.S. began earlier this year after Household Credit Services' new management announced plans to abandon the corporate card market and focus exclusively on consumer products. "As part of the new partner selection decision, CWT is including a requirement that the transition process from Household Credit Services be seamless and transparent to our current card customers," said Mylle Mangum, senior vice president of expense management and strategic planning worldwide. Carlson has forged relationships with a couple banks in Europe, but also is seeking new partners there and in Asia so it can issue cards globally.
<a name="story6"><B>Prime Regionalizes Account Management</B>
Prime Hospitality Corp. by January 1999 will have opened five new regional sales offices in Atlanta, Chicago, Las Vegas, New York and Washington, D.C. The offices, located in close proximity to some of Prime's major national account headquarters, were created to regionalize account management for its brands--AmeriSuites, HomeGate Studios & Suites and Wellesley Inn.
Also in Prime news, the company signed a two-year request for proposal outsource agreement with JBH Travel Audit in Denver, Colo. JBH will handle the RFP process for consortia, national corporate accounts, travel agencies and federal accounts.
<a name="story7"><B>Navigant Announces First Quarterly Results</B>
Navigant International Inc., the travel agency spun off from U.S. Office Products last June, reported a year-over-year revenue increase of 108 percent, to $40.6 million, for the quarter ending July 25. The increase reflects the acquisition of eight travel agencies between June 1997 and May 1998.
"The results are very positive. Though not surprising, they beat our expectations--we estimated 16 and they hit 19-plus earnings per share," said Brad Cohen, senior analyst at Sands Brothers & Co. "The company has a strong pipeline of acquisitions and a robust business, and as the industry continues to consolidate, agencies need to be bigger and these guys are the consolidator of choice.