Travelport
Encyclopedia
Travelport is a broad-based business services company and a leading provider of critical transaction processing solutions to companies operating in the global travel industry. The company is composed of the global distribution system (GDS) business, that includes the Apollo, Worldspan
and Galileo
brands, and Airline IT Solutions, which hosts mission critical applications and provides business and data analysis solutions for major airlines. With reported 2010 revenues of $2.3 billion, Travelport has a presence in 160 countries and approximately 3,500 employees. Travelport also owns approximately 48% of Orbitz Worldwide
, a leading global online travel company.
Travelport is a private company owned by The Blackstone Group, One Equity Partners
, Technology Crossover Ventures and Travelport management and it is number 195 in the Forbes
list of private companies.
. Travelport was formed in August 2006, when Cendant
sold Orbitz and Galileo to The Blackstone Group
in a deal valued at $4.3 billion. The sale of Travelport followed the spin-offs of Cendant's real estate and hospitality businesses, Realogy Corporation and Wyndham Worldwide Corporation
, respectively, on July 31, 2006. Travelport is now owned by The Blackstone Group, One Equity Partners
and Technology Crossover Ventures.
In April 2006, shortly before Travelport was sold, Cendant hired Jeff Clarke as president and CEO of Travel Distribution Services to lead the sale of the division. He is currently Executive Chairman and a member of the board of directors of Travelport and chairman of the board of Orbitz Worldwide, Inc. Gordon Wilson was appointed President and CEO of the company and a menber of the board of directors of Travelport in June 2011.
Shortly after the Blackstone-led buyout, in December 2006, Travelport struck a deal to buy one of its rivals, Worldspan, for $1.4 billion.
In March 2007, cash flow had risen substantially, in part because of efficiencies initiated by Clarke, and Travelport's parent company, Travelport Holdings Limited, paid a $1.1 billion dividend to its shareholders funded by a payment-in-kind
(PIK) recapitalization of the company. In May 2007 the company filed a registration statement with the U.S. Securities and Exchange Commission to sell a portion of Orbitz Worldwide
in an initial public offering
(IPO). The IPO was priced on July 20, 2007, opening at $15.00 per share, and closed on July 25, 2007. A month later, Travelport completed the Worldspan deal, integrating Worldspan with Galileo.
By combining operations with Worldspan and streamlining overlapping functions that Travelport had inherited from a string of more than 20 earlier mergers under Cendant, Travelport cut its overhead by $390 million in three years and doubled its cash flow.
On September 19, 2007, Travelport became the first travel company to receive a 100 percent rating on the sixth annual Corporate Equality Index
awarded by the American Human Rights Campaign Foundation
. Worldspan achieved the 100 percent rating on HRC's Corporate Equality Index in 2002, 2003, 2004 and 2005.
On May 5, 2011, Travelport completed the $720m sale of its GTA business to Kuoni, in line with its strategic plan to focus on maximizing the potential of its core business.
Worldspan
Worldspan is a provider of travel technology and content and a part of the Travelport GDS business. It offers worldwide electronic distribution of travel information, Internet products and connectivity, and e-commerce capabilities for travel agencies, travel service providers and corporations...
and Galileo
Galileo CRS
Galileo is a computer reservations system owned by Travelport. As of 2002, it had a 26.4% of worldwide CRS airline bookings.In addition to airline reservations, the Galileo CRS is also used to book train travel, cruises, car rental, and hotel rooms...
brands, and Airline IT Solutions, which hosts mission critical applications and provides business and data analysis solutions for major airlines. With reported 2010 revenues of $2.3 billion, Travelport has a presence in 160 countries and approximately 3,500 employees. Travelport also owns approximately 48% of Orbitz Worldwide
Orbitz
Orbitz Worldwide, Inc. is an Internet travel company headquartered in the Citigroup Center in Near West Side, Chicago, Illinois. Through its primary web site Orbitz.com, Orbitz Worldwide enables travelers to research, plan and book a broad range of travel products, facilitating 1.5 million flight...
, a leading global online travel company.
Travelport is a private company owned by The Blackstone Group, One Equity Partners
One Equity Partners
One Equity Partners is a private equity firm focused on leveraged buyout and growth capital investments in middle-market companies across a range of industries....
, Technology Crossover Ventures and Travelport management and it is number 195 in the Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
list of private companies.
History
Travelport traces its origins back to 1971, but its most immediate predecessor, Travel Distribution Services (TDS), was founded in 2001 through the acquisition of Galileo International by TDS's parent, Cendant CorporationCendant
Cendant Corporation was a New York-based provider of business and consumer services, primarily within the real estate and travel industries. In 2005 and 2006, Cendant broke up and spun off or sold its constituent businesses...
