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Business Directory
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Farelogix.com Inc.
web site: http://www.farelogix.com
Phone: 416 504-8322 ext. 31
The Company
Farelogix.com Inc. is a Toronto and Dallas based developer and marketer of software solutions for the worldwide Travel Industry (retail, business, and wholesale travel companies.) The Company’s unique Farelogix system is a web-based software system that:
1. manages a travel company's various wholesale and commission-based fare contracts via a database system, and
2. provides an online travel search and reservation system that is integrated to the client's database, to the client's Customer Reservation System (e.g. Sabre), third party wholesale fare databases, and tour operator databases via an Internet interface.
Farelogix systems are used by travel companies to implement:
1. a travel reservation e-commerce site via the internet for business to business or business to consumer;
2. a travel reservation and contract management front office system via the internet for internal professional agent staff;
3. car rental, cruise lines, and hotel reservation capability via the Internet, expected in Release 2.0, Q1 2000.
The Market Opportunity
Travel and Tourism is emerging as the world’s largest industry. The World Trade Organisation forecasts annual global revenues to reach $7.9 trillion by 2005. Today, the travel industry finds itself in much the same position as the securities industry did some ten years ago. It is a commission driven, transaction-oriented industry. Travel suppliers are cutting commissions, and looking for new means of efficient distribution. The retailers are being squeezed. The public is looking for convenience and service, but much of the industry is at a loss on how to provide it. The International Travel Industry is searching for technologies like Farelogix to achieve enhanced distribution and increased productivity/lower costs.
Market Strength
Farelogix has purchased Global Interface of Dallas, which gives them the leading air fares contract management software product in North America, used by 12 of the major air wholesalers (consolidators) in the US. The airlines distribute airfares through consolidators that require specialised contract management systems to capture and display the many restrictions and terms of a wholesale airfare (net fare). The majority of consolidators in North America have outsourced this contract management to one of three companies: Farelogix, Wings, and Patheo. The Farelogix contract management business is the largest of the three, with 15 million net fares in the database. It allows the consolidator to distribute these net fares to over 1300 travel agencies in many different formats. This provides Farelogix with a strong marketing pipeline and additional source of licensing income. Farelogix has integrated its reservation system technology with the contract management system, and this yields a unique and powerful capability in handling complicated bookings. This integration and the database of 12 million fares also give Farelogix the opportunity to build their own e-Travel business.
Competitive Edge
Several major International Travel companies have signed and/or are negotiating contracts with Farelogix. Given their global clout, they have reviewed the market for competitive products, and have selected our technology. Farelogix is recognised as having built expertise in integrating to the complicated restrictions involved in booking net fares as well as commission-based fares. The software handles stopovers, open jaws, multiple feeders, dynamic via points, and interline carriers. Because of the comprehensiveness of the system, these travel companies have made the Farelogix system a cornerstone in their business re-engineering strategy.
Internet Travel
Travel has already become the largest online retail category with estimated online transactions of $7.8 billion in 1999, growing to $32 billion in 2004, according to Forrester Research. Price Waterhouse predicts that by 2003, direct Internet Sales will represent 12% of all consumer purchases and 50% of those will be travel related. Jupiter Communications projects that the online consumer and unmanaged business travel market will grow from $4.2 billion in 1998, or 3 percent of all travel bookings, to $16.6 billion, or 10 percent, in 2003. The most effective and efficient web applications like Farelogix will be the among the chosen catalysts to effect this growth.
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