Online Market for travel industry is highly fragmented with low penetration rate, taking this as an opportunity Orbitz Worldwide had grown their business. They leveraged the global platform and become a leading global online travel company (OTC). The company uses innovative technology to enables leisure and business travelers to search for and book a range of travel products and services. It’s headquarter is located in Chicago, Illinois.

Company ProfileOrbitz was originally formed by a group of leading U.S. airlines in 1999 to participate in the rapidly growing online travel industry. The airline investors in Orbitz consisted of American Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines and United Air Lines. Orbitz Worldwide was formed through the combination of Orbitz and the online travel assets of Cendant's travel distribution services division. In February 2005, Cendant acquired ebookers Limited, an international online travel brand which currently has operations in 12 countries throughout Europe (“ebookers”). On August 23, 2006, Travelport Limited (“Travelport”), which consisted of Cendant's travel distribution services businesses, including the businesses that currently comprise Orbitz Worldwide, Inc., was acquired by affiliates of The Blackstone Group (“The Blackstone Group”) and Technology Crossover Ventures. They refer this acquisition as the “Blackstone Acquisition.”

In July 2007, Orbitz Worldwide became a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol OWW. In February 2015 Expedia

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announced plans to purchase Orbitz for $1.2 billion. In the year 2014, Orbitz Worldwide’s net revenue was $932 million with a net income of $17 billion.

Various Products of Orbitz WorldwideOrbitz Worldwide owns a portfolio of consumer brands that includes:

1. Orbitz (www.orbitz.com) (America)Orbitz is for booking of cheap airline tickets, hotel reservation, car rental, vacations & travel deals in America.

2. CheapTickets (www.cheaptickets.com) (America)It is a leading US online travel brand focused on the value-conscious traveler. CheapTickets offers customers the ability to search for and book a broad range of travel products and services, including air travel, hotels, car rentals, cruises, travel insurance and destination services, from suppliers worldwide on a stand-alone basis or as part of a vacation package.

3. ebookers (www.ebookers.com) (Europe & Asia)and It is a leading international online travel brand with an online presence in 13 countries in Europe. The company has strong customer service network. They work with 250 airlines and more than 110,000 hotels and holiday, car hire and insurance providers.

4. HotelClub (www.hotelclub.com) (Global)HotelClub is a global online accommodation community for travelers in the know. It is operated by Australian registered HotelClub Pvt Ltd and is a part of Orbitz Worldwide Inc. Their members receive Club Benefits every time they make a hotel booking and many benefits along with it.

5. The Away Network (www.away.com)The Away Network is a series of travel content websites that include Away.com (www.away.com), Trip.com (www.trip.com), AdventureFinder (www.adventurefinder.com), GORP.com (www.gorp.com) and Lodging.com.

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The Away Network helps travelers choose their next vacation destination and plan their trip by offering ideas and recommendations customized to their specific travel interests, such as adventure, family or romance trips.

6. Rates To Go (www.RatesToGo.com) (Global)RatesToGo was launched in 2002 and is operated by HotelClub Pty Ltd (a Orbitz Worldwide Inc brand). The online company is a leading last minute online hotel reservation service offering highly discounted hotel rates, with over 15,000 last minute hotels on sale each day and over 74,000 hotels available in 141 countries worldwide. The services are provided are available in Twenty three currencies and in fourteen languages including Chinese (Simplified & Traditional), English, French, German, Italian, Japanese, Korean, Portuguese, Spanish, Swedish, Polish, Thai, Russian and Dutch.

Also within the Orbitz Worldwide family, Orbitz Partner Network (www.orbitz.com/OPN) delivers private label travel solutions to a broad range of partners including many of the world's largest airlines, and Orbitz for Business (www.orbitzforbusiness.com) delivers managed travel solutions for corporations.

7. Orbitz for Business (www.orbitzforbusiness.com)Orbitz for Business is the corporate travel brand of Orbitz Worldwide.  Launched in 2002, Orbitz for Business offers a complete portfolio of global business travel products and services that help corporate customers plan, search and book travel. Orbitz for Business leverages Orbitz Worldwide technology, customized for corporate travelers. In addition to its leading technology, Orbitz for Business delivers full service, cost effective travel management solutions including 24/7 customer support; expense reporting and policy management tools; and comprehensive choice in travel inventory.

Private LabelThey offer third parties, such as airlines and hotel partners, a full range of private label solutions, ranging from the building and hosting of custom websites to supplying content feeds with availability and rate data to partners' websites. They license their technology and business services to these partners, and using the technology, these partners are able to provide a wide range of travel products on their websites under their own brands. They pay commissions to their third party partners based on the revenue generated by their websites. They continue to pursue the expansion of their private label channel through the addition of new partners.

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Business ModelThey generate revenue primarily from the booking of travel products and services on the websites. They provide customers the ability to book travel products and services on both a stand-alone basis and as part of a vacation package, primarily through their merchant and retail business models.

Merchant Model

Their merchant model provides customers the ability to book air travel, hotels, car rentals, destination services and vacation packages. Hotel transactions comprise the majority of their merchant bookings. They generate revenue for their services based on the difference between the total amount the customer pays for the travel product and the negotiated net rate plus estimated taxes that the supplier charges them for that product. They may, depending upon the brand and the product, earn revenue by charging the customers a service fee for booking their travel reservation. Generally, their net revenue per transaction is higher under the merchant model compared with the retail model due to their ability to negotiate net rates with suppliers. Customers generally pay us for reservations at the time of booking, and they pay the suppliers at a later date, which is generally when the customer uses the reservation, except in the case of merchant air where payment may occur prior to the consumption date.

When customers assemble vacation packages, they offer the customer the ability to book a combination of travel products that use both the merchant model and the retail model. Vacation packages allow them to make products available to their customers at prices that are generally lower than booking each travel product

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separately. Their net revenue per transaction is generally higher for vacation packages than for travel products booked separately.

Retail ModelTheir retail model provides customers the ability to book air travel, hotels, car rentals and cruises. Air transactions comprise the majority of their retail bookings. Under the retail model, they earn commissions from suppliers for airline tickets, hotel rooms, car rentals and other travel products and services booked on their websites. They generally receive these commissions from suppliers after the customer uses the travel reservation. They may, depending upon the brand and the product, earn revenue by charging customers a service fee for booking their travel reservation. Airline tickets booked under the retail model contribute substantially to their overall gross bookings and net revenue due to the high volume of airline tickets booked on the websites. They recognize net revenue under the retail model when the reservation is made, secured by a customer with a credit card and they have no further obligations to the customer. For air transactions, this is at the time of booking. For hotel transactions and car transactions, net revenue is recognized at the time of check-in or customer pick-up, respectively, net of an allowance for cancelled reservations.

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Ref:

http://corp.orbitz.com/about

https://www.cisco.com/c/dam/en/us/products/collateral/switches/catalyst-6500-series-switches/prod_case_study0900aecd80534964.pdf

http://www.ratestogo.com/info/page?id=AboutUs

http://www.ebookers.com/info/page?id=AboutUs

http://www.hotelclub.com/mktg/about-us

http://www.orbitzforbusiness.com/about-us/

http://phx.corporate-ir.net/phoenix.zhtml?c=212312&p=proxyss

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