Bought FLYR on news (below)
Navigant International Announces NavigantVacations.Com, Inc.
New Subsidiary to Target Growing Internet Leisure Travel Market
DENVER, April 22 /PRNewswire/ -- Navigant International, Inc. (Nasdaq: FLYR), one of the largest suppliers of
corporate travel services in the U.S., today announced the formation of NavigantVacations.com, Inc. The new
subsidiary will focus on selling leisure travel directly to consumers and Navigant's existing corporate customers
through its own Internet site.
"The Internet is a growing distribution channel, and we plan to grow with it," said Edward Adams, chief executive
officer of Navigant. "We started down this path by opening our corporate web site, www.navigant.com, in January.
But we believe the time has come to build a separate site focused on the Internet community, and built with the
leisure traveler in mind," continued Adams.
"NavigantVacations.com, as a Navigant company, will have access to our existing customer base, which we
believe includes more than a million travelers. We should not have to build a new market of customers from the
ground up; our existing clients already know who we are, and they know that we bring value. We, of course, hope
to grow our base of customers beyond our corporate clients as others learn of the value we bring," said Adams.
"With substantial infrastructure already in place, we believe that we should be able to generate a significant
amount of incremental revenue with little additional client acquisition and marketing costs. Our existing
personnel and equipment give us the ability to service customers and fulfill reservations. We should not have to
create new capacity to begin operations," Adams continued.
"A key element of our e-commerce strategy is to use our existing infrastructure and technology, whether it is our
proprietary 'FLYR Electronic Navigation' tools, such as Business FLYR, or the Internet, to serve our existing
corporate clients, while expanding that same technology to move into new, growing, travel markets. We believe
that by combining our technological resources and our growing economic resources we can provide low cost
travel solutions to all our customers," Adams said.
"The new site will be designed to serve the leisure traveler. We expect that it will include discount travel offers,
including both airline tickets and cruises. We plan to include package tours and vacation specials. Ultimately,
the site should leverage our economic size and travel expertise for the benefit of the growing on line leisure
travel market," Adams concluded.
According to International Data Corporation, total commerce over the Internet will grow from approximately $32
billion in 1998 to approximately $425 billion by 2002, as the total number of Internet users expands from 97
million to 319 million in that same time. "Travel is a significant portion of overall Internet commerce, and we
expect that Internet travel sales will continue to grow," said Adams. A study by the Travel Industry Association of
America found that the number of travelers who researched travel plans on the Internet jumped from 11.7 million
in 1997 to 33.8 million in 1998. That same study found that the number of Internet users making reservations on
line grew from 5.4 million in 1997 to 6.7 million in 1998. As a percentage of the total U.S. population, the number
of people using the Internet to make reservations also increased, from 3 percent in 1997 to 4 percent in 1998,
according to the Travel Industry Association of America.
Navigant is one of the five largest providers of corporate travel management services in the United States based
on airline ticket sales. The Company currently has approximately 435 regional travel offices and on-site
customer travel operations, including offices in 18 of the 25 largest U.S. business travel markets. The
Company's shares are traded on the Nasdaq National Market System under the symbol "FLYR."
This news release contains forward-looking statements, including statements about the Company's growth
strategies, the growth of Internet based commerce, the impact of competition, and general industry or business
trends or events. Investors are cautioned that any such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties. Actual events or results may differ materially from those
discussed in the forward-looking statements as a result of various factors, including, without limitation, the risk
factors detailed from time to time in the Company's SEC reports, including the reports on Forms 10-K and 10-Q.
The forward-looking statements made herein are only as of the date of this press release, and the Company
undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or
circumstances.
SOURCE Navigant International, Inc.
/NOTE TO EDITORS: For more information on Navigant International via fax
at no cost, dial 800-PRO-INFO (908-544-2850 outside the U.S.), ticker symbol
FLYR/
/CONTACT: Edward S. Adams, Chief Executive Officer of Navigant
International, 303-706-0777; or general information, Don Markley or Jose
Mallabo, or analysts, Cathy Kawakami, of Financial Relations Board,
415-986-1591/
/Web site: navigant.com
(FLYR) |
