FLYR news
PR Newswire - April 28, 1999 08:20
New Subsidiary to Target Growing Cruise Market
DENVER, April 28 /PRNewswire/ -- Navigant International, Inc. (Nasdaq: FLYR), one of the largest suppliers of corporate
travel services in the U.S., today announced the launch of Navigant Cruise Center. The new subsidiary will market cruise
packages directly to leisure travelers through an Internet site, as well as through traditional facilities in Houston, Texas. Ariel
Liebovitz, currently chief executive officer of Atlas Travel, a Navigant subsidiary, has been named president of the new company,
and Tom Baker, vice president of leisure sales for Atlas, will be executive vice president of the company.
"Navigant Cruise Center is the product of the strategic integration of our two Houston-based companies, Atlas Travel and
SuperTravel, and the vision of Ariel Liebovitz," said Edward Adams, chief executive officer of Navigant International. "We believe
that our technology, experience in call center management and the skills already present within our cruise operations will all allow
us to develop a substantial market presence that will benefit all our companies. With our expertise in all the aspects of travel
management, including air sales, ground transportation and hotels, we can provide our customers with complete departure cruise
packages. We expect that Navigant Cruise Center will become a leading player in the rapidly growing cruise market, as we
leverage Navigant's national presence and its existing client base on both a local and a national basis. Specifically, we plan to
target the employees of our existing corporate customer base, which we believe includes more than a million travelers."
"During the past couple years, we have developed a successful marketing strategy for cruises," Liebovitz said. "This program grew
Atlas Travel's cruise sales to approximately $12.0 million on an annual basis in three years. We believe that this strategy can be
replicated on a national basis, and have set a goal of approximately $50.0 million in annual cruise sales by 2001."
"We also expect to create an independent web site, www.cruisecenter.com, where leisure travelers can easily identify, price and
book cruises. This web site will be part of Navigant's consumer direct e-commerce strategy through its recently announced new
subsidiary, www.NavigantVacations.com," Liebovitz continued.
"Navigant companies already receive discounts from published prices and operate many group departures," said Liebovitz. "With
growing sales, we are prepared to take inventory positions on selected sailings and use our purchasing power to achieve greater
value for our customers. Combining increased volume, at more desirable prices, improved technology, our web site and new
marketing opportunities, we expect to enhance our selling process and improve our operating margins."
The number of North American cruise passengers is expected to increase from 5.1 million in 1997 to 7.0 million by the year 2000,
an 11.5 percent compound annual growth rate. According to Ariel Liebovitz, the new president of Navigant Cruise Center, only
about 6 percent of cruise vacations are sold directly by the internal sales departments of the cruise lines, and cruise vacations are
historically among the highest margin products of the leisure travel industry.
"This is one more step in our comprehensive business plan to target growing travel markets, building on our strengths, while
maintaining our core corporate travel management business." said Adams. "Technology offers us the opportunity to take what we
do well for our corporate clients -- reducing travel costs while offering personalized service -- to new markets and new
customers. Our goal, whether its through the use of our 'FLYR Electronic Navigation' tools, such as Business FLYR, through
www.NavigantVacations.com, or through www.cruisecenter.com, is to use technology to serve our clients efficiently and
effectively, while using our growing economic resources to provide our customers low cost travel."
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
implementation of technological products, 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, Inc., 303-706-0777, or Ariel Leibovitz, President, Navigant
Cruise Center, Inc., 713-407-9600; or general information, Don Markley or Jose
Mallabo, analysts, Cathy Kawakami, 415-986-1591, all of The Financial
Relations Board/
/Web site: cruisecenter.com
/Web site: navigantvacations.com
(FLYR) |
