Conglomerate Cendant said Monday it’s considering selling off its travel distribution services division that includes online sites Orbitz and CheapTickets.com, citing interest in the unit from several parties.

The travel services division, which the New York-based conglomerate renamed Travelport last week, also includes ebookers; the travel-booking system Galileo; and Gullivers Travel Associates, a provider of group tours and travel packages. The company is also considering a spin-off.

Last October, Cendant announced plans to split up its travel, real estate, car rental, and hotel businesses (see Cendant Splits Up Businesses). The company also owns the Century 21 and Coldwell Banker real estate business; Avis and Budget car rental businesses; and Wyndham, Ramada, Days Inn, Howard Johnson, and Super 8 hotels.

However, some investors and analysts reacted negatively to simply spinning off the divisions into four publicly traded companies and argued that the company would realize more value by selling off one or more of the divisions.

The company said it has heard from several companies that are now interested in acquiring the travel distribution services (TDS) division. Reportedly among them are private equity firms, including the Blackstone Group.

“As a result of receiving a number of unsolicited indications of interest to acquire TDS, the company has decided to further explore other strategic alternatives for that business,” said Cendant Chairman and CEO Henry Silverman in a statement.

The sale of TDS could bring Cendant about $4 billion, according to Morgan Stanley analyst Christopher P. Gutek.

“We think investors have been too negative on this business, due to near-term weakness in operating performance,” he wrote in a research note. “However, we see an upside scenario for this business emerging in a couple of quarters, as Galileo’s contracts get renewed, as ebookers’ problems get fixed, and as Orbitz continues to generate decent growth.”

Shares of Cendant rose $0.64 to $17.49 in recent trading.

Building Up Management

There are tax advantages to the sale as well.

“The company’s decision to consider a sale in addition to pursuing the spin-off is due, in part, to the fact that a sale of TDS is not expected to result in a material tax liability,” said Mr. Silverman.

Recently, Cendant has enhanced the management team behind the travel division. Last week, the company named Jeff Clarke, the former chief operating officer of Computer Associates and a former Hewlett-Packard and Compaq executive, to run TDS (see Cendant Hires CA, HP Vet).

Last month, the company also hired Gordon Bethune, the former chairman and chief executive of Continental Airlines, as chairman of TDS. The division employs about 8,000 people and operates in nearly 130 countries.

Both of the new executives expressed support for the expanded options for TDS.

“Our decision to join TDS was based upon the opportunity we see in driving growth and value of a highly integrated global travel company,” said Mr. Bethune in a statement. “We believe this can be achieved in either the public or private arena and we are fully supportive of the board’s desire to optimize the value for Cendant shareholders.”

“I am energized about leading this dynamic company as it realizes its potential,” said Mr. Clarke in a statement.

Cendant said it still plans to spin off its real estate holdings, now known as Realogy, and its hotel holdings, known as Wyndham Worldwide, to shareholders. That would result in three separate public companies, including Avis Budget Group, which already operates as an autonomous business, Avis Budget Car Rental LLC.

The company plans to use the net cash proceeds from the sale to reduce the debt it anticipates it will incur from whatever actions it takes with TDS, Realogy, and Wyndham Worldwide.

Cendant has retained Citigroup, JPMorgan, and Evercore Partners as financial advisors in connection with the potential sale of TDS. Citigroup and JPMorgan have also developed a financing proposal for qualified buyers.