<B>TechTalk</B>
<B>Galileo, EDS To Partner For Fare Loading</B>
Galileo International shortly will announce that it is teaming with EDS to develop in 2001 a new global faring system that will "ensure automated rules filing of all corporate discounts including multiple codesharing airline alliances," said Galileo vice president of corporate and consumer sales John Hach. The new product will help Galileo solve an issue recently discussed by some travel managers and the Business Travel Coalition: that buyers have not succeeded in getting their multiple discounts on individual carriers loaded into Apollo, and thus into online booking systems such as GetThere's Global Manager.
"Historically, loading fares was the agent's role," said Michael Foliot, Galileo senior vice president of vendor marketing. "Then the airlines said they wanted to do it. At the end of the day, it's what the customer wants. It's not a matter of who loads it, but rather the accuracy and integrity of the data." While travel managers clearly want the data to be accurate, some are reporting basic communication problems with airlines that seem unaware they are responsible for the initial loading. Galileo's Private Fares I function lets agency personnel load negotiated fares into the CRS, but it cannot accommodate multiple discounts on a single carrier. Private Fares II can, but Galileo said the airlines must do the loading.
<B>Yatra Readies Late Sept. Launch</B>
Minneapolis-based Yatra Corp., a startup Internet booking vendor for the middle market (BTN, May 15), has amassed $120 million in aggregate purchasing volume among six companies now in beta tests. Yatra also has lined up 11 more early adopters for its planned late September launch, as well as 14 "fast followers," said vice president of business development Jon Matejcek, formerly of Carlson Wagonlit. Yatra is about a week from naming its first midsize travel agency partner, in which the agency will transition its business travel to Yatra so it can focus on leisure. Meanwhile, Yatra also is "getting a surprising level of interest from international companies that have worked with companies like [booking engine] I:FAO in Germany," said Matejcek. Yatra targets clients of between $500,000 and $7 million in annual air spend.
<B>Merrill Cites Galileo Weakness, Bear Likes Clarus</B>
"Lackluster bookings growth" caused Merrill Lynch to lower its near-term investment rating and 2000 and 2001 earnings estimates for Galileo International. Merrill cited "channel shift from traditional to on-line agencies, where Galileo holds a smaller market share," and noted that the company's "strategy of partnering with airlines to offer low 'Internet-only' fares on Trip.com in exchange for no commissions is not progressing as planned."
In terms of Trip.com, Michael Foliot, Galileo senior vice president of vendor marketing, said, "We're very comfortable with the approach we're taking. We believe we have a very strong proposition for the airlines." Shares in Galileo dropped a bit on the mid-August Merrill statement, but by last week had recovered slightly to around 18 1/2--still near a 16 1/2 low for the year.
Meanwhile, Bear Stearns helped boost shares in Clarus Corp. by placing the business-to-business tech vendor on a buy list. Among other software, Clarus sells expense reporting solutions to corporations.
<B>Led By Ex-Sabre Exec, Worldspan Heads For Brazil</B>
Having hired the manager who brought Galileo and Sabre there, Worldspan last week expanded to Brazil. The company set up operations in Sao Paulo with a staff of 16, including a local market perspective and Portuguese language assistance in sales and support, help desk operations, installation services, training and other areas.
"Brazil is the ninth largest economy in the world, and a very important market to Worldspan as we continue to experience extraordinary growth around the world," said senior vice president and general manager of worldwide travel distribution for Worldspan, Michael Parks, who joined the company from Sabre in April. Parks directed both Sabre's and Galileo's Latin American organizations when they entered the Brazilian market.
<B>I:FAO Buys Biz Travel Data Mining Co.</B>
Germany-based booking vendor I:FAO last week acquired QuixData Inc., a San Ramon, Calif.-based data mining software company for $7.25 million. I:FAO paid $2.25 million in cash and up to $5 million will be paid in its own shares, the value of which will be determined within 180 days.
QuixData, formerly Apex Solutions, specializes in business travel management and partnered last year with Galileo International for management reporting, pre-trip reporting and decision support (BTN, Aug. 2, 1999). I:FAO said it will combine the QuixData software with its core online reservation product.