Positive Outlook at Budgethotels (BUDH:OTCBB) - New CEO Announces Positive Cash Flow, Expanding Sales
Monday December 8, 9:00 am ET
VANCOUVER, Dec. 8 /PRNewswire-FirstCall/ - Mr. Gary Reagh, President and CEO wishes to announce the following corporate developments:
As a result of changes introduced by management, operating costs have been reduced by approximately $200,000 annually. Based on the current level of sales and cost savings the Company expects to have positive cash flow from operations for the quarter beginning December 1, 2003.
The Company's annual advertising revenues of approximately $550,000, that it earns from its existing advertising and reservation boards, www.infocenter-inc.com, represents less than 30% utilization of the existing boards. To achieve a greater utilization of the boards the Company is in the process of developing a North American network of direct area sales representatives to supplement its existing team of telemarketers.
Budgethotels currently features approximately 600 hotels and other advertisers, that are unique to Budgethotels and aimed at the "budget" online traveler, that pay an annual subscription fee to be on its website www.budgethotels.com. The Company has a target of increasing this number to approximately 5,000 advertisers over the next 18 months.
The Company had a 90 day agreement with a major Hotel Reservation Corporation whereby Budgethotels provided space on various advertising boards and earned a commission on all reservations made from the boards. While the 90 days have expired both companies have continued to operate under the terms of the original agreement and have expanded the relationship to include having all calls made to Budgethotels' 800 number on its website be handled by the major party's call center.
ABOUT BUDGET HOTELS:
Budgethotels Network Inc. provides services for the "budget" traveler through two compatible networks;
(1) Advertising and Reservation Boards; Advertising and commission
revenues are earned by the company through its advertising and
reservation boards, www.infocenter-inc.com, located in major
transportation terminals under long term exclusive agreements with
Amtrak, Greyhound Lines, New York Port Authority and Via Rail.
(2) Online advertising and travel reservations; Advertising and
commission income is earned by the company through its primary
website, www.budgethotels.com, that features more than 45,000 hotels,
motels, bed and breakfast and youth hostels around the world.
Investor Relations, 1.877.633.1337