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Euromonitor International : Global Company Profile

February 2009
Sabre Corp - Travel and Tourism                                                                                                                                               World




List of Contents and Tables
         Strategic Evaluation................................................................................................................................................ 1
         SWOT analysis.......................................................................................................................................................... 1

         12 Month Highlights ............................................................................................................................................... 2
         2007-2008 ................................................................................................................................................................. 2

         Prospects for Sabre Corp in Travel & Tourism ................................................................................................... 4
         Core Businesses ........................................................................................................................................................ 4
         Growth Opportunities ............................................................................................................................................... 4
         Limited Potential....................................................................................................................................................... 5
                  Table 1             Sabre Corp: World Sector Sales Performance 2007 .......................................................... 5
                  Table 2             Sabre Corp: Travel Retail Products Regional Sales Performance 2007............................. 5

         Company Strategy .................................................................................................................................................. 6
         Strategic Objectives and Challenges......................................................................................................................... 6
         Ownership Events ..................................................................................................................................................... 7
                   Table 3          Sabre Corp: World Shares & Rankings in Travel & Tourism by Sector 2006-
                                    2007................................................................................................................................... 7
                   Table 4          Sabre Corp: World & Regional Shares in Travel & Tourism by Sector 2007 ................... 8

         Company Structure ................................................................................................................................................ 8
         Sabre Corp................................................................................................................................................................ 8
                  Summary 1             Sabre Corp: Travel & Tourism Key Facts ......................................................................... 8
         Production and Distribution ..................................................................................................................................... 8

         Brand Assessment ................................................................................................................................................... 8
         Brand Strategy .......................................................................................................................................................... 9
         Travelocity ................................................................................................................................................................ 9
         Sabre Airline Solutions ............................................................................................................................................. 9
         Sabre Travel Network ............................................................................................................................................. 10

         Appendices............................................................................................................................................................. 10
         Financial Summary................................................................................................................................................. 10
                  Table 5              Sabre Corp: Financial Summary 2003-2007.................................................................... 10
         Company Background............................................................................................................................................. 10
                  Summary 2            Sabre Corp: Historical Development............................................................................... 10
                  Summary 3            Sabre Corp: Subsidiaries 2007......................................................................................... 15
                  Summary 4            Sabre Corp: Travel & Tourism Brands 2007 ................................................................... 16
                  Summary 5            Sabre Corp: Company Locations..................................................................................... 16
                  Summary 6            Sabre Corp: Websites ...................................................................................................... 16




 Euromonitor International                                                                                                                                               Page        i
Sabre Corp - Travel and Tourism                                                                              World




SABRE CORP

STRATEGIC EVALUATION
SWOT analysis
Strengths
•   Innovation – Sabre Corp is continuously innovating to provide clients with the best products available. In
    2008, it was no different, with the GDS provider introducing a wide variety of products and services
    through its business segments – Travelocity, Sabre Travel Network and Sabre Airline Solutions. In
    September 2008, for example, the online travel retailer launched the SabreSonic Customer Sales and
    Service (CSS) solution, which combines customer-focused solutions and revenue generation in every
    distribution channel.
•   Geographic expansion – Sabre has successfully enhanced its presence in emerging markets by entering new
    business contracts with local travel suppliers and establishing customer support centres to bring the GDS
    provider closer to its customers around the world.
•   Business synergies – Sabre has managed to create significant businesses synergies within its three business
    segments, Travelocity, Sabre Travel Network and Sabre Airline Solutions through the offer of unique but,
    at the same time, highly related products and services.
•   Product/Service diversification – aside from GDS, Travelocity has managed to diversify its business into
    different types of technological services to enhance overall customer loyalty. It partnered with Frommer’s
    to offer travel destination guides and introduced a new loyalty programme that provides customers with
    automatic access to various perks, such as priority customer service and exclusive discounts. It was the first
    major online agency to do so.

Weaknesses
•   Single market approach – Sabre is heavily reliant on travel and tourism, making it sensitive to a downturn
    in the fortunes of the market.
•   Reliance on domestic market – despite a growing international presence, Sabre remains significantly biased
    towards North America. This is a very concerning factor, particularly as the US online travel retail market
    is widely regarded as being close to saturation.
•   Fee increases – early in 2008, Travelocity quietly increased booking fees while competitors like Priceline
    and Hotwire eliminated all of them. This has placed great pressure on the online travel retailer to deliver
    superior customer service and wider product offering.

Opportunities
•   Fast growth in emerging markets – strong economic growth, improvements to travel infrastructures,
    expanding middle classes and rising numbers of foreign business and leisure travellers are combining to
    drive strong growth in Asia, thus creating opportunities for Sabre to expand its geographic coverage. In
    2007-2008 Sabre established a significant platform with the acquisition of Zuji.
•   Increased transportation integration – code share as well as interline agreements between rail and air
    transportation provide a wide range of opportunities to further develop the Sabre GDS System.
•   Industry focus on operating efficiency – the growing pressure on travel and tourism companies to cut costs
    and improve operational efficiency is generating demand for a broad range of IT solutions of the kind
    developed and marketed by Sabre.
•   Demand for customisation – the growing consumer demand for travel products tailored to particular
    requirements is creating opportunities for more sophisticated IT solution products, particularly those with a
    broad coverage of the travel and tourism industry. This is creating opportunities for mainstream players
    such as Travelocity to develop strong niche categories, such as "ethical tourism”.




 Euromonitor International                                                                               Page    1
Sabre Corp - Travel and Tourism                                                                                 World




•   LCCs entering GDS agreements – GDSs are known for having large travel retail clients serving
    corporations as many business travellers must book through this channel due to company policy. This has
    presented an enormous opportunity for growth, particularly as low-cost carriers entered into GDS
    agreements to target business travellers more agressively and help corporate travel clients to minimise
    travel costs.
•   Technology – increased household penetration of computers, wider access to broadband and Wi-Fi
    technology and increased internet availability through devices such as mobile phones are set to drive strong
    growth in online travel retail through 2012.

