Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Preview Travel (PTVL) ---- Via...Excite & AOL -- Ignore unavailable to you. Want to Upgrade?

To: TLindt who wrote (181)	3/23/1998 9:00:00 PM
From: StormRider	Read Replies (1) \| Respond to of 728

Preview Travel to set up travel site on Lycos SAN FRANCISCO (Reuters) - Preview Travel Inc., an online travel reservation service, said Monday it will pay Lycos Inc. $4.25 million to become the Internet search engine's exclusive travel reservation provider. Under the two-year agreement, Preview Travel will set up a travel guide and booking services for airlines, hotels, car rentals and vacation packages, the companies said. Preview Travel, based in San Francisco, allows computer users to find and buy airline tickets through online services. It makes money by charging fees from airlines and hotels. It has paid major online services like America Online Inc. and Excite Inc. to be the exclusive travel service provider on their sites. Lycos, based in Waltham, Mass., runs an Internet directory service that helps computer users find specific sites and documents on the global computer network. The company said it will offer Preview Travel through its Lycos Travel Web Guide and the Lycos Shopping Network sections. The agreement is part of Preview Travel's strategy to reach the widest audience of travel shoppers on the Internet, said Ken Orton, the company's chief executive and president. nt.excite.com

To: TLindt who wrote (181)	4/4/1998 10:09:00 AM
From: Tom Hua	Read Replies (2) \| Respond to of 728

Tom, PTVL's annual report reflects the same concern reported in the article linked to your post. From 10K: Historically, typical standard base commission rates paid by travel suppliers have been approximately 10% for hotel reservations and car rentals and 10% to 15% for cruises and vacation packages. During the quarter ended June 30, 1997, the commissions paid by most of the major airlines for online reservations was changed from a typical base rate of 10% to approximately 5% (excluding overrides). In March 1998, one large domestic airline announced that it was further reducing online commissions for domestic tickets. Travel suppliers can further reduce current industry commission rates or eliminate such commissions entirely, Even the low 5% commissions are in jeopardy. Southwest Airlines announced that it pays zero commissions to online travel services. American Airlines last month further reduced online ticket commissions from $15 to $10/ticket. During last Q, PTVL's online revenues were 6.7% of bookings which indicates the majority of bookings were for airline tickets. With further squeezing by the airlines, plus intense competition from myriad of online travel services, PTVL may never make money. But heck, like Parsiani said yesterday on CNBC, companies like PTVL are relying on the public to bail them out through secondary offering, tertiary offering etc... In the meantime, insiders will wisely take these opportunities to dump their shares. Regards, Tom