Pegasus Solutions
Corporate Headquarters
Campbell Centre I
8350 North Central Expressway
Suite 1900
Dallas, TX 75206 USA

Fon: +1 (214) 234 4000
Fax: +1 (214) 234 4040

Management Team (Aug 2008):
Michael H. Kistner, Chief Executive Officer
W.C. Hammett, Jr., Chief Financial Officer
Mark S. Dubrow, President, Financial Services
Ric Leutwyler, President, Representation Services
Chris Klimko, Senior Vice President and General Counsel
David Chestler, Senior Vice President, Corporate Business Development
Chip Rosales, Vice President, Corporate Marketing and Communications
Andrew Stringer, Vice President, Human Resources
(Note: Pegasus Solutions Inc. announced 10 Jun 2008 that founder and chief executive John F. Davis steps down to pursue other opportunities)

Privately owned by Prides Capital Partners, L.L.C., Tudor Investment Corp. and Belfer Management
Headquarter: Dallas, Texas, USA
Offices: 16 offices in 11 countries, including regional hubs in London, Singapore and Scottsdale, Arizona.
Domains: www.pegs.com

Revenues: USD 175.5m (2005); USD 185.4m (2004); USD 166.2m (2003); USD 183.4m (2002); USD 188.1m (2001)
"The 19-year-old company earned USD 180 million in revenue in 2007" (Source: Dallasnews)
Net profit/loss (+/-): USD -7.7m (2005); USD +8.0m (2004); USD -1.8m (2003); USD -3.5m (2002); USD -29.7m (2001)
Total stockholders’ equity: USD 174.1m (2005); USD 187.3m (2004); USD 228.7m (2003); USD 225.9m (2002); USD 231.2m (2001)
Source: SEC Info
Number of employees: 1'049 (28 Feb 2006)

In 2005 Pegasus was acquired in a USD 275m public-to-private buyout by Prides Capital, Tudor Investment Corp. and Belfer Management (press release)

Pegasus Solutions, Inc. is a global leader in providing technology and services to hotels and travel distributors. Pegasus’ customers include a majority of the world’s travel agencies and more than 78,000 hotel properties around the globe. Pegasus’ services include
- central reservation systems
- electronic distribution services
- commission processing
- payment services
- marketing representation services

Pegasus Solutions runs an own consumer web site, www.hotelbook.com, and has build a large portfolio of connected web sites. Minotel has listed some connected IDS:
Pegasus_Affiliates 103.0 Kb Source: http://www.minotel.de/Download/Membership/PegasusPlattformen.pdf

The company’s representation services, including Utell® Hotels & Resorts and Unirez by Pegasus™, are used by more than 9,300 member hotels in more than 130 countries, making Pegasus the hotel industry’s largest third-party marketing and reservations provider.
Pegasus Fastfacts 418.8 Kb

Revenues and Competition:
Pegasus informed its shareholders about their revenues and competition in 2005:

Representation Services (42% of revenue).
We offer a variety of hotel representation services to independent hotels and small hotel groups through our Utell by Pegasus and Unirez by Pegasus services. Representation services revenues primarily consist of reservation processing fees, membership fees and fees for various marketing services.
Our hotel representation services compete with other providers of distribution, sales and marketing services, including hotel groups, franchisors, reservation companies and other travel or hotel representation companies. Our primary competitors offering hotel representation services are Vantis/ TravelCLICK Inc., SHS-WorldHotels, Supranational Hotels, SynXis Corporation, Sceptre Hospitality Resources, and TransHotel. Hotelbook.com competes primarily with proprietary websites for independent hotel groups.

Reservation Services (21% of revenue).
We provide CRS services on an ASP basis. Reservation services revenues consist of transaction fees as well as maintenance, voice services, and support fees related to our RezView CRS software.
Our reservation services compete with hotel companies that develop and host their own CRSs and third parties that provide CRS and related services under a license agreement or as an ASP. Our reservation service competitors include TRUST International (subsidiary of Cendant Corporation), SynXis Corporation (subsidiary of Sabre Holdings Corporation), TravelCLICK Inc. and MICROS Systems, Inc.

