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Travelport and PSP Kick Off Multimillion-Dollar Joint VentureJuly 7, 2009 By: George Dooley
Travelport has entered into a strategic relationship with PSP International to form a joint venture company to provide state-of-the-art innovative and integrated payment solutions tailored specifically for the travel industry. The joint venture, in which Travelport holds a majority stake, was completed on June 24, 2009, the company said. The new eNett joint venture will help travel customers simplify their businesses by providing payment solutions that support both air and non-air transactions, Travelport said.
The joint venture will be branded “eNett, A Joint Venture with Travelport.” It leverages the existing successful payment and settlement capabilities already established by PSP International in the Pacific region with Travelport’s worldwide travel product distribution capabilities and significant airline, rail operator, hotel and car rental relationships. The joint venture also leverages Travelport’s leading position with the on and off-line travel agency community and its global brand in the sector. The two companies have enjoyed a strong commercial relationship since 2003.
The eNett suite of products will enable automated payments, settlement and reporting between travel agencies and travel product suppliers, supporting debit cards and other increasingly relevant alternative forms of payment which are not well supported today. It will enable nontraditional players in the travel industry, such as low-cost carriers (LCCs), who desire to distribute their products through the travel trade, to be able to offer tailored credit and settlement terms, Travelport said. eNett is also working on solutions for corporate travel such as automated hotel bill-back generation that save travel management companies (TMCs) and the corporations they service both time and money.
“One of Travelport’s stated goals is to build adjacent businesses that will help power our clients’ success,” said Gordon Wilson, president and CEO, Travelport GDS. “The payment and settlement business is a multibillion-dollar industry and with eNett's innovative suite of payment and settlement solutions, we believe we can take out some of the inefficiencies that currently exist today. Moreover, the joint venture will meet customers’ desire for tailored payment solutions with a stronger focus on cost, reduced risk and faster settlement across the broadest array of travel products.”
PSP was formed in Australia in 2003 and has established relationships with leading travel service providers, airlines and logistics firms. Travelport GDS owns the global distribution system (GDS) business that includes the Galileo, Apollo and Worldspan platforms.