The Auction for Travelport (A) Harvard Case Solution & Analysis

Senior Director, Blackstone, decides how aggressively bid for Travelport, business travel distribution containing several key services and platforms. Travelport most important properties were Galileo, one of the top 3 global distribution systems (GDS), Cheaptickets and Orbitz, two online travel agencies. Blackstone appeared in the auction against several other large private equity firms with billions of dollars of investment funds. At the auction were to go into the final round of bidding, with offers to $ 4 billion in the previous round. Blackstone Director (Shore) and his team must make three key decisions with regard to Travelport. First, they need to develop a point of view on the structural attractiveness of the tourism industry GDS. Second, they must decide whether Travelport was good business to own and to identify the main sources of its value. In the business-Travelport is composed of many different sub companies that play in different parts of the value chain of travel and some of these sub enterprises are more strategic than others. Third, as with most loans, Travelport will need to maintain a significant amount of debt as a result of the transaction. Chip and his team must make a judgment about the sustainability of the business Travelport and its ability to generate consistent, predictable cash flow to service its debt obligations. "Hide
by Andrew Haji, Michael R. Sanval Source: Harvard Business School 16 pages. Publication Date: April 1, 2010. Prod. #: 710474-PDF-ENG

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