TravelMole Interview: Michelle Peluso, Travelocity.com

Travelocity.com just two years ago was a passive reseller, but it is now headed on a more active course, says its new president and chief executive, Michelle Peluso. “Travelocity two years ago was very reliant on selling airline tickets for commissions and we were a passive reseller,” she told TravelMole. She added the priority last year was putting the building blocks in place for growth for it to become an “active retailer.” “We’ve accomplished that by building up our merchant hotel offerings in ways that are better for customers and suppliers. We’ve also added a lot of capabilities to our cruise, rental car and vacation packaging abilities.” Another priority, she added, was to increase the company’s distribution reach. “We’ve built out our factory and have compelling products, now we want to put in our channels. That means Traveolcity Business, Travelocity International and Travelocity through third parties,” said Ms Peluso. She cited as an example Travelocity’s agreement to power the hotel and rental car section for USAirways. Travelocity also wants to differentiate itself for its consumers, she said. “There isn’t really a brand in online travel – at least not in the way a consumer emotionally identifies with one – like Coca-Cola or Starbucks or Ritz-Carlton,” she said. When asked if she anticipated any major changes under her direction, she said: “I think there will always be innovation in Travelocity’s DNA. The past few years we have embarked on a significant course involving a new business model and new channels. We have a lot of work to do to fulfill the promise of that new way of doing business.” In another interview published in the Fort Worth Star Telegram in Texas, she said Travelocity was poised for growth. She also predicted it will achieve profitability next year. She said she was not concerned about the ground Travelocity has lost to Expedia. “I don’t spend a lot of time worrying about market share,” she said.