Sabre, a global technology company that provides software and data solutions for the travel industry, has seen a decline in air bookings in its global distribution system in the second quarter. Despite an overall decrease of 1% year over year to 76.2 million bookings, Sabre CEO Kurt Ekert highlighted a positive trend in corporate bookings. According to Ekert, corporate travel volume at Sabre increased between 2% and 3% year over year in the quarter, indicating a shift in the company’s client base.
The decline in air bookings can be attributed to several factors, including challenges in group bookings in Asia and Latin America, as well as a decrease in leisure intermediary bookings. These soft spots in Sabre’s distribution system have contributed to the overall decrease in air bookings. However, Ekert remains optimistic about the company’s future growth prospects, citing recent commercial wins and easier year-over-year comparisons as reasons for expected growth in the second half of the year.
Despite the decline in air bookings, total bookings in Sabre increased by 1% year over year to 90.1 million, driven by a significant increase in lodging, ground, and sea bookings. Hotel bookings saw a strong growth of 12% in the second quarter, contributing to the overall increase in total bookings. Additionally, the hotel attachment rate to air bookings increased by 4 percentage points to 33%, indicating a growing trend of combining hotel stays with air travel bookings.
Sabre Travel Solutions revenue rose by 4% to $695.1 million, while Hospitality Solutions revenue increased by 9% to $83.2 million, resulting in a total revenue growth of 4% to $767.2 million. Despite the revenue growth, Sabre reported a net loss of $69.8 million for the quarter, an improvement from the $129.3 million net loss in the same period last year. Operating income also showed improvement, reaching $60.9 million compared to an operating loss of $42.2 million in the previous year.
Sabre’s global distribution system has faced challenges in air bookings but has shown resilience through growth in other sectors such as lodging, ground, and sea bookings. The company’s focus on corporate travel and strategic commercial wins provide a positive outlook for future growth, despite the current softness in certain booking categories. As Sabre continues to adapt to changing market dynamics, its ability to innovate and expand its service offerings will be key to sustaining long-term growth and profitability.