Hotwire Hotel Growth 310% Despite Challenging Environment

Hotels continue to be the site's fastest-growing product, with expanded cities, features and the hotel industry's most aggressive low-price guarantee

Press Release: Hotwire
August 12, 2002
SAN FRANCISCO, CA -- In the midst of the hospitality industry's most challenging year in decades, discount travel site Hotwire today announced hotel sales growth of 310% in the past year, contributing more than $50 million in incremental revenue to Hotwire's hotel partners. Additionally, Hotwire released the following hotel growth statistics for the last 12 months:

Hotwire saved its customers approximately $45 million over published hotel rates
Hotwire grew its number of hotel cities from 37 in August 2001 to more than 270 this week
Hotel growth can be attributed to expanded reach, aggressive pricing and newly added features, such as "customer favorites" designations and expanded listings of property-specific amenities. Hotwire Hot-Rates(SM) are guaranteed to be the lowest available, backed by Hotwire's "Double the Difference" hotel low price guarantee -- the most aggressive guarantee in the industry.

Additionally, Hotwire recently launched its "customer favorites" feature on the hotel search pages to highlight particular hotels that receive numerous customer letters of praise. When a customer searches for a Hotwire hotel, many of the available options now include "customer favorite" designations, with testimonials from Hotwire customers describing their experiences at a particular hotel. The "customer favorites" feature draws from a bank of several thousand Hotwire customer hotel reviews, helping travelers to select the best possible hotel for their needs.

Along with the "customer favorites" feature, Hotwire is the only opaque site to provide property-specific hotel amenities, such as whether a specific hotel includes an airport shuttle, complimentary breakfast, spa services, or whether golf and tennis are nearby. This amenities feature, along with eight different star ratings categories, gives Hotwire customers more choices and allows them to better evaluate deals to fit their needs.

"The past year has certainly been one of the most difficult in history for the hotel industry," said Spencer Rascoff, Hotwire vice president of hotels. "The fact that our sales have quadrupled in the face of such a tough travel environment is a testament to the value we offer both our hotel partners and our consumers."

About Hot-Fares(SM) and Hot-Rates(SM)

Hotwire Hot-Fares(SM) and Hot-Rates(SM) are specially negotiated, discount deals on airline tickets, hotel rooms and car rentals aimed at the flexible leisure traveler. By asking customers to be flexible on certain details like exact flight time or hotel, Hotwire saves customers up to 50 percent off published airfares every day, and up to 70 percent off published hotel rates. Hotwire partners with quality, major travel companies and never asks customers to bid for a price. All Hotwire purchases are nonchangeable and nonrefundable.

About Hotwire

Hotwire (www.hotwire.com) is a discount travel site where flexibility means savings for leisure travelers. By only partnering with trusted travel brands, Hotwire allows budget travelers to buy higher quality travel for a lower price. Hotwire matches the needs of two groups: customers who can be flexible about their choice of airline, hotel and car rental company in order to save money, and suppliers who have excess seats, rooms and cars they want to fill. Hotwire works with more than 30 international and domestic airlines including founding partners American Airlines, America West, Continental, Northwest, United and U.S. Airways. In addition, Hotwire is partnered with more than 6,000 top hotels in 270 U.S. and Caribbean destinations, and several major car rental companies. Hotwire is a private corporation based in San Francisco, California. The company launched its services in October 2000, with investments from the Texas Pacific Group and six major airlines.

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Contact: 

     Hotwire
     Amy Bohutinsky, 415/343-8502
     abohutinsky@hotwire.com