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Sabre Travel Network is driving change to enhance the industry’s most valuable distribution resource.
Changing industry dynamics and weak demand combined to create a difficult environment in 2002 for the Sabre Travel Network business. But the tough times brought out the best in the business. Sabre Travel Network delivered innovative solutions to both airlines and 56,000 travel agency locations that allow them to gain additional value from the Sabre global distribution system (GDS). Known for providing the industry’s most robust travel content – including bookings for more than 400 airlines, 50 car rental companies, approximately 60,000 hotel properties, nine cruise lines, 232 tour operators, ferries, rail and more – Sabre Travel Network expanded its offerings to include new pricing options, new travel merchandising programs and other enhancements, all while reducing operating expenses by more than $170 million.
Delivering Value to Travel Suppliers
The world’s leading airlines count on the Sabre system to provide a low-cost, high-yield distribution channel for the millions of trips they sell to travelers each year. In fact, almost half of all air tickets sold in North America through travel agencies are booked through the Sabre system, and an estimated $80 billion worth of travel-related products are sold annually through the GDS on a worldwide basis.
Many major airlines are struggling today, due to weak demand and rising operating costs. In response, Sabre Travel Network introduced innovative pricing programs in 2002 as part of its ongoing effort to improve the way the Sabre GDS brings travel buyers and sellers together. A case in point: The new Sabre® Direct Connect AvailabilitySM – Three-Year Option. It gives airlines the opportunity to lock in a discounted booking fee for a three-year period when they commit to making their inventory available through the Sabre GDS. The program is a win-win situation for the participating airlines and Sabre Travel Network. It helps airlines by reducing their costs and by providing a greater degree of price stability, and it provides Sabre Travel Network with a long-term commitment and full access to fares from the participating airlines.
Empowering Agenda
Sabre Travel Network also introduced an aggressive plan in 2002 to help U.S. travel agents compete more effectively in the face of sweeping industry changes – such as the elimination of commissions from airlines on tickets, and growing demand from travelers for access to the lowest fares and prices.
Called the Empowering Agenda, this broad-based plan included the launch of powerful new tools, such as the Sabre® MagnifySM suite – a set of yield-management technologies that help travel agencies use their operating data to enhance profits and increase total revenues. Sabre Travel Network also introduced Sabre® Trip Shopping, which allows agents to use the Sabre GDS to quickly and easily build entire trips (air, car, hotel) that combine published rates, negotiated fares and merchant content.
Another key component: The first merchant hotel program exclusively for GDS users – the Sabre® ExclusivesSM preferred hotels program – provides competitively priced hotel inventory to travel agencies through the Sabre GDS. The program got off to a good start: By year-end, about 41,000 room nights had been sold – generating 10 times greater profitability for Sabre Travel Network (on a room night basis) than the traditional booking fee model would have produced. The program also provides a value-add product for travel agency customers looking for great hotel rates. |
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