GuestLogix Inc.

GuestLogix Inc.

September 20, 2011 07:00 ET

GuestLogix Extends its Onboard Retail Technology with Addition of New and Unique Destination Deal Mobile Platform for Travel Industry

OnTouch® Destination Deals Will Enable Airlines to Offer Passengers Mobile Access to Travel-Relevant Deals Targeted at Each Passenger's Unique Attributes and Travel Itinerary

TORONTO, ONTARIO--(Marketwire - Sept. 20, 2011) - GuestLogix, Inc. (TSX:GXI), the leading global provider of onboard store technology to airlines and the passenger travel industry, today announced its plan to launch OnTouch® Destination Deals, a daily deal, group buying and flash sale ("Daily Deal") mobile-optimized platform that is designed specifically for the travel industry. Through OnTouch® Destination Deals, airlines will be able to offer their passengers mobile access to a selection of promotions for products and services that are filtered to directly align with each passenger's individual travel itinerary, in particular destination and trip duration.

"With the launch of our OnTouch® Destination Deals mobile platform, we will be able to capitalize on the significant revenue opportunities in the sizable Daily Deal market," said Tom Douramakos, President and CEO of GuestLogix. "Our solution is designed specifically for the travel industry, and it is the only Daily Deal platform, mobile or otherwise, equipped with sophisticated filtering capabilities where the end-user only receives promotions that are relevant to their travel needs. OnTouch® Destination Deals is an extension of our retail technology and merchandising solution, and will enable us to leverage our existing strengths in onboard retailing and our significant global customer footprint to drive continued growth."

GuestLogix' core focus is to develop new ancillary revenue streams that help airlines drive top-line growth and enhance the passenger travel experience. The launch of OnTouch® Destination Deals leverages the growing demand for Daily Deals to create new retailing opportunities for airlines. According to recent estimates from BIA/Kelsey, the 2011 Daily Deal market is currently valued at US$2.0 billion and is expected to grow to $4.2 billion by 20151. According to a research study by Lab42, almost 60 percent of Daily Deal users have purchased a dining category deal and 29 percent have purchased activity and entertainment deals – all items that are travel-relevant2.

"Relevancy is what differentiates OnTouch® Destination Deals from other players in the market," continued Mr. Douramakos. "We believe that consumers are growing tired of receiving offers that are not relevant to them. Our solution leverages our proprietary filtering technology to ensure that travelers will receive offers that are specific to their travel plans, with the deals reaching them at moments of maximum influence."

According to the results of a GuestLogix consumer travel study, travelers surveyed were interested in purchasing destination-based products and services through their airline in advance of arrival, with more than 50 percent surveyed saying they would make purchases for the reasons of convenience and value, as will be the case with OnTouch® Destination Deals. GuestLogix estimates that the global airline market represents 3.0 billion passenger trips annually, of which more than 1.0 billion are served by GuestLogix' existing airline customers. At an estimated average gross transaction value of US$35.00, GuestLogix' travel industry specific OnTouch® Destination Deals mobile platform could represent a significant revenue growth opportunity for GuestLogix, airlines and merchants.

"Industry-wide trends show that 17 percent of Americans have purchased a product from a Daily Deal provider, such as Groupon3," added Mr. Douramakos. "We believe that is a take-up rate we can help airlines achieve. Airlines will be able to offer passengers access to daily travel deals and promotions, which is an excellent way for them to add value for their passengers and generate high-margin ancillary revenue."

Through its OnTouch® Destination Deals mobile platform, GuestLogix will help its participating airline customers offer their passengers deals on various travel-relevant and destination-based products and services in a timely manner during booking, on the day of the flight, as well as throughout their trip. Rather than GuestLogix directly sourcing content for its Destination Deals platform, the OnTouch® Destination Deals mobile platform enables airlines to host and manage a "deal marketplace". Airlines can use the platform to connect with third-party product and service providers, aggregate deals for various travel-relevant and destination-based products and services, and in-turn offer those deals to their passengers. Individual merchants, existing Daily Deal companies and advertisers can use a custom-built API to upload their offerings. With its proprietary filtering technology, OnTouch® Destination Deals will then extend offers to passengers that meet their unique travel specifications.

Airlines will be able to offer their passengers access to airline-branded versions of the OnTouch® Destination Deals platform through passengers' mobile devices, including smartphones and tablets, airport kiosks, airline websites, in-flight entertainment systems and GuestLogix' onboard point-of-sale technology, creating sales opportunities at multiple access points and throughout a traveler's entire journey lifecycle. In addition, GuestLogix' OnTouch® Destination Deals platform includes unique, proprietary and patent-pending technology for on-device redemption and verification, which will eliminate the need for the traveler to print their certificates and provide real-time redemption reports to merchants.

GuestLogix will unveil its OnTouch® Destination Deals platform on October 4th, 2011 at its Annual User Conference. The Company expects to make the platform widely available to its airline customers in the Q4 fiscal 2011.


1 Consumer Spending on Deal-a-Day Offers Likely to Reach $4.7B in U.S. by 2015, According to BIA/Kelsey September 13, 2011
2 A research study by Lab42 conducted between August 25-27, 2011 revealed that 57% of participants have purchased a restaurant deal and 29% a spa or activity deal
3 Groupon, Other Daily Deal Sites Not Facing Shopper Fatigue, Researchers Say, PCWorld Sep 15, 2011

About GuestLogix

GuestLogix Inc. is the leading global provider of onboard store technology and merchandising solutions, which help airlines and other travel operators create, manage, and control onboard retail environments tailored to their needs and their passengers. Serving approximately 90% of the North American airline passenger traffic and 40% of the global airline passenger traffic, GuestLogix has become a trusted onboard transaction processing partner to airlines around the world. The Company's global headquarters and centre for product innovation is located in Toronto, Canada with regional head offices around the globe including GuestLogix USA, serving the Americas, located in Dallas, Texas, GuestLogix Europe, located in London, UK, serving Europe, Middle East and Africa and a sales and support office located in Singapore, serving Asia Pacific. Logistics centers are situated in Toronto, Dallas, London and Seoul with a software development centre located in India. GuestLogix is publicly traded on The Toronto Stock Exchange (GXI.T). More information is available at

© 2011 GuestLogix. All Rights Reserved. ®OnTouch is a trademark of GuestLogix Inc. and is registered in the United States and may be pending or registered in other countries. All other trademarks and trade names are the property of their respective owners.

Forward-Looking Statements

This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with GuestLogix' business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect GuestLogix' current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Filing Statement filed on July 14, 2011 with the regulatory authorities. GuestLogix assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

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