Travelocity makes a deal with Mickey Mouse and Northwestern Airlines - New Services

Information Superhighways Newsletter, Feb, 2002

Travelocity.com, an online travel operation, signed a deal to work directly with Walt Disney Parks and Resorts to package vacations with theme park tickets and on-site hotel room inventory. The packages will be marketed under the Travelocity Vacations brand as a Walt Disney World Resort product and will launch later this quarter. Financial arrangements were not disclosed. Due to the aftermath of September 11, many travel sites, including Travelocity, are moving to diversify their revenue streams.

The company will offer land-only and air-inclusive vacation packages for all on-site Walt Disney World Resort hotels and will include admission to Disney's theme parks in Orlando, FL. Disneyland Resort vacation packages will be added to Travelocity Vacations' California product line later on during the year. The Disney vacation packages will be available for booking either online or over the phone with a Travelocity.com vacation professional.

Travelocity said it also will work with Disney to incorporate extensive Disney content into its vacation section. Travelocity already features Disney Cruise Vacations. Travelocity also signed a comprehensive distribution agreement with Northwestern Airlines. Financial terms were not disclosed. Although Travelocity provides Internet and wireless reservations information for more than 700 airlines, it does not have special marketing relationships with all of them. It has deals with British Airways, JetBlue and America West, along with recently signed Continental and other airlines.

Most airlines are scrambling to provide customer service and fill their seats. British Airways also signed a deal with Expedia's Worldwide Travel Exchange, its hotel-booking arm. Launched in July 2001, WWTE delivers private label booking solutions to online travel suppliers. The deal enables the airline's passengers to book rooms at over 40,000 hotel properties.

Orbitz, an online travel site founded by American, Continental, Northwest and United Airlines is evidence that airlines were interested in selling tickets online before September 11. The big question for the air carriers is when air travel will return to normal. According to a recent report released by the International Energy Agency (IEA), Western demand for aviation fuel is unlikely to bounce back quickly this year even with a speedy recovery for the world economy.