Threats
•   Fierce competition – the pressure to reduce costs in the travel and tourism industry is likely to lead to
    pricing competition and fierce contract renegotiation amongst the major industry suppliers and GDS
    solutions players.
•   Cost-cutting measures – the pressure to reduce costs is keeping travel and tourism businesses from spending
    money and upgrading IT solutions. This presents a major problem for Sabre, as it struggles to show clients
    that radical cost-cutting measures that completely exclude the purchase of IT and GDS solutions are not the
    best alternative at times of crisis given it drives down revenues.
•   Consumer confidence – general economic and business conditions which adversely impact the income
    levels of potential travellers, both leisure and business, coupled with a rising lack of confidence in strong
    markets like the US, can have a negative impact on Sabre’s operations.
•   Consumer loyalty – the fact that travel and tourism businesses are less likely to switch IT and GDS solution
    services should present a major challenge for Sabre as it further develops its presence across the world,
    particulary in Europe where Amadeus has a strong lead.
•   Potential downturns in air travel – rising fuel prices, environmental concerns, political instability, terrorist
    threats and economic downturns all have the potential to dampen the performance of the air travel market,
    which generates significant revenue for Sabre.
•   Independent travel solutions – Sabre is set to face intense and increasing competition to win new contracts
    and renew established ones, both from established major rivals and new competitors. Some travel suppliers,
    including airlines, hotels, car rental companies and cruise operators, are looking to reduce their reliance on
    distribution intermediaries by establishing their own call centres and travel distribution websites.


12 MONTH HIGHLIGHTS
2007-2008
•   In November 2008, United Airlines signed a 2-year extension of its full-content agreement with Sabre,
    which ensures full United content in its GDS system through 2013. The extension of the distribution
    agreement guarantees the availability of all United Airlines’s published fares and inventory through the
    Sabre GDS, including online and offline travel agencies. According to company sources, this includes
    published fares that United sells through any third party website and through its own website and
    reservation offices.
•   In an attempt to further enhance its customer service, Sabre opened a brand new support centre in
    Bangalore, India, in late 2008. Expected to be fully operational by January 2009, the new centre is set to
    complement the current customer care centre in Montevideo, Uruguay.
•   In October 2008, SynXis, a Sabre business that provides hotel distribution and internet marketing services
    globally, announced that it had certified direct booking connections to two Asian Pacific meta-search
    engines: Qunar.com and Wego.com (formerly Bezurk.com). The initiative gives SynXis customers the
    opportunity to enhance travel accommodation bookings in Asia Pacific.
•   Earlier in 2008, SynXis announced the completion of two significant technology projects involving the
    conversion of the SynXis RedX platform to an Oracle database management system as well as the
    migration to a new data centre. The initiate further consolidates its platform to support the rapid customer
    growth expected for the upcoming years.



 Euromonitor International                                                                                  Page      2
Sabre Corp - Travel and Tourism                                                                               World




•   Sabre also introduced new reporting features through its Traveler Security and Data Suite (TSDS) in
    October 2008, which allows users to better manage supplier tracking, negotiate and monitor policy
    compliance.
•   Sabre and Emirates signed a 10-year global airline distribution agreement in September 2008. The
    agreement provides Sabre Connected travel agencies and corporations around the world with access to
    Emirates’s full content fares through the Sabre GDS.
•   In September 2008, Sabre acquired Flight Explorer, a leading provider of Commercial Aircraft Situation
    Display (ASD) solutions. The acquisition reinforces the continued development and investments of the
    Sabre airline portfolio. By doing so, the GDS provider enables airlines to optimise operational efficiencies.
•   Sabre launched the SabreSonic Customer Sales and Service (CSS) solution in September 2008. The new
    solution combines customer-focused solutions and revenue generation in every distribution channel. In
    2008, a number of airlines adhered to SabreSonic solutions including Wataniya Airways, Varig and
    Vietnam Airlines.
•   In August 2008, Sabre introduced another merchandising first through its Air Merchandising Suite,
    providing upsell capabilities that further enhance customer experience and drive revenue performance.
•   As the use of mobile devices takes off, travel and tourism businesses further capitalise on their potential to
    enhance travel-related services. In August 2008, Sabre introduced a brand new Mobile Check-in Solution,
    which not only allows passengers to check-in for a flight but also select their seats, using a web-enabled
    mobile phone.
•   In July 2008, Sabre acquired BidStork, a web-based application that creates, delivers and manages hotel
    requests for proposals (RFPs). The initiate allows hoteliers, corporations and their travel management
    companies to efficiently negotiate rates online.
•   SynXis launched a call centre in Singapore, further enhancing its presence in the Asia Pacific region in June
    2008.
•   In May 2008, a Vatican-based travel organisation Opera Romana Pellegrinaggi (ORP) selected Sabre to
    create new opportunities for travellers to visit Rome and other holy destinations in Europe. ORP already
    organises pilgrimages and holy tour packages around Europe and chose Sabre to boost its online presence
    by facilitating the shopping and booking of travel through its website.
•   Leonardo Hotels, a brand new player in the midscale travel accommodation market in Europe, adhered to
    SynXis in May 2008 to enhance its overall distribution. According to company sources, the switch was very
    successful, given that in only four months its Munich properties received more GDS and IDS bookings than
    they did in all of 2007.
•   Sabre expanded its agreement with Lufthansa and SWISS in May 2008. This has come to benefit agents in
    Germany, Austria and Switzerland which chose to participate in the Lufthansa and SWISS Preferred Fares
    programme, as it allowed them to access and sell all fares and inventory without a fee.
•   In May 2008, Sabre announced plans to launch a Virtual Miscellaneous Charge Order (vMCO) solution to
    help travel agents book flights and other miscellaneous transactions that are not yet e-ticketable. When it is
    implemented, the new solution is expected to help agents and airlines to transition to 100% e-ticketing, thus
    decreasing operational costs in the short term.
•   SynXis and Micros Systems, a leading provider of information technology solutions for the travel
    accommodation and retail industries, announced a partnership in April 2008 to enhance integrated inventory
    management across property management and reservations systems. This is a major step aimed at pushing
    the travel accommodation industry forward and positivelly impacting customer service.
•   V Australia, the international airline of Virgin Blue, and Sabre signed a multi-year distribution agreement
    freeing up the airline fares and inventory to all Sabre Connected travel agents across the world in April
    2008.
•   In March 2008, Nikki Beach, a global lifestyle and entertainment brand, selected SynXis to boost its
    expansion into the luxury boutique hotel and resort business.
•   In February 2008, Sabre and American Express Business Travel announced plans to launch the first
    Enterprise 2.0 Community Platform: cubeless. The new platform is designed to facilitate the sharing of
    knowledge and expertise on travel and other topics of interest among employees.


