TravelServer Software, Inc. has developed the next generation software solution for the travel management market. TravelServer Software was created to specifically address the growing market demand for more effective travel management solutions.

Our software is being used by companies worldwide to meet the unique travel needs of a variety of vertical markets including: travel agencies, corporations, military travelers, federal and state government travelers, airports, affinity groups and associations.

TravelServer addresses the inefficiencies in the travel management market by delivering the only product suite to automate the entire travel management process and also monitor and report on the true cost of both online (agent-free) and offline (agent-assisted) travel transactions. TravelServer's software is unique in its ability to identify the number of employees who are booking online versus calling an agent, how many times each transaction has been "touched" by a person, the cost of each touch, and what kind of follow-on services to provide the traveler based on historic patterns and preferences.

From both an architectural and functional perspective the software is next generation and a significant improvement over the original online booking products introduced over the past several years. These products were simple transaction processing systems for air, hotel and rental car reservations and almost all of the transaction data was stored in a host (mainframe) system. They did not provide any significant added value beyond extending the booking capability to the traveler.

While these first generation systems can report on the dollar value of a ticket, they do not provide information about how much time was spent (by an employee or travel agent) researching and purchasing the ticket. Most only track those tickets purchased through the software and ignore the large percentage (83%) of tickets that are still purchased with the help of an agent. As a result, these systems do not provide the information needed by businesses to actually manage travel. TravelServer's software was designed from the beginning to be a complete business solution and to enable companies to become proactive in managing their travel budgets. By empowering travelers to make their own travel decisions and increasing the percentage of trips booked online, TravelServer's software can help companies reduce travel expenses by more than 20%.

TravelServer's solutions enable business to automate and monitor the entire travel planning process at the traveler, supplier and inventory levels.

The company's current offerings provide businesses with a compelling financial value proposition by delivering:

• Increased productivity of travel professionals, individuals and businesses
• Dramatically increased quality of service
• Reductions in the overall cost of managing and booking travel
• Quality of information about customers and suppliers which allows a more effective marriage of user preferences and travel inventories

While the market opportunities for TravelServer's current offerings are broad, they are especially attractive today for corporations and travel management companies looking to reduce travel costs and improve productivity through the implementation of travel technology solutions.

Despite predictions of their demise at the hand of the Internet, travel agencies still play a vital role in the sale of both corporate and leisure travel products. Their ability to negotiate reduced fares on behalf of their corporate clients and provide value-added customer service has allowed them to preserve a role in the evolving travel distribution supply chain. The dramatic economic, business and cultural changes over the past 18 months have made it essential that travel agencies adopt automated solutions that reduce costs in order to survive.

Market Opportunity

As the third largest industry in the United States, the size of, and opportunity in, the travel services market is undeniable. In 2004, corporations paid more than $800 million in transaction fees to travel agencies and travel suppliers. Since less than 30% of business travel was booked online in 2006, the vast majority of these fees were incurred by companies for agent assisted bookings.

As the amount of money spent on managed-travel continues to grow - from $69.2 billion in 2003 to $91.4 billion by 2009 - the number of travel transactions will grow and more and more companies will look for new ways to reduce the costs of processing these transactions .

Conversations with existing and potential customers show continued pain associated with travel management for agencies and corporations alike. For travel agencies, they can no longer afford to support their customers in the manner they have in the past. Agencies are charging corporations $20 for online bookings and up to $45 for an agent assisted booking. Even with these fees, many agencies are losing money because they have no idea what the actual costs of supporting a customer are. They don't know because it was never important in the past and the systems they are using do not capture, nor consolidate, the data.

For corporations, travel is the second largest controllable expense. The combination of cost cutting and the implementation of fees from agencies has created an environment where companies continue to look for ways to save money and manage travel more efficiently. Companies want to push their employees to online booking because they believe it is cheaper and they want to understand who is spending what with suppliers since that will allow them to negotiate better deals with the hotels, airlines and rental car companies. Existing offerings in the market do not address this issue well since they only capture, after the fact, a fraction of the information needed.

Looking at the solutions available today, almost all try to address the travel management process at an individual event or activity level. These solutions range from those focused solely on the transaction itself, delivering limited travel and booking options from an inventory of possible transactions through such providers as Sabre, Galileo or Amadeus (individuals may be more familiar with such popular front-end tools like Expedia, Travelocity, etc); to event management products and services that allow travel approval and expense reporting with solutions from companies like GetThere, E-Travel and Travel Guide Software. Almost all are based on a mainframe- or host-centric approach that calls for the bulk of the data associated with that transaction to be stored in a limited function database on a host system.

Since these systems were historically designed to operate as efficient transaction processing systems only, even today the amount of data tracked with each transaction is limited to the minimal amount necessary to complete an individual transaction. As a result, the more valuable information about the total cost of each transaction is either never captured or only available via primitive post-trip reporting systems. With these systems, companies can see the total value of the tickets purchased but they have no idea how much time was spent by the traveler, a corporation or travel agent, researching and planning for the trip.

To date, no solution has been delivered that enables businesses to automate and monitor the entire travel process, both online and offline, end-to-end, thus allowing organizations to effectively manage and report on the true costs associated with travel.

TravelServer Software Features by Market Segment
Consumer / End User	Merchant / Retailer	Supplier / Manufacturer
- Detailed Profile - Travel Preferences - Past History - Planning Templates - User-specific Products	- Customizable Store Front - Profile Management - Customer Database - Prospect Database - Workflow Tracking - Policy Compliance - Exception Reporting - Online Activity Reporting - Business Forecasting - Supplier Market share data - Private Fares	- Yield Management - Targeted Specials - Online Reporting - Inventory Management - Transaction Processing