Best Western Renews and Expands Travel Agent Commission Processing Agreement with Pegasus Solutions

Pegasus Solutions, Inc. (Nasdaq: PEGS) signed a three-year renewal agreement with Phoenix-based Best Western International for continued centralized management of worldwide travel agency commissions. After several years of gradually adding international Best Western properties to the Pegasus service, this contract formalizes a global relationship with the world's largest hotel chain. As a result, Best Western is strongly encouraging its 4,000-plus hotels in 80 countries to participate in Best Cheque, Best Western's central commission program, which is fulfilled by Pegasus Commission Processing, the hotel industry's leading travel agent commission processing service. The Pegasus Commission Processing service was launched in 1992 by Dallas-based Pegasus Solutions, a leading provider of hotel industry transaction processing and electronic commerce services.

According to Will Jansen, vice president of North American reservations for Best Western International, "Pegasus plays a vital liaison role between Best Western hotels and the thousands of agencies that help bring travelers to our properties. Best Western's long-term vision is to have nearly all of our properties outside the U.S. utilizing automated commission processing. We plan to achieve this goal through an expansion of our good working relationship with Pegasus and the ongoing implementation of new technologies." 

"Best Western was one of the first major hotel chains to join Pegasus Commission Processing, and we're pleased to begin a second decade of serving this prestigious client," said Jeff Bzdawka, senior vice president of Pegasus Financial Services. "Best Western's commitment to process its commission payments worldwide through Pegasus reaffirms our status as the undisputed global leader in hotel commission processing services. This agreement also highlights the growing presence of Pegasus Commission Processing on the international stage, enhancing relationships between hotels and agencies while facilitating timely commission payments for all relevant parties."

Each month, Pegasus collects actual guest stay information related to Best Western hotel bookings made by travel agents by extracting the information from Best Western's central reservations system. After consolidating Best Western's information and commission payments with that of other Pegasus participating hotels, Pegasus sends a consolidated commission payment to its member travel agencies worldwide. Payments are delivered in the agency's choice of currency.

Pegasus provides commission processing services to member travel agencies in more than 200 countries, including the 10 largest U.S.-based agencies. By participating in Pegasus Commission Processing (formerly known as "HCC"), most member travel agencies realize a significant growth in commission revenue, as well as cost savings due to a sizable reduction in expenses associated with typical manual methods for managing hotel commissions.

Travel agencies can also elect to receive total automated commission management through Pegasus' Electronic Reconciliation & Tracking service. Pegasus also maintains highly responsive customer service support for travel agencies, with more than 70 percent of commission queries being serviced and satisfactorily answered while agents are on the phone with Pegasus. With the majority of travel agencies worldwide as members and more than 35,000 hotel property participants, Pegasus processes an average of $41 million in travel agent commissions per month on behalf of more than 110 hotel companies in 159 countries.