 Euromonitor International                                                                                Page      3
Sabre Corp - Travel and Tourism                                                                               World




•   In January 2008, Sabre signed agreements with Aviacsa and Saudi Arabian Airlines. While the first was
    aimed at maximising and broadening the Aviacsa’s ability to offer fares and inventory to travellers,
    agencies and corporations worldwide, the second focuses on boosting the reliability, resilience and
    competitiveness of Saudi Arabian Airlines.
•   In 2007, Sabre and major rival, Amadeus, established the joint venture, Moneydirect, to provide an industry
    solution for secure, automated payment processing, clearing and reconciliation.
•   Between 2007 and 2008, Travelocity has managed to diversify its business into different types of
    technological services to enhance overall customer loyalty. It partnered with Frommer’s to offer travel
    destination guides and introduced a new loyalty programme that provides priority customer service and
    exclusive discounts. It was the first major online agency to do so.


PROSPECTS FOR SABRE CORP IN TRAVEL & TOURISM
Core Businesses
•   Sabre Corp focuses on the provision of technology and distribution solutions for the travel and tourism
    industry.
•   Sabre is likely to face intense and increasing competition to win new contracts and renew established ones,
    both from established major rivals and new competitors. Overall, industry players such as ITA Software,
    G2 Switchworks and FareLogix, threaten to erode the client base for some of the more established
    providers and keep cost pressure on Sabre when it renews contracts with industry suppliers and travel
    agents. Notably, Sabre and Amadeus joined forces in 2007 to develop Moneydirect, a venture that stands to
    bolster the position of these established players in the light of increasing competition from newcomers.
    Moneydirect offers “real time” payment processing so that people get their money faster. Sabre also faces
    competitive pressure from industry suppliers that prefer direct distribution.
•   The online travel industry is not exempt from the consumers’ expectation of personalised service. This
    means that online travel retailers such as Sabre are revisiting their ability to provide customised
    recommendations, and that direct suppliers are providing more dynamic packaging options so that they are
    a one-stop shop for travellers. Both will also need mediums to allow for user-generated content, a trend
    prevalent in all industries, from newspapers to travel to restaurants. Sabre is a step ahead since Travelocity
    partnered with Frommer’s to offer travel destination guides in 2007.
•   Tighter budgets may shift a considerable number of users to online travel retailers, where they will be able
    to book travel lodging, rentals (and in some cases even tickets to attractions) at the lowest available prices
    regardless of brand.

Growth Opportunities
•   Geographic expansion is central to Sabre, particularly given the ongoing consolidation amongst travel
    suppliers, such as major hotels and airlines, as well as amongst travel agencies and other distributors. This
    has resulted in major players increasingly having greater scale and being able to provide a broader set of
    products in a greater number of geographic markets.
•   Sabre is tackling such developments by expanding its own scale and geographic reach. In general, it aims to
    improve its proposition for travel suppliers through broader global marketing reach and more points of sale,
    as well as generating cost synergies through increased scale.
•   In 2007-2008, most opportunities for GDS providers like Sabre derived from Europe and Asia Pacific.
    Overall, economic growth, the development of travel infrastructures, the expansion of middle classes and
    rising numbers of foreign business and leisure travellers are combining to drive significant growth in those
    regions.
•   In October 2008, SynXis, a Sabre business that provides hotel distribution and internet marketing services
    globally, announced that it had certified direct booking connections to two Asian Pacific meta-search
    engines: Qunar.com and Wego.com (formerly Bezurk.com). The initiative gives SynXis customers the
    opportunity to enhance travel accommodation bookings in Asia Pacific.




 Euromonitor International                                                                                Page      4
Sabre Corp - Travel and Tourism                                                                                         World




•   Earlier in 2008, SynXis launched a call centre in Singapore, further enhancing its presence in the Asia
    Pacific region.
•   It is the low-cost airlines, however, which are setting the tone for the future prospects of Sabre and other
    traditional GDS companies in Europe and North America. These airlines differ from other carriers in that
    they overwhelmingly tend to avoid using GDS, instead focusing on driving sales through their own
    websites. The situation has been reversed during the latter part of the review period, however, as low-cost
    carriers started forming GDS agreements to target business travellers more agressively and help corporate
    travel clients to minimise travel costs. As of 2008, 25 low-cost carriers, such as Virgin Blue and JetBlue,
    used Sabre technology solutions.
•   Increased household penetration of computers, wider access to broadband and Wi-Fi technology and
    increased internet availability through devices such as mobile phones are set to drive strong growth in
    online travel retail through 2012. An increasing proportion of Sabre’s revenues are being derived from sales
    directly to travellers, primarily through its Travelocity segment, which is focused on increasing purchases
    through its websites, particularly of higher-margin offerings. While travel e-commerce is relatively mature
    in the US, Sabre sees significant opportunities to develop its online operations in Europe and Asia.
•   A growing demand for more personalised travel experiences tailored to specific needs is creating significant
    opportunities for GDSs such as Sabre to develop higher-margin offerings utilising their access to a broad
    and diverse range of information, products and services. Indeed, the development of integrated, "complete
    travel experiences", as opposed to disparate travel components, is an important feature of its Travelocity
    growth strategy. Moreover, Travelocity is notably investing in the development of products and services
    aimed at customer groups defined in terms of taste and values, including those aimed at those with an
    interest in high-quality cuisine and environmentally-conscious consumers, for example.

