Helloworld is saying its farewells to online travel group, Expedia, (kind of) by announcing the end of an agreement with Expedia-owned platform, Orbitz.
The travel group’s CEO, Andrew Burnes, revealed in an ASX update that the group’s Strategic Alliance Agreement with Orbitz Worldwide has ended, allowing the business to move its website to a new platform from 31 August 2016.
The decision came after discussions with Expedia found that not only had the alliance struggled to deliver the revenue steams initially envisaged by both parties, but it created conflict with Helloworld’s branded and associate members.
While Burnes acknowledged the role Orbitz technology played in attracting new customers to the website, he did explain that it was in the group’s best interest to “transition the site to a more agent-aligned portal”.
“It is our responsibility to drive business in the door of our agency members, onto the phones of our agency members and onto the portals of our agency members including Helloworld.com.au and our members should share in the commercial outcomes of those transactions in the same way.”
Andrew Burnes, Helloworld CEO
Despite the move, Burnes stressed that the features of the new helloworld.com.au portal will remain the same, meaning it will continue to provide transactional functionality for air, land, car hire and other travel products.
One major benefit of the transition will be that the main site will match microsites for individual agencies, allowing consultants to earn commissions that are equal to those made via walk-in customers.
“This operation has been costing about $6m a year over the last two years plus capital expenditure and these losses will now come to an end as a result of the decision to transition to a new site and end the current Agreement.”
Andrew Burnes, Helloworld CEO
As the Helloworld group is ending its partnership with Orbitz on August 31 it will mean that Expedia content via the Expedia Affiliate Network (EAN) will be available through ReadyRooms moving forward.
“Up until now, content has come from Orbitz and from our internal wholesale businesses however we are in the process of replacing the Orbitz content with Expedia content and bolstering our internal content by adding AOT’s significant content in Australia, New Zealand and the South Pacific and the amount of available rooms on the Ready Rooms site will more than double once these two connections are complete,” Mr Burnes said.
