Landmark Study: Tech Revolution in Travel Breaks Through Competitive Barriers

BRUSSELS, September 29, 2010 - Online travel and the technology that powers travel distribution have
revolutionised the European travel industry, maintaining strong growth
despite tough economic conditions, according to a study by industry authority
PhoCusWright.

The report commissioned by ETTSA (European Technology & Travel Services
Association) shows how independent travel distribution stimulated pricing
transparency and eased consumer access to travel product and pricing
information for airfares, hotel rooms, and other travel products.

"Technology unleashed a revolution in travel distribution,
spawning innovation in retailing and commercial models and breaking down the
barriers to competition. The study reveals the scope of that transformation
in Europe," says Tom Parker, Secretary General of ETTSA, whose members
include both online travel agents (OTAs) and global distribution systems
(GDSs).

"Our industry, with the creative use of technology, has
delivered dramatic improvements in travel research and shopping for the
benefit of travel retailers and consumers," Parker states. "The future is
ever brighter if we can defend competition."

The study shows that independent travel distribution provides
substantial high-quality employment across Europe. GDSs employ about 6,000
people in Europe, and OTAs about 13,000. One quarter of this employment
qualifies as high-tech. Traditional travel agencies which rely on GDSs for
accessing and booking travel products, employ approximately 300,000 travel
professionals across the 27 EU countries.

"The last decade saw explosive growth in online travel sales
in Europe, and this is now a fundamental part of travel shopping,'' says the
study's author Douglas Quinby of PhoCusWright. "The industry has been a
bright spot in the European economy during the recession."

PhoCusWright found that Internet bookings outperformed the broader travel
industry in 2009, with sales by OTAs in the European Union topping EUR24
billion in 2009. OTAs are growing particularly fast in the emerging economies
of Central and Eastern Europe, and will become even more important in
response to demand for more regional and international travel options.

"Our industry's value was highlighted during the volcanic ash
crisis when we helped thousands of stranded travellers get home," Tom Parker
observes. "This also revealed the tantalizing prospect of using our
technology to leverage the full potential of the European rail system."

"Efforts by some airlines to limit distribution through intermediaries,
unbundle their travel offerings and obscure the associated costs pose a risk
to product and pricing transparency," concludes Tom Parker. "This study
should motivate policymakers to take a closer look, and to consider expanding
consumer protection in EU directives on package travel and air passenger
rights."

          Press briefing via WEBEX, 30 September 2010, 13:00-14:15 CET:
                       tinyurl.com/ETTSAwebcast

ETTSA seeks to encourage and support fair competition and secure real
consumer choice in the travel distribution chain. Its members include Global
Distribution Systems (GDS) and online travel agents (OTAs) in Europe. ETTSA
study available at www.ettsa.eu.

Media Contact: Sandy McLean, smclean at cambre-associates.com; +44-7-786-601-771