Limited Potential
•   The drive to expand operations in major emerging markets is set to become increasingly important to Sabre
    over the forecast period, particularly as Western Europe is expected to perform sluggishly. The region is
    predicted to post the world’s slowest growth rate of travel retail products value over the forecast period, as
    it witnesses the dampening effect of maturity and intense pricing competition. Additionally, sluggish
    growth in Western Europe relates to a growing number of internet bookings through direct suppliers and the
    rise of low-cost carriers.
•   Such developments may, at the same time, limit the potential of GDS providers and encourage travel
    companies to look to IT solutions to cut costs and improve efficiency, but the intense pricing competition
    will inevitably have knock-on effects for providers such as Sabre.
•   In 2007, online travel retailers Priceline and Hotwire eliminated all booking fees, followed by a series of
    minor competitors. What was expected to exert pressure on Expedia, Orbitz and Travelocity to do the same,
    the opposite seems to have happened. In early 2008, industry sources indicated that Expedia, Orbitz and
    Travelocity have all seemed to quietly increase their fees. This has, to a certain extent, put greater pressure
    on them to deliver superior customer service and wider product offering, which was not always the case.

Table 1            Sabre Corp: World Sector Sales Performance 2007

US$ million
                                          Market       Market          Market           % of        Company           Global
                                            size     % CAGR          % CAGR         Company           Share          Ranking
                                                    2002-2007       2007-2012          Sales           2007            2007

Travel retail products                633,984.0              6.4            3.6          100.0             1.6                  7
Source:       Euromonitor International
Note:         Percentage of company sales in each sector is calculated from rsp sales within this market in 2007. This figure
              may be slightly distorted by double-counting products which appear in more than one sector



Table 2            Sabre Corp: Travel Retail Products Regional Sales Performance 2007

US$ million
                                          Market         Market         Market            % of      Company         Regional



 Euromonitor International                                                                                          Page       5
Sabre Corp - Travel and Tourism                                                                                      World




                                            size     % CAGR         % CAGR          Company            Share       Ranking
                                                    2002-2007      2007-2012           Sales            2007         2007

Western Europe                        219,246.4              7.0            1.6          20.9             1.0             13
North America                         187,162.7              3.4            4.0          79.1             4.3              4
World                                 633,984.0              6.4            3.6         100.0             1.6              7
Source:       Euromonitor International
Note:         Percentage of company sales in each region is calculated from rsp sales within this market in 2007




COMPANY STRATEGY
Strategic Objectives and Challenges
•   Sabre Corp is committed to connecting people to the best travel alternatives available worldwide by
    retailing travel products and providing distribution and technology solutions for the travel industry.
•   The growth and development of Travelocity is a core strategic focus for Sabre. The development of
    differentiated, targeted marketing of a complete travel experience, rather than travel component sales,
    constitutes a significant aspect of its business strategy. Thus, the company focuses on expanding its
    dynamically packaged offerings, growing its access to broad supplier offerings and developing awareness
    of its brand as a coherent framework for its diversified offer.

Technologial Innovations
•   An increased focus on the development of broader-based IT solutions platforms has led to a great
    dynamism in technological innovation when it comes to GDS offers. In this respect, Sabre is in line with a
    growing trend in the travel and tourism industry, as companies look to increase their online activities to
    improve operational efficiencies, cut costs and adapt to changing consumer lifestyles.
•   One of the main challenges in developing such offers, however, is to suite low-fare search solutions, as the
    greater transparency conferred by the internet and the expansion of low-cost airlines drive pricing
    competition in the travel and tourism market.
•   In October 2008, SynXis, a Sabre business that provides hotel distribution and internet marketing services
    globally, announced the completion of two significant technology projects involving the conversion of the
    SynXis RedX platform to an Oracle database management system, as well as the migration to a new data
    centre. The initiative further consolidates its platform to support the rapid customer growth expected for the
    upcoming years.
•   Earlier in 2008, SynXis and Micros Systems, a leading provider of information technology solutions for the
    travel accommodation and retail industries, announced a partnership to enhance integrated inventory
    management across property management and reservations systems. This is a major step aimed at pushing
    the travel accommodation industry forward and positivelly impacting customer service.
•   Sabre has also introduced new reporting features through its Traveler Security and Data Suite (TSDS) in
    October 2008, which allows users to better manage supplier tracking, negotiate and monitor policy
    compliance. New reports include:
•   Air market share summary – for selected origins and destinations, provide a summary report of market
    share and segment counts for the top four carriers.
•   Air market share trend – for a single origin and destination, provide month-over-month, quarter-over-
    quarter or year-over-year market share trends for the top four carriers.
•   Hotel rate summary – provide the average nightly rate, number of days and total spend per city.
•   Air carbon emissions summary – view total air segments and CO2 emissions by tonnes or kilograms.
•   Air carbon emission segment O&D summary – view a summary of total air segments and CO2 emissions
    broken down by segment origin and destination.

(Source: Company Website)




 Euromonitor International                                                                                        Page    6
Sabre Corp - Travel and Tourism                                                                                 World




•   In August 2008, Sabre introduced another merchandising first through its Air Merchandising Suite,
    providing upsell capabilities that further enhance customer experience and drive revenue performance.
    According to company sources, it allows airlines to differentiate and sell premium airline seats at the time
    of the original booking in all distribution channels: online, offline, direct and travel agency. This is a major
    competitive advantage particularly given that rivals like Amadeus are not yet well suited for upselling
    products and services and significanlty boosting overall customer experience.

Mobile Check-in
•   As the use of mobile devices takes off, travel and tourism businesses further capitalise on their potential to
    enhance travel-related services.
•   In August 2008, Sabre introduced a brand new Mobile Check-in Solution, which not only allows passengers
    to check-in for a flight but also select their seats, using a web-enabled mobile phone.
•   Mobile Check-In is part of the SabreSonic Suite, a leading customer sales and service solution from Sabre,
    and was launched in conjunction with Italian carrier, Air One.

Enhanced Customer Service
•   In an attempt to further enhance its customer service, Sabre opened a brand new support centre in
    Bangalore, India, in late 2008. Expected to be fully operational by January 2009, the new centre is set to
    complement the current customer care centre in Montevideo, Uruguay.
•   Both centres will be completely integrated to provide customers with 24/7 support. The integration of the
    centres in Uruguay and India also bring Sabre closer to its airline customers around the world.

