FOR IMMEDIATE RELEASE	AT

TUESDAY, FEBRUARY 3, 1998                                                                           (202) 616-2771

                                                                                                                                   TDD (202) 514-1888




JUSTICE DEPARTMENT ALLOWS CREATION AND OPERATION OF A 


TRADE ASSOCIATION TO PROMOTE THE USAGE OF


ON-LINE TRAVEL SERVICES








	WASHINGTON, D.C. -- The Department of Justice today approved
a proposal by 10 on-line travel service providers to create the
Interactive Travel Services Association, a trade association that
would promote the usage of on-line travel services.

	In recent years, a number of firms have begun offering
travel services to consumers who have the ability and interest to
obtain such services on an on-line basis.  The need to promote
greater consumer awareness of the availability of these services
as an alternative to the more traditional types of travel
services, illustrates the principal reason for the proposed
creation of the Interactive Travel Services Association.

	The firms that seek to create an on-line travel services
trade association are:  American Express, Biztravel.com Inc.,
Internet Travel Network, Microsoft Inc., Preview Travel Inc.,
America Online Inc., Excite Inc., Pegasus Systems Inc., Sun
Microsystems, and The Trip.com Inc.  

	In a business review letter issued by the Department, 

Joel I. Klein, Assistant Attorney General in charge of the
Antitrust Division, stated that "to the extent that the
Association confines its activities as proposed, and does not
allow itself or its members to exchange price, customer or other
competitively sensitive information, neither its establishment
nor its activities would raise risks to competition." 

	As proposed, the Association would identify and discuss 
common industry problems, promote consumer protection, educate
consumers and travel suppliers on the features and benefits of
on-line travel services, present industry views to governmental
bodies, serve as an information clearinghouse, and conduct market
research.  

	Membership Companies actively involved in the selling of on-line travel services will be eligible for full membership, other
interested parties, not affiliated with the Association, will be
eligible for associate membership.  An independent Executive
Director will be hired to manage the Association's activities. 
Experienced antitrust counsel will be retained to review the
Association's agendas, meetings and activities to avoid antitrust
risks.  The Association will also develop written antitrust
guidelines as part of an antitrust compliance program.

	The Association will not attempt to influence pricing or
other competitive activities by it members, nor will it attempt
to force members to adhere to positions or standards adopted by
the Association.  The information gathering and research
activities of the Association will be limited so as not to
include any company-specific competitively sensitive information. 
Such information exchanges and market research will be reviewed
by antitrust counsel. The Association currently plans to make its
information and research available to all persons free of charge
through its website.

	Klein also observed that "if the Association is successful
in increasing consumer knowledge of the relative benefits of 

on-line travel services, its actions could increase output and
competition to the benefit of consumers."

	Under the Department's business review procedure, a person
or organization may submit a proposed action to the Antitrust
Division and receive a statement as to whether the Division will
challenge the activity as a violation of federal antitrust laws.

	A file containing the business review request and the
Department's response may be examined in the Antitrust Documents
Group, Suite 215, Liberty Place, 325 7th Street, N.W.,
Washington, D.C.  20530.  After a 30-day waiting period, the
document supporting the business review will be added to the
file.




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