Sabre's strategy is to focus on retailing and distribution

Sabre says it will “narrow” the number of products and services in its portfolio, as it seeks to focus on retailing and distribution for travel brands.

The company, announcing its third-quarter financial results for 2021, posted a revenue increase of 58% from $278 million in 2020 to $441 million in the corresponding period this year.

The sharp uptick in revenue and an easing of Sabre’s financial state have coincided with continued recovery across the industry.

Sabre’s operating loss decreased, from a $124 million loss in Q3 2020 to a $55 million loss in this year’s Q3. 

Sabre posted a 65% increase in revenue to $390 million in Q3. Hospitality services revenue increased 23% to $55 million.

Despite the revenue increases across the business, global bookings of 54 million through Sabre’s GDS are 62% behind the third quarter of 2019.

Passengers boarded hit 116 million in Q3 but are still 38% lower than in the corresponding quarter in 2019.

Sabre CEO Sean Menke said, “Over the course of this year, our executive leadership team has been taking a critical look at Sabre, challenging norms and re-examining the way we do business. Our review focused on industry trends and technology, current and future capabilities, desired growth and returns, ongoing investment requirements and financial health and flexibility.

“With our strong belief in a broad global travel recovery, we will narrow our product offerings and intensify focus on our core — the customer revenue-generating retailing, distribution and fulfillment aspects of our business — with the goal to accelerate the unlocking of shareholder value.”

A major move in the strategy has already occurred, with Sabre offloading its AirCentre airline operations portfolio for $392.5 million to CAE last week.

Source: PhocusWire

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