Adapting to a Cost-conscious Environment
•   In an increasingly cost-conscious environment, Sabre is evaluating efficiency opportunities across the
    company to ensure that it manages its operational costs optimally. Some of these cost-saving opportunities
    have involved globally-sourcing some operations. The company announced plans to outsource components
    of its European finance function to a single shared service centre, expecting to fully realise the benefits of
    this outsourcing starting in 2009 with anticipated annual savings of US$10 million. It is also working to
    rationalise facilities costs, selling and leasing back a portion of its headquarters facilities, which it expects
    will generate approximately US$10 million in annual pre-tax savings starting in 2008.

Ownership Events
•   In September 2008, Sabre acquired Flight Explorer, a leading provider of Commercial Aircraft Situation
    Display (ASD) solutions. The acquisition reinforces the continued development and investments of the
    Sabre airline portfolio. By doing so, the GDS provider enables airlines to optimise operational efficiencies.
•   In July 2008, Sabre acquired BidStork, a web-based application that creates, delivers and manages hotel
    requests for proposals (RFPs). The initiative allows hoteliers, corporations and their travel management
    companies to efficiently negotiate rates online.
•   According to industry sources, BidStork’s capabilities that are already available to all Sabre customers
    include: Request for Proposal (RFP) tool for agencies and corporations; hotel rate auditing tool for agencies
    and corporations; robust reporting and exporting capabilities for agencies and corporations and competitive
    bidding for hoteliers, which enables hotels to obtain qualified sales leads.
•   By 2009 the application will also comprise: rate audit tool for hoteliers; RFP Management and reporting
    tools for hoteliers; benchmark reports for agencies and corporations; enhanced multi-GDS rate audit
    capabilities for agencies and corporations; enhanced robust Digital Media of hotels worldwide; and real-
    time updates for hotel brand and name changes.

Table 3              Sabre Corp: World Shares & Rankings in Travel & Tourism by Sector 2006-2007

% retail value rsp
                                        Share       Ranking         Share       Ranking        Sector      Company
                                         2006         2006           2007         2007         Growth        Growth
                                                                                            2006/2007     2006/2007




 Euromonitor International                                                                                  Page    7
Sabre Corp - Travel and Tourism                                                                                   World




Travel retail products                        1.5                7         1.6             7           2.4         11.3
Source:         Euromonitor International



Table 4              Sabre Corp: World & Regional Shares in Travel & Tourism by Sector 2007

% retail value rsp
                                              WE             EE            NA            LA            As              Au

Travel retail products                         1.0            -            4.3             -             -               -
                                            Af/ME           WO
Travel retail products                           -          1.6
Source:         Euromonitor International
Note:           – Signifies no presence or negligible share
Key:            WE=Western Europe; EE=Eastern Europe; NA=North America; LA=Latin America; As=Asia-Pacific;
                Au=Australasia; Af/ME=Africa/The Middle East; WO=World




COMPANY STRUCTURE
Sabre Corp
•      Present in the travel and tourism industry for over 40 years, Sabre Holdings Corporation conducts all of its
       business through its direct and indirect subsidiaries. Through its companies and brands, Sabre offers a broad
       portfolio of travel marketing, distribution and technology solutions.
•      Sabre Corp is organised into three segments:
•      Travelocity, which markets and distributes products and services directly to leisure and business travellers.
•      Sabre Travel Network, which targets travel suppliers with products and services through the online and
       offline travel agency and corporate channels.
•      Sabre Airline Solutions, which provides passenger management solutions, software products and related
       services, and consulting services to airlines.

Summary 1            Sabre Corp: Travel & Tourism Key Facts
    Company name & status:                                       Sabre Corp
    Headquarters:                                                USA
    Sector involvement (2007):                                   Travel Retail
    Region involvement (2007):                                   North America, Western Europe, Eastern Europe,
                                                                 Latin America, Asia Pacific, Australasia, Middle East
                                                                 and Africa
Source:         Euromonitor International from company reports



Production and Distribution
•      With a wide network of points of sale, sophisticated data gathering and analysis, and business optimisation
       tools, Sabre’s distribution network supports airlines, hotels, cruise lines, car rental agencies and other travel
       suppliers.
•      Additionally, it supports online and conventional travel agencies, corporate travel purchasers and
       consumers by providing an efficient electronic marketplace that consolidates a wide range of information
       and facilitates for choosing and purchasing travel components and packages.


BRAND ASSESSMENT


 Euromonitor International                                                                                     Page     8
Sabre Corp - Travel and Tourism                                                                                World




Brand Strategy
•   Through a diverse mix of travel merchandising and distribution brands, Sabre seeks to constantly add value
    to its brand portfolio and highlight its commitment to offer the greatest travel possibilities to consumers and
    travel retailers.

Travelocity
•   Travelocity markets and distributes travel-related products and services directly to leisure and business
    travellers. It also markets and sells products and services through private label websites for suppliers,
    distribution partners and travel agencies.
•   Travelocity’s key brands include holidayautos.com, lastminute.com, Travelocity Business, Travelocity On
    Location, World Choice Travel and Zuji.

Advertising
•   Travelocity has been very active in its advertising, creating a brand icon through its gnome travelling
    around the world. By asking people to send pictures of the gnome from around the world, the gnome has
    turned into a well-known mascot.
•   It has developed creative TV advertisements, and among the latest initiatives featured the gnome next to
    celebrities such as Martha Stewart and Paris Hilton in magazine photos, as part of a viral marketing
    campaign. The gnome has made it into Jeopardy! question as well, and has been sponsoring the reality TV
    show The Amazing Race. All this has helped Travelocity differentiate itself from a pack of other online
    travel sites.
•   Travelocity has been shifting its money out of newspapers and radio lately, to boost its TV advertising and
    encourage travellers searching online to look for its name, rather than only for any discount travel. It is also
    working in other directions to increase the loyalty of its customers. Its new loyalty programme provides
    them with automatic access to various perks, such as priority customer service and exclusive discounts. It
    was the first major online agency to do so.

