Orbitz CEO wants to spur bookings, grow overseas

By Kyle Peterson

CHICAGO (Reuters) - Online travel agencies must find ways to bolster bookings and expand their global reach in order to weather the painful economic recession that is crimping travel demand, Orbitz Worldwide's new CEO said on Wednesday.

"The opportunity on the international side really is immense," Barney Harford told Reuters in an interview.

Earlier on Wednesday, Orbitz named Harford, 37, to the chief executive post, replacing 47-year-old Steve Barnhart. Barnhart, who had led the company since it went public in July 2007, will remain with Orbitz until April.

Harford has worked in the Internet travel business at rival Expedia Inc, where from 2004 to 2006 he was president of Expedia Asia Pacific.

Harford declined to specify how business might change under his leadership, but said he would apply his experience of building Expedia's international operations.

Jeff Clarke, chairman of the Orbitz's board of directors, told Reuters the board decided that Orbitz needed a CEO with more "global operational experience."

Online travel agencies are racing to expand operations in Europe and Asia to tap into growing travel markets and to diversify their own businesses to cope with economic turmoil. Some experts say Orbitz has lagged rivals in this race.

"They're picking a guy obviously from Expedia who was in charge of their Asia operations," said Morningstar analyst Warren Miller.

The move, he said, shows Orbitz is "getting serious about expanding into the international space."

Harford said travel suppliers like hotels airlines are in great need of creative ideas to spur bookings.

"Clearly the industry and, in general, the economy is going through a significant recession right now," he said.

"Right now, this is a time in the current economic downturn when our supplier partners really need help," he said.

The online travel company also announced on Wednesday additional annual cost cuts of between $20 million and $25 million.

Orbitz owns several brands, including pan European online travel agency ebookers.com. Other holdings include travel site Orbitz.com, CheapTickets and HotelClub.

The company, which posted a third-quarter loss in November, has seen shares fall by more than 70 percent since it went public. The industry has seen more suffering since last year amid economic weakness and airline capacity cuts.