By Ben King, 21 May 2002 16:40
NEWS AOL Europe has signed up Travelocity Europe as its exclusive travel partner, prompting a 10 per cent share price drop for its outgoing partner, eBookers. The deal makes Travelocity AOL's exclusive provider of travel services for the UK and Germany, bringing both countries into line with the US where Travelocity is the ISP's partner of choice. An AOL spokesman said the new site will be "more transactional", and that Travelocity had won in an open contest. "We remain open to a partnership with eBookers in the future," he said, but for the moment collaboration with eBookers is at an end. The move is a blow for the UK company, whose shares fell as much as ten per cent from the opening price of 280p in afternoon trading as the news emerged. Nonetheless, eBookers is close to its 52-week high of 300p, having languished as low as 88p. Last week it reported first quarter sales up 43 per cent.
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