Refer-It.com Interview with Internet Travel Network

COMPANY BACKGROUND

ITN is the leader and pioneer in developing and marketing online travel reservation systems. In 1996 we were the first company ever to offer consumers a way to research, confirm and purchase their travel reservations online using any common web browser. Today, ITN employs over 100 people and is the back-end booking system for 95% of the web sites who offer real-time travel reservation services on the web. ITN has 4 basic products. Our popular public web sites (www.itn.net) is one of the largest travel sites on the web with over 4 million registered users. ITN also markets and sells ITN Agent, a private label travel booking system for travel agencies who conduct business online. ITN also offers airlines and large corporations a complete solution for automating travel bookings and managing a corporation's travel planning and expense processes. ITN has also partnered with the leading web sites on the Internet to help these companies add transactional revenue to their overall revenue streams and include real-time travel reservation services in their overall content offering.

2. For the overall website, what e-commerce package did you use to build your site? Was it off the shelf, or custom? Are you happy with it?

Although we utilize Netscape Commerce Server, all of ITN's software is built in-house by a great team of engineers who focus entirely on travel transaction processing and development.

3. Who did you use to establish your merchant accounts? Secure transactions, etc.?

The processing of credit cards and payments are physically handled by the airlines themselves through a network called the CRS (Computer Reservation System). All billing is handled and settled through a company called the ARC (Airline Reporting Company)

BUILDING THE PROGRAM

4. Can you tell us how the decision to create a revenue sharing program came about? Who were the decision makers in the process? Did you face resistance from certain departments at the company?

Prior to having a revenue sharing product, ITN simply licensed its product to other travel companies and only worked with them to market our service. We decided that no one knew our product or the Internet better than we did, so we opened a fulfillment center at our headquarters and began fulfilling our own travel requests. Owning our technology, combined with our Internet marketing expertise, gave us a distinct advantage to gain new customers and partners by integrating our product, a transaction system, into a potentially unlimited number of content sites. Travel being the leading Internet industry that it is, meant that hundreds if not thousands of travel sites would have an interest in combining content with a sophisticated travel purchasing system.

5. Can you describe the actual process of building the program. Who was involved in the organization. How long did it take? How did you decide on what it would look like? What other affiliate programs did you look at before designing yours?

The software and company were started by 3 young co-founders who wanted to revolutionize the way consumers purchased their travel online. We operate in a UNIX environment. Our system connects with the networks and data systems owned by airlines and hotel companies. These systems keep fares updated and track inventory. ITN repurposes the data in a user-friendly format and allows the transaction to take place. Customer demand and request have been a primary motivator in the development of our product.

6. What is your distribution strategy for signing-up affiliate partners? Only big sites (min. number of page views)? Only certain content? Only a particular demographic? Do you proactively find them, or do they find you? How does this process happen?

ITN markets directly to web sites and through its own web site. A solid press release strategy and PR-related communications help generate interest, but really this product seems to generate interest and ideas from partners on its own.

7. Can you describe the details of the program? Percentage or flat fee? Just the first purchase, or repeat visits? What does the "fine print" of the contract say?

Since this is a bit more involved than your average Associates or Referral program, we actually charge a minimal set-up fee to cover the cost of customization and the set-up of an entirely customized booking system. ITN then pays its partners 20% of the actual commission received for each reservation finalized through the partner's site. Since we set up an actual web site, partners are paid for all reservations the originate from that site alone. Since ITN has so many partner sites in activity we only pay for the business that the partner is directly able to generate from their site. This also counts for both first and repeat visits, but again, only to the partner's actual site.

8. Describe briefly the tracking mechanism that you use to credit affiliates -- the technology and the process. Was this developed in-house? Who developed your affiliate contract?

The tracking system was developed in-house as with our software. Our contract was developed by our legal department.

9. What mistakes did you make early on that you would now avoid? Any "happy" surprises along the way?

A few mischoices in partners, but in general we've not made a lot of mistakes.

CURRENT AND FUTURE SCENARIO

10. How successful has the program been to date? How many affiliates do you have (can you name some). What percentage of your online revenue do they account for?

Very successful, both as a mechanism for increasing transactions, as well as for extending our brand. Some of our better known partners include CNN Interactive, Rand McNally, CMPNet and CitySearch.

11. What long-term role do you see the affiliate program playing in your company? What role do you think it will have in the Industry - what does it mean for the growth of e-commerce, the impact on retailing offline, and the standard ad impression rates for banners?

It will continue to play a major role in the way we as a company grow our business and reach new users.

12. What value, if any, is there in a site such as Refer-it.com? What other sites/ news information sources do you use to keep abreast of your industry? Are there any conferences you attend that are "must sees"?

We shall see. It's a good idea, comprehensive and has a lot of potential. Certainly there are thousands of affiliate programs on the web, Refer-it does a great job of cataloguing them for the would-be affiliate and entrepreneur interested in achieving success on the web.

--- Copyright (c) 1999. Up-Set. All rights reserved.

Contact: Cynthia A. Aylward
Refer-it.com
V.P. Marketing
http://www.refer-it.com
(212) 634-6199