Navigant International chairman and CEO Ed Adams today acknowledged "some impact" from the entry of Expedia and Orbitz into the business travel sector
(BTN, July 29), though only among clients that are not or are only lightly managing travel.
According to Adams, "I know we've lost some accounts" among that group, which he said makes up 5 percent of Navigant's business. Although the online agencies' intentions may be "to move up the food chain," Adams said, their products are not seen by Navigant's clients as meeting the needs of heavily managed programs. Expedia explicitly has stated an intention to serve heavily managed programs, while Orbitz has been more guarded on that score. In response to the pair, Adams said, "This year we will roll out a product for corporate accounts that want a self-service, no-touch solution, probably in the second quarter." Pressed for details, Adams noted that Navigant's regional organizations support 13 Internet booking engines and said, "Our focus is to come up with a solution that will start with a North American self-service product and would be managed centrally."
Navigant today announced fourth-quarter 2002 net earnings of $1.7 million on 7 percent higher year-over-year revenues. "Barring any action or event that would reduce travel spending," the company said, future expectations of earnings growth "reflect assumptions of a flat economy and business travel levels in 2003 much like those of 2002."
"Many clients tell us they are booking and holding at essential travel levels," Adams said. "We expect more business in 2003 through marketshare gains."