Friday, June 23, 2006
What's the good spin on Worldspan numbers?
Priceline cuts a deal with G2, Expedia takes/will take Amadeus in Australia and Europe, Orbitz is going to move to Galileo one day and Sabre bought Lastminute.com. Not a good time to be an owner of Worldspan. Citigroup led private equity spent a lot of money taking Worldspan private looking to streamline costs then flip for a good return. Worldspan made a loss in 2005. Is trying to fight back in 2006 though transaction numbers continue to fall. Somewhere along the line customer retention and product innovation was forgotten in restructuring and yield focus. Good article here from Michele McDonald of ATW on GDS challenges.