<B>InsideTrack</B>
<B><A NAME="2">Datalex To Go Public, Buy Into Yatra</B>
Dublin-based booking vendor Datalex plc this week is expecting to price its initial public offering and begin trading on Nasdaq under the symbol DLEX. The company earlier this month said it filed a registration statement with the U.S. Securities and Exchange Commission for an IPO of 16.8 million ordinary and American Depositary Shares with an estimated price range of euro 7.16 to euro 8.31 per ordinary share or US$12.50 to US$14.50 per ADS. Each ADS represents two ordinary shares. Datalex is part-owned by Worldspan (see story, page 1). Among other general corporate purposes, Datalex said it would use the proceeds from its offering for "possible future acquisitions," one of which already is happening. Datalex revealed in its prospectus that earlier this month it signed a letter of intent to take a 50 percent stake in Yatra Corp., an emerging vendor of booking software for midsize corporations (BTN, May 15), for $5 million plus up to 900,000 ordinary DLEX shares. Datalex then would become eligible to designate two of Yatra's five directors and would have the right of first refusal to acquire the remainder of the company in six months, if Yatra needs additional financing. Datalex expects to make the $5 million investment by Nov. 1.
<B><A NAME="3">Captura Files IPO, Reveals Customer Concentration</B>
Kirkland, Wash.-based Captura Software Inc. last week filed a registration statement with the U.S. Securities and Exchange Commission for an initial public offering that will commence "as soon as practicable." Captura will trade on Nasdaq under the symbol CPTR. In its registration, Captura revealed its net losses have grown each year since 1995, reaching $15.3 million in 1999 and $10.7 million through the first six months of 2000. The company expects "to continue to experience operating losses for the foreseeable future." Captura has 50 customers, 18 of which have contracts in excess of $300,000. Some clients contributed a large chunk of Captura's revenues in the first half of 2000, including Ford (18.9 percent), General Motors (14 percent), Merrill Lynch (11 percent) and Compaq (11.1 percent). Merrill owns 13.6 percent and Ford owns 13.3 percent of Captura. Its largest investor is Palo Alto, Calif.-based Oak Investment Partners, at 18.9 percent.
<B><A NAME="4">British Airways Announces Network Reductions</B>
Eyeing profitability after a year of financial shortcomings, British Airways last week announced network changes, including an overall 10 percent capacity reduction. The carrier also is consolidating long-haul flights by transferring Miami and Rio de Janeiro nonstop service from London Gatwick to London Heathrow. All service to Kuala Lumpur also will be terminated due to poor financial performance. Total capacity reductions at Gatwick amount to 15 percent, and 9 percent at Heathrow. BA said a revised Gatwick strategy will be announced in the coming months to address "loss-making operations," but the airport remains "strategically crucial."
<B><A NAME="5">JAL Lowers Commissions</B>
Cost control and deregulation of the Japanese aviation industry prompted Japan Airlines to lower commissions paid to travel agents for international bookings. As of April, Japanese agents will earn a 7 percent commission, down from 9 percent, with no cap. Commissions for domestic flights remain unchanged at 5 percent. A JAL official said, "Undoubtedly, Japan's other airlines will follow suit in short order." At press time, Japan Air Systems and All Nippon Airways had not matched JAL's move.
<B><A NAME="6">RevPAR Growth Predicted To Slow</B>
PricewaterhouseCoopers this week projected that RevPAR, an important indicator of lodging industry profitability, will continue to grow through the balance of 2000, but at a slower rate than during the second quarter when RevPAR growth was a sizzling 7.1 percent. More sobering news for the industry--but potentially hopeful news for travel buyers looking for a negotiating advantage--PWC also said RevPAR likely will be 3.5 percent for 2001, down further from the 5.6 percent growth PWC is projecting for all of 2000.
<B><A NAME="7">Hotel Diversity Efforts Derided</B>
In its latest ranking of the hospitality industry, released this week, the National Association for the Advancement of Colored People remained extremely critical of the industry's efforts on behalf of diversity as it affects procurement and franchising as well as hiring, retention and promotion of minorities. Of the 11 hotel companies ranked, not one achieved an "A" rating. Marriott International, however, finished at the top of the list, while Wyndham International and Radisson Hotels occupied the bottom two slots. Overall, the NAACP described the industry's performance as "less than stellar.