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In the final quarter of 2023, there was a noticeable deceleration in air bookings made through Sabre’s global distribution system, partially attributed to a downturn in corporate travel. However, executives have observed a reversal of this trend in the initial weeks of 2024, indicating a resurgence in corporate travel.

Sabre recorded a total of 65.3 million GDS air bookings during the quarter, marking a slight increase of 1 percent from the same period in 2022. This growth was modest in comparison to the 11 percent year-over-year increase observed in the third quarter.

Furthermore, Sabre’s market share in industry air bookings experienced a minor decline, settling at 33.2 percent in the fourth quarter, down from 34.1 percent in the preceding quarter. During an earnings call, CEO Kurt Ekert attributed the reduction primarily to a temporary decrease in corporate travel, coupled with the expected seasonal dip in corporate travel activities.

Ekert highlighted that corporate travel constitutes a significant segment of Sabre’s clientele and bookings, more so than in the wider GDS industry. He noted an early 2024 resurgence in corporate bookings, which has positively influenced Sabre’s market share in the GDS sector.

Looking ahead, Ekert expressed optimism about various growth avenues, particularly the ongoing recovery of long-haul international flights, which have lagged behind in the post-pandemic environment compared to short-haul international and domestic flights.

Ekert also touched upon a rise in direct bookings made with airlines by online travel agencies, a trend that could be linked to the New Distribution Capability (NDC), which has slightly impacted Sabre’s volume. Nevertheless, he sees potential for Sabre to regain some of this business as online travel agencies (OTAs) look to Sabre for assistance with automation, shopping, and caching solutions to address their content, retailing, and operational requirements.

Non-air bookings via Sabre’s GDS in the fourth quarter witnessed a 14 percent year-over-year increase, reaching 12.9 million. The quarter’s Total Travel Solutions revenue rose by 8 percent year over year to $621.9 million, with Sabre’s average booking fee per quarter climbing 11 percent year over year to $6.09.

This shift in booking trends and Sabre’s strategic response could significantly impact tourism, particularly in the corporate sector. The resurgence in corporate travel bookings at the onset of 2024 suggests a revitalization of business travel, which is crucial for the travel industry’s overall recovery post-pandemic. Sabre’s efforts to adapt to changes in booking practices and to explore new growth opportunities are likely to influence the broader travel and tourism landscape, potentially driving increased travel activity and contributing to the sector’s continued recovery.

The post Sabre sees brief dip in corporate travel for Q4 appeared first on Travel And Tour World.

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