PEGS Pegasus Solutions (MM)

Services Offered Free on joining Utell by Pegasus(TM) and Unirez by Pegasus(TM) Pegasus Solutions, Inc. (Nasdaq: PEGS) announced that customers for the Utell by Pegasus and Unirez by Pegasus hotel representation services will get free access to extra value-added services. The offer is part of the company's focus on making Internet distribution easier for independent hotels and on helping them increase their revenue and ADR (average daily room-rate). Dallas-based Pegasus is a global leader in providing technology and services to hotels and travel distributors. The offer includes free access to the Pegasus' RateChecker(TM) service for one year and no set-up fee for the Pegasus Internet Booking Engine (IBE). RateChecker allows hotels to monitor and compare competitors' rates online, while the Pegasus NetBookerLink(TM) IBE allows a hotel to receive bookings online from its own Web site and manage its rates through the central reservation system. Gideon Dean, senior vice president of sales for Pegasus, says, "Our Internet services, combined with our competitive pricing, our wide variety of distribution partners and our demand generation activities, demonstrate Pegasus' commitment to giving customers easier access to the kind of services they need to compete in today's increasingly competitive online business environment." Dean noted that a recent study by Jupiter Research said that online travel bookings in the U.S. grew by 25 percent over the past year and that consumers are booking more than half of their travel this year directly on supplier Web sites. "Worldwide, the growth is even greater," he said citing PhoCusWright data that shows international gross bookings for online travel agencies increasing by 115 percent so far this year. "By providing accessible and cost-effective ways to reach potential guests, no matter where they are, we are arming our hotel customers with what they need to compete as well as actually increase their ADR and overall revenue," he added. Utell by Pegasus hotels, which have access to state-of-the-art technology and a wealth of promotional programs, will also benefit from new and innovative proprietary tools that Pegasus has developed to allow hotels to monitor rates and review distribution with their account service managers. "These tools give us better insight into our customers' businesses and can help drive more reservations and revenue," Dean said. "We understand that just hooking up hotels to distribution channels is not enough. It takes continuous analysis and knowledge of the dynamics of the market to make a real difference." Josep Cortes, group revenue manager for Silken Hotels, agrees. "The new review tools used by the account services managers at Utell by Pegasus allow them to spend even more time with my hotel on critical business activities such as analyzing rate integrity issues and identifying new sales opportunities. Pegasus continues to develop their service levels to what hoteliers really need and care about," he said. Dean noted that the company's own data from 2004 shows that hotels who used the Utell by Pegasus representation service received 30 percent more reservations resulting in 70 percent more revenue than non-member hotels. "Active demand generation through our experience and influence does pay off for our Utell by Pegasus member hotels," Dean concluded. At the same time, the Unirez by Pegasus global portfolio's average reservation value has increased by nearly 20% in 2005, Dean said. More recent data shows that Utell by Pegasus hotels in the United States have increased their ADR by 9.2 percent year-to-date in 2005 versus 2004; those in the United Kingdom saw a four percent increase; in France, there was a 3.8 percent increase; in India the increase was 23 percent; and in Singapore 15 percent. Visit Pegasus Solutions at WTM, London at stand #GV3400. About Pegasus Dallas-based Pegasus Solutions, Inc. (Nasdaq: PEGS) is a global leader in providing technology and services to hotels and travel distributors. Founded in 1989, Pegasus' customers include a majority of the world's travel agencies and more than 60,000 hotel properties around the globe. Pegasus' services include central reservation systems, electronic distribution services, commission processing and payment services, and marketing representation services, including the consumer Web site, www.hotelbook.com(TM). The company's representation services, including Utell by Pegasus(TM) and Unirez by Pegasus(TM), are used by nearly 7,000 member hotels in 140 countries, making Pegasus the hotel industry's largest third-party marketing and reservations provider. Pegasus has 18 offices in 13 countries, including regional hubs in London, Scottsdale and Singapore. For more information, please visit www.pegs.com.