Travelocity.com is Hands-Down Leader in Online Travel - Outpaced Competition in Reach, Unique Visitors, Gross Travel Bookings And Conversion Rate - Reiterates Strong Cash Position and Cash Earnings Projection
FORT WORTH, Texas, Aug. 22 /
Additionally, Travelocity.com today reiterated the strong cash position it reported earlier. At the end of the quarter ended June 30, Travelocity.com had on hand $69 million in cash and marketable securities, and total cash loss from operations was $11 million during the quarter. Combined with capital expenditures, total cash burn was $15 million.
"As we have said before, and contrary to a recent newspaper report, we expect our cash burn to continue to decline in future quarters, and we expect Travelocity.com to have positive cash earnings by the end of 2001, thereby making it unnecessary to return to the financial markets for additional funding," said Ramesh Punwani, chief financial officer of Travelocity.com.
The reports from the three audience measurement firms all showed Travelocity.com was tops among travel booking sites. Media Metrix showed Travelocity.com with 7.3 million unique visitors and a 9.5 percent reach in July; Nielsen//Net Ratings showed 8.0 million unique visitors and 8.3 percent reach during the month; and PC Data showed Travelocity.com with an 8.6 percent reach and 7.0 million unique visitors. Its 9.5 percent reach in Media Metrix means that nearly one in every 10 people on the Internet during July visited the site, and Travelocity.com again became the third largest e-commerce site by reach following Amazon and eBay.
"Being ranked the largest online travel site and third largest e-commerce site demonstrates our commitment to providing our customers with the most innovative products, best customer service and easiest way to book their travel," said Terrell B. Jones, president and chief executive officer of Travelocity.com.
The audience measurement reports add to Travelocity.com's already strong leadership position in numerous measurements. For example, during the quarter ending June 30, Travelocity.com out-paced its competitors in gross travel bookings and conversion rate. Travelocity.com's gross travel bookings were more than 35 percent greater than its nearest competitor with $610.2 million, and its conversion rate – the number of viewers that actually purchase on the site – was 6.9 percent.
"Our conversion rate and gross travel bookings demonstrated the merits of our strategy to target consumers more likely to book on our site," Jones said. "When you add it all up, we're proud to be tops in these important categories."
Numbers aside, recent industry-first site enhancements, including Team Up To Travel and Dream Maps, reinforce Travelocity.com's leadership position by offering consumers new and unique ways to shop and buy their travel. These new features build on Travelocity.com's reputation for innovation in the online travel marketplace.
About Travelocity.com
Travelocity.com, the leading travel Web site and third largest e-commerce site, provides reservations capabilities for 95 percent of all airline seats sold, more than 48,000 hotels, more than 50 car rental companies, and more than 5,000 vacation and cruise packages. This reservations capability is paired with access to a vast database of destination and interest information. To date, Travelocity.com has sold more than eight million airline tickets and has more than 21 million members.
This news release contains forward-looking statements that involve a number of risks and uncertainties. Among the important risk factors that could cause actual results to differ materially from those indicated by such forward-looking statements are risks associated with the timing of the new product releases and risks that the new products will not be successful in the market as well as risk factors detailed from time to time in the company's periodic reports and registration statements, which are filed with the Securities and Exchange Commission.
Ashley Wehrly
512/472-3515
Travelocity
