McDonald's Corp. is engaging a pilot test of Orbitz For Business, verified Steve Hafner, executive vice president of consumer travel services for Orbitz, during a seminar today at The Masters Program in Washington, D.C. The Oakbrook, Ill.-based fast-food giant becomes the largest travel account to have taken such a step with the airline-owned online agency, which is marketing a business product to small and midsize accounts
(BTN, July 29, 2002). Despite that target market, Hafner said Orbitz also has "a number of other big corporate customers."
Though McDonald's and Orbitz had agreed to keep the arrangement quiet, sources for weeks have been whispering about cooperation between the two. They estimated that the U.S.-booked air volume for McDonald's is at least $15 million, but could be well higher.
Orbitz offers an option that allows corporate users to receive reports on Orbitz bookings their travelers make, but does not replace the designated travel management company. One source said the program would not replace the existing agency, which is Carlson Wagonlit Travel. CWT several years ago bought Chicago-area agency Travel Rite largely to nab the McDonald's account. McDonald's in the past also has used Omaha, Neb.-based Travel and Transport.
National Business Travel Association president Kevin Iwamoto, for one, was not surprised to hear the news. "I really believe that travel managers are looking under every rock to save money for their companies, without of course sacrificing service, safety and security," he said today. "All things being equal, if they can find a lower-cost distribution option, they are going to have to look at it. Whether you agree with it or are afraid of it, you have to consider what an Expedia or an Orbitz can provide, either in conjunction with or separate from your traditional travel management company."
A corporate travel official at McDonald's declined to comment. Orbitz did not comment further.