Diversity under a coherent brand
•   A major challenge to Travelocity's brand strategy is the development of a coherent, recognisable brand
    image to act as a framework for its broad and diverse offer. Indeed, this challenge is becoming increasingly
    complicated, as the brand seeks to develop its capacity to exploit the growing consumer demand for more
    personalised travel and tourism options that target customers according to lifestyles and values rather than
    more traditional demographics such as age and gender.

Travelocity Rewards
•   Drawing the ire of airlines, Travelocity teamed up with banks to offer a co-branded credit card: the
    Travelocity Rewards MasterCard. It allows consumers to earn points for booking travel through its online
    travel agents, with customers able to redeem points against hotel accommodation, car rentals and flights.
•   The programme does not limit consumers to a certain hotel, car rental or airline brand and does not come
    with the restrictions of other loyalty programmes, which include blackout dates, limited seat availability and
    brand choice—advantages over supplier loyalty programmes.

Sabre Airline Solutions
•   Sabre Airline Solutions provides passenger management solutions, software products and related services,
    and consulting services to help airlines simplify operations and lower costs.

Value Creation
•   In 2008, Sabre Airline Solutions continued adding value to its portfolio by enhancing its processes either
    through the signing of strategic partnerships or the acquisition of companies like Flight Explorer, a leading
    provider of Commercial Aircraft Situation Display (ASD) solutions. By doing so, Sabre Airline Solutions
    has enabled airlines to further optimise operational efficiencies.



 Euromonitor International                                                                                 Page    9
Sabre Corp - Travel and Tourism                                                                                 World




New Product Development
•     The launch of new products, such as the SabreSonic Customer Sales and Service (CSS) solution, were also
      key in enhancing its competitive positioning. Indeed, in 2008, a number of airlines adhered to SabreSonic
      solutions including Wataniya Airways, Varig and Vietnam Airlines.

Sabre Travel Network
•     Sabre Travel Network markets and distributes travel-related products and services for its travel supplier
      participants through the online and offline travel agency and corporate channels.


APPENDICES
Financial Summary

Table 5            Sabre Corp: Financial Summary 2003-2007

US$ million
                                                          2003           2004       2005          2006           2007

Net sales                                              2,045.2         2,131.0   2,521.3       2,823.8                n/a
% growth net sales                                        -0.5             4.2      18.8          12.0                n/a
Operating profit                                         166.2           258.7     260.9         285.1                n/a
% growth operating profit                                -47.7            55.7       0.9           9.3                n/a
Operating margin (%)                                       8.1            12.1      10.3          10.1                n/a
Shareholders' equity                                   1,680.1         1,626.5   1,643.1       1,923.4                n/a
Earnings per share (US$)                                  0.59            1.40      1.33          1.19                n/a
Number of employees                                          -               -     8,900         9,000                n/a
Net sales per employee                                       -               -      0.28          0.31                n/a
Capital expenditure                                       71.5            78.0      91.7         108.9                n/a
Capital expenditure as                                     3.5             3.7       3.6           3.9                n/a
% net sales
Source:        Euromonitor International from company reports
Notes:         Year end December
               As of 30 March 2007 Sabre is a privately held company



Company Background

Summary 2          Sabre Corp: Historical Development
    Year                                  Topic                                  Description
    2008                                  Strategic Agreement                    United Airlines signs a 2-year
                                                                                 extension of its full-content
                                                                                 agreement with Sabre, which
                                                                                 ensures full United content in its
                                                                                 GDS system through 2013.
    2008                                  Customer Service                       Sabre opens a support centre in
                                                                                 Bangalore, India.
    2008                                  Other                                  SynXis certifies direct booking
                                                                                 connections to two Asian Pacific
                                                                                 meta-search engines: Qunar.com
                                                                                 and Wego.com (formerly
                                                                                 Bezurk.com).
    2008                                  Technology                             SynXis announces the completion
                                                                                 of two significant technology
                                                                                 projects involving the conversion of
                                                                                 the SynXis RedX platform to an
                                                                                 Oracle database management
                                                                                 system as well as the migration to



 Euromonitor International                                                                                 Page      10
Sabre Corp - Travel and Tourism                                                             World




                                                            a new data centre.
 2008                             New Product Development   Sabre introduces new reporting
                                                            features through its Traveler
                                                            Security and Data Suite (TSDS).
 2008                             Strategic Agreement       Sabre and Emirates sign a 10-year
                                                            global airline distribution
                                                            agreement.
 2008                             Strategic Acquisition     Sabre acquires Flight Explorer.
 2008                             New Product Development   Sabre launches the SabreSonic
                                                            Customer Sales and Service (CSS)
                                                            solution.
 2008                             New Product Development   Sabre introduces another
                                                            merchandising first through Air
                                                            Merchandising Suite.
 2008                             New Service               Sabre introduces a new Mobile
                                                            Check-In Solution.
 2008                             Strategic Acquisition     Sabre acquires BidStork.
 2008                             Customer Service          SynXis launches a call centre in
                                                            Singapore.
 2008                             Strategic Agreements      Vatican-based travel organisation
                                                            Opera Romana Pellegrinaggi
                                                            (ORP) and Leonardo Hotels select
                                                            Sabre to enhance overall
                                                            distribution.
 2008                             Strategic Agreement       Sabre expands its agreement with
                                                            Lufthansa and SWISS.
 2008                             New Product Development   Sabre announces plans to launch a
                                                            Virtual Miscellaneous Charge
                                                            Order (vMCO) solution to help
                                                            travel agents book flights and other
                                                            miscellaneous transactions that are
                                                            not yet e-ticketable.
 2008                             Strategic Partnership     SynXis and Micro Systems
                                                            announce a partnership in April.
 2008                             Strategic Agreement       V Australia and Sabre sign a multi-
                                                            year distribution agreement.
 2008                             Strategic Agreement       Nikki Beach selects SynXis to
                                                            boost its expansion into the luxury
                                                            boutique hotel and resort business.
 2008                             New Product Development   Sabre and American Express
                                                            Business Travel announce plans to
                                                            launch the first Enterprise 2.0
                                                            Community Platform: cubeless.
 2008                             Strategic Agreement       Sabre signs agreements with
                                                            Aviacsa and Arabian Airlines.
 2007                             Joint Venture             Sabre and major rival, Amadeus,
                                                            establish the joint venture,
                                                            Moneydirect, to provide an industry
                                                            solution for secure, automated
                                                            payment processing, clearing and
                                                            reconciliation.
 2006                             Merger and acquisition    Zuji, the leading online travel
                                                            agency in the Asia-Pacific region,
                                                            becomes a wholly owned brand of
                                                            Travelocity.




