Pegasus Commission Processing continues to handle the centralized processing and consolidated payment of travel agency commissions worldwide on behalf of Hilton Hotels Corporation's properties operating under the brands of Hilton®, Conrad(TM), Doubletree®, Embassy Suites Hotels®, Hampton Inn®, Hampton Inn & Suites®, Harrison Conference Centers®, Hilton Garden Inn® and Homewood Suites® by Hilton. In addition, Pegasus provides Hilton with customized reporting to assist with managing its valuable travel agency relationships.
"We look forward to building on our successful track record with Hilton. The stellar hotel giant's exclusive renewal with Pegasus Commission Processing reinforces our role as hoteliers' preferred choice in travel agent commission management," said Jeff Bzdawka, senior vice president of Pegasus Financial Services.
Extracting information from Hilton Hotels Corporation's central depository of hotel transactions, Pegasus collects monthly guest stay information related to hotel bookings made by travel agencies that are members of Pegasus Commission Processing. Pegasus consolidates Hilton's member properties' hotel information and commission payments with similar information and payments from other Pegasus participating hotels. Pegasus then sends detailed reports and a consolidated commission payment in the agency's choice of currency. Member travel agencies are located in more than 200 countries.
"Many of our travel agency subscribers have told us they realize a significant growth in commission revenue as a result of participating in Pegasus Commission Processing," Bzdawka said. "In addition, our average agency member significantly saves in costs due to a sizable reduction in expenses associated with the typical manual, time-consuming methods for managing hotel commissions."
Travel agencies can also elect to receive total automated commission management through Pegasus' Electronic Reconciliation & Tracking service, which experienced 42 percent growth in agency participation in 2001. Pegasus also maintains highly responsive customer service support for travel agencies, with more than 70 percent of queries being serviced while agents are on the phone with Pegasus. With the majority of travel agencies worldwide as subscribers and more than 32,000 hotel property members, Pegasus processes an average of $41 million in travel agent commissions per month on behalf of more than 100 hotel companies in 159 countries.
In addition to participating in Pegasus Commission Processing, Hilton also uses Pegasus' central reservations system (CRS) RezView®, and is connected to Pegasus' Electronic Distribution Switch, which allows Hilton to be booked in the Amadeus global distribution system and via the Internet. Hilton's properties are included in Pegasus' Online Distribution Database of more than 42,000 hotels. As a result, Hilton's 2,000-plus properties are available for real-time bookings on the thousands of Web sites included in Pegasus' Online Distribution Network, including Hotwire, Expedia, Orbitz, TravelHero and TravelWeb.
Dallas-based Pegasus Solutions, Inc. (www.pegs.com) is a leading global provider of hotel reservation technologies. Its services include central reservations systems; electronic distribution services that connect more than 42,000 hotels to the Internet and to the global distribution systems (GDS); travel agent commission processing and payment services; the Utell marketing and reservation representation service (www.Utell.com); and PegasusCentral(TM), a Web-based enterprise solution with property management applications. Pegasus' customers comprise tens of thousands of travel agencies around the world, including the top 10 largest U.S.-based travel agencies(1); more than 46,000 hotel properties around the globe, including all of the largest hotel brands in the world based on total number of guest rooms(2); and thousands of Web sites/services have their hotel reservations Powered by Pegasus(TM). In addition to its corporate headquarters in Dallas, Pegasus has 22 offices in 16 countries, including regional hubs in Phoenix, London and Singapore. The company's stock is traded on the Nasdaq National Market under the symbol PEGS.
This statement contains references to future events and projected results, including anticipated transactions involving the Company and its service offerings. There can be no assurance that the referenced future events or projected results will actually occur or that the future financial performance of the Company will be as projected. Actual occurrences, results and performance may differ substantially and materially from those projected as a result of a number of risks and uncertainties, such as adverse changes in general market conditions for business and leisure travel as a result of additional terrorist activities, action by U.S. military forces, changes in hotel room rates, capacity adjustments by airlines, trends in the overall demand for travel, and the inherent difficulty in making projections during this period of uncertainty, as well as other risks and uncertainties mentioned in this statement or detailed in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2001.
1 Travel Weekly, June 25, 2001, "Top 50 Travel Agencies"
2 Hotel Business, February 7, 2002, "The Top Hotel Brands" - ranked