Orbitz 2009 Annual Report Download - page 11

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Factors affecting our competitive success include price, availability of travel products, ability to package
travel products across multiple suppliers, brand recognition, customer service and customer care, fees charged
to travelers, ease of use, accessibility and reliability.
Seasonality
Our businesses experience seasonal fluctuations in the demand for the products and services we offer.
The majority of our customers book travel for leisure purposes rather than for business. Gross bookings for
leisure travel are generally highest in the first and second calendar quarters as customers plan and book their
spring and summer vacations. However, net revenue generated under the merchant model is generally
recognized when the travel takes place and typically lags bookings by several weeks or longer. As a result, our
cash receipts are generally highest in the first and second calendar quarters and our net revenue is typically
highest in the second and third calendar quarters. Our seasonality may also be affected by fluctuations in the
travel products our suppliers make available to us for booking, the continued growth of our international
operations or a change in our product mix.
Company Strategy
Economic and industry conditions significantly impacted our performance during the fourth quarter of
2008 and have created uncertainty for the entire travel industry going forward into 2009. In light of this
uncertainty, we are currently re-evaluating our long-term strategy. In the short-term, we are focused on:
•Improving our operating efficiency. We believe we will be in a better position to manage through the
current environment if we improve our operating efficiencies by making sustainable reductions in our
cost structure. We have already taken steps to reduce our cost structure. In the fourth quarter of 2008
and the first quarter of 2009, we reduced our global workforce, our use of outside contractors and other
operating costs. We expect to realize approximately $40 to $45 million of annualized cash savings from
these actions.
We also expect to realize operating efficiencies going forward as a result of implementing a common
technology platform for our ebookers websites. We believe this platform will improve our operating
efficiencies through back office automation and by centralizing certain business functions such as
customer service, fulfillment and accounting.
We may continue to take additional measures going forward to further reduce our cost structure, as
deemed necessary.
•Simplifying the way we do business. We are also focused on simplifying our business, primarily with
respect to our technology. We believe that if we simplify the code of our technology platform, we will
be able to develop new functionality on our websites more efficiently and with fewer resources.
•Continuing to innovate. We also believe that we can better manage through the current environment if
we develop new, innovative functionality on our websites, such as Orbitz Price Assurance. At the same
time, we are focused on reducing development timelines and costs.
We believe this short term strategy will better position us to manage through this challenging environment,
until such time as economic and industry conditions improve and we redefine our long term strategy.
Company Website and Public Filings
We maintain a corporate website at http://corp.orbitz.com. The content of our website is not incorporated
by reference into this Annual Report on Form 10-K or other reports we file with or furnish to the Securities
and Exchange Commission (“SEC”). Our filings with the SEC are provided to the public on our Investor
Relations website, free of charge, as soon as reasonably practicable after they are electronically filed with, or
furnished to, the SEC. Other information regarding our corporate governance, such as our code of conduct,
governance guidelines and charters for our board committees, is also available on our Investor Relations
website (http://www.orbitz-ir.com). In addition, the SEC maintains an Internet website that contains reports,
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