TravelNet Shuts Its Doors

<B> TravelNet Shuts Its Doors</B>

By Mary Ann McNulty

<I>Santa Clara, Calif.</I> - While the demise of TravelNet last month didn't disrupt travel operations at its handful of customers, the shutdown of one of the pioneers of corporate travel software was nonetheless met with dismay by travel managers and by its employees.

The software firm closed its doors March 31, as a result of a reorganization of owner Reed Elsevier's travel businesses. The company eliminated the Reed Travel Group--of which TravelNet was a part--in January, transferring its publications and airline guides to other divisions. Focusing on publishing, the company announced plans to close software developer TravelNet if it didn't find a buyer in a month.

While executives had some discussions with those interested in buying the company, a month wasn't enough time to execute a deal, said company founder and chairman John Shoolery. "For me, it's disappointing to not see the technology go all the way through to the end game," he said.

General manager Randy Malin said all customers were released from their contracts to pursue other arrangements.

The shutdown appears to be most troubling to Sybase in Emeryville, Calif., which used an e-mail confirmation feature for all reservations booked from the headquarters office, according to travel manager Patricia Carlin. While only 35 travelers were actually using the booking feature, as many as 4,000 received e-mail confirmations. Thus, Carlin had to advise all 4,000 that the feature was disconnected. She now is looking for a way to restore the feature and might eventually look for another online booking system.

"I'm extremely disappointed. What's happened is no reflection on the product," Carlin said.

At Chiron Corp., also in? Emeryville, the TravelNet software was disconnected in December as the company switched agencies. Travel manager Mary Savoie Stephens planned to expand usage of the program from the 75 pilot users to 2,000 travelers once things settled down. Now, she'll look for another online system.

"I learned so much going through this for the past two years," Savoie Stephens said. "I feel sad for them because they're really good people. And it makes you a little concerned about other companies out there."

Meanwhile, Gelco Information Network of Eden Prairie, Minn., intends to plug in another vendor to its government travel management system to fulfill terms of a contract signed last summer to provide the National Security Agency with an end-to-end solution. Since then, Gelco has added some of the security features that TravelNet had to its offering, said Dan Ragheb, vice president of government services. "Our intent is to move forward with the original deadlines on the contract," he added.

Almost all 70 TravelNet employees found new jobs in Silicon Valley within weeks of the announcement, Shoolery said. He and Malin plan to take some time off before deciding on their next career moves.

Shoolery started the company in 1991, funding it with bonds and three rounds of venture capital financing before selling to Reed in late 1996 (<I>BTN</I>, Jan. 13, 1997). Although the purchase price wasn't disclosed, Reed said its tab for TravelNet and Weissmann Travel Reports totaled $25 million, with the majority going to TravelNet.