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Sabre (SABR) Collaborates With Mexico's Calafia Airlines

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Sabre Corporation (SABR - Free Report) recently entered into a distribution partnership with a regional air carrier of Mexico, Calafia Airlines. Per the multi-year deal, the airline company will distribute its flights and services to travel agencies in the United States through Sabre’s travel marketplace, thereby helping it in accelerating revenue growth and reaching new markets.

Under this agreement, Sabre-connected travel agencies in Mexico, Canada, Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Belize, and Argentina will have access to Calafia Airline's contents.

Utilizing Sabre’s Global Distribution System (GDS) platform, the Cabo San Lucas-headquartered air carrier intends to expand its global reach and accelerate recovery of the tourism industry post pandemic. The move will also escalate its revenue growth while offering new and improved personalized experiences to its customer base.

On the other hand, the deal is likely to aid the leading travel-related software and technology provider in expanding its customer share in the Airlines Solutions segment. Sabre has its customer base in above 160 nations with more than 425,000 agency partners globally. It is one of the largest marketplaces in the world that manages approximately $260 billion worth of global travel spending annually.

Sabre has been very proactive lately regarding upgrading its technology to address the changing demands of the travel market and support the recovery of the industry from the pandemic-induced blues. This is driving the company’s customer loyalty and expanding its customer base.

A Pipeline of Deals

Sabre has been winning consecutive deals from major global airlines, hoteliers, and travel agencies of late. Recently, it inked a strategic partnership with Japan-based Hotel Keihan Chain to create tourism opportunities in the Asian country. In November, it entered into a distribution agreement with the second-largest hotel group in China, Huazhu Group, to expand global reach for its upscale and luxury hotel brands and aid in the latter’s global growth strategy.

In October, Sabre signed a new, multi-year, worldwide distribution agreement with one of the world’s largest international airlines, Emirates, to provide Sabre-connected travel buyers and agencies access to Emirates’ content, through GDS.

Prior to that, in September last week, Sabre strengthened its partnership with China-based Shiji Distribution Solutions to offer hoteliers broader access to the Chinese travel market. Before that, it extended partnership with Etihad Airways to provide network planning and revenue management solutions.

It is worth mentioning that even though its latest financial results reflect significant year-over-year improvement in gross bookings and reservation-system transactions, Sabre refrained from issuing an outlook citing uncertainty about the impact of the pandemic on its financials.

During the fourth quarter, Sabre usually suffers from seasonality in the travel industry. Revenues from travel bookings decline substantially during the quarter, especially in December, as holiday-related bookings are done in the earlier part of the year. Business travels also decline during the month, hence, overall revenues go down.

Zacks Rank & Stocks to Consider

Sabre currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector are Advanced Micro Devices (AMD - Free Report) , Qualcomm (QCOM - Free Report) , and TD SYNNEX (SNX - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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