Launch of Travel Management System
19 November 2002
ONLINE TRAVEL CORPORATION PLC
LAUNCH OF TRAVEL MANAGEMENT SYSTEM
CONTRACT WITH ZUJI
TRADING UPDATE
Online Travel Corporation plc, (`OTC') today announces the launch of a new
business travel management solution - Envoy - and a new contract with ZUJI, the
largest online travel company in Asia-Pacific.
Launch of Envoy
Envoy is an internet based business travel management system that enables large
corporate groups or travel agencies to manage their business travel
requirements. Travelstore.com, OTC's business travel subsidiary, developed
Envoy primarily to promote efficiencies in the service it offered to its
clients but also with a view to licensing the technology to third parties. The
bulk of the Envoy development costs were incurred prior to the acquisition of
Travelstore.com by OTC in June 2002.
The OTC board consider Envoy to be `best of breed' and also believe that
significant revenue opportunities exist to licence the technology. In addition
to up-front payments from the sale of the licenses, significant ongoing income
streams are expected from each license.
Commenting, Mark Jones, Managing Director of OTC, said:
'The OTC board considered the Travelstore technology to be the best business
travel solution in the market. We are fortunate to be able to benefit from the
attractive margins associated with technology licensing without having directly
incurred the development costs. We look forward to growing our licensing
revenue from sales of Envoy to other corporate groups and travel agents in
addition to the efficiencies generated from the use of Envoy by our own
business travel clients.'
Contract with ZUJI
OTC also announces an agreement to provide travel technology services to ZUJI,
the largest online travel company in Asia-Pacific and a joint venture of 16
leading Asia-Pacific airlines and Travelocity.com.
OTC has agreed to supply Build-Your-Own holiday technology and specialist
travel content integrated into the ZUJI user interface in Australia and has an
option to extend the agreement to other Asia-Pacific markets.
Commenting on the new contract, Edward Hanrahan, Managing Director of OTC
Asia-Pacific, said:
'We are delighted to work with Asia-Pacific's leading online travel operator.
Our unique dynamic packaging technology combined with superb customer service
will provide ZUJI customers with a mechanism to book their holidays quickly and
easily. ZUJI's extensive reach will ensure that consumers throughout Australia
will have access to a rich mix of on-line travel offerings.'
Trading Update
Mark Jones also gave an update on trading:
'We expect overall growth in total transaction value in 2002 to be in line with
expectations. This demonstrates the strength of our product range in what has
been a challenging period for the travel sector. We also remain confident of
achieving positive EBITDA before exceptional items and generating positive
cash-flow from operations during the six month period to October 2002, despite
the prevailing business climate and the costs associated with the three
acquisitions completed in the period. In addition to potential new revenue
streams from technology licensing, there are early signs of a recovery in the
business travel division and ongoing opportunities to further expand our
leisure divisions in the UK and overseas.'
For further information, please contact:
Online Travel Corporation plc
Mark Jones Tel: 020 8607 9281
Cardew Chancery
Richard Fallowfield Tel: 020 7930 0777
Notes for Editors
OTC is a travel technology and distribution business, providing a comprehensive
range of technological solutions, travel products and ancillary travel services
to ISP's, Media and Affinity Groups and Corporate Organisations. It provides
bespoke technology solutions linked to its wide product range to produce a
one-stop travel service through the Internet, supported by telephone call
centres for leisure and corporate clients to fulfil their travel needs. OTC
provides a comprehensive range of travel products and ancillary travel services
is both a travel agent and tour operator. OTC strategy focuses on low-cost
routes to market with lower customer acquisition costs compared to that of a
mass-market consumer brand and is focused on selected business areas. OTC has
launched over 100 travel sites in the last 18 months and via these partner
sites has access to a potential customer base to over 16 million online users.
OTC is quoted on the Alternative Investment Market of the London Stock
Exchange. Additional information is available at www.onlinetravel.com
ZUJI is the largest online travel company in Asia-Pacific and a joint venture
between 16 of the Asia-Pacific region's major airlines: All Nippon Airways,
Cathay Pacific Airways, China Airlines, EVA Airways, Garuda Indonesia, Hong
Kong Dragon Airlines, Japan Airlines, Japan Air System, Malaysia Airlines,
Northwest Airlines, Philippine Airlines, Qantas Airways, Royal Brunei Airlines,
SilkAir, Singapore Airlines, United Airlines, and Travelocity.com.
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