Delta Taps Orbitz Supplier Link to Reduce Distribution Costs
ATLANTA, GA and PARSIPPANY, NJ, Dec. 6, 2005 – Delta Air Lines, the nation’s second largest carrier in terms of passengers carried, and Orbitz, a subsidiary of Cendant Corporation (NYSE: CD) and the first online travel agency to directly connect to an airline’s reservation system, announced today that the airline has implemented Orbitz Supplier Link technology to reduce its distribution costs.
Introduced in August 2002, Orbitz Supplier Link was designed to assist airlines in lowering distribution costs. Supplier Link is a proven and scalable technology that establishes a “direct link” to an airline’s internal reservation system to store passenger records, manage information and book tickets. Supplier Link charges a minimal fee per ticket processed and currently represents approximately 50 percent of Orbitz’ overall air transactions.
“The airline industry continues to struggle with a difficult competitive environment and surging fuel costs. In order to be cost competitive and successful in the industry, airlines need to simplify their business models. Supplier Link technology is a proven and scaleable direct connection to airlines, providing eight major U.S. carriers with substantial cost-savings,” said Ken Esterow, President and CEO, Travel Industry Services, Americas, Cendant TDS.
Orbitz’ Supplier Link helps reduce distribution costs by charging a $4 flat fee per ticket processed through Supplier Link, while airlines typically pay about $12.50 to $14 per each ticket processed through Global Distribution Systems.
“Implementing Supplier Link with Orbitz is just one of the many initiatives currently underway to significantly reduce our sales and distribution costs,” said Pam Elledge, Delta’s vice president of Sales and Distribution. “Delta is committed to creating a competitive distribution cost model which allows us to provide content to customers in the lowest cost channels in line with Delta’s overall transformation efforts.”
About Cendant Travel Distribution Services
Cendant Corporation’s (NYSE: CD) Travel Distribution Services Division, is one of the world’s largest and most geographically diverse collections of travel brands and distribution businesses. The division, employing nearly 9,000 people in approximately 120 countries, includes: a leading (GDS) global distribution system (Galileo), serving more than 44,000 travel agencies and over 60,000 hotels; hotel distribution and services businesses (Neat Group®, THOR®, TRUST and WizCom®); leading online travel agencies (CheapTickets®, ebookers.com®, HotelClub.com, Lodging.com, Orbitz®, and RatesToGo.com); an airline market intelligence company (Shepherd Systems); an international travel technology and software company (Travelwire); a leading international provider of long-haul air travel and travel product consolidator (Travel 2®/Travel 4®); online global corporate travel management solutions (Orbitz for Business® and Travelport®); and a leading wholesaler and global online provider of hotels, destination services, travel packages and group tours (Gullivers Travel Associates, OctopusTravel.com® and Travel Bound, Inc.).
About Delta Air Lines
Delta (OTC Bulletin Board: DALRQ) is the world’s second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 505 destinations in 93 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta’s marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Customers can check in for flights, print boarding passes and check flight status at delta.com.
- Contact Information
- Benet J. Wilson
- Senior Manager - Media Relations
- Delta Air Lines Inc.
- Contact via E-mail
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