Orbitz 2008 Annual Report Download - page 21

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We rely on information technology to operate our businesses and maintain our competitiveness, and any failure to adapt to technological developments or
industry trends could harm our business.
We depend upon the use of sophisticated information technologies and systems, including technologies and systems utilized for reservations,
communications, procurement and administrative systems. Certain of our businesses also utilize third-party fare search solutions and GDSs or other technologies.
As our operations grow in both size and scope, we must continuously improve and upgrade our systems and infrastructure to offer an increasing number of
customers enhanced products, services, features and functionality, while maintaining the reliability and integrity of our systems and infrastructure. Our future
success also depends on our ability to adapt our services and infrastructure to meet rapidly evolving industry standards while continuing to improve the
performance, features and reliability of our service in response to competitive service and product offerings and the changing demands of the marketplace. In
particular, expanding our systems and infrastructure to meet any projected future increases in business volume will require us to commit substantial financial,
operational and technical resources before those increases materialize, with no assurance that they actually will. Furthermore, our use of this technology could be
challenged by claims that we have infringed upon the patents, copyrights or other intellectual property rights of others.
In addition, we may not be able to maintain our existing systems, obtain new technologies and systems, or replace or introduce new technologies and
systems as quickly as our competitors or in a cost-effective manner. Also, we may fail to achieve the benefits anticipated or required from any new technology or
system, or we may be unable to devote financial resources to new technologies and systems in the future. If any of these events occur, our business could suffer.
System interruptions and the lack of redundancy may cause us to lose customers or business opportunities.
Our inability to maintain and improve our information technology systems and infrastructure may result in system interruptions. For example, the ebookers
websites that have not yet migrated to our new global technology platform operate on systems that are less reliable than our U.S. systems and, as a result, are
more likely to suffer from service slowdowns or outages. System interruptions and slow delivery times, unreliable service levels, prolonged or frequent service
outages, or insufficient capacity may prevent us from efficiently providing services to our customers, which could result in our losing customers and revenue or
incurring liabilities. In addition to the risks from inadequate maintenance or upgrading, our information technologies and systems are vulnerable to damage or
interruption from various causes, including:
•
natural disasters, war and acts of terrorism;
•
power losses, computer systems failure, Internet and telecommunications or data network failures, operator error, losses and corruption of
data, and similar events;
•
computer viruses, penetration by individuals seeking to disrupt operations or misappropriate information and other physical or electronic
breaches of security; and
•
the failure of third-party systems or services that we rely upon to maintain our own operations.
We do not have backup systems for certain critical aspects of our operations. Many other systems are not fully redundant, and our disaster recovery planning
may not be sufficient. In addition, we may have inadequate insurance coverage or insurance limits to compensate for losses from a major interruption, and
remediation may be costly and have a material adverse effect on our operating results and financial condition. Any extended interruption in our technologies or
systems could significantly curtail our ability to conduct our businesses and generate revenue.
14
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008