Travelocity
Company: Travelocity
Company Division/Group: Car and Rail
Company Description: Travelocity, the pioneer in online travel, gives consumers access to hundreds of airlines, thousands of hotels, cruise, last-minute and vacation packages, entertainment tickets, best-in-class car rental companies, and ground transportation with 24-hour customer service. Travelocity is the sixth largest travel agency in the U.S. and has been recognized for its global leadership in online travel.
Nomination Category: Company, Office & Product Awards Categories
Nomination Sub Category: Best New Product or Service
Nomination Title: TotalPrice for Cars
Tell the story of this nominated product or service (up to 500 words): its function, its features and benefits, and how it differs from competitive offerings. Include in your description the date in 2003 on which this product or service was introduced to the U.S. marketplace:
Travelocity was the first full-service, online travel site to provide total pricing
information on car rentals to its customers. Travelocity’s TotalPrice SM for Cars is
changing the way consumers shop for and book car rentals online.From 1991-2001, taxes and fees associated with travel increased dramatically for
car rentals. They no longer represented a nominal amount but added between 10-
71 percent to car rental costs depending on location.Bi-annual surveys targeting Travelocity’s 41 million member database discovered
that total disclosure of all taxes and fees along with prices and value were the
three most important factors in choosing a rental car. In fact, 31 percent
consistently mentioned total price disclosure as the most important factor in a
February 2003 survey.Travelocity viewed this as an opportunity to meet consumer demands and
separate itself from its competitors. The company approached rental car suppliers
and developed a system called “Direct Connect Availability” (DCA) that provides
rates, taxes/fees and inventory confirmation in a single request. Travelocity
retrieved the raw data from the DCA feed and developed a consumer friendly user
interface that allowed consumers to compare daily rates and total pricing fees for
up to 30 car rental options.The DCA development and implementation across all major car rental brands
allowed Travelocity to provide TotalPrice for Cars as a viable solution for the travel
agent user.The program was initially launched nationwide in September of 2002. It solved
price discrepancy problems by providing consumers with the complete cost of car
rentals and detailed rental information, while taking into consideration rate,
location, pick-up/drop-off and car rental preference.In May 2003, Travelocity launched an upgrade to TotalPrice for Cars. The new
feature not only allows customers to compare daily rates or the total rental price,
including taxes/fees, but it also goes a step further by searching for money-saving
alternatives based on 11 factors including departure, arrival, car class, number of
travelers, and Travelocity Preferred membership. TotalPrice is certified to be within
1 percent of the final rental fee.As a result of the addition, Travelocity car rental bookings have increased
significantly. Prior to the launch of the program, bookings were down 5.73 percent
between January 2001 and September 2002. Since September 2002 when the
program began, bookings have increased by 19.7 percent, with an overall increase
of more than 26 percent since the beginning of 2002.The feature was not only successful in increasing bookings but also gained
notoriety among media. Between September 2002 and December 2003, TotalPrice
for Cars was featured in more than 160 national and local publications, including
the Wall Street Journal, New York Times, USA Today, L.A. Times and a story by
syndicated consumer columnist Ed Perkins.Additionally, this product was covered more than 20 times among broadcast
outlets including CNN Headline News, ABC in Chicago and Denver, Fox in
Washington, D.C., and NBC in Los Angeles.
List hyperlinks to any online news stories, press releases, or other documents that support the claims made in the section above. You may include links to product photos, service logos, etc. IMPORTANT: List each link on a separate line, begin each link with http://, and enclose each link in square brackets; for example, [http://www.website.com]:
TOTALPRICE FOR CARS LINK:
http://www.travelocity.com/Cars/0,,TRAVELOCITY||Y,00.htmlPRESS RELEASES:
Stop Guessing How Much that Rental Will Really Cost – 9/16/02
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=TVLY&script=410&layout=-6&item_id=333792Travelocity’s Car Rental Shopping Engine Goes into Overdrive – 5/5/03
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=TVLY&script=410&layout=-6&item_id=408517Travelocity Study Reveals Airports Where You’re Most Likely to Get Sticker
Shock From Added Car Rental Fees - 7/29/03
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=TVLY&script=410&layout=-6&item_id=436092COVERAGE:
Kansas City Star: Travelocity First To Fix Rental Car Problem
http://www.kansascity.com/mld/kansascity/living/travel/5896111.htmChicago Tribune: Travelocity the Only Site to Show True Car Rental Prices: Ed
Perkins syndicated columnist
http://www.chicagotribune.com/travel/chi-0305250348may25,1,773400.story?coll=chi-travel-International Herald Tribune: On the Move: Making car rentals a bit less opaque
http://www.iht.com/articles/129371.htmlSan Antonio Business Journal: Texas is tops on added car rental fees
http://www.bizjournals.com/sanantonio/stories/2003/07/28/daily12.htmlGambling Magazine: "Total Pricing" Approach For Car Rentals
http://www.gamblingmagazine.com/ManageArticle.asp?C=120&A=25CNET News.com: Travelocity tunes up car rentals
http://news.com.com/2100-1017_3-958140.htmlTravel Weekly: Travelocity First To Fix Rental Car Problem
http://www.twcrossroads.com/news/newssearchwrapper.asp?ArticleID=34686About.com: Hidden Car Rental Fees Sneak up on You
http://businesstravel.about.com/cs/carrental/a/aa080303a.htmTechdirt.com: Shopping Sites Finally 'Fessing Up On Total Price
http://www.techdirt.com/articles/20030902/0047245.shtmlKOMO News – Seattle/Tacoma: The Hidden Costs Of Car Rentals
http://www.komotv.com/consumertip/story.asp?ID=26034
Provide a brief (up to 100 words) biography about the leader(s) of the team that development this nominated product or service:
Michelle Peluso is president and CEO of Travelocity. Prior to her appointment,
she served as COO and SVP, product strategy and distribution. Before joining
Travelocity in April 2002, Peluso was CEO for Site59®, leading the last minute
travel Web site acquired by Travelocity in March 2002. Peluso received the Ernst
and Young Entrepreneur of the Year Award in 2002. Additionally, Travel Agent
Magazine selected her as a Rising Star in 2002 and one of the Most Powerful
Women in Travel, 2001 and 2002. Peluso received her master's from Pembroke
College at Oxford and bachelor's from the Wharton School of Business.