 Euromonitor International                                                            Page    11
Sabre Corp - Travel and Tourism                                                                   World




 2005                             Merger and acquisition           In July, Sabre Holdings acquires
                                                                   lastminute.com, Europe's leading
                                                                   online travel site. The acquisition
                                                                   adds approximately 2,000
                                                                   employees to Travelocity's
                                                                   business unit.
 2005                             Merger and acquisition           In April, Sabre Holdings acquires
                                                                   IgoUgo.com, a unique travel
                                                                   community website, and launches
                                                                   the industry's first travel keyword
                                                                   search engine on the newly
                                                                   acquired site.
 2005                             Merger and acquisition           Sabre Holdings acquires SynXis
                                                                   Corporation, a privately-held
                                                                   provider of reservation
                                                                   management, distribution and
                                                                   technology services for hotels.
 2004                             Merger and acquisition           Travelocity acquires Las Vegas-
                                                                   based All State Tours, Inc., a
                                                                   leading distributor of show tickets
                                                                   and tours in the entertainment
                                                                   capital of the world. The purchase
                                                                   includes Allstate Ticketing and
                                                                   ShowTickets.com.
 2004                             Geographic expansion             Travelocity launches its French
                                                                   consumer travel website, Odysia
                                                                   (www.odysia.fr), a variation on the
                                                                   French word for "Odyssey", giving
                                                                   Travelocity its first consumer-direct
                                                                   online presence in France.
 2004                             Product innovation               Sabre Travel Network launches
                                                                   MySabre, a new web-based agent
                                                                   booking portal that provides agents
                                                                   and suppliers with new
                                                                   merchandising opportunities at the
                                                                   point of sale.
 2003                             Merger and acquisition           Travelocity acquires World Choice
                                                                   Travel, a hotel room consolidation
                                                                   and distribution business.
 2003                             Product innovation               Travelocity introduces TotalTrip,
                                                                   which offers new packaging
                                                                   capabilities.
 2003                             Launch of Travelocity Business   Travelocity introduces Travelocity
                                                                   Business to serve corporate travel
                                                                   agencies and business travellers.
 2002                             New offering                     Sabre Holdings announces its
                                                                   Direct Connect Availability Three-
                                                                   Year Option (DCA-3), a new multi-
                                                                   year offering for airlines in
                                                                   Participating Carrier Agreement. In
                                                                   exchange for an established
                                                                   booking fee rate, the carrier
                                                                   commits to the highest level of
                                                                   participation in the GDS.
 2002                             Travelocity becomes a wholly     Sabre Holdings purchases the
                                  owned subsidiary                 outstanding shares of Travelocity
                                                                   that it did not already own, making
                                                                   Travelocity a wholly owned
                                                                   subsidiary of Sabre Holdings.




 Euromonitor International                                                                   Page     12
Sabre Corp - Travel and Tourism                                                            World




 2002                             Merger and acquisition   Travelocity acquires Site59, a
                                                           leading online seller of last-minute
                                                           merchant model air, hotel and
                                                           rental car inventory.
 2000                             Application migration    Sabre's massive air pricing
                                                           application is migrated to HP
                                                           NonStop Himalaya server platform.
                                                           This technology is designed to
                                                           migrate airfare pricing, schedules
                                                           and availability from a proprietary
                                                           mainframe system to an open
                                                           system.
 2000                             Product innovation       Sabre Airline Solutions introduces
                                                           the Sabre Aerodynamic Traveller
                                                           passenger processing solutions
                                                           designed to expedite the airline
                                                           check-in process and reduce long
                                                           lines at airports through the use of
                                                           roadside check-in, roving agents
                                                           and self-serve kiosks.
 2000                             Merger and acquisition   Sabre purchases the Sabre Pacific
                                                           travel distribution business from
                                                           TIAS, a travel distribution alliance
                                                           among Qantas, Air New Zealand
                                                           and Ansett Airlines. The purchase
                                                           gives travel suppliers, travel agents
                                                           and travellers in the South Pacific
                                                           region greater access to Sabre's
                                                           global resources and technology.
 2000                             Product innovation       Sabre eVoyaSM Webtop is
                                                           introduced as the next generation
                                                           of travel agency technology tools,
                                                           making it simple for Sabre
                                                           Connected agencies to become
                                                           internet ready.
 2000                             Merger and Acquisition   Sabre purchases GetThere, an
                                                           online corporate travel booking
                                                           tool.
 2000                             Spin-off                 Sabre spins off from AMR 100%.
 1999                             Merger and acquisition   Travelocity announces it will merge
                                                           with Preview Travel – the third
                                                           largest online travel site at the time.
 1999                             Product innovation       Sabre introduces Best Fare Finder
                                                           pricing, which allows travel agents
                                                           to search for flights based on fare,
                                                           rather than schedule.
 1998                             Strategic alliance       Sabre forms a joint venture with
                                                           ABACUS International to establish
                                                           the SabreSonic passenger solution
                                                           as the CRS market leader in Asia.
 1998                             System migration         Sabre Airline Solutions completes
                                                           the largest system migration in the
                                                           airline industry's history when 200
                                                           US Airways systems are shut down
                                                           and shifted to Sabre systems.
 1996                             Launch of Travelocity    Travelocity.com launches on 12
                                                           March.
 1996                             IPO                      IPO of 18% of the Sabre Group.




