The Confirm Project: A Failed Strategic Alliance.

‘The CONFIRM Project: A Failed Strategic Alliance’


In 1988, a conglomerate of Hilton Hotels Corporation, Marriott Corporation and Budget Rent-A-Car Corporation subcontracted a large scale project to AMR Information Systems Inc, an auxiliary of American Airlines Corporation. The consultant firm was to develop a new information system called CONFIRM. CONFIRM was intended to be a leading edge travel reservation program, combining airline, rental car and hotel reservation. ‘Intrico’, a new organisation, was established to exclusively run the system. When the developed system was tested major problems arose. Due to malfunctions the project was consequently delayed by 18 months. After three years and $125 million of investor funds the problems in the project were found to be unsolvable and therefore the project was canned.
Max Hopper, American Airlines Information Services chief believed CONFIRM management did not express the true status of the project in a timely manner. Inv...