SOUTHLAKE, Texas and LISBON, Portugal - Sabre (NASDAQ:SABR) Corporation (NASDAQ: SABR), a key player in travel technology, and TAP Air Portugal, Portugal's flagship carrier, have announced an expanded distribution partnership. Sabre-connected travel agents now have the ability to integrate TAP Air Portugal's New Distribution Capability (NDC) offers into their booking options, marking a significant advancement in airline retailing.
The enhanced agreement allows for immediate activation requests by travel agents for TAP Air Portugal's NDC offers, which will be presented alongside the airline's standard EDIFACT content. This integration aims to provide a modern and efficient booking experience for both agents and travelers worldwide.
Justin Jovignot, Director of Distribution and Commercial Strategy at TAP Air Portugal, expressed enthusiasm about the collaboration with Sabre, emphasizing the importance of travel agents in the airline's success and the commitment to providing them with the necessary tools for top-notch service.
Travel agents connected to Sabre will benefit from a broader selection of booking options, accessing NDC content via Sabre's Offer and Order APIs, Sabre Red 360, and the corporate booking tool, GetThere. This move is part of the travel industry's shift towards more personalized travel experiences through NDC, a standard that allows airlines to tailor their offerings more effectively.
Alessandro Ciancimino, Vice President of Airline Distribution for EMEA at Sabre Travel Solutions, highlighted the agreement as evidence of Sabre's dedication to supplying agents with diverse content sources through their Global Distribution System (GDS), enhancing travel experiences and operational efficiency.
The partnership builds upon a long-standing relationship between the two companies and underscores the ongoing transformation in airline retailing. Sabre's marketplace is a hub for thousands of agencies in over 150 countries that shop, book, and manage NDC content.
This expanded distribution agreement is based on a press release statement and reflects the continuous efforts by Sabre and TAP Air Portugal to innovate within the travel sector, striving to offer improved services and experiences to customers globally.
In other recent news, Serko Limited is set to acquire GetThere from Sabre Corporation, a move aimed at expanding its presence in the corporate travel sector. The acquisition is part of a broader partnership that includes collaborative development and investment efforts. Sabre Corporation has reported strong Q2 2024 financial results, surpassing its revenue and adjusted EBITDA guidance, and generated positive free cash flow for the first time in five years. Consequently, Sabre has revised its full-year 2024 revenue and adjusted EBITDA outlook upwards.
On the partnership front, Sabre has entered into a distribution agreement with Premier Inn, adding over 900 of their hotels to Sabre's lodging platform. The company also teamed up with World Travel, Inc., to provide a broader selection of travel options, and with LOTTE HOTELS & RESORTS to enhance the hotel group's reservation and distribution systems.
In terms of executive changes, Sabre appointed Rochelle Boas as the new Executive Vice President and Chief Legal Officer, following Ann Bruder's departure. The board size was reduced from ten to nine directors due to Gregg Saretsky's resignation. Eric L. Kelly, with his extensive tech industry experience, was appointed to Sabre's Board of Directors. These are recent developments in Sabre Corporation.
InvestingPro Insights
Sabre Corporation's expanded partnership with TAP Air Portugal comes at a time when the company is showing mixed financial signals. According to InvestingPro data, Sabre's revenue for the last twelve months as of Q2 2023 stood at $2.98 billion, with a revenue growth of 7.31% over the same period. This growth aligns with the company's strategic moves to enhance its distribution capabilities and partnerships.
One of the InvestingPro Tips highlights Sabre's impressive gross profit margins, which is reflected in the data showing a gross profit margin of 59.47% for the last twelve months as of Q2 2023. This strong margin suggests that Sabre maintains efficient operations in its core business, which could be further bolstered by the expanded NDC offerings with TAP Air Portugal.
However, investors should note that despite recent positive developments, Sabre faces some challenges. Another InvestingPro Tip indicates that analysts do not anticipate the company to be profitable this year. This is consistent with the reported negative earnings per share of -$1.21 for the last twelve months as of Q2 2023.
The stock has shown significant volatility, with a notable 40.77% price return over the past six months. This volatility could be attributed to the ongoing transformation in the travel technology sector and Sabre's efforts to adapt to new distribution standards like NDC.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 5 more InvestingPro Tips available for Sabre Corporation, which could provide valuable context for understanding the company's financial health and market position in light of this new partnership.
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