Distribution Services (17% of revenue).
Our distribution services provide the connections and interfaces that enable hotels to distribute their rates and inventory to — and receive reservations from — the four GDSs used by travel agencies worldwide, a growing number of tour operators, wholesalers, and a variety of Internet sites Powered by Pegasus. Distribution services revenues primarily consist of transaction fees, commissions and monthly subscription or maintenance fees. In addition, new hotel customers typically pay a one-time fee for establishing the connection between the hotel’s central reservation system and the electronic distribution technology. New third-party Internet site customers typically pay a one-time fee for establishing the connection between the third-party Internet site and our electronic distribution technology, which is amortized over the related contract period.
Pegasus’ distribution services support a variety of distribution channels, each with its own competition. For example:
• GDS connectivity — Our GDS connectivity service competes primarily with WizCom International, Ltd. (subsidiary of Cendant Corporation). Customers may change their electronic reservation interface to WizCom or to another similar service. Also, some hotels have established a direct connection to one or more GDSs rather than through an intermediary, such as Pegasus or WizCom. Other hotels may choose to take the same action. If hotels establish this direct connection, they would bypass our intermediary position and eliminate the need to pay our fees. However, the cost to maintain a separate connection to each GDS is typically more costly than maintaining a single connection to Pegasus.
• Third-party and hotel Internet sites — Our online distribution services face competition in the online hotel room reservation business from GDSs, middleware providers and Internet sites establishing direct connections to a hotel chain’s CRS. Middleware provider competitors are Internet site development companies that could develop an interface directly between a hotel’s property system and a travel Internet site or an interface between a hotel company’s CRS and a travel Internet site. Hotels have been increasingly promoting the use of their own Internet sites. The cost of entry into the Internet hotel room reservation business is relatively low. However, the cost to maintain a separate connection to each Internet site is typically more costly than maintaining a single connection to Pegasus.
• PegsTour™ — Our PegsTour service faces competition primarily from tour operators who continue to maintain their current manual processes to manage this business versus the automated approach we offer with PegsTour. Cendant Corporation also offers a similar service.

Financial Services (20% of revenue).
Our financial services provide comprehensive commission processing and payment solutions to hotels, other travel suppliers and travel agencies. Financial services revenues consist of both travel agency and hotel fees. Travel agency fees are based on a percentage of the value of hotel commissions processed by us on behalf of participating travel agencies. Revenues from travel agency fees can vary substantially from period to period based on the demand for hotel rooms, the types of hotels (such as upscale or economy) at which reservations are made and fluctuations in overall room rates and foreign currency exchange rates. In addition, some participating hotels generally pay fees based on the number of commissionable transactions that Pegasus processes for the hotel.
Our commission processing service faces competition principally from Perot Systems, Inc.
Source: SEC Info

Pegasus Solutions acquires Wizcom Inc.
In Apr 2007 Pegasus Solutions, a provider of technology and services to hotels and travel distributors, announced that it has acquired its long time competitor Wizcom Inc. (press release). The seller is Travelport Holdings Ltd., which is owned by The Blackstone Group. This acquisition brings two major reservations "switches" together and makes Pegasus the sole provider of switch services in hotel distribution. .

Company History
2006 Pegasus announced its acquisition by Prides Capital Partners, L.L.C. returning the company to private status.
2005 Pegasus announces it is exiting the property management system (PMS) business.
2005 Pegasus Solutions expands presence in Asia-Pacific region and opens an office in central Beijing.
2004 Pegasus Solutions sells its ownership stake in Travelweb LLC.
2003 Pegasus Solutions acquires Unirez, a leading hotel reservation distribution company that delivers lower cost, connectivity-only representation services to independent hotels and small groups.
2003 Pegasus Solutions completes private placement of 3.875 percent convertible senior notes with an aggregate principal amount of $75 million.
2002 Pegasus Solutions invests in Travelweb LLC, a new company created to automate and offer net rates through online travel sites such as Orbitz.
2001 Pegasus Solutions launches PegasusCentral, the industry’s first Web-based hospitality management service available on an ASP basis.
2001 Pegasus Solutions acquires GETS LLC.
2000 Pegasus Systems acquires REZsolutions and changes its name to Pegasus Solutions.
1999 Pegasus Systems’ follow-on stock offering raises $84.4 million.
1998 Utell International and Anasazi merge to form REZsolutions, Inc.
1998 Pegasus Systems completes secondary stock offering, raising $4.2 million.
1997 Pegasus Systems completes IPO raising $40.5 million.
1996 Hotelbook.com is launched by Utell International.
1994 TravelWeb is launched as the first online Web site for real-time hotel reservations.
1992 Hotel Clearing Corporation (HCC) is founded. Pegasus Commission Processing is introduced as the industry’s first hotel commission clearinghouse.
1989 Pegasus Electronic Distribution switch technology is launched, providing the first electronic link between hotel central reservation systems and major airline global distribution systems.
1988 The Hotel Industry Switch Company (THISCO) is founded by some of the largest hotel chains. They develop a universal electronic reservations system for global connectivity.
1930 Henry Utell forms Utell International to provide representation services to hotels. The Utell by Pegasus service is now the world’s largest hotel representation service.

Source: www.pegs.com