Orbitz Worldwide Receives $100 Million in Equity Investments

Friday, November, 20th, 2009

Orbitz Worldwide, Incorporated has received a sum of $100 million from two investment partners. The online travel company is among the leading online booking sites to offer discounted packages and deals on airfare, hotels, car rentals. The Orbitz brand is a brand of Orbitz Worldwide and was launched to “address consumers’ need for a comprehensive display of fares and rates in a single location,” according to Orbitz.com.

The award-winning travel search engine offers Low Price Guarantees, special Internet Only deals and works with over 80,000 hotels around the globe. The company reported a profit in the third quarter of 2009, and is now receiving funding from PAR Investment Partners and Travelport. PAR Investment Partners is purchasing 8.2 million shares of Orbitz, while Travelport is purchasing 9 million shares.

These investments will allow Orbitz to increase their available cash by $50 million, which company President and CEO Barney Harford has stated will go toward operations, strategy and growing the business overall. As part of the investment agreement, the total number of directors at Orbitz will increase from eight to ten. Orbitz Worldwide operates over 20 leading brands including the online travel agency Galileo. The company works with the global distribution system (GDS) which enables easy and efficient booking of thousands of hotels in over 130 countries. Currently, Orbitz works with five major airlines in the United States – American, Continental, Delta, Northwest and United. The company is also a wholesaler of global travel content.

The Orbitz’s leading competitors are Priceline.com, Expedia.com, Hotwire.com and Cheaptickets.com. The recent investments should help Orbitz remain competitive in the travel market and offer more options for consumers looking for the best deals on airfare, hotel rates, cruises, travel packages and car rentals from leading brands around the globe. The company also offers an affiliate program for small businesses and independent travel agents.