Alliance Data Enters Travel Industry - Analyst Blog


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The Retail Service business of Alliance Data Systems Corporation ( ADS ) inked a long-term deal with Westgate Resorts, to offer private label credit services to the latter. This deal also marks its debut into the travel industry vertical.

Based in Orlando, Florida and founded in 1982, Westgate Resorts is a subsidiary of Central Florida Investments, Inc. This developer has resorts across the U.S.

Per the agreement, Alliance Data will manage online account activation and its after services, offer customized financing options and marketing communications to enable recurring purchases that in turn will build customer loyalty.

Alliance Data will also offer loyalty-related incentives, including a point-per-dollar reward and additional incentive program. Customers will be able to redeem points in exchange of an upgrade in accommodation, concession on facilities available in the resorts, and other special offers.

The Retail Service business of Alliance Data consistently inks multi-year agreements that help it to drive strong operational results. Recently, in mid September, Alliance Data inked a long-term deal with The Talbots, Inc. Per the agreement, Alliance Data will acquire Talbots' present credit card accounts and will also handle private label credit card program. Talbots is a leading specialty retailer and direct marketer of women's apparel, shoes and accessories operating through 516 stores in 46 states and Canada.

The Zacks Consensus Estimate for 2012 is currently pegged at $8.08 per share, representing a year-over-year improvement of 12%. The estimate is shy of the company's guidance of $8.45.

Alliance Data holds a Zacks# 3 Ra(short term Hold rating), indicating no clear directional pressure on the shares over the near term. Discover Financial Services ( DFS ), which closely competes with Alliance Data, currently holds a Zacks # 2 (short term Buy rating) indicating slight upward boost on the shares over the near term.

ALLIANCE DATA (ADS): Free Stock Analysis Report
DISCOVER FIN SV (DFS): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: ADS , DFS

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