Barnhart has travel plan for Orbitz rise to the top

December 18, 2006, BY BRAD SPIRRISON Sun-Times Columnist

 

Technological efficiency will help Chicago-based Orbitz Worldwide rise to the top of the competitive online travel industry, new President Steve Barnhart believes. Already chief financial officer, Barnhart, 45, recently was promoted to pilot the second largest online travel agency in the United States. Before obtaining undergraduate and business degrees from the University of Chicago, Barnhart grew up just outside of West Branch, Iowa, home of Herbert Hoover, 31st president of the United States and prominent advocate of the Efficiency Movement. Borrowing a page from his fellow Hawkeye, one of Barnhart's first tasks is to integrate the 10 brands of Orbitz Worldwide, which include CheapTickets, Away.com, and a number of niche and foreign properties, into one back-end management system.

"There will be cost savings in the back office and development platform," said Barnhart, who three years ago was recruited from the Pepsi Bottling Group. "We have a long history of innovation that drives the consumer experience online."

Airlines are in Orbitz' DNA

Orbitz was conceived seven years ago with DNA from United and four other major airlines. Serial entrepreneur Alex Zoghlin, who worked on the original Mosaic browser, was the company's first employee, and served as chief technology officer until 2003. Later that year, Orbitz went public, largely off the merits of one online domestic brand, and helped to trigger what is perhaps a second wave of the Internet boom.

After being acquired by Cendant Corp. in 2004, Orbitz was part of a $4.3 billion buyout in June by private equity firm Blackstone Group. Orbitz Worldwide is now a 700-employee unit of Travelport Ltd., and operates from its new headquarters at 500 W. Madison.

Ealier this month, Travelport acquired Worldspan, an electronic ticketing company it will merge with its Galileo unit.

Last week, Travelocity, a unit of Sabre Holdings that closely trails Orbitz in domestic bookings, was acquired for nearly $5 billion by private equity investors Silver Lake Partners and Texas Pacific Group.

Further, a venture capital affiliate of Texas Pacific Group is an investor in G2 SwitchWorks, a competitor to Galileo and Worldspan that Zoghlin founded in 2004.

Barnhart said Orbitz "severed ties" with Zoghlin after he started the company, which partially competes with Orbitz and has hired a number of its employees. In 2005, Orbitz sued Zoghlin, claiming he violated a non-compete agreement. A representative for Orbitz said the companies recently ended litigation.

Online travel leader Expedia is a unit of media mogul Barry Diller's InterActiveCorp and corporate cousin to brands like Hotels.com and Tripadvisor. "Name your own price" standalone Priceline.com also remains among industry leaders.

As online bookings threaten to surpass traditional services for the first time in 2007, Barnhart is smelling blood. In addition to streamlining multiple brands and reviving the career of game show host Wink Martindale in an entertaining advertising campaign, the 300-plus programmers and technical staffers employed by Orbitz in Chicago and offshore development centers in India and Israel are assigned to balance technological innovation with consumer convenience.

Keeping it simple

"The challenge is not to make it too complicated," Barnhart said. "We always ask 'What is the right level of technology to solve the problem without making it too difficult?'"

When flights were grounded after terrorist concerns in London last August, Orbitz sent more than 320,000 alerts with travel and itinerary information to customers via e-mail, voice mail and text messages. A year ago during the New York City transit strike, travelers were sent information regarding alternate commuting methods from the airport to the city after their flights arrived.

"Innovation and making travel work for our customers is critical to being a winner in this space," Barnhart said.

State offers technology grants

Illinois-based technology companies seeking to obtain federal grant money might be in line for two bites at the government apple. Gov. Blagojevich will announce today that the state is allocating more than $1.3 million to qualifying companies via the Innovation Challenge Matching Grant and Technical Assistance programs.

The programs are designed to increase the number of Small Business Innovation and Research and Small Business Technology Transfer grants by assisting entrepreneurs with the grant-writing process and providing up to $50,000 in matching grants per company.

Brad Spirrison is a local technology reporter and president of MidwestBusiness.com.

Travelocity enters blogosphere

Connecting readers to expert information, Travelocity enters travelers' turf through the company's new web log – The Window Seat consumer travel blog. Serving as an expansive resource for travelers, this first-of-its-kind blog by a major online travel company reveals relevant and uncolored travel advice as well as insider tips from a team of travel industry experts spearheaded by Travelocity editor-at-large, Amy Ziff.

The Window Seat blog offers a unique fusion of expert information gathered from a decade of experience in the travel business with first-hand accounts from travelers themselves. With information ranging from seasonal destination finds and airport security changes to where the stars headed on their last holiday, The Window Seat blog provides a new perspective to enhance the travel experience for every traveler. As explorers chime in on past travel experiences, future dream trips and their new favorite hot spots, The Window Seat's team of experts will be on hand to answer difficult travel questions, dish on destinations and discuss travelers' woes and wins.

"We're proud to be launching The Window Seat blog, which is written by and for travelers," said Amy Ziff, Travelocity's Editor at Large. "I can't think of a better way to share our collective travel experiences and expertise than through a blog."

The Window Seat blog was born out of travelers' need for a forum to share common passion, concerns and questions before they hit the road or head to the skies. As Travelocity's team of editors share their passion for travel near and far, they provide useful resources for travelers in need – even if it's merely an intriguing travel story to scratch their travel itch.

Bloggers can explore everything from local favorites to last minute travel ideas through segmented categories such as:

- Tailored trips: Made-to-fit travel experiences for bloggers interested in family travel, holiday and seasonal travel, festivals and cultural events and more.

- Trip Tips:  General advice for the traveler seeking information on air travel, car rentals, cruises, hotels and more.

- Main Routes: First-hand experiences and recommendations on popular travel destinations and those off-the-beaten-path.

While checking out their view from The Window Seat, Travelocity editors also provide useful links to their favorite travel blogs and resources, allowing visitors to research current TSA packaging regulations and destination videos. Bloggers who visit The Window Seat are invited to add relevant content and will be able to upload photos and view destination videos in the future.

"The Web provides great traveler resources," says Ziff. "The Window Seat provides a great venue for sharing advice, asking questions and rehashing your favorite travel stories."

Related Link: Travelocity's "The Window Seat"