SOURCE: GTREX Capital, Inc.

June 13, 2007 09:02 ET

GTREX Capital President Cites Industry Trends Indicating Significant Opportunity for Global Travel Exchange's 'Direct Connect' Travel Distribution Solution

TEMECULA, CA--(Marketwire - June 13, 2007) - GTREX Capital, Inc. (OTCBB: GRXI), a holding company with subsidiaries doing business in the travel industry, today issued a statement from Ron Lindsay, who serves as president of both GTREX Capital and its Global Travel Exchange subsidiary, in which he discussed the growing number of travel transactions that are booked outside of the traditional Global Distribution Systems (GDS).

The Global Distribution Systems are the 4 major booking systems that are used to make airline, hotel, car rental, and cruise reservations worldwide. The airline industry initially created the first GDS in the 1960s as a way to keep track of flight schedules, availability, and prices. The four systems are called various names in different parts of the world, but comprise Amadeus, Galileo/Apollo, Sabre, and Worldspan. Travel suppliers often complain that the per-booking cost of GDS-based transactions is too high and many have been seeking an alternative.

Mr. Lindsay asserted that the travel distribution industry is increasingly being affected by booking systems that bypass the GDS. Available travel industry statistics validate Mr. Lindsay's assertion and indicate an increased market potential for Global Travel Exchange's "direct connect" booking solution through its Voyager Network.

The U.S. Government Accounting Office (GAO) has reported that between 1999 and 2002, the percentage of airline tickets booked online, including airline-owned websites and online travel agencies, had grown from 7% to 30%. A more recent Forrester Research study revealed that the estimated numbers for 2006 showed a projected decrease of bookings through the GDS in all travel segments, with non-GDS airlines sales increasing to 49% of all transactions, hotels to 66% and car rentals to 72%.

In specific markets, bypassing the GDS has become the dominant method of booking travel. In South America, Brazil's TAM airline reported that in 2006, 85.6% of its indirect sales went through its eTAM travel agency portal, and only 14.4% were booked through the GDS. Brazil's GOL airline disclosed that 86% of its sales are conducted over the Internet, with just 3% of sales use GDS systems.

Even traditional travel agencies are participating in the trend toward Internet bookings. In the United States, 78% of travel agencies booked some tickets online in 2005, up from 64% in 2001. "Despite the fact that the GDS are very well established in the travel industry, the reality is that travelers, travel agents and other travel arrangers will continue to look beyond the GDS in greater numbers as more attractive alternatives are presented to them," stated Mr. Lindsay. "Global Travel Exchange provides a cost-effective booking solution that allows access to travel inventory using XML via OpenTravel Alliance specifications within its Voyager Network travel distribution platform. Given the industry trends, Global Travel Exchange is seen as well-positioned to meet the demands of travel customers in a increasingly less GDS dependent world.

"We look forward to continuing our updates on the progress of Global Travel Exchange, including progress with additional airline, hotel, car rental, travel agency, and tour package customers, for which Global Travel Exchange will translate data to OTA-compliant XML as part of the preparations for future direct connections through Voyager," Mr. Lindsay added.

About GTREX Capital, Inc.

GTREX Capital, Inc. (http://www.gtrexcapital.com) is a holding company with subsidiaries doing business in the travel industry. Global Travel Exchange, Inc. (www.gtrex.com), a GTREX Capital subsidiary, has launched its Voyager Network travel distribution platform, which provides a service that enables direct access to reservation systems of major travel suppliers such as airlines, cruise lines, hotels, car rental companies and providers of other travel amenities. GTREX Capital recently acquired all of the outstanding shares of Global Travel Partners, a Nevada corporation that owns 100% of AsiaWorld Travel Vancouver, Ltd., and Dominion Pacific Travel, two British Columbia-based travel companies.

Safe Harbor Statement

This release contains forward-looking statements with respect to the results of operations and business of GTREX Capital, Inc., which involves risks and uncertainties. The Company's actual future results could materially differ from those discussed. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the "Safe Harbors" provision of the Private Securities Litigation Reform Act of 1995.

Contact Information

  • Contact:

    Gemini Financial Communications, Inc.
    A. Beyer
    951-587-8072
    Email Contact