Sabre signs long-term distribution agreement with Delta Air Lines

Rhea-AI Summary

Sabre (NASDAQ: SABR) has renewed its multi-year distribution agreement with Delta Air Lines, emphasizing their commitment to New Distribution Capability (NDC) integration. This long-term deal allows Sabre-connected travel agents to access both traditional EDIFACT and NDC content, enhancing their ability to provide comprehensive travel offers.

The agreement supports Delta's selling and servicing transformation strategy, which includes NDC. Both companies are collaborating to integrate NDC content into Sabre's travel marketplace, reinforcing their shared vision for a future-proof distribution landscape that accommodates various technologies and content types.

This renewal underscores the value of Sabre's distribution channel and both companies' dedication to fostering a travel marketplace that prioritizes innovation and flexibility.

Positive

• Renewed multi-year distribution agreement with Delta Air Lines
• Integration of NDC content into Sabre's travel marketplace
• Enhanced ability for Sabre-connected agents to provide comprehensive travel offers
• Collaboration on Delta's selling and servicing transformation strategy

Negative

• None.

Insights

Financial Analyst

The long-term distribution agreement between Sabre and Delta Air Lines is a positive development for both companies. For Sabre, it secures a steady revenue stream and reinforces its position in the travel technology market. The integration of NDC content could potentially increase transaction volumes and enhance Sabre's value proposition to travel agencies.

For Delta, this partnership ensures broad distribution of its content, including NDC offerings, which could lead to improved yield management and personalized pricing strategies. While the financial terms aren't disclosed, the deal likely involves revenue sharing or incentive structures that could benefit both parties. Investors should monitor how this agreement impacts Sabre's transaction-based revenue and Delta's distribution costs in the coming quarters.

Tech Expert

The collaboration between Sabre and Delta on NDC integration represents a significant technological advancement in the travel industry. NDC allows for more dynamic and personalized content distribution, enabling airlines to offer tailored products and services. This move could accelerate the adoption of NDC across the industry, potentially disrupting traditional distribution models.

The agreement's emphasis on supporting both EDIFACT and NDC content shows a pragmatic approach to technological transition. It allows for gradual adoption of NDC while maintaining compatibility with existing systems. This strategy could mitigate implementation risks and ensure a smoother transition for travel agencies. The success of this integration could position Sabre as a leader in next-generation travel distribution technology.

Market Research Analyst

This agreement signals a shift in the travel distribution landscape. By embracing NDC, Delta and Sabre are adapting to changing consumer expectations for personalized travel experiences. This could lead to increased customer satisfaction and potentially higher conversion rates for both companies.

The deal also highlights the ongoing importance of third-party distribution in the airline industry, despite previous attempts by some airlines to push direct bookings. For investors, this suggests that companies like Sabre remain important intermediaries in the travel ecosystem. The collaboration on NDC could also give Sabre a competitive edge over other Global Distribution Systems (GDS) providers, potentially leading to market share gains in the medium to long term.

 The multi-year agreement demonstrates the value of Sabre's distribution channel and both companies' commitment to work together on New Distribution Capability (NDC)

SOUTHLAKE, Texas, Aug. 21, 2024 /PRNewswire/ -- Sabre Corporation (NASDAQ: SABR), a leading technology provider to the global travel industry, has finalized a multi-year renewal of its distribution agreement with Delta Air Lines. The long-term agreement enables Sabre-connected travel agents to access both traditional EDIFACT and New Distribution Capability (NDC) content, enhancing their ability to provide comprehensive travel offers to their customers. Earlier this year, Delta announced details of its selling and servicing transformation, which includes NDC. Sabre and the airline will collaborate on the integration of NDC content into Sabre's travel marketplace to support this strategy.    

The renewed agreement underscores a shared commitment to the third-party distribution ecosystem and collaborative retail innovation. Regardless of technology, Sabre-connected agencies can offer a rich array of travel choices, which will evolve to include additional price points and omnichannel servicing.  

"We are pleased to extend our full content agreement and value-based commercial model with Sabre," said Jeff Lobl, Managing Director, Distribution Strategy and Agency Sales Programs for Delta Air Lines. "We look forward to collaborating with Sabre to make Delta's NDC technology solution available to all Sabre-connected travel agents to ensure that our customers receive the best possible travel experience tailored to their needs." 

Both Delta Air Lines and Sabre are committed to fostering a travel marketplace that prioritizes innovation and flexibility. This renewed agreement reinforces both companies' shared vision for a future-proof, distribution landscape that accommodates various technologies and content types, and empowers a thriving travel ecosystem. 

"Sabre is delighted to extend our long-standing partnership with Delta Air Lines and to support their NDC journey," said Roshan Mendis, Chief Commercial Officer at Sabre Travel Solutions. "This agreement underscores our commitment to building a comprehensive travel marketplace that equips travel agents with the tools and content they need to excel in today's dynamic travel environment, including the ability to leverage the potential of NDC."

About Sabre Corporation
Sabre Corporation is a software and technology company that takes on the biggest opportunities and solves the most complex challenges in travel. The Company connects travel suppliers and buyers around the globe and across the ecosystem through innovative products and next-generation technology solutions. Sabre harnesses speed, scale and insights to build tomorrow's technology today – empowering airlines, hoteliers, agencies and other partners to retail, distribute and fulfill travel worldwide. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world. For more information visit www.sabre.com.

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Media Contacts:  

Kristin Hays
Kristin.hays@sabre.com 

Heidi Castle
heidi.castle@sabre.com 

Investor Contact:

Brian Roberts 
sabre.investorrelations@sabre.com 

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SOURCE Sabre Corporation

FAQ

What is the significance of Sabre's new agreement with Delta Air Lines?

The new multi-year agreement allows Sabre-connected travel agents to access both traditional EDIFACT and NDC content from Delta Air Lines, enhancing their ability to provide comprehensive travel offers to customers.

How does the Sabre-Delta agreement impact New Distribution Capability (NDC)?

The agreement includes collaboration on integrating NDC content into Sabre's travel marketplace, supporting Delta's selling and servicing transformation strategy which includes NDC.

What benefits does the Sabre-Delta agreement bring to travel agents?

Travel agents connected to Sabre will be able to offer a rich array of travel choices, including additional price points and omnichannel servicing, regardless of the technology used.

How does the Sabre-Delta agreement affect SABR stock?

While the direct impact on SABR stock is not specified, the long-term agreement demonstrates the value of Sabre's distribution channel and may positively influence investor confidence in the company's future prospects.