Travelport Acquisition Ups Reservations Ante

The travel distribution market is poised for a shake-up, and Travelport CEO Jeff Clarke is showing no reservations about the looming upheaval.

Big companies such as Travelport and Sabre Holdings that run the sprawling computer reservations systems used by airlines, hotels and other travel providers are going toe-to-toe in a battle for market share.

Clarke, who doubles as chairman of Web travel firm Orbitz Worldwide (NYSE:OWW) OWW, says Travelport upped the ante on Aug. 27 when it completed its $1.4 billion acquisition of rival Worldspan. Worldspan is the second-biggest player in the U.S. global distribution system, or GDS, for travel reservations.

Travelport, which owns the worldwide Galileo GDS system, says the buy gives the firm a much bigger footprint in the world GDS market.

Clarke says Travelport’s move into new markets is being powered by the company’s formidable assets in computer technology.

Travelport is owned by Blackstone Group BX, a private equity firm.

Clarke spoke with IBD about competition in the GDS business.
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