Travelocity Facts
Travelocity is an online travel agency operated by Travelocity.com LP. Travelocity is a wholly-owned subsidiary of Sabre Holdings Corporation, a publicly traded company NYSE: TSG.
According to Sabre Holdings, Travelocity is the sixth-largest travel agency in the United States. In addition to its primary US consumer site, Travelocity operates a full-service business agency, Travelocity Business, and comparable websites in Canada, Germany, France, the Scandinavian countries, and the United Kingdom, and is a partner in Asian travel hubs Tabini and Zuji.
Other brands include Site59.com, a last-minute travel technology and content provider, World Choice Travel, a travel affiliate marketing program, and Showtickets.com, a tour and ticket broker in Las Vegas.
Travelocity was created in 1996 as a subsidiary of Sabre Holdings, and was run by long-time Sabre I.T. executive Terrell B. “Terry” Jones. As one of the pioneers of web-based disintermediation, Travelocity.com was the first website that allowed consumers themselves (acting without the help of a travel agent or broker) not only to access Sabre’s fare and schedule information, but also to reserve, book, and purchase tickets.
In addition to airfares, the site also permits consumers to book hotel rooms, rental cars, cruises, and packaged vacations.
Travelocity Merger
In 2000, Sabre negotiated a merger of Travelocity with another early web travel company, Preview Travel. The resulting company was independently quoted on the NASDAQ exchange, with Sabre continuing to own around 30% of the combined company’s stock, but around 70% of the voting rights.
In 2002, with Travelocity’s fortunes suffering from competition including Expedia and Orbitz, Sabre consummated a tender offer for the remainder of the outstanding shares in Travelocity and remerged the business into Sabre as a subsidiary. Jones left the company shortly afterward.
In March 2002, Travelocity acquired Site59.com, a New York based travel website specializing in last-minute travel packages, for $43 million in cash. Site59, which launched in May 2000, was developed and backed by iFormation Group, a partnership between the Boston Consulting Group, Goldman Sachs, and General Atlantic Partners. Site59’s CEO and founder, Michelle Peluso joined Travelocity with the acquisition as senior vice president, product strategy and distribution.
Peluso became Travelocity’s COO in April 2003 and was then named president and chief executive officer of Travelocity in December 2003 when former CEO Sam Gilliland ascended to become the CEO of Sabre Holdings after William J. Hannigan departed from that post to become President of AT&T.
Travelocity Management Team
Under Peluso’s tenure, Travelocity developed and launched a merchant hotel business, dynamic packaging functionality, and a private-label (ASP) distribution network.
As of early 2005, many members of Peluso’s former management team at Site59 now hold senior management positions at Travelocity, namely Jeffrey Glueck (Chief Marketing Officer), Damon Tassone (President, Travelocity Europe), Tracey Weber (Senior Vice President Air, Car and Last Minute Deals), Richard Harris (Vice President, Strategy and Business Development), Josh Feuerstein (Vice President, Hotels), Josh Hartmann (Vice President, Software Development) and Jonathan Perkel (Vice President & Deputy General Counsel).
Travelocity has been a sponsor of the TV series The Amazing Race since its 7th Season.
