Newtrade Technologies

Newtrade Technologies Inc. was a Montreal-based technology firm founded in 1997 by Benoit Jolin and Frederic Lalonde. The founders, who had been consulting for Bell Canada, identified a significant inefficiency in the burgeoning online travel industry. At the time, booking confirmations between online travel agencies like Expedia and hotels were conducted manually, primarily through faxes, leading to a lack of automation and real-time connectivity.

The company developed software and provided integration services to bridge the gap between hotel reservation systems and electronic distribution channels. Its core product utilized XML interfaces compliant with OpenTravel Alliance (OTA) standards to automate the exchange of rates and availability. This enabled hotels to manage their inventory and pricing across multiple distribution points, including Global Distribution Systems (GDSs) and online travel agencies, from a single connection point. The solution targeted the hospitality industry, aiming to replace inefficient manual processes with a streamlined, automated system that reduced operating costs and improved control over inventory.

Newtrade's business model focused on providing these connectivity solutions as a service, handling the complexities of software, hardware, and networking for its clients. The firm successfully raised $7 million in two financing rounds, with backing from Canadian venture capital firms including Innovatech du Grand Montréal and Investissement Desjardins. This funding supported its growth to approximately 60-70 employees. In October 2002, recognizing the strategic value of its technology, Expedia, Inc. acquired substantially all of Newtrade's assets, making it Expedia's first pure technology acquisition. The acquisition aimed to enhance Expedia's relationships with its merchant hotel partners by providing them with superior connectivity. Following the acquisition, the Newtrade team and its technology continued to operate from Montreal as a core part of Expedia's platform.

Keywords: travel technology, hospitality software, hotel distribution, online travel agency connectivity, CRS integration, GDS connectivity, reservation systems, inventory management, rate management, OpenTravel Alliance, XML interface, travel commerce, Benoit Jolin, Frederic Lalonde, Expedia acquisition, hospitality automation, e-commerce platform, travel industry software, property management systems, electronic distribution channels