Press Release: ebookers.com
January 9, 2001
LONDON -- ebookers.com, (Nasdaq: EBKR; Neuer Markt: eb6) Europe's No.1 online travel company, announced yesterday
that it has signed a memorandum of understanding with technology infrastructure company capXnow to provide flight
auctions on its European travel websites. The initial roll-out of the service is expected to begin in Q2 2001.
The service is also expected to be extended to other travel products and services, including hotels and car hire.
capXnow will provide the technology to allow ebookers.com's customers to take part in 'dynamic offerings' on distressed
and promotional flight inventory from up to several weeks prior to departure. Customers entering the auction website
will be presented with a maximum price and will be invited to submit bids on or below this amount. A unique feature
of the capXnow technology is that it incorporates customer relationship management (CRM) software. Permission-based
customer data gathering and push-marketing will allow ebookers.com to target customers with specific tailored deals
and price propositions, for example based on customer loyalty or historic destination preference.
The financial terms of the understanding with capXnow will be based on revenue share with ebookers.com. ebookers.com
does not expect to incur significant development costs.
Dinesh Dhamija, CEO ebookers.com, comments:
``ebookers.com already stands out from its competitors by selling the full range of air fares, published airline
rates, negotiated discount fares and distressed or 'last minute' inventory. An agreement with capXnow will add
a major new dimension to our selling of distressed capacity. We believe that the way the capXnow technology incorporates
customer relationship management technology will give us a significant advantage over our competitors.''
Frank Wade, CEO of capXnow, comments:
``Airline and other travel industry suppliers will improve their yields and maintain full control of the placement
of their capacity. capXnow is enabling ebookers.com to access our dynamic placement system. This will allow ebookers.com's
customers globally to access the suppliers' offering or to trade frequent traveller awards according to the dynamics
of the marketplace. ebookers.com represents a critical component for the capXnow system, making it even more productive
for our suppliers.''
About ebookers.com
ebookers.com is a leading online European travel agency offering complete one-stop, online shopping with a host
of travel products and services, including negotiated discount airfares with 120 airlines, and discounts with over
14,000 hotels worldwide. ebookers.com is the technology and travel spin-off from Flightbookers plc, the London-based
travel agency which in 1996 became the first travel company to establish an interactive website in the UK. The
ebookers.com group also established the first interactive travel websites in France and Finland. The company was
established as a separate Internet company in June 1999. ebookers.com operates in the following eleven countries:
Denmark, Finland, France, Germany, Ireland, Netherlands, Norway, Spain, Sweden, Switzerland and the UK. The company
completed its initial public offering in November 1999 listing on the NASDAQ and the Neuer Markt in Frankfurt,
Germany.
About capXnow
capXnow is a technology infrastructure company focused on developing software solutions for producers of time-specific
goods and services. The Company's Dynamic Offering(TM) application provides producers the ability to not only optimize
yield management (by placing as much of the distressed capacity before expiration as possible) but also customer
relationship management (CRM) (by choosing the most effective channels and incorporating non-price elements into
the offer). capXnow was founded in February 2000 and is currently an international team of over 35 people based
in Madrid, Spain. capXnow is presently developing its technology for producers in the travel industry, beginning
with airlines, tour operators and hotels. After expanding to different areas of the travel industry (time-share
operators, conference and convention facilities, and cruise lines), the software will then be adapted for different
industries facing the similar conflict between yield management and CRM such as cargo (air, ocean, rail and truck),
advertising (radio, TV) and entertainment (sporting events, concerts), among other applications. The Company generates
revenue by licensing its technology to producers and channel partners as well as from transaction fees on the incremental
revenues generated through the use of its software
Forward Looking Statements
Except for the historical information contained herein, the matters discussed in this news release are forward-looking
statements that involve risks and uncertainties that could cause actual results to differ materially from those
in such forward looking statements. Potential risks and uncertainties include, without limitation, the company's
ability to identify, acquire and integrate its potential subsidiaries across Europe, its ability to significantly
increase its online revenues and sales volumes, to maintain and develop relationships with travel suppliers and
strategic partners and to attract and retain customers, potential adverse changes in its gross mark up or in commission
rates, unforeseen events affecting the travel industry, and the company's dependence on its ability to establish
its brand. These and other risk factors are described in detail in the company's Prospectus dated 11 November 1999,
which has been filed with the Securities and Exchange Commission, USA and the German Prospectus dated 11 November
1999, filed with the Neuer Market, of the Frankfurt Stock Exchange, Germany.
SOURCE: ebookers.com