 Euromonitor International                                                            Page    13
Sabre Corp - Travel and Tourism                                                                  World




 1994                             European train reservations     Sabre and SNCF (French National
                                                                  Railroad) install the RESARAIL rail
                                                                  reservations and distribution
                                                                  system for the TGV network. The
                                                                  system is subsequently extended
                                                                  to the English Channel Tunnel.
 1992                             Product innovation              Sabre introduces the Sabre AirFlite
                                                                  flight scheduling system.
 1988                             System expansion                The Sabre system expands to
                                                                  store 36 million fares, which can be
                                                                  combined to create more than one
                                                                  billion fare options.
 1988                             Expanding to other airlines     Sabre Airline Solutions begins
                                                                  providing software, consulting and
                                                                  systems management services to
                                                                  other airlines in areas such as
                                                                  revenue accounting, yield
                                                                  management and crew scheduling.
 1986                             Geographic expansion            The Sabre system is extended to
                                                                  the UK, paving the way for
                                                                  widespread international expansion
                                                                  of the system in the next decade.
 1986                             Product innovation              Sabre Airline Solutions releases
                                                                  the industry's first revenue
                                                                  management system, helping
                                                                  maximise airline income by
                                                                  optimising the fare at which each
                                                                  seat is sold. Sabre Airline Solutions
                                                                  also invents the virtual and
                                                                  continuous nesting concepts for
                                                                  revenue management.
 1986                             Merger and acquisition          Sabre becomes a division of AMR,
                                                                  the parent company of American
                                                                  Airlines.
 1985                             Access for personal computers   The introduction of easySabre
                                                                  allows consumers using personal
                                                                  computers to tap into the Sabre
                                                                  system via online services to
                                                                  access airline, hotel and car rental
                                                                  reservations.
 1984                             Product innovation              Bargain Finder pricing is introduced
                                                                  via the Sabre system. This low-fare
                                                                  search capability automatically
                                                                  advises which class of service is
                                                                  the least expensive for the flights
                                                                  booked.
 1983                             Geographic expansion            The Sabre system becomes
                                                                  available to Canadian travel
                                                                  agents.
 1976                             Into travel agents              The Sabre system is installed in a
                                                                  travel agency for the first time. By
                                                                  the end of the year, 130 locations
                                                                  are receiving the system. By 1978,
                                                                  the Sabre system can store one
                                                                  million fares.
 1972                             Moving location                 The Sabre system is moved to a
                                                                  new consolidated computer centre
                                                                  in Tulsa, Okla, which is designed to
                                                                  house all of American Airlines's




 Euromonitor International                                                                  Page   14
Sabre Corp - Travel and Tourism                                                                       World




                                                                     data processing facilities.
 1964                                     Origins                    The network is completed,
                                                                     becoming the largest private, real-
                                                                     time data processing system,
                                                                     second only to the US
                                                                     government's system. It becomes
                                                                     an integral part of AMR.
 1960                                     Origins                    The first Sabre reservations system
                                                                     is installed in Briarcliff Manor, NY.
Source:       Euromonitor International



Summary 3          Sabre Corp: Subsidiaries 2007
 Company                                            Country
 Lastminute.com Plc                                 United Kingdom
 Axess International Network Inc                    Japan
 ENCOMPASS Holding Inc                              USA
 GetThere Inc                                       USA
 GetThere LP                                        USA
 Greyhound Acquisition Corp                         USA
 IgoUgo Inc                                         USA
 Lanyon Ltd                                         United Kingdom
 Nexion Inc                                         USA
 Prize Ltd                                          Latvia
 Sabre Decision Technologies International Inc      USA
 Sabre Decision Technologies Licensing Inc          USA
 Sabre Dynamic Inc                                  USA
 Sabre International Inc                            USA
 Sabre International Holdings Inc                   USA
 Sabre Investments Inc                              USA
 Sabre Limited                                      New Zealand
 SabreMark GP Inc                                   USA
 SabreMark LP Inc                                   USA
 Sabre Soluciones de Viaje S de RL de CV            Mexico
 Sabre Technology Enterprises Ltd                   Cayman Islands
 Sabre Technology Holland BV                        Netherlands
 Sakiler SA                                         Uruguay
 SHC Capital Trust I                                USA
 SHC Capital Trust II                               USA
 SHC Capital Trust III                              USA
 SST Finance Inc                                    USA
 SST Holding Inc                                    USA
 SynXis Corporation                                 USA
 Travelocity Holdings Inc                           USA
 Sabre South Pacific I (1%)                         Australia




 Euromonitor International                                                                        Page   15
Sabre Corp - Travel and Tourism                                                                             World




 Vistrio LP (50.9% Limited Partner)                         USA
Source:        Euromonitor International



Summary 4           Sabre Corp: Travel & Tourism Brands 2007
 Brand Name                                                 Sector and subsector(s)
 Lastminute.com                                             Travel retail (Travel retail products)
 Travelocity                                                Travel retail (Travel retail products)
Source:        Euromonitor International



Summary 5           Sabre Corp: Company Locations
 Location                                  Country                              Activity
 North America                             USA                                  Travel Retail Products
 Australasia                               New Zealand                          Travel Retail Products
 Europe                                    United Kingdom                       Travel Retail Products
Source:        Euromonitor International



Summary 6           Sabre Corp: Websites
 Name                                      Country                              Website address
 Sabre Holdings                            USA                                  www.sabre.com
 Sabre Airline Solutions                   USA                                  www.sabreairlinesolutions.com
 Sabre Travel Network                      USA                                  www.sabreTravelNetwork.com
 Travelocity                               USA                                  www.travelocity.com
 Travelocity                               Canada                               www.travelocity.ca
 Travelocity                               United Kingdom                       www.travelocity.co.uk
 Travelocity                               Germany                              www.travelcoity.de
 Site59                                    USA                                  www.site59.com
 lastminute.com                            United Kingdom                       www.lastminute.com
 Zuji                                      Asia-Pacific                         www.zuji.com
 Holiday Autos                             Europe                               www.holidayautos.com
 Med Hotels                                Europe                               www.medhotels.com
Source:        Euromonitor International




 Euromonitor International                                                                              Page   16

				
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