Travelocity's European Joint Venture Acquires German Online Travel Site travelchannel.de
Travelocity Europe's Position in Germany to Greatly Expand
Apr 1, 2004
Travelocity(R) today announced that Travelocity Europe, its joint venture with Otto Freizeit und Touristik (OFT), will acquire travelchannel.de ( www.travelchannel.de ), a leading German online travel site, subject to the approval of European regulatory authorities.
With the acquisition, Travelocity Europe broadens its distribution in Germany while simultaneously expanding its overall position in Europe. Financial terms of the deal were not disclosed.
"Travelocity's expansion in Europe is a high priority for us and the acquisition of travelchannel.de will play a key role in accelerating our growth in Germany and beyond," said Michelle Peluso, president and CEO, Travelocity. "They have a strong team, and we look forward to having them join Travelocity Europe."
"Travelchannel.de is one of the most successful German travel portals," said Dirk Hauke, CEO of Travelocity Europe. "We have a tremendous opportunity to make use of its significant synergies and benefit from the strength of each of the companies in order to enlarge our range of products and service. Travelchannel.de expands the spectrum of Travelocity Europe not only with its extensive range of all-inclusive tours, but also with its large editorial content, which will help our customers to plan and book their journeys."
Travelchannel Ltd, headquartered in Hamburg, was founded by the print and publishing house Gruner + Jahr in 1999. In 2000, OFT purchased a 50 percent stake in the company and purchased the remaining shares in 2003. The company will now exist under the Travelocity Europe umbrella.
Travelocity(R), with 41 million registered users, booked nearly $4 billion of travel in 2003. Every day Travelocity negotiates thousands of great travel deals with the world's most reputable airlines, hotels, car rental companies, cruise lines, ground transportation providers, and popular destination attractions such as theme parks, ski resorts and theaters. Additionally, Travelocity offers access to special rates for weekend getaways and dynamic packages through its Last Minute Deals and TotalTrip(SM) shopping engines, and provides customer service support over the phone 24 hours a day. Travelocity's industry-leading technology and wealth of straight-talking, honest information allows travelers to make informed decisions and have more rewarding travel experiences. Through Travelocity Business(SM), companies can better manage business travel, lowering costs and expanding options for travelers, while the Travelocity Partner Network(SM) further distributes Travelocity's products through an array of channels.
Based in Southlake, Texas, Travelocity also powers international travel Web sites in seven languages and has been recognized worldwide for its consumer advocacy and global leadership in online travel. More information about Travelocity is available at www.travelocity.com . Travelocity is owned by Sabre Holdings Corporation
About Otto Freizeit und Touristik:
The holding company Otto Freizeit und Touristik GmbH (OFT) includes all tourism-related subsidiaries of the Otto Group. With its combination of retail stores, call center, direct marketing and online presence, OFT is one of the leaders in multi-channel travel distribution.
OFT forms part of the Otto Group, which is operating through some 90 trading companies in 21 countries in Europe, America and Asia. In addition, the group is involved in numerous trade-related service activities. In the financial year 2002, more than 65,000 employees achieved a turnover of 19.2 billion EUR. Today, Otto is the largest mail order group in the world. The Otto Group is the world's number two in online trade, second only to Amazon. Global corporate activities and a variety of strategic partnerships and joint ventures provide Otto with excellent opportunities to transfer know- how and to use the synergy potential available.
Statements in this release which are not purely historical facts, including statements about the potential benefits to Travelocity Europe of the acquisition described herein or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward- looking statements within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements are based upon information available to Sabre Holdings Corporation on the date this release was issued. Sabre Holdings Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to: Sabre Holdings Corporation's revenues being highly dependent on the travel and transportation industries; geopolitical developments; and the integration of the acquired company. Sabre Holdings Corporation may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Sabre Holdings Corporation's most recent filing on Form 10-K with the United States Securities and Exchange Commission.
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