Orbitz 2008 Annual Report Download - page 19

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We are dependent upon third-party systems and service providers, and any disruption or adverse change in their businesses could have a material adverse
effect on our business.
We currently rely on certain third-party computer systems, service providers and software companies, including the electronic central reservation systems
and GDSs of the airline, hotel and car rental industries. In particular, our businesses rely on third parties to:
•
conduct searches for airfares;
•
process hotel room transactions;
•
process credit card payments; and
•
provide computer infrastructure critical to our business.
In addition, we rely on a group of business process outsourcing companies based in India to provide us with call center and telesales services, back office
administrative services such as ticketing fulfillment, hotel rate loading and quality control, loyalty program support and information technology services, as well
as financial services such as accounts payable processing and bank reconciliations. Any interruption in these third-party services could have a material adverse
effect on us.
Further, we currently utilize GDSs, including Worldspan, Galileo and Amadeus International, to process a significant portion of our travel bookings, and
any interruption or deterioration in our GDS partners' products or services could prevent us from searching and booking airline and car rental reservations, which
would have a material adverse effect on our business.
Our success is dependent on our ability to maintain relationships with our technology partners. In the event our arrangements with any of these third parties
are impaired or terminated, we may not be able to find an alternative source of systems support on a timely basis or on commercially reasonable terms, which
could result in significant additional costs or disruptions to our business. In addition, some of our agreements with third-party service providers can be terminated
by those parties on short notice and, in many cases, provide no recourse for service interruptions. A termination of these services could have a material adverse
effect on our business, financial condition and results of operations.
We depend on our supplier relationships and adverse changes in these relationships or our inability to enter into new relationships could negatively affect
our access to travel offerings and reduce our revenue.
In addition to airlines, we rely significantly on our relationships with hotel and other travel suppliers. Adverse changes in any of these relationships, or the
inability to enter into new relationships, could negatively impact the availability and competitiveness of travel products offered on our websites. Our
arrangements with travel suppliers may not remain in effect on current or similar terms, and the net impact of future pricing options may adversely impact our
revenue. In addition, travel suppliers are increasingly focused on driving online demand to their own websites. Travel suppliers typically do not charge a service
fee for booking products on their own websites, and as a result, their travel offerings may be more attractive to consumers.
We are in continuous dialogue with our major hotel suppliers about the nature and extent of their participation in our various distribution channels. The
significant reduction by any of our major suppliers in their business with our companies for a sustained period of time or their complete withdrawal of doing
business with us could have a material adverse effect on our business, financial condition and results of operations.
In addition, we currently depend on one of Travelport's businesses, Gulliver's Travel Associates, or GTA, for access to hotel inventory in certain
international regions while we work to establish our own direct relationships with hotel suppliers in these regions. If we are unable to successfully establish direct
relationships with hotel suppliers or to replace the hotel inventory available through GTA in a timely
12
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008