Michelle Peluso, 37, who was tapped to lead Travelocity in 2003, said Wednesday that she plans to leave the company effective Feb. 6. Peluso, who has a 4-month-old daughter, lives in New York.

"I?ve been on the road and commuting to Dallas from New York for 10 years now," she said. "So now it?s time to look for something based in New York."

Peluso was 32 when she was given the reins at Travelocity in late 2003. The company was losing money and struggling against rivals Orbitz and Expedia. Peluso engineered a turnaround that included a focus on selling travel packages, upgrading the firm?s Internet offerings, luring global customers and launching a marketing campaign centered on a "traveling gnome" that was photographed at famous tourist sites worldwide.

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