. Travelport was formed in August 2006, when Cendant
Cendant
Cendant Corporation was a New York-based provider of business and consumer services, primarily within the real estate and travel industries. In 2005 and 2006, Cendant broke up and spun off or sold its constituent businesses...
sold Orbitz and Galileo to The Blackstone Group
Blackstone Group
The Blackstone Group L.P. is an American-based alternative asset management and financial services company that specializes in private equity, real estate, and credit and marketable alternative investment strategies, as well as financial advisory services, such as mergers and acquisitions ,...
in a deal valued at $4.3 billion. The sale of Travelport followed the spin-offs of Cendant's real estate and hospitality businesses, Realogy Corporation and Wyndham Worldwide Corporation
Wyndham Worldwide
Wyndham Worldwide is the holding company for Wyndham Hotels & Resorts, Group RCI and other lodging brands. It was spun off from Cendant Corporation in July 2006....
, respectively, on July 31, 2006. Travelport is now owned by The Blackstone Group, One Equity Partners
One Equity Partners
One Equity Partners is a private equity firm focused on leveraged buyout and growth capital investments in middle-market companies across a range of industries....
and Technology Crossover Ventures.
In April 2006, shortly before Travelport was sold, Cendant hired Jeff Clarke as president and CEO of Travel Distribution Services to lead the sale of the division. He is currently Executive Chairman and a member of the board of directors of Travelport and chairman of the board of Orbitz Worldwide, Inc. Gordon Wilson was appointed President and CEO of the company and a menber of the board of directors of Travelport in June 2011.
Shortly after the Blackstone-led buyout, in December 2006, Travelport struck a deal to buy one of its rivals, Worldspan, for $1.4 billion.
In March 2007, cash flow had risen substantially, in part because of efficiencies initiated by Clarke, and Travelport's parent company, Travelport Holdings Limited, paid a $1.1 billion dividend to its shareholders funded by a payment-in-kind
PIK loan
A PIK loan is a type of loan which typically does not provide for any cash flows from borrower to lender between the drawdown date and the maturity or refinancing date, not even interest or parts thereof , thus making it an expensive, high-risk financing instrument...
(PIK) recapitalization of the company. In May 2007 the company filed a registration statement with the U.S. Securities and Exchange Commission to sell a portion of Orbitz Worldwide
Orbitz
Orbitz Worldwide, Inc. is an Internet travel company headquartered in the Citigroup Center in Near West Side, Chicago, Illinois. Through its primary web site Orbitz.com, Orbitz Worldwide enables travelers to research, plan and book a broad range of travel products, facilitating 1.5 million flight...
in an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
(IPO). The IPO was priced on July 20, 2007, opening at $15.00 per share, and closed on July 25, 2007. A month later, Travelport completed the Worldspan deal, integrating Worldspan with Galileo.
By combining operations with Worldspan and streamlining overlapping functions that Travelport had inherited from a string of more than 20 earlier mergers under Cendant, Travelport cut its overhead by $390 million in three years and doubled its cash flow.
On September 19, 2007, Travelport became the first travel company to receive a 100 percent rating on the sixth annual Corporate Equality Index
Corporate Equality Index
The Corporate Equality Index is a report published by the Human Rights Campaign Foundation as a tool to rate American businesses on their treatment of gay, lesbian, bisexual and transgender employees, consumers and investors. Its primary source of data are surveys but researchers cross-check...
awarded by the American Human Rights Campaign Foundation
Human Rights Campaign
The Human Rights Campaign is the United States' largest LGBT advocacy group and lobbying organization; according to the HRC, it has more than one million members and supporters...
. Worldspan achieved the 100 percent rating on HRC's Corporate Equality Index in 2002, 2003, 2004 and 2005.
On May 5, 2011, Travelport completed the $720m sale of its GTA business to Kuoni, in line with its strategic plan to focus on maximizing the potential of its core business.
Brands of Travelport
- Travelport GDS (includes Apollo, GalileoGalileo CRSGalileo is a computer reservations system owned by Travelport. As of 2002, it had a 26.4% of worldwide CRS airline bookings.In addition to airline reservations, the Galileo CRS is also used to book train travel, cruises, car rental, and hotel rooms...
and WorldspanWorldspanWorldspan is a provider of travel technology and content and a part of the Travelport GDS business. It offers worldwide electronic distribution of travel information, Internet products and connectivity, and e-commerce capabilities for travel agencies, travel service providers and corporations...
) - Travelport Airline IT Services
- THOR
- needahotel.com
- Sprice.com
- orbitz.com
- ebookers
